Generation Y Wants iPhones/Tablets, Not Cars
August 13, 2012 5:33 PM
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Automakers are struggling to capture this particular age group as sales drop
Automakers are starting to see a shift in the priorities of potential young car buyers today. Gone are the days of late teens and twenty-somethings rushing to buy their first car for a taste of freedom. Instead, this age group, or Generation Y, would prefer the latest smartphone or tablet.
"A vehicle is really a discretionary purchase and a secondary need versus an iPhone, mobile phone or personal computer," said Joe Vitale, an automotive consultant with Deloitte.
The car is no longer a teenager or 20-year-old's only chance at freedom. This generation can now connect via smartphone, tablet or laptop no matter where they are.
Generation Y seems to be more into fancy gadgets than monthly car payments [Image Source: softwarewithstyle.com]
The other issue here is that members of this age group don’t typically have fat wallets. A cash-strapped twenty-something will choose the latest gadget to
keep connected with friends
and family rather than buy a car, pay to keep it maintained, purchase car insurance, etc. This is obviously much easier for those that live in large cities with reliable public transportation.
But having the latest device over a car isn't always a frivolous choice. Many companies today keep employees connected through email, a company website or other networks. Having a mobile device almost essential for the employed or even job seekers that need to have a way for potential employers to contact them at any time.
So what does this mean for the auto industry? It means that automakers have to find new ways to capture this audience. The number of U.S. auto buyers ages 18-34 dropped to 11 percent in April 2012, compared to 17 percent in April 2007, which was before the recession. A total of 14 million U.S. auto buyers ages 18-34 are expected to make a vehicle purchase in 2012, which is the best year yet since 2007, but is still a drop from the annual average of 16.8 million from 2000-2007.
Companies like Ford and Toyota have built inexpensive, subcompact cars like the
and Scion xB/xD for the frugal youngsters that make up Generation Y. Automakers have also tried to lure this age group by adding increased technology for music and social networking in their vehicles, although the U.S. Department of Transportation has been trying to eliminate unnecessary technology in vehicles to
reduce distracted driving
. Automakers, however, have been rebelling and
adding new tech anyway
in order to give the public what it wants and increase sales.
But the issue remains that if this generation just doesn't have the cash or the need for a car, automakers may have to
find other ways to sell
to this age group.
The Detroit News
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RE: Student loan debt, poor job prospects, cars suck in general
8/13/2012 10:29:50 PM
Kool Aid is not the big problem. It's the guns and alcohol.
Liberal arts undergrads are generally the folks who take up jobs which require advanced reading and writing ability. There are a lot of jobs that require those abilities in everything from the folks who run public services, to education, and to a variety of business roles. There are more jobs requiring a BA than there are BS or BE.
If you go to Korea, where engineering graduate degrees are a common goal, you'll find a lot of engineers working 12h/day, 6 days per week, for roughly the same amount of money based on hours as I did teaching ESL for 20h/week, 5 days per week.
Of course, education in Korea is a lot different than it is here. Middle-class Parents put their kids in public schools six days per week until about 1pm. Then, they send them to private schools. The end of their day can be anywhere between 8-10pm, depending on how hard the parents push. If parents did that in the US, they'd be labelled as abusers and their children would be taken away. I have heard that Chinese and Japanese parents have a similar approach to education.
Another side-note that's kind of cool about Korea is that if you buy a 50cc or less motorcycle, you don't need insurance. There would be a lot more people on the road if that sort of thing were allowed in Canada/US.
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