Economist Says Teens Want A Car - They Just Can No Longer Afford One

General Motors Co.’s chief economist said Tuesday that economic factors, not a lack of interest, is why many younger buyers are not buying new cars.

GM Chief Economist Mustafa Mohatarem told attendees at the Center for Automotive Research’s Management Briefing Seminars that rising costs of cars, repairs and insurance are keeping some 16- to 19-year-olds from getting their driver’s licenses and ultimately buying a car. He downplayed the theory that teens care more about their smartphones and Internet access than vehicles as auto sales stall among younger people.

Read Article

Agent009 - 8/6/2013 12:12:04 PM

+2 Boost

Realistic expectations is also important.

That first car does not have to be a BMW or Audi.. it probably needs to be an aging Chevy or Toyota.

ParadoX - 8/6/2013 5:29:38 PM

+1 Boost

A 10 year old Camry still goes for anywhere between 6-10 Grand. Cars that are in the 1-3 grand price range (something a kid could realistically afford) are basically scrap metal. Add on insurance and gas costs and it is no wonder kids can't buy cars. 7.25 an hour minimum wage and we all know restaurants and jobs kids can get will never let them get more than 20-30 hours a week of work.

It used to be that used cars lost a lot more value. Nowadays they are holding onto it better. Really a kid has to buy something with over 200,000 miles and be 15 years old to even be within their price range. I think if that was my option, I would opt for a nice phone rather than a car you have to worry about dying every time you start it up.

Sciros - 8/6/2013 1:47:43 PM

+1 Boost

It used to be easier to afford a "cheap" new car than nowadays, not only because car prices are always rising, but indeed other things take a lot of disposable income that used to not -- mobile phones, and yes fast internet, even food is more expensive. Buying power has gone down as wages haven't kept up with costs. Sure, an old clunker is still affordable but I'm pretty sure General Motors Co. isn't interested in the affordability of a 1995 Corolla.