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Why Don't Young Americans Buy Cars? (The Atlantic)

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Why Don't Young Americans Buy Cars? (The Atlantic)

Old 03-26-12, 08:10 AM
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Why Don't Young Americans Buy Cars? (The Atlantic)

For your reading pleasure:

https://www.theatlantic.com/business/...y-cars/255001/
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Old 03-26-12, 09:08 AM
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I stopped reading after the irrelevant and misleading statistics in this paragraph:

"The Times notes that less than half of potential drivers age 19 or younger had a license in 2008, down from nearly two-thirds in 1998. The fraction of 20-to-24-year-olds with a license has also dropped. And according to CNW research, adults between the ages of 21 and 34 buy just 27 percent of all new vehicles sold in America, a far cry from the peak of 38 percent in 1985."

Apparently 95% of journalists have never taken a statistics class. None of those statistics prove that people in the age group discussed are buying fewer vehicles than they were at any point in the past. They prove that 1) a smaller percentage have licenses, and 2) 21 to 27 year old adults buy a smaller percentage of NEW vehicles in the U.S. than they did in 1985. Without more information, we have no way of knowing, or even reliably extrapolating a valid conclusion, that those young adults are buying fewer cars than before.

Bad journalist. Bad. Go to your crate.
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Old 03-26-12, 10:07 AM
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Originally Posted by billyymc
I stopped reading after the irrelevant and misleading statistics in this paragraph:

"The Times notes that less than half of potential drivers age 19 or younger had a license in 2008, down from nearly two-thirds in 1998. The fraction of 20-to-24-year-olds with a license has also dropped. And according to CNW research, adults between the ages of 21 and 34 buy just 27 percent of all new vehicles sold in America, a far cry from the peak of 38 percent in 1985."

Apparently 95% of journalists have never taken a statistics class. None of those statistics prove that people in the age group discussed are buying fewer vehicles than they were at any point in the past. They prove that 1) a smaller percentage have licenses, and 2) 21 to 27 year old adults buy a smaller percentage of NEW vehicles in the U.S. than they did in 1985. Without more information, we have no way of knowing, or even reliably extrapolating a valid conclusion, that those young adults are buying fewer cars than before.

Bad journalist. Bad. Go to your crate.
I'll grant your second point but not your first. Doesn't the fact that fewer have licenses indicate that fewer are driving? That's quite a large drop, from "less than half of potential drivers age 19 or younger had a license in 2008, down from nearly two-thirds in 1998." Also the fact that car marketers are worried about the trend would indicate there's something to it.
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Old 03-26-12, 10:27 AM
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It costs more to get a drivers license now in some states. My son had to take a drivers ed class as a license requirement. 600 bucks.
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Old 03-26-12, 10:32 AM
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Not only the mandatory drivers ed class, but the hours required (60?) behind the wheel for a provisional, then a year driving clean, then a full license is a pain.
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Old 03-26-12, 10:40 AM
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I can only hope that there are fewer people driving. Though there might be a lower percentage of drivers does it mean there are fewer drivers? If the population keeps growing it might mean that there are still more motor vehicles on the roads.
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Old 03-26-12, 10:45 AM
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Originally Posted by Roody
I'll grant your second point but not your first. Doesn't the fact that fewer have licenses indicate that fewer are driving?
I believe the thrust of the article is that fewer are buying NEW cars. Not that fewer are driving, or even that fewer own cars. But fewer are buying NEW cars.

How many "NEW" cars have 16 to 19 year olds ever bought? And notice in the 20 to 24 year old group they didn't quantify the decrease in % of those who had licenses, just that it also decreased.

And finally - so in 1985 21 to 34 year olds bought 38% of "NEW" cars according to the stats, and that number is now 27% of "NEW" cars. Do you notice I"m emphasizing "NEW"? That's because the used car market in 1985 was nothing like it is today, with a constant and huge supply of off-program (lease, rental fleet) cars coming on to the market which are probably very attractive to buyers in that age group. So of course they aren't buying "NEW" cars -they are buying used. But the auto industry set themselves up for that.

No, these statistics are completely irrelevant and misleading, and don't illustrate the point even one bit. I would guess that if you look at the % of people in that age group who OWN cars now versus the % who owned cars in 1985, the % now is much much higher.
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Old 03-27-12, 06:37 PM
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I have a 17-y-o nephew, who talks to me occasionally about wanting his license and a car; he readily takes the bus (school and public) for his 2-location schooling, and will go with me when I need to use public transit. I believe he just wants the independence to go when & where he pleases. He already knows he needs a J.O.B. to pay his way on that, but still 'secretly' expects the car to come first. Sorry, my dude, but you WILL be disappointed.

I remember when I was his age; already HAD the license, the car, the job to pay for it, and had started smoking already. It was simpler then. Get your license at 16 & 6 months, insurance wasn't required (or all that expensive, yes, I had it), and gas was $.50/gallon (leaded regular, LOL -- and as a reference, cigarettes were the same price per pack!). NOW, there are all sorts of hoops to jump through for kids. My daughter only talks about "maybe it'll come in handy to have" a license, but she'd rather pedal. (She's 14.)

The viewpoints represented in the article for younger folks isn't something I see a lot of here; this town is still too car-centric. Wish it would change.
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Old 03-28-12, 02:43 PM
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Originally Posted by dingster1
Not only the mandatory drivers ed class, but the hours required (60?) behind the wheel for a provisional, then a year driving clean, then a full license is a pain.
Good. That's the way it's supposed to be.
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Old 03-28-12, 08:41 PM
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Originally Posted by billyymc
NOo, these statistics are completely irrelevant and misleading, and don't illustrate the point even one bit. I would guess that if you look at the % of people in that age group who OWN cars now versus the % who owned cars in 1985, the % now is much much higher.
This isn't the first time a study came to same conclusion as the Atlantic. It isn't just the new cars that 20 years olds aren't buying that worry the auto manufacturers. It's the fact they are delaying in getting their driver's license or not getting them at all that concerns the Big Three. No question the economy and the lack of an inexpensive used car market that causing this change but only time will tell.



https://adage.com/article/digital/dig...ulture/144155/
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Old 03-29-12, 08:23 AM
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Originally Posted by billyymc
I believe the thrust of the article is that fewer are buying NEW cars. Not that fewer are driving, or even that fewer own cars. But fewer are buying NEW cars.

How many "NEW" cars have 16 to 19 year olds ever bought? And notice in the 20 to 24 year old group they didn't quantify the decrease in % of those who had licenses, just that it also decreased.

And finally - so in 1985 21 to 34 year olds bought 38% of "NEW" cars according to the stats, and that number is now 27% of "NEW" cars. Do you notice I"m emphasizing "NEW"? That's because the used car market in 1985 was nothing like it is today, with a constant and huge supply of off-program (lease, rental fleet) cars coming on to the market which are probably very attractive to buyers in that age group. So of course they aren't buying "NEW" cars -they are buying used. But the auto industry set themselves up for that.

No, these statistics are completely irrelevant and misleading, and don't illustrate the point even one bit. I would guess that if you look at the % of people in that age group who OWN cars now versus the % who owned cars in 1985, the % now is much much higher.
It's kinda strange that you would reject some figures and statistics, then replace them with your own "guess." Are we supposed to trust that your groundless speculation is more valid than even the worst statistics?
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Old 03-29-12, 08:41 AM
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The culture has changed, ain't many teen-twenty-somethings drooling over IROC-Z Camaros. My 3 kids in that age range look at cars as a necessary evil and at $4.50 a gallon just what fool is cruising for pleasure? Top Gear has a dying audience. My 2 cents.
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Old 03-29-12, 09:41 AM
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Sadly, I can't help but wonder if you factor in decreased buying power of this age group due to rapidly rising education costs, as well as a miserable job market, sums up to a lot of young adults simply not having the same opportunities their parents used to have at that age.
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Old 03-29-12, 01:31 PM
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Old 03-29-12, 03:40 PM
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Originally Posted by Llamero
Sadly, I can't help but wonder if you factor in decreased buying power of this age group due to rapidly rising education costs, as well as a miserable job market, sums up to a lot of young adults simply not having the same opportunities their parents used to have at that age.
I agree--both actual lower buying power, combined with tighter credit right now that means you have to have a higher credit score to buy a new car (or a house for that matter--I've read that young folks are also buying fewer houses than they did a few years ago).

I also think many young people have a belief that the future is pretty uncertain, and buying espensive items on credit is a poor financial strategy at this time. Many would rather invest in computers, cell phones and so on. I met one young guy who said he has more than $10,000 worth of electronic studio equipment, even though he never plans to be a professional musician.
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Old 03-29-12, 04:36 PM
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Maybe they're getting smarter? I didn't get a license until I was 20 - almost 21 (c. 1980). Didn't need one, didn't want one. It didn't make sense to me to incur all the expenses of a car in order to be able to drive to a job to pay for the car! I had a perfectly good school bus in HS that took me to school and back - then when I went to community college, I rode with my mother; the college was on the way to her job. Why pay for a car until you just absolutely have to? Dumb.
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Old 03-29-12, 06:39 PM
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Originally Posted by Llamero
Sadly, I can't help but wonder if you factor in decreased buying power of this age group due to rapidly rising education costs, as well as a miserable job market, sums up to a lot of young adults simply not having the same opportunities their parents used to have at that age.
I was reading today a young girl with over 200K in student loans! She's in her early 20's but will be in her 40's when the loans are paid. There's no question that skyrocking cost of college are making it very diffult to pay student loans, rent and car loans at the same time.

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Old 03-29-12, 09:23 PM
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Originally Posted by dingster1
Not only the mandatory drivers ed class, but the hours required (60?) behind the wheel for a provisional, then a year driving clean, then a full license is a pain.
If my now-twenty-one-year-old son had wanted to get a driver's license, he would still be waiting to get those sixty hours in. I think I have driven about half that many hours over the past five years, and those were mostly to take a disabled friend out of town to get medical treatments.
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Old 03-30-12, 04:46 PM
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Originally Posted by B. Carfree
If my now-twenty-one-year-old son had wanted to get a driver's license, he would still be waiting to get those sixty hours in. I think I have driven about half that many hours over the past five years, and those were mostly to take a disabled friend out of town to get medical treatments.
Good point. If I had a 16 year old, he/she would have to first save enough money to buy a car, since I'm not in the market for one. Then the poor kid would prpbably have to pay me hard cash to get me to sit in a car when I could be out riding a bike instead.
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Old 03-31-12, 05:49 AM
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Originally Posted by Dahon.Steve
I was reading today a young girl with over 200K in student loans! She's in her early 20's but will be in her 40's when the loans are paid. There's no question that skyrocking costs of college are making it very diffult to pay student loans, rent and car loans at the same time.
This is absolutely a major reason why young people can't afford a car. That, and the fact that fewer people, even those with university educations, will get very well paying jobs. Once they pay their rent, food and student loans, all they have money for at that point is a cool i-phone.
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Old 03-31-12, 08:38 AM
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Originally Posted by cycleobsidian
This is absolutely a major reason why young people can't afford a car. That, and the fact that fewer people, even those with university educations, will get very well paying jobs. Once they pay their rent, food and student loans, all they have money for at that point is a cool i-phone.
That's true. Where I work, we have employees with bachelor's degrees from Harvard and Stanford, plus one with a master's degree in computer science. All three were hired for entry level jobs with starting pay rates of $10-12/hour. This is in an area with one of the highest costs of living in the US.
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Old 04-01-12, 04:40 PM
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Originally Posted by FrenchFit
The culture has changed, ain't many teen-twenty-somethings drooling over IROC-Z Camaros. My 3 kids in that age range look at cars as a necessary evil and at $4.50 a gallon just what fool is cruising for pleasure? Top Gear has a dying audience. My 2 cents.
I am glad to hear Top Gear has a dying audience. I used to be a car enthusiast myself until my wife and I move to the city.

Culture shift is a big factor these days. I have two nephews in high school and they are asking my opinion on what kind of bikes to get. I was surprised! I asked the elder one why is he into bikes out of nowhere (he's into skateboarding) and he replied that he doesn't like to sit in a car to go everywhere. And both of them live in the suburbs. It is just not the youngy. There are plenty of tech millionaires living in SF and they don't even own any car. I know this guy that works for Google, owns a Victorian home right smack on Valencia St. (a green wave boulevard for cycling-best in town), and he renovated his garage to fit his custom bikes.

Americans are waking up that driving is not as fun as walking, cycling, and/or taking public transit not to mention they hear all the horrible news about climate change and corporate greed. Think it this way. Wouldn't be so much fun to ride the mass transit together with bunch of friends (more than 5 which is limited to a car) and come home drunk and care-free. Or better yet, get a group ride together to a live concert/bar or where-ever maybe. That is how I see it living in the city. We are slowly learning the European way.

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Old 04-01-12, 05:42 PM
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Originally Posted by ubringliten
I am glad to hear Top Gear has a dying audience. I used to be a car enthusiast myself until my wife and I move to the city.

Culture shift is a big factor these days. I have two nephews in high school and they are asking my opinion on what kind of bikes to get. I was surprised! I asked the elder one why is he into bikes out of nowhere (he's into skateboarding) and he replied that he doesn't like to sit in a car to go everywhere. And both of them live in the suburbs. It is just not the youngy. There are plenty of tech millionaires living in SF and they don't even own any car. I know this guy that works for Google, owns a Victorian home right smack on Valencia St. (a green wave boulevard for cycling-best in town), and he renovated his garage to fit his custom bikes.

Americans are waking up that driving is not as fun as walking, cycling, and/or taking public transit not to mention they hear all the horrible news about climate change and corporate greed. Think it this way. Wouldn't be so much fun to ride the mass transit together with bunch of friends (more than 5 which is limited to a car) and come home drunk and care-free. Or better yet, get a group ride together to a live concert/bar or where-ever maybe. That is how I see it living in the city. We are slowly learning the European way.
^this^ is music to my ears.
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Old 04-01-12, 08:55 PM
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I read an article earlier about another facet of this subject; today's young adults are more and more disdainful of cars because of an interesting viewpoint:

Car ownership is, besides an anchor on one's life and finances, an item of micromanaging and control. Riding the BUS is seen as liberating, because they can be passively transported, which gives them the opportunity to further plan and refine their day and evening. There is no stressful rush to work or appointments in the car due to lazily waiting until the last minute.

Abandon the need to 'control', adapt to the bus schedule's realities, and save what would otherwise be VERY shaky finances.

(OT: did anyone see the article out of Milwaukee today? For April Fool, the local cycling club DEMANDED that AUTOS be banned from the city streets! "We're tired of 'Share the Road'.......")
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Old 04-02-12, 10:33 AM
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Don't know what planet you guys are living on, but the fact is kids aren't buying cars because they can't afford them, not because they suddenly have a trust issue with GM.
Nobody likes public transit, and very few people want to commute by bike. This is the reality. The statistics prove it, and I haven't seen a rise in either bike commuting or public transit ridership.
If/when gas prices go down and/or credit is easier to get, we'll see other trends.
In the meantime, look at China and tell me people aren't interested in driving their cars.
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