Car companies are now blaming their decreasing sales among younger people on the internet and the latest smart phone's. They claim social media easily connects Generation Y to their friends, so they're less likely to dish out the cash for a new car. Personally I don't agree at all and would blame our countries current economic woes instead of new gadgets.
With the unemployment rate at 9.6% and record high foreclosure rates , many younger people simply can't afford a car and their parents don't have the means to aide them with such an investment. The truth is buying a car now isn't as easy as it was five years ago. Two summers ago when my engine was destroyed, my mother and I went from one car dealership to another and couldn't receive financing. Banks aren't lending like they used to, monthly car payments are higher, and gas prices continue to rise. It doesn't matter how attractive automobile companies make their cars to Generation Y. The bottom line is if they don't have a job, and have parents who are struggling to make house payments, buy groceries and worry about their job security, buying a car is out of the question. To suggest that young adults would rather chat on Facebook or buy a brand new Iphone, than have the freedom to leave their house's whenever they wish to hang out with friends, or go wherever they want when they want to, is absurd. It's the economy stupid.
Source 1: http://www.lendingcentral.com/2010/10/03/us-report-foreclosure-rate-hits-record-high/
Source 2: http://www.msnbc.msn.com/id/39970363/ns/business-autos/
Source 3: http://www.tradingeconomics.com/Economics/Unemployment-Rate.aspx?Symbol=USD
Stupid is right! Who comes up with these things? And to think they call themselves professional marketing research companies. I agree with all you points especially about the banks not lending. They aren't taking the risks as they used to pre-recession. Good post!
ReplyDeleteA number of factors have may have contributed to the decline of auto sales among young people. Personally I believe our culture of suburban living and cars is unsustainable, and while fun it won't last forever. They could have speculated about any reason they wanted to. Personally, I'm sick of reading about how bad the economy is. When people are reminded by it constantly it certainly doesn't instill any confidence in the market.
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