https://www.wsj.com/articles/driving-the-kids-are-so-over-it-11555732810
If teenagers are any guide, Americans' love affair with the automobile may no longer be something car makers can bank on.
The percentage of teens with a driver's license has tumbled in the last few decades and more young people are delaying purchasing their first car—if buying one at all, say analysts, generational experts and car industry executives. About a quarter of 16-year-olds had a driver's license in 2017, a sharp decline from nearly half in 1983, according to an analysis of licensing data by transportation researcher Michael Sivak.
Whereas a driver's license once was a symbol of freedom, teenagers are reaching their driving age at a time when most have access to ride-hailing services such as Uber and Lyft to shuttle them around town. At the same time, social media and video chat let them hang out with friends without actually leaving the house.
When they reach their 20s, more are moving to big cities with mass transit, where owning a car is neither necessary nor practical. And of those who do buy a car, many more than in older generations opt for a used one, according to J.D. Power.
One reason for that is rising new-vehicle prices. Detroit has jettisoned many of their lower-priced compact and subcompact cars like the Ford Fiesta and Chevy Cruze that have traditionally been starter cars for young buyers. For the auto makers, the strategy makes sense: Sport-utility vehicles or trucks have steadily become more popular over the past decade, and also have much better profit margins.
Now, a new mind-set among many Generation Zers—roughly those born after 1997—is confounding parents and stumping auto makers at a time when new-vehicle sales in the U.S. are slowing.
The Dad in the article is perplexed
"I went out and got it immediately" upon turning 16, he said. "I wanted to get out of the house and go places. For her, getting a license is more like planning for the future."
June Metzler says she is content with inviting friends over or hanging out with them after school. "Going out to eat is hard, but I can live with it," she said.
TDLR:
If teenagers are any guide, Americans' love affair with the automobile may no longer be something car makers can bank on.
The percentage of teens with a driver's license has tumbled in the last few decades and more young people are delaying purchasing their first car—if buying one at all, say analysts, generational experts and car industry executives. About a quarter of 16-year-olds had a driver's license in 2017, a sharp decline from nearly half in 1983, according to an analysis of licensing data by transportation researcher Michael Sivak.
Whereas a driver's license once was a symbol of freedom, teenagers are reaching their driving age at a time when most have access to ride-hailing services such as Uber and Lyft to shuttle them around town. At the same time, social media and video chat let them hang out with friends without actually leaving the house.
When they reach their 20s, more are moving to big cities with mass transit, where owning a car is neither necessary nor practical. And of those who do buy a car, many more than in older generations opt for a used one, according to J.D. Power.
One reason for that is rising new-vehicle prices. Detroit has jettisoned many of their lower-priced compact and subcompact cars like the Ford Fiesta and Chevy Cruze that have traditionally been starter cars for young buyers. For the auto makers, the strategy makes sense: Sport-utility vehicles or trucks have steadily become more popular over the past decade, and also have much better profit margins.
Now, a new mind-set among many Generation Zers—roughly those born after 1997—is confounding parents and stumping auto makers at a time when new-vehicle sales in the U.S. are slowing.
The Dad in the article is perplexed
"I went out and got it immediately" upon turning 16, he said. "I wanted to get out of the house and go places. For her, getting a license is more like planning for the future."
June Metzler says she is content with inviting friends over or hanging out with them after school. "Going out to eat is hard, but I can live with it," she said.
TDLR:
- Gen Z is showing a marked disinterest in obtaining a license. They are delaying it.
- When they do buy, they opt for used vehicles, something automakers are wary of
- They prefer compact cars and sedans over SUVs. These less profitable for automakers.
- Many are fine using ride sharing services such as Uber/Lyft
- Student loans, entry level jobs in urban areas, where public transit is better, is also affecting this shift.
- States are cutting driver's ed courses, so students either need available and patient parents or take expensive classes.
Last edited:
