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The Cheapest Generation

theatlantic.com

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Re: The Cheapest Generation

#11

Post by roc »

> "What if Millennials’ aversion to car-buying isn’t a temporary side effect of the recession, but part of a permanent generational shift in tastes and spending habits?"

It's hardly surprising that people without the money for cars are of the opinion they aren't so important anyway. Not being able to afford things tends to draw into sharp relief the difference between wants and needs.

And I realize Ford's marketing department can't do much about the slow, grinding recovery and thus are stuck worrying about long-term attitude shifts. But until the demographics show millenials moving to and staying in urban areas where transit is a feasible option, I can't imagine it's legitimately worth fretting over.

If millenials still choose to settle down to raise children in the suburbs, car ownership is pretty much necessary.

The only real threat from lasting attitude change, is that perhaps millenials will vote for more transit projects and subsidies over more car/road projects and subsidies and thus make it more feasible in more areas to not own cars.

Re: The Cheapest Generation

#12

Post by ganley »

roc wrote: post #11

> "What if Millennials’ aversion to car-buying isn’t a temporary side effect of the recession, but part of a permanent generational shift in tastes and spending habits?" It's hardly surprising that people without the money for cars are of the opinion they aren't so important anyway. Not being able to afford things tends to draw into sharp relief the difference between wants and needs. And I realize Ford's marketing d…

> The only real threat from lasting attitude change, is that perhaps millenials will vote for more transit projects and subsidies over more car/road projects and subsidies and thus make it more feasible in more areas to not own cars.

We can only hope.

Re: The Cheapest Generation

#13

Post by TheFuture »

andyking wrote: post #6

I own a car now, simply because I tried relying on public transport for a year and found the experience pretty depressing - it makes your day so very long (I was basically doing 6am-7pm including commuting) and loses you flexibility. I fell into a routine of coming to work, going home, and doing nothing else, because it was so much effort to plan a trip anywhere other than the office. It started to make me sink into…

Also think about how much easier it is to buy used vehicles. All the car buying websites have changed the auto sales industry in the last 10 years. The used car market is much bigger now and more selection, meanwhile consumers are more informed as ever on the value of new cars.

Though as much as the article talks about cultural preferences of Gen Y, I think the "cheapness" is being driven solely by Gen Y having no money. Sure you can say you don't need your car as a status symbol, but if you were making 40% more in salary and didn't have $100k in student debt, you'd get a nicer car.

We all entered college as tuition skyrocketed and yet the real value of a degree is shrinking, and we all graduated into a decade of zero economic growth. We're masking our (relative) poverty by being content with all are parents old used stuff and calling it "cool".

Re: The Cheapest Generation

#14

Post by brudgers »

In the age of smart phones, the car has ceased being a vital communication tool for young people. There's no need to drive to the mall to see if Paul is there hanging out. A text will let me know that he's at Joel's party instead. Another text and Steve will swing by in his car.

The housing situation is another matter. There's a glut. Credit is tight. Jobs are scarce. And housing prices are going down. Millenials aren't stupid.

Re: The Cheapest Generation

#15

Post by Swizec »

andyking wrote: post #6

I own a car now, simply because I tried relying on public transport for a year and found the experience pretty depressing - it makes your day so very long (I was basically doing 6am-7pm including commuting) and loses you flexibility. I fell into a routine of coming to work, going home, and doing nothing else, because it was so much effort to plan a trip anywhere other than the office. It started to make me sink into…

> younger generations don't see a house or a car as a symbol of status or wealth, merely as something to be used, as a necessity

And then there are fixies - impractical bikes that cost 700 euro simply because they are cool. Whereas you can get a practical bike for less than 200 euro.

Maybe it is that we are cheap, so those things that cost beyond a certain threshold (like cars and housing) just need to work, whereas things under a threshold need to work and be cool.

iPhones also strike me as an example of this. Ray Ban glasses as well. A lot of clothing stuff ... actually pretty much everything but houses, cars and the big expenses must be cool enough to be bought.

Re: The Cheapest Generation

#17

Post by mattgreenrocks »

andyking wrote: post #6

I own a car now, simply because I tried relying on public transport for a year and found the experience pretty depressing - it makes your day so very long (I was basically doing 6am-7pm including commuting) and loses you flexibility. I fell into a routine of coming to work, going home, and doing nothing else, because it was so much effort to plan a trip anywhere other than the office. It started to make me sink into…

You're right: cars are a means to an end. The incremental value provided by a luxury car over a regular car is exceedingly slight, and ends up going negative when you compare long term maintenance and gas prices.

The entire problem with luxury cars is summed up in the word 'luxury': burning cash for social proof.

Re: The Cheapest Generation

#18

Post by geargrinder »

After watching their parents and grandparents obsess over material possessions, why is anyone surprised when Millennials choose to prioritize other things? Owning a bunch of stuff is a giant hassle and doesn't bring you any more happiness. Perhaps they have just learned the lesson their parents taught them.

Re: The Cheapest Generation

#20

Post by jswinghammer »

ganley wrote: post #7

Aside from those whose livelihood depends on car sales, who have an obvious incentive not to believe it, why is it so hard to believe that people might simply not want to own a car? The whole tone of this article seems like: It appears that millennials don't want to own cars, but that can't be right, can it? If I could get away with not owning one, I certainly would. As it is, I spend as little time in it as possible…

Well this is written from the perspective of economists who lack imagination. If consumers don't spend money on cars then they will just spend it on other things. It means car companies will get smaller, less influential, and probably go out of business in many cases. I assume the public doesn't have the stomach for another round of bailouts for car makers but it's not like we were consulted about that anyway so who knows if it matters.
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