The car market is changing. Young people are buying fewer new cars. In the US, people aged 18-34 bought 12% of new cars in 2021. Now, that number is less than 10%.
On the other hand, people over 55 are buying more new cars. They now buy almost half of all new cars in the US. This is according to a study by S&P Global Mobility.
The study also found that young people have less money to spend on cars. Monthly car payments have increased by 30% in the last four years. Now, almost one in five new cars costs over $1,000 per month.
Why are young people buying fewer new cars?
The answer is simple: they can’t afford it. Many young people in the US are struggling with student loan debt. They just can’t pay for a new car. Some are buying used cars instead, which are cheaper. Others are using public transport or car-sharing platforms.
Despite this, young people still bought 1.1 million new cars in the last 12 months. They prefer compact cars and SUVs.
The car market is changing. Companies need to adapt to these changes. They need to find new ways to sell cars to young people. Maybe they can offer more affordable options or create new types of cars that appeal to this age group.
For now, it’s clear that young people are not buying as many new cars as they used to. The car market will have to change to meet their needs.
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