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    Study: Gen Y Wants Cars... When They Can Afford Them


    • Its Not That Gen Y isn't Interested In Cars, They Just Can't Afford Them Right Now


    Despite countless studies and reports that say Gen Y (AKA millienals) aren't interested in cars, a new study released this week says this key group are interested in cars.

    Deloitte LLP, a financial consulting firm published their Global Automotive Consumer Study which showed that Gen Y is very much interested in getting their own vehicle, despite not having the same love affair as their parents and grandparents.

    "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," said Craig Giffi, vice chairman of Deloitte. Giffi went onto say that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle."

    The big stumbling block for Gen Y with purchasing a vehicle is cost. 80 percent of the Gen Y surveyed said that cost was a big factor.

    "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle. When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options," said Giffi.

    So what is Gen Y looking for in a vehicle? More than half want technology that entertains them while they are driving and wish that it was easier to customize the technology after a purchase or lease. A majority also believes that they will be driving an alternative engine vehicle within the next five years and that safety tech is a top priority.

    "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road. This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle," said Deloitte's Massa Hasegawa.

    Source: Deloitte LLP

    Press Release is on Page 2


    Dude, Here's My Car: Gen Y Shows Interest in Vehicle Ownership

    • Deloitte Report - Young drivers want affordable technology-enabled hybrids

    DETROIT, Jan. 16, 2014 /PRNewswire/ -- Gen Y consumers are showing a clear interest in vehicle ownership and have specific ideas of what they want in a car, according to Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader.

    Citing data from a Deloitte report on global mobility, Giffi said that while young consumers view car ownership as less important for mobility than previous generations, they are, nonetheless, excited about affordable, technology-enabled vehicles – especially hybrid electric cars.

    Deloitte's soon-to-be-released report is based on survey responses from more than 23,000 consumers across 19 countries, including more than 2,000 United States consumers – 677 of whom were from the Gen Y demographic (born between 1977 and 1994).

    The results indicate that while America's romance with the car does not extend to Gen Y, the nearly 80 million Gen Y consumers in the United States are not giving up on car ownership.

    "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," says Giffi, who adds that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle."

    Further, only 29 percent of Gen Y consumers would be willing to give up their personal cars, even as non-traditional mobility options like car-sharing and car-pooling services proliferate.

    Among Gen Y consumers who do not currently own or lease a vehicle, cost seems to be the main barrier – with most (80 percent) saying it is because they cannot afford it and three quarters citing high operational and maintenance costs. In addition, 67 percent said their lifestyle needs are met by walking or public transportation, while 40 percent said their lifestyle needs are met by car borrowing and car sharing.

    "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle," says Giffi. "When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options."

    So what does Gen Y want in a car?

    Most Gen Y consumers – whether they currently own a vehicle or not – demonstrate a clear affinity for cars and trucks with alternative powertrains. More than half (59 percent) think they will be driving an alternative engine vehicle five years from now, with more than a quarter (27 percent) naming hybrid electrics as their single most preferred type of alternative engine – far ahead of plug-in hybrids (8 percent), all-battery electric vehicles (7 percent), and fuel-cell vehicles (4 percent). What is more, they would like the government to help defray the higher costs of alternative powertrains, with 58 percent saying they would support government programs that reward consumers for choosing alternative/high-efficiency engines.

    "Gen Y consumers across the board also want safety technology, especially features that mitigate the risks of distracted driving," says Masa Hasegawa, principal, Deloitte Consulting LLP. "Almost three quarters (72 percent) want technology that recognizes the presence of other vehicles on the road and 63 percent want technology that lets them know when they have exceeded the speed limit."

    Plus, more than half (56 percent) want technology that entertains them while they are driving and 57 percent wish it were easier to customize a vehicle's technology after purchase or lease. And more than half would like to connect their smart phone to use all its applications from the vehicle's dashboard interface.

    "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road," says Hasegawa. "This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle."

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    So Gen Y wants a self driving car that keeps them entertained. Sounds like the spoiled brats are still spoiled. They seem to miss out on seeing the world for their beloved tech.

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    So Gen Y wants a self driving car that keeps them entertained. Sounds like the spoiled brats are still spoiled. They seem to miss out on seeing the world for their beloved tech.

     

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    So Gen Y wants a self driving car that keeps them entertained. Sounds like the spoiled brats are still spoiled. They seem to miss out on seeing the world for their beloved tech.

    So you're against safe driving and the ability to be productive or relax outside of the office? And you believe your notion of 'driving' is somehow better? If you want to have a conventional vehicle that requires you to gaze at gridlock for two hours in each direction, while hating everyone else, then more power to you. Just don't impose that idea on those of us who'd prefer to have self-driving vehicles.

    I think you're the spoiled one here. Not us. You.

    Edited by FAPTurbo
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    Use the train then, if you don't like driving. "Self driving" cars defeat the entire purpose of purchasing an automobile as personal transportation.

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    Use the train then, if you don't like driving. "Self driving" cars defeat the entire purpose of purchasing an automobile as personal transportation.

    No they don't. Self-driving vehicles enhance the very ideals and engineering goals of personal transportation: effortlessness, comfort and safety.

    For a majority of people, including myself the purpose of the automobile is solely for:

    personal transportation.

    Self-driving cars don't fit your purpose of car ownership which is the entertainment value of driving. Why should I be relegated to a train or bus because I don't share that mindset? Maybe be more open-minded and accept the idea that there are people out there who want a vehicle that drives itself and should get one. It won't impact you in any way, so why get upset about it?

    Use the train then, if you don't like driving.

    Proof it isn't only millenials who are the 'spoiled' ones.

    Edited by FAPTurbo
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    "Effortlessness" should never be a goal of automotive ownership. The automobile should engage and stimulate the driver. It should only be effortless for the passengers. If the automobile doesn't engage and stimulate the driver, then it should be sent to the crusher.

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    I love driving my car - driving almost any car, really. However, I drive from NJ to Ohio regularly to visit family, and I can say I could appreciate a self driving car. It would be great to leave Friday after work, allow my car to drive while I sleep and arrive in Ohio rested and ready to play with my nieces/nephews. Then, be able to stay all day on Sunday and allow the car to get me to work on time while I sleep.

    I agree with FAPTurbo completely, a self driving car in no way impedes those who want to and enjoy driving. In fact, it would make it safer for those who enjoy driving. That way people who normally text and drive would not be a hazard on the road. A self driving auto would enhance personal mobility for those who want it, and would not detract from those who want to drive in any way!

    Edited by jwbouch
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    how does one take personal responsibility for a self driving car? Someone's google prius spins out because it couldn't miss the inadvertent log or tire in the road, and ends up creaming me.

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    how does one take personal responsibility for a self driving car? Someone's google prius spins out because it couldn't miss the inadvertent log or tire in the road, and ends up creaming me.

    Human error will always be the #1 culprit of accidents. The Titanic didn't sink itself after all.

    "Effortlessness" should never be a goal of automotive ownership. The automobile should engage and stimulate the driver. It should only be effortless for the passengers. If the automobile doesn't engage and stimulate the driver, then it should be sent to the crusher.

    Because I'm sure you get ROCK HARD stimulation from your car while sitting in traffic.

    I love driving my car. On a nice day. On a nice road. I don't love driving my car down long, straight, boring stretches of highway. I don't love driving my car in rush hour traffic to and from work everyday. I don't love having to put my trip on hold because I'm too exhausted to safely drive my car at night, so I have to get a hotel and be at my destination that much later. I would love a car that could drive itself for monotonous tasks like that, maybe enjoy the scenery as it passes by, and either have the ability to disable it when I want to drive it myself, or just have a second car for those days when I want to drive.+

    Also this thread's title is, and I quote:

    Industry News: Study: Gen Y Wants Cars... When They Can Afford Them

    It isn't really about autonomous vehicles, its about Gen Y being able to afford the cost of one and the cost of ownership. That's a legitimate concern in this economic climate.

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    You know, this thread is playing out exactly like I thought it would.

     

    how does one take personal responsibility for a self driving car?  Someone's google prius spins out because it couldn't miss the inadvertent log or tire in the road, and ends up creaming me.

     

     

    T-that sounds dirty.

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    I asked our 18 year old nephew about this specific question, what he and his fellow classmates thought about cars and if he felt people his age didn't care about cars anymore. He said that for the most part, everyone wants a car but that unless their parents buy them one, it feels like something impossible to get. He pointed out that there is no way for a kid, if he starts working part time at 16, will have enough money to buy a decent car and be able to insure it and fuel it at 18.

    And he's got a point. If you figure no more than 18 hours a week during the school year, and maybe 30 hours a week over the summer, a kid is going to be lucky to net $5,000 in a year.

    And they also seem to realize that $5,000 will only get you a vehicle with over 100k miles these days which means a greater potential for expensive repairs.

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    For city people with access to good transit and not a tonne of disposable income, cars make less sense each passing year with the increasing cost of ownership. Better to rent by the day or hour when needed, spend money on investments and travel.

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    Care sharing? Sounds like the Hallmark Channel's movie of the week.

    "First 2014 Z/28 brings $650k @ auction. proceeds got to charity". I can GUARANTEE you all that will NEV.ER. be said for the first autonomous car. And therein lies the problem.

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    I asked our 18 year old nephew about this specific question, what he and his fellow classmates thought about cars and if he felt people his age didn't care about cars anymore. He said that for the most part, everyone wants a car but that unless their parents buy them one, it feels like something impossible to get. He pointed out that there is no way for a kid, if he starts working part time at 16, will have enough money to buy a decent car and be able to insure it and fuel it at 18.

    And he's got a point. If you figure no more than 18 hours a week during the school year, and maybe 30 hours a week over the summer, a kid is going to be lucky to net $5,000 in a year.

    And they also seem to realize that $5,000 will only get you a vehicle with over 100k miles these days which means a greater potential for expensive repairs.

    Fixing your car builds character.

    Half the daily drivers I had over the years cost me under $600. I've bought 4~5 cars for less than $200. Granted, this is going back to 1989... but adjusting for the cost of scrap, I see plenty of cars well below $1000. Insurance is a killer... but one should be able to get a a low level plan for an 18 year old for less than $2000/yr if they look. Now you got $2000 left over for parts... assuming you bought something that don't need an engine or transmission, that's a lot of parts.

    Having ANY car opens up opportunities, if you are in a place with abysmal public transportation.

    Don't want a 1994 Olds 88 with fading paint? Walk. Don't learn how a car works... a skill that pays better than a lot of college jobs... I might add. Enjoy living with your parents when you're 40. There are no handouts... if you're poor, you're going to stay poor until you work your ass off.

    Hey, you kids, get off my lawn!

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    A couple GM potentials listed today...

    http://southjersey.craigslist.org/cto/4294410687.html '93 Cutlass Supreme. Probably needs a sensor. $800
    http://southjersey.craigslist.org/cto/4294395301.html Caprice. Needs Alternator. $1000obo
    http://southjersey.craigslist.org/cto/4294351543.html '92 Acheiva. Minor issues. $800

    http://southjersey.craigslist.org/cto/4294409295.html '98 Grand Am. Shiny! Unspecified $200 repair. $800.

    There were lots of other makes, too... including a few trucks that could earn some money.

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    Buy a $1000 car.

    Brake lines turn out to be rusty and need to be replaced. Pay someone to replace them $400-1000 depending on who you go to. Do it yourself: $50 in part plus the flare tool you will need to buy or rent. plus the bender. Plus the caliper your have to replace because the bleeder snapped off when you tried to open. Hours spent fixing it.

    Fuel pump goes. $250 for the typical fuel pump assembly. Have to drop it from tank. $35 for straps because the old ones are rusty. $15 for new lock ring. Hours spent fixing it. Pay someone to do it $600+

    Alternator goes. +/- $150 + $30 for the belt + $20 for the idler pulley or $50 for the tensioner.

    Radiator starts to leak. $130 for Radiator +50 for hoses and clamps + $30 for coolant.

    Needs timing belt. $35-100 for belt. Waterpump $50 component kit $80-$300. Lots of hours on that job. $1000+ to have it done.

    Looks like it needs shocks and struts. Easily over $300 for the parts. At least $200 in labor.

    +tools +fluids +unforeseen expenses that pop up during the repair.

    This is worst case scenario but there are people who get a car and have this all happen over the course of a year. I've seen it. Parts can add up quick for a used car.

    Work on it yourself...great if you have a driveway and a home to do it. Good luck replacing that waterpump in the city on a public road. Or if you live in an apartment. Most apartments won't allow you to work on your car in the lot.

    Also "Don't learn how a car works... a skill that pays better than a lot of college jobs". Not always the case. Especially when something goes wrong a week later with a customer's car and now you have to eat the labor.

    There are no handouts... if you're poor, you're going to stay poor until you work your ass off.

    Working your ass off doesn't mean you still won't be poor. Ask a single mother working 3 jobs to put food on the table, for example.

    It's never black and white.


    A couple GM potentials listed today...

    http://southjersey.craigslist.org/cto/4294410687.html '93 Cutlass Supreme. Probably needs a sensor. $800
    http://southjersey.craigslist.org/cto/4294395301.html Caprice. Needs Alternator. $1000obo
    http://southjersey.craigslist.org/cto/4294351543.html '92 Acheiva. Minor issues. $800

    http://southjersey.craigslist.org/cto/4294409295.html '98 Grand Am. Shiny! Unspecified $200 repair. $800.

    There were lots of other makes, too... including a few trucks that could earn some money.

    I love it "minor issues" "needs some repairs" "Ran great until I heard a bang, probably needs a spark plug"

    But again, not everyone has the time or the space to deal with repairs. Or the money when more things begin to break.

    This is coming from someone who owns my cars outright and works on them when I can, but there are times when I send one of the cars off to be fixed because I do not have the time or expensive tools to fix it.

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    I asked our 18 year old nephew about this specific question, what he and his fellow classmates thought about cars and if he felt people his age didn't care about cars anymore. He said that for the most part, everyone wants a car but that unless their parents buy them one, it feels like something impossible to get. He pointed out that there is no way for a kid, if he starts working part time at 16, will have enough money to buy a decent car and be able to insure it and fuel it at 18.

    And he's got a point. If you figure no more than 18 hours a week during the school year, and maybe 30 hours a week over the summer, a kid is going to be lucky to net $5,000 in a year.

    And they also seem to realize that $5,000 will only get you a vehicle with over 100k miles these days which means a greater potential for expensive repairs.

    Fixing your car builds character.

    Tools cost more money.

    You don't have to tell me... I bought my first Toronado for $2600 and my second one for $2300.

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    A couple GM potentials listed today...

    http://southjersey.craigslist.org/cto/4294410687.html '93 Cutlass Supreme. Probably needs a sensor. $800

    http://southjersey.craigslist.org/cto/4294395301.html Caprice. Needs Alternator. $1000obo

    http://southjersey.craigslist.org/cto/4294351543.html '92 Acheiva. Minor issues. $800

    http://southjersey.craigslist.org/cto/4294409295.html '98 Grand Am. Shiny! Unspecified $200 repair. $800.

    There were lots of other makes, too... including a few trucks that could earn some money.

    Of those, only the Caprice is worth it and I'm someone who has the money. The N-Bodies can be notoriously frustrating depending on which engine they have. The Cutlass Supreme isn't bad, but at 177k miles, the "just a sensor" is also probably "just the start of other problems"

    I'll also note that not one of the cars you listed is younger than a 16 year old getting their license for the first time in 2014

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