Lackluster Economy Puts Brakes on Millennial Car Purchases


  • Millennial Considers Vehicle Picture

    Millennial Considers Vehicle Picture

    Car purchases by Millennials have been slowed by the job and housing markets, according to a new analysis by Edmunds. | November 08, 2013

Just the Facts:
  • The slow housing and job markets are keeping young buyers out of new-car showrooms, according to a new analysis by Edmunds.
  • "Younger Americans across all income levels have had trouble pulling together the financial motivation to buy a new car," said Edmunds Chief Economist Dr. Lacey Plache.
  • The youngest generation of car buyers is easing up on new car purchases in 2013.

SANTA MONICA, California — The slow housing and job markets are keeping young buyers out of new-car showrooms, according to a new analysis by Edmunds.

"Younger Americans across all income levels have had trouble pulling together the financial motivation to buy a new car," said Edmunds Chief Economist Dr. Lacey Plache. The youngest generation of car buyers is easing up on new car purchases in 2013, according to the new report, which indicates younger people are buying proportionately fewer new vehicles. In 2012, buyers between the ages of 18 and 34 bought 12.6 percent of all new vehicles, up from 10.8 percent in 2011. But since the end of last year, the share of new car purchases by young buyers has tumbled back toward 2011 levels (11.4 percent share in 2013, through August). The chief culprit keeping young buyers out of showrooms is lack of employment, said Dr. Plache.

In 2012, the economy created an average of 30,000 new jobs each month for older Millennials between the ages of 25 and 34. But through August 2013, there have been only an average of 4,000 new jobs created for this age group each month.

Edmunds says: The economic recovery is struggling to pick up younger adults, which is having a trickle-down effect on car sales.

Comments

  • stovt001_ stovt001_ Posts:

    The tired, lazy explanation that young people don't buy new cars as much because they're more interested in cell phones always drove me nuts. Interest in a $200 item has almost no bearing at all on the purchase of a $20,000 item. That $200 smart phone purchase once every 1-2 years is far less than the monthly payment on a new car. A cell plan with data is maybe a quarter of a monthly car payment. No, the fact that a new lowest-trim, no-option compact starts at what often amounts to a year's salary is what is putting new car purchases out of reach. Young people aren't uninterested in cars by nature. They just can't afford to be interested in them.

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