The average age of new car buyers in January 2007 was 43. In January 2008, it was 48. This suggests that as the economy tightens, younger car buyers are staying out of the new car market. [Kicking Tires]
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Or maybe younger consumers are getting smarter...it's hard to find a worse investment than a new car.
Or maybe older customers are staying on the road longer, and buying cars more.
Or maybe loan companies are only giving loans out to older people. Just because you have corresponding data doesn't mean one causes the other. This should say "This could suggest"
That and we plan our live around cities with public transportation. I'll be happy to pay my 5 bucks a day for lightrail when gas for the same trip, plus parking would be around 15 bucks a day. Oh, and the payment, 300 dollars, would be another 10 bucks a day or 15 bucks per weekday. So, 30 bucks or 5? And keep in mind in 10 years its not like your car will be worth anything.
It does say "car buyers", which also could mean that more young people are leasing.
Ahh, nothing like making data fit your assumptions.
I think old people buy cars more frequently. My grandpa-in-law just dropped $45K on a new Buick to replace his 2004 model. Because, you know, it was old. Needless to say, it's now our good road-trip car. And they say young people are stupid....
only 48 year olds with fancy job titles can afford a new car.
@overbysara: well, thats a gross overstatement. Im 30 and can afford a new car any time I want, I just opt to purchase used cars for the value (and Ive got a great source). Im guessing older people are less willing to settle for used products and are more interested in being the first owner then younger people.
I see a lot of young people driving around "new" cars--how? Their parents bought it for them or put in in their name--that may be why the average age for new cars is going up. I have to admit when I got my license, my dad got me a new car. He got my sister a new car as well. In college, I got another new car--bought in my dad's name (though I made payments) because he had much better credit than I did. Same thing with my other siblings who all have bought new cars--even as they got older, my dad would cosign or put the car in his name.
Nowadays, I don't plan on buying a new car--my car is paid off and I am very happy with it.
@Tracy Ham and Eggs: excellent point. A lot of the reason that my GFIL is so determined to always have something new is that he doesn't like "fooling with" the car. He also uses a cane, so he's picky about ease of getting in and out, making loaners less convenient than for we young'uns.
Parents are buying their "precious" young who can do no wrong new cars and putting them in their own names for insurance purposes. I'll never forget the kid who rear ended us within the first three weeks of me purchasing a 2003 RSX-S to replace my 96 Firebird. First words out of his mouth were "Why did you stop?" (Because there was three lanes of stopped traffic in front of us douchebag) and the second was "My parents just bought me this car!" To which I replied "I just bought me this car!" Kid still had the nerve to ask the state trooper who came on the scene (because the stop traffic was for a spin-out on a major highway) if he was going to cite anyone.
Seriously, I buy new because I like the security of the warranty. I sound financial purchase? Probably not, but I got sick of taking my used cars to the shop. I recently (sob) traded in the RSX for a station wagon, joining the old, suburban yuppie crowd. At least I get 25 mpg on it (about equal to what I was getting on the RSX).
Ummm...did anyone think that the this might be that cars nowadays cost as much as a house did 25 years ago?
Now they are talking about 6 year loans for a freaking automobile.