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  • William Maley
    William Maley

    GM Economist: Prices Are Making Young People Not Buy New Cars

    William Maley

    Staff Writer - CheersandGears.com

    August 7, 2013

    Yesterday at at the Center for Automotive Research’s Management Briefing Seminars, General Motors' Chief Economist Mustafa Mohatarem told attendees that the reason young people aren't buying cars because they're not interested. It's more to do with economic reasons.

    Mohatarem downplayed the reason that young kids are more interested in the internet and what's the latest hot thing in tech, and pushed the rising costs of cars, repairs, and insurance as some of the reasons why young people aren't buying vehicles.

    “I don’t see any evidence that the young people are losing interest in cars," Mohatarem said.

    He says the biggest problem facing young people buying cars is they are having a challenging time finding jobs. Also, high student loan debt are causing many to skip buying a car.

    “Buying a car is less attainable for the young, but that quickly changes as they get older," he said.

    Source: The Detroit News

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.


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    ... as a joke?

    What is stylish about a Pruis... they're not even all that affordable.

    I read today, Prius is top selling car in CA. There at least they consider it affordable because of the fuel savings.

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    Are you freaking kidding me it took a Economist to for GM to realize the price of a new car is too high? Your going to spend $20k on a shoe horn style car and if you want a SUV your talking $35k+. Most of the high paying jobs in America went over sea's, most people don't have that kind of money today. Three months ago I read that 80% of student loans were in default and how are young people going to buy a car when they can't even afford to pay their student loan?

    Greg

    P.S. My car is 8 years old and I will be driving it until the wheels fall off, there is no way I want another car payment!

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    High schools need to bring back auto-shop so that kids can learn how to wrench on a auto. There are many excellent options for a fun first time auto, yet the current High School crowd is very much part of the Entitlement problem we have. They do not want to work very hard for something nice and they seem to be to out of shape to actually do hard work.

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    Student loans and college tuition these days are exponentially higher than the ever were when I was in school. Not to mention the starting price on a lot of these cars have gone up as well. You used to be able to get a decent new car for under $20k, now a lot of these same model cars are starting at like $25k+ for just a bare bones model.

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    The push to have higher minimum wage jobs is not going to help but hinder people spending money.

    If the idiots that feel minimum wage should be higher only looked at the bigger picture they would realize that McDonalds, Denny's etc were never meant to be full time life long jobs. It was a job to get you going while you looked for something better, got educated or showed you could work hard to go into a assistant mgmt job.

    These are starter jobs and we need as low as possible minimum wage to get kids to learn how to work and work the fast food jobs.

    If someone wants to be a burger flipper for life that is fine then they will have to accept a lower standard of living and not expect to ever own a house or nice new car.

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