Fewer young people choose to buy or drive cars, seeking to avoid ‘financial burden’: Report
FOX Business host Charles Payne presents his lecture at the University of Central Florida on ‘Making Money.’
Young Americans are increasingly choosing to rely on public transportation as the cost of car ownership has risen.
Amidst the rise of ride-sharing apps and the country’s struggling economy, Generation Z is finding other ways to get around, and it’s showing up in ways that range from fewer road trips to a drop in car purchases. “The percentage of 19-year-olds with a driver’s license has declined slightly from 87.3% in 1983 to 68.7% in 2022, according to the latest data from the Federal Highway Administration,” reports the Wall Street Journal.
The data also revealed that Generation Z’s share of both new and used car sales fell by 0.1% between 2022 and 2024. Although that number may seem small at first glance, the fact that there is no drop at all in a generation with members in their 20s seems like a shocking change. “It’s rare, demographically, that this backfires,” Tyson Jominy, vice president of data and analytics at JD Power told the Wall Street Journal.
“The decline in interest among younger buyers in car purchases is partly due to how car prices have risen in recent years. The average price of new cars is up 32.2% since 2019, JD Power data shows,” according to the Journal. “The average is $44,604 as of July.”
The percentage of 19-year-olds with a driver’s license has declined slightly over the past 40 years. (Photo by Jens Schlueter/Getty Images) ((Photo by Jens Schlueter/Getty Images) / Getty Images)
CAR INSURANCE PREMIUMS CONTINUE TO GROW, COULD INCREASE 22% BY THE END OF THE YEAR.
As the prices of cars and auto parts and insurance have increased in recent years, the youth talked about their reasons and ways to find a solution.
Alabama high school senior John Camou has a license himself, however he told the newspaper that many of his classmates do not do that because of the high costs. He drove a 2001 Ford Expedition until it broke down earlier this year.
“It’s a huge financial burden,” Camou told the WSJ. Camou worked at a fast food restaurant while in high school to pay for gas and car insurance. “I spent a lot of time working to get a car so I could drive to work.”
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The increase in car insurance costs is a significant factor, as young drivers in particular are more vulnerable to accidents and face higher insurance rates.
“Three in 10 18- to 24-year-olds say they increased their insurance premium by more than $300 in the past year, according to a JD Power survey published in June of 41,242 US adults,” the Journal summarizes. “That’s more than any other team and twice as many as 2016.”
Traffic on the 405 freeway in Los Angeles, California on Tuesday, April 2, 2024. (Photographer: Eric Thayer/Bloomberg via Getty Images/Getty Images)
PERSONAL INSURANCE RATE CONTINUES TO SKYROCKET WITH NO SIGNS OF RELEASE
A survey of more than 2,000 Americans by research firm GWI highlighted another notable trend. The data showed that the proportion of travelers from 16-25 years of age who said they planned or often took a road trip fell by 24% in the first quarter of 2024, the sharpest decline of any age group the company surveyed.
Ben Goldberg, a 29-year-old IT industry worker who lives near Washington, DC, said he never learned to drive, saying, “It’s not a priority in my life,” and instead relies on public transportation.
Brandon Schoettle researched youth’s lack of interest in learning to drive while working at the University of Michigan’s Transportation Research Institute.
He pointed out that despite the cost, many young people rely on their parents instead of using bicycles or public transportation.
FOX Business reporter Kelly O’Grady and Fox News contributor Tammy Bruce discuss the financial impact of immigration and generational differences in the workforce in ‘Making Money.’
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Johnathon Ehsani, a transportation researcher at Johns Hopkins University, argued that the rise of ride-sharing apps like Uber and Lyft can’t fully explain why young people are driving less, saying that young people use it for a smaller portion of transportation.
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