Contrary to popular belief, young adults in their twenties do think driving is important. However, the number of young adults owning and driving cars has decreased in recent years, and auto-manufacturers are trying to figure out why. Has this generation's priorities simply shifted to favor more handheld technology? There are many reasons why our generation may be hesitant to drive cars, but let's look at the facts.
Millennials, the term given to those born between the late 80's and early 2000's, are the generation that many car companies are looking at. Millennials seem to be owning less cars and getting their driving licenses later than those before them. The Federal Highway Administration found that only about 46 percent of potential drivers 19 and younger had driver's licenses in 2008, down from about 64 percent in 1998. The President of Toyota USA, Jim Lentz, has even said that, “We have to face the growing reality that today young people don't seem to be as interested in cars as previous generations."
One clear cause for this generational shift may be the result of a weak economy. The concern of accumulating more debt on top of college loans is too daunting to encourage young adults to make such a large investment. However, if we apply this same thinking to owning a smartphone and paying high rates for mobile services (comparable to monthly payments for leasing a car) we can see that young adults prefer one and not the other.
As priorities shift, owning a car and driving no longer provides the same sense of freedom that owning a phone or a laptop provides. Being connected to your friends and family remotely might be more important than owning a car, if you needed to choose between the two. From 2007 to 2011, the number of cars purchased by people aged 18 to 34 fell by almost 30% according to a study from the AAA Foundation for Traffic Safety.
It might be that our generation is more practical and hesitant with our money than the Baby Boomer generation before. Since today's economy requires its young adults to constantly plan for the future, tackle student loans, and struggle to fit into an economy with bleaker employment opportunities, owning a car might not be at the forefront of Millennials' minds. On the surface, the current generation could seem more distracted. In actuality, the advancement of technology and financial struggles on their backs have made Millennials keenly aware of everything around them and are focused on both short and long-term consequences.
With all this in mind, how can auto-manufacturers reach out to a generation whose interests shift as quickly as technology advances? I believe the answer lies in adjusting these companies' marketing techniques and media presence. Starting the next trend is difficult to achieve, and even harder to predict. However, with enough strategic product placement, owning a car could become more attractive to young adults. Companies can start by gaining a better understanding of the millennial consumer, of their interests and behaviors. This will help identify situations where car use and ownership is seen an advantage.
