The Kids Aren't Alright

For roughly the last decade, we’ve heard the motoring media bemoan Millennials as the generation that snubbed driving. Their inability to find and hold jobs that paid as well as their parents’ did at the same stages of life, combined with elevated costs of living and crippling student debt load, negatively impacted their purchasing power. Still, this generation might be just the tip of an iceberg the industry’s about to careen into.

As it turns out, Generation Z might even be less interested in cars. In addition to facing similar financial constraints as their older peers, most of them aren’t even bothering to get a driver’s license.

According to a recent report from The Wall Street Journal, Gen Z is substantially less likely to procure the necessary motoring credentials once they’re eligible:

The percentage of teens with a driver’s license has tumbled in the last few decades and more young people are delaying purchasing their first car — if buying one at all, say analysts, generational experts and car industry executives. About a quarter of 16-year-olds had a driver’s license in 2017, a sharp decline from nearly half in 1983, according to an analysis of licensing data by transportation researcher Michael Sivak.

While we feel that the trend of placing broad behavioral labels on various generations is played out and often incorrect — don’t forget analysts had to invent the term “Xennial” to describe individuals bridging the gap between Generation X and Millennials, as they didn’t fit into either camp — following specific generational trends can be useful.

Generation Z, like those born before 1996, have already been accused of being far less like to engage in “adult activities” like driving, drinking, dating, or even having jobs compared to older groups at the same stage of life. Researchers at San Diego State University finalized a series of studies in 2017 that tabulated data from 8.3 million 13- to 19-year-olds between 1976 and 2016 about how they spent their time. Called The Decline in Adult Activities Among U.S. Adolescents, 1976-2016, the study tracks the perceived maturation of young adults since Gen X. The findings suggested that Generation Z has adopted “a slow life strategy.”

Ouch. We know they aren’t trying to make it sound like an insult but… that really sounds like an insult.

For car manufacturers, that means a smaller population interested in driving. While undoubtedly bad for sales, we suppose it could help encourage use of ride-hailing services and autonomous vehicles. But the first of these kids will likely reach adulthood at least a decade before those programs are ready for prime time.

While cost is undoubtedly a factor (the average transaction price for a new vehicle sits around $35,000), additional research claims the internet provides teens with all the escapism they need. Driving over to your friends house for a party is less necessary when everyone can communicate remotely. Helicopter parents who likely had fewer children than their own, and much later in life, are also less likely to go for that. The Wall Street Journal also notes that many public schools had abandoned driver’s education programs, forcing teens (or their parents) to pay out of pocket for training.

The outlet suggested that Generation Z is also more budget-conscious, due to its growing up amid the Great Recession. However, this reasoning feels flawed, as this element is no different for many or most Millennials or Xennials — who were hunting for their first jobs, finishing school, and coping with ludicrously high student loan payments during the financial crisis while much of Gen Z was still in diapers.

It’s difficult to pinpoint the cause of these trends with 100 percent accuracy, but their impact appears much easier to predict. J.D. Power estimates that Gen Zers will purchase about 120,000 fewer new vehicles this year compared to millennials in 2004, when that crowd was just getting into driving. That’s 488,198 vehicles versus 607,329 fifteen years ago. It looks as though Generation Z will be a lot like the Millennials, only more so.

[Image: Irina Papoyan/Shutterstock]