People under 34 are starting to buy cars again and the prevailing notion that they are too absorbed in Facebook to care about driving is false, said auto makers Tuesday.
The problem has had more to do with soaring student loans and lack of money, a product of the Great Recession. And that is starting to turn around.
The rate of car buying for people under 34 is gradually increasing, said the AP on findings announced Tuesday at a Center of Automotive Research conference near Traverse City, MI.
Five years ago, drivers under 34 accounted for more than 14 percent of the new car market. That fell to 10.5 percent in 2011, said Polk. But the figure climbed back up to 12.3 percent last year.
General Motors chief economist said he sees no evidence that young people are actually losing interest in cars. But many have had trouble getting jobs and have been forced to live with their parents.
People 18 to 34 lost 44 percent of their net worth in the last decade while student loan balances have nearly doubled to $1 trillion, said analysts.
“The younger buyer is broke,” summed up a head of forecasting for Polk, Anthony Pratt. Young people were hit hardest by the recession, which took a toll on big purchases like automobiles.
Findings at the conference, however, said young car buyers are showing a slow, uneven return to the market.
This contrasts with an AAA study recently released that found that kids are less interested in driving than in the past. Also a story here notes that young people’s love affair with cars peaked in 1985.
In a second piece of good news for the car audio aftermarket, people continue to hold onto their cars longer. See story here.
Source: CBS
Photo: Dukewii via IASCA on Facebook
They know how to buy its from online retailers that don’t have markup, and no service to offer.
As well lack knowledge about what products to get that best fit the consumers needs, or should I say most bang for the buck.
Then they try and install this on there own.
39 years ago when I was 15 I knew everything, honestly as I got older I started to forget a lot about what I though I knew and started to learn stuff for real. I made a lot of mistakes on the way.
Problem is todays cars are not so much your DIY projects they were a few years ago. One mistake and you have caused major problems with your car. Some of them bad enough to cost you your life, Ask any auto maker today that’s paid or had to recall a auto line for runaway gas pedal or none operating steering component’s.
I’m starting to wonder if anyone other then the manufacture should add anything onto todays cars as complex as the Electronics systems have become. Also Why did we find the need to stop using mechanical parts for steering, and gas pedal’s? And change to electronic systems that can and have failed.
Why is it your AC and radio have to be one display? How come airbag systems are no longer Yellow wiring? Why is it your key switch is supplied with 22 ga wire and your key switch has some Body control module running it?
The mechanical systems worked for over a 100 years without a lot of problems, and now we ask why our cars cost so much? How can this save fuel any better? Also this might be why service is so much for a new car today!
This is very true. Many of the young buyers are needing parents help (either cosigning the loan or contributing to the down payment). It also means that they are buying more base models lacking in the tech they really want. Another great opportunity for the aftermarket…. IF the aftermarket figures out how to get them to buy.