This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will Hipsters Buy Cars?

NEW YORK ( MainStreet) -- Zachary Gayle, an unemployed 18-year-old in New York City, says he doesn't have enough money to buy a car--not that he's bothered by the fact.
[Read: <a href="" data-add-tracking="true" target="blank"><em>Get 'Floored' in Real Estate: What's wURKEN?</em></a>]

"If I had the funds, I would not get a car," he said. "A car is, like, the worst thing you can invest in. You buy it, and it just loses value immediately after you drive it off of the lot...I'm not going to buy a car, probably ever."

With Millennials increasingly moving to cities and scaling back expenses, they are more commonly of Gayle's mindset and doing without vehicle purchases. Add to that the rise of car-share and p2p programs, and auto companies are left grasping at straws to try to get through to a cohort that increasingly eschews its offerings.

"Millennials are really savvy about blocking out marketing messages," said Sheryl Connelly from Ford's Global Trends and Future team who led a panel discussion this summer called 'Hipsters Hate Cars.' " They've grown up with all this technology, and they know Internet ad-blockers and RSS it's much harder for a traditional marketer to reach them."

Plus, getting a license used to be a rite of passage and the true milestone of independence. Not so much anymore with less enthusiasm around the mobility and independence a set of wheels can offer.
[Read: <a href="" data-add-tracking="true" target="blank"><em> Living in a Van to Pay Off Student Debt</em></a>]

A third of all licensed drivers in the U.S. were under 30 in 1983, a figure that's dropped to 22% today despite the 80 million strong Millennial population, according to University of Michigan's Transportation Research Institute. Even the miles driven plummeted: those between 16 and 34 years old averaged 10,300 miles annually as recently as 2001, a figure that dropped to 7,900 annually come 2009. And forget about teens: whereas 69% of 17-year-olds were licensed back in 1983, only 50% were in 2008.

The initial sunk cost is not chump change: driver's education, once free, now costs between $200 and $800, and to add a teenage driver onto your insurance policy can cost upwards of $2,500 a year--not to mention the $30,000 average for a new car. But that hefty premium alone can't explain this pattern of Millennials who are balking at the prospect of driving.

Social Media Transportation

One contributing factor to this trend stems from the fact that 41% of Millennials in the U.S. want to live in cities, where public transportation and bike sharing programs reduce the need for a personal automobile. What's more, people are able to connect through social media instead of in-person, making the acquisition of the car less a rite of passage.
[Read: <a href="" data-add-tracking="true" target="blank"><em> Wipe Out Student Loan Debt With This Trick</em></a>]

video platformvideo managementvideo solutionsvideo player
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.56 -3.76%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs