Cars One Love Blog about cars
His parent’s old Ford whispered along, silent and smooth. The young 18-year-old driver winked when asked if it was his car saying “are you kidding, I would never buy this type of car.”
While most young people have to deal with driving the family car – due, in part, to the high price of car insurance for Generation Y, the Millennials – there is hope on the horizon, say automobile experts. For instance, car insurance is becoming more competitive thanks to low rate coverage being offering online at insurance websites. In addition, there are new smaller and sportier looking electric cars in development with low sticker price as the driving force to market and sell these new inexpensive motors to money savvy Millennials.
Millennials putting a new car on hold
A recent American Automobile Association (AAA) survey about what is trending with young drivers noted how many Millennials are not buying cars at the same rate as the generation before them. However, AAA reports that their parents are purchasing new cars with their son or daughter in mind. According to the AAA survey results, what this all means is Millennials may not be driving as much as previous generations due to high insurance rates for young drivers, the high cost of gas and pricey new cars that may be financially out of reach for them.
Because young people today are opting out of driving their own car – due to the great expense of both buying and maintaining an automobile these days – there is some good news at the end of the rainbow, states AAA young driver survey results. “Automakers are simply worried that Millennials will put off a new car purchase, while hoping both insurance rates and car costs drop in the future,” explained an AAA official during a TV interview on a PBS automobile program.
Young drivers want better cars
Another aspect of this trend in Millennials waiting to purchase their first car is linked to the recent recession.
For instance, both the recession and the current uncertain economy have created real fear in the hearts of both parents and their driving age children about taking on the expense of a new car.
Also, Chrysler and other leading automobile manufacturers have unveiled plans to create a new generation of crossover vehicles that will be priced reasonably and designed with young drivers in mind.
Overall, it seems clear that Millennials will continue to delay buying either their first car or a new motor simply because it is not cost effective right now in 2013.
