Discover why young drivers drive far less than previous generations.
Selling cars to young adults under 30 is proving to be a real challenge for automakers. In contrast to their elders, Generation Y-ers own fewer cars and do not drive much. They’re likely to see vehicles as a source of pollution, not as a sex or status symbol.
Drivers aged 21 to 30 now account for 14% of miles driven, down from 21% in 1995.
They are more apt to use mass transit to work and use automobile sharing companies for longer travels. And car sharing options are increasing, with car rental companies shifting into the market, making it handy for young men and women to rent with hourly charges and easy car insurance. Connect by Hertz, for instance, is rolling out its car sharing services within the New York metropolitan area, with plans to ultimately expand them to around forty college campuses across the country.
The movement won’t trigger automobile sales to tank, obviously, but the generational move doesn’t bode well for manufacturers and car dealers, which for many years have counted on wooing young new motorists to their brands in hopes of cementing life-time client connections.
Gen Yers are a big potential market: At 80 million strong, they represent the biggest generation in U.S. history. Baby boomers are a close 2nd, but a huge number of them begin turning 65 next year — an age at which car purchases drop off dramatically.
It’s a matter of mind-set far more than cost, says William Draves, president of Learning Resources Network, an association that analyses consumer trends and provides learning and training services.
This generation concentrates its buying on laptops, BlackBerrys, popular music and software programs and views driving a number of hours by automobile a huge productivity waste when they can work utilizing PDAs while taking the bus and train, says Draves.
Furthermore, in survey after survey, Gen Y-ers state that they believe cars are harming to the environment. Even hybrid electric vehicles don’t seem to be changing young consumers attitudes a lot.
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