If you’ve seen any car commercial in the past fifteen years, you will immediately recall images of a good-looking, youthful driver on a long open road. Images of a young person driving a car through twists and turns up mountain paths, or navigating through trees in the forest, or conquering rugged sand dunes were commonplace. This implied that with your own vehicle, you are free to go wherever you want, whenever you want to. The limitations of only being able to walk around were lifted away, allowing you to go anywhere your heart desires, all thanks to having wheels.
Of course, most of this imagery is only fantasy. The truth is that it costs a lot to own a car. Traffic can be so congested at times that you feel anything but free. Since the costs of owning and maintaining a vehicle are only getting higher, the American automobile freedom fantasy is dwindling down pretty fast. A new study shows that younger adults, so-called millennials, no longer romanticize the idea of owning a vehicle and taking off down the road with a carefree attitude.
Millennials Have Big Purchasing Power
Millennials are currently the most populous generation in the United States, with almost 76 million individuals spending over $200 billion per year. However, with all this increased spending, individual car purchases are going down with this age group. They are buying much fewer cars than the generations that came before them. Between 2007 and 2014, the number of millennials purchasing cars dropped by over 30%.
That not only affects car manufacturers but insurance carriers. According to GoodtoGoInsurance.org part of the reason why so many car insurance companies are merging is because of declining revenue.
A scientific study is underway to research and explain the truth behind why millennials don’t care as much about car ownership. Is it really for financial reasons, or do they simply not want or need a car? This study was sent by survey to almost 300 millennials in different regions of the United States to track their views on car ownership.
The results were underwhelming. It was a mix of responses, ranging from financial reasons to “I just don’t want a car.” There is a strong belief that the desire to purchase a vehicle will go up as millennials age and have kids, but still not as much as previous generations did when they got older.
One of the big reasons for this drop is millennials who are not into cars and all the costs that go into them, like expensive insurance policies.
Millennials View Car Ownership as a Big Hassle
More studies show increased unhappiness with car ownership and the general responsibilities of buying a car. A recent survey of over 1000 consumers stated that most people do not enjoy the time they have to spend in the car.
Millennials largely believe that an automobile is not worth the money, especially since you have to spend a lot on maintenance and gas. Another study showed that the average person spends about 335 hours per year in their car, which is three times as much as the average amount of hours spent on vacation.
59% of millennials also say they would rather do more productive tasks than spending time driving. Clearly, vehicle ownership is not nearly as enjoyed as it used to be.
The perception is different for road trips. Most drivers agree that going on a long drive, looking at beautiful countryside, is much different than spending hours in gridlock during the daily commute.
Baby Boomers Still Love their Cars
Baby boomers share a stark opposition to the viewpoint that millennials share. Instead, they say they enjoy most of the time spent on the road. They also believe they are very good drivers, and especially more responsible behind the wheel than young motorists, who are often texting and driving. However, they drive the least out of all generations, since they are mostly of retirement age.
The younger the generations get, the less friendly the attitude towards cars becomes. Many millennials say that they can easily live without having a car. The average millennial household has 1.5 cars, compared to 1.7 from older generations.
More Millennials are Using Rideshare Services
This goes hand in hand with the next statistic: Millennials are more likely to use ridesharing services such as Lyft and Uber than older adults.
Despite all these statistics, it doesn’t mean that millennials aren’t buying cars. The National Automobile Dealers Association states that young adults are buying cars now at a higher rate than they did a few years ago. This simply means that young adults have been delaying their decision to buy a car, rather than buying one at a much younger age as adults did in the past.
Some millennials only use their cars on weekends and therefore don’t need to spend as much money on gas, repairs and even insurance. Surprisingly, any concerns about the environmental impact that automobiles have was not an issue brought up by anyone.
There is a shift in our culture that is changing the way we view transportation. If you live in the city, you are better off taking public transportation or using a rideshare app instead of having to manage the hassles of car ownership. The good news is this new mentality may help to keep the roads clean and clear up some of the congestion of daily commutes.
