Gen Y doesn't buy cars: study
Kids these days. That’s the phrase on the mind of automakers looking at recent trends showing the lack of enthusiasm young people have for purchasing a car. According a recent report by CNW Group, only 27 percent of youths aged 21-34 purchase a new car, compared to 28 percent in 1985. For drivers under the age of 19, the numbers are even worse, having dropped down two thirds from only 1998.
So what’s at the root of young people’s apathy? There are plenty of theories, everything ranging from the economy to mounting student debts to low-paying jobs straight out of school. The answer is most likely a combination of factors.
For young adults coming out of school, many of who have incurred healthy debts, the idea of buying a car and adding to their debt leaves a bad taste in their mouths. Paying off student debts is seen as a priority, while owning a new car is a luxury. Add into the equation low wages and high insurance prices, and you’ve got a potent mix of reasons not to buy a new car.