Hoovey689

iTrader: (16)

Baby boomers now buying more new cars than their children

Could it be that the automobile's luster has faded over the years, that cars have become less synonymous with youth and freedom to Generation Y? A study by the University of Michigan Transportation Research Institute clearly says yes, but that's not the whole story, Bloomberg reports. Though young people are buying fewer new cars, baby boomers, the crowd born between 1946 and 1964, are buying more new cars.

People aged 55-64 had the highest rate of new-vehicle purchases in 2011, according to the study, and they've become the age group most likely to buy a new car. Just four years ago, the population aged 35-44 was most likely to buy a new car, which goes to show how much the auto industry and its customer base has changed since the recession in 2008. But the decline in miles driven by Americans started in 2004, according to another study by the University of Michigan, much of which has been related to lifestyle choices, such as urban living and public transit.

"The car was a phenomenon of the 20th century," says John Wolkonowicz, an automotive historian and former Ford product planner. Young people aren't flocking to buy used cars, either. The data of registered drivers in the US shows that they're not just avoiding new car purchases, there's a growing percentage of them who legally can't drive. In 2011, only 79 percent of drivers aged 20-24 had driver licenses, compared with 92 percent in 1983. Conversely, the percentage of the population aged 60-64 with driver licenses is 93 percent today, but was 84 percent in 1983.

So what can an automaker do? Marketing hasn't helped sway young people, as vehicles like the Honda Element, which was aimed at 25-year-olds, were bought more by baby boomers, says John Morel, a market researcher for Honda. "But your propensity to buy a car at 25 is roughly a quarter of what it is at 65," he relates. "By definition, very few cars sell in high volume to 20-somethings."

http://www.autoblog.com/2013/08/07/b...heir-children/

I8ABMR

This is bad news for the automakers. I have read many reports that show that kids today don't care as much about cars ( cool to be green for gen Y). Mix this with the fact that these kids are going to be broke when they get out of college and the auto industry has some issues o its hands. I think this maybe be one of the many motivating factors to go green ( plus all of the laws and new standards) . If they can make cars efficient , affordable, and desirable it will work, but that a tall order

Aron9000

Suprise suprise. Young people are broke and can't afford new cars. Heck I don't think I'd buy a new car unless I were independently wealthy, and I'm 29. Nothing in that under $30,000 bracket has much appeal to me except maybe a couple of sports cars(Subie BRZ and Miata). V8 Mustangs and Camaros are more than that new, and I just can't get excited about spending that much $$$$$ on some boring 4 cylinder commuter car.

mmarshall

There are, of course, several reasons for young kids not buying new cars............income, school-duties, fascination with electronic devices, computer-games, not having a drivers' license, and, of course, Mom and Dad driving them everywhere they need to go in the famliy minivan. But one big one seems to be overlooked by the article.....politics. Today's politically correct eco-sensitive environment has taught kids (and many of them seem to be believing it) that cars are somehow evil and a threat to the planet's future, even though the average new car today (even non-hybrids) emits less than 1% of the emissions of the cars I grew up with 40-50 years ago.

96SC4

iTrader: (2)

^^^ don't forget public transportation.
Less people ages 20-24 have licenses b/c of public transportation.
And that's not a bad thing.

mmarshall

Well, that's just it. Today Mom amd Dad, to an extent, have BECOME public transportation for their kids.........just like back in the 50s and 60s when they were hauling us Baby-Boomer Kiddies around in big full-size V8 station-wagons instead of minivans.

Only, back then, you got in your car and actually WENT somewhere. Today, you get in your car and sit in gridlock.

-J-P-L-

Yeah, the majority of 20 somethings can't afford a new car. The prospect of even buying a house is many years away for most young people, unfortunately will never happen for a greater percentage of people in the future. So car buying takes a back seat.

One thing to note is that with such a high percentage of young people in college, many of them don't need a car while attending college, particularly when living on campus. 30, 40 years ago, more people had gone straight into a career after high school, thus needing a car.

I for one could never imagine life without a car. A car = freedom. I'd feel imprisoned without one.

mmarshall

That right there is part of the problem...although it is a subject that we already have discussed in other threads/forums rather than in this one. Too many American jobs today (particularly those not reqiring a college degree) simply either don't pay enough, or are gone to other countries. In addition, (and I saw a lot of this in 30+ years of government service) many job descriptions/openings have a degree (or X-number of college-credits in a certain field) listed as a formal requirement for that position, when, in fact, the degree or credit-hours are NOT truly required. But companies and agencies draw up the positions that way to make them (and the company/agency managers) LOOK more important than they really are. But, in fact, as a practical matter, many of those jobs are actually OJT, despite being advertised otherwise.

So.....how does this involve young people buying (or not buying) a car? Simple. The more money one spends on college courses that are not truly required for the job they want (despite slickly-worded job qualifications to the contrary), the less, of course, is left over for a new-car purchase. The amount of Federal student-loan debt, today, is becoming enormous.

spwolf

due to credit scores, i would not be surprised that it turns out that baboy boomers are buying cars for their kids these days.

SteVTEC

They're also seeing a pretty large shift in population from the suburbs and towards major urban centers. Not surprised. Kids tend to reject various things about their parents, and one of those things might be living relatively far away from work and commuting long distances. And these days I wouldn't even consider that rejecting parents but rather practicality! Yeah you said it mmarshall, traffic is horrendous these days, as is the price of gas. Who would want to deal with all that if they had a fresh start right out of college? If you go without a car, that frees up a lot of money for the more expensive living arrangements closer to urban centers, and public transportation becomes viable. Plenty of "wheels when you need them" companies like zipcar and others are popping up too, specifically for these people, assuming they have driver's licenses!

nthach

I'm one of those guys here

For me, living close to work and not having to drive everywhere is nice. But I also have a 1LS I will keep for as long as I can until I can afford a "new" car. I know some people who bought cars but they're in a mountain of debt as well - and debt is a bedfellow of people my age as well - student loan and credit card debt are are pretty high levels if you ask me.