Millennials Postpone Car Purchases
Young people are opting for public transit over buying their own wheels.
Maybe it's more efficient.
Do you remember how anxious you were to get your first car? Do you remember how you worked and scrimped and saved and perhaps pleaded with parents for a loan to help you close in on the dollars you needed to buy those wheels?
Do you remember how well you took care of it? Or how much work went into making it "road-worthy?"
(I should note here that my first car was a ’68 Mercury Cougar XR-7, British racing green; 29,000 mi. Purchased in 1978 for $500.)
[SEE: Editorial Cartoons on Gas Prices]
Oddly enough, the young men and women of the millennial generation – those at the age where they would presumably be looking forward to purchasing their first vehicle – are reportedly much less enamored with reaching that milestone than their parents were.
According to “Who’s On Board: 2014 Mobility Attitudes Survey,” a study cited in a recent report from the Atlantic's CityLab, millennials expressed disproportionately mass transit-friendly attitudes, even as their elders are continuing to reject that option. In the words of the researchers, “The Millennial generation seems to be defying its sheltered, suburban upbringing by delaying the acquisition of a driver’s license and choosing transit. Meanwhile, Baby Boomers, who grew up using transit and were encouraged to do so, are defying their upbringing by avoiding transit now.”
[READ: Nothing Golden About This Hidden Gas Tax]
Sarah Goodyear at The Atlantic writes, “In the 'traditional cities,' 43 percent of people under 30 reported riding transit at least once a week, compared with 12 percent of those between 30 and 60 and just 9 percent of those over 60. Even in regions with much lower overall ridership, the trend of young people using transit more held true: 20 percent of those under 30 in the South say they ride transit once a week, compared with 10 percent of those 30 to 60 and 2 percent of those over 60.”
And millennials’ disinterest in vehicle ownership, believe it or not, is being added to the pile of factors that economists and analysts say contribute to the downward momentum of crude oil & gasoline prices that dominates today’s headlines.
Understandably, skeptics should ask: "Isn’t that a bit of a stretch?" But if you consider that global and domestic fuel production this year outpaces global and domestic demand because of the underlying weakness of economies, you can see how this impacts our kids.
[SEE: Political Cartoons on the Economy]
Many of those well-educated millennials are having difficulty finding the full-time entry level job for which their college education has prepared them. If their job prospects are discouraging and they’re saddled with college debt, it’s logical then if they’re less than interested in car ownership and the added financial burden of monthly payments, gasoline, maintenance and auto insurance. If they’re postponing vehicle purchases then their logic should be applauded. Thankfully, the dollars you’ve invested in their education are actually paying off. But let’s hope their opportunity knocks soon.
