Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002

The Young and the Carless? The Demographics of New Vehicle Purchases

June 24, 2016 – The Young and the Carless? The Demographics of New Vehicle Purchases, Christopher Kurz, Geng Li, and Daniel Vine, Federal Reserve Board: ” U.S. sales of new light vehicles have rebounded strongly since the end of the 2007-09 recession and are considered one of the bright spots of the recovery. Indeed, sales totaled 17.4 million units in 2015, about the same rate as the all-time record set in 2000 Personal vehicle sales, which exclude sales to businesses and governments, have also rebounded strongly since the end of the recession… As sales have rebounded, some analysts have noticed a shift in the age composition of new light vehicle buyers. Indeed, a number of recent studies and press articles have documented a dramatic decline in young adults’ willingness to own vehicles, particularly in the years since the 2007-09 recession. For example, Fortune recently cited the decline in the fraction of new vehicles purchased by young adults–defined as 18 to 34 year olds–as evidence that financial constraints for that age group had increased and their interest in driving had decreased. As quoted in the article, young adults “just don’t think driving is cool–or even necessary–anymore.” Similar stories abound and often attribute these changes to the rising popularity of social media, which reduces the need to travel, and alternative means of transportation, such as ride-sharing, public transportation, and biking, which reduce the need of owning a vehicle…”

Sorry, comments are closed for this post.