Teens Settling for Less Car, Too
The economy has hurt not only Mom and Dad, but teenage son and daughter as well, who are being asked to pick up more of the tab on the purchase of a new vehicle than they have in previous years.
Thanks to gas prices, there's also been a big shift in the types of vehicles teens are getting, as they're being asked to pick up more of the gas tab as well.
About 400,000 new vehicles are purchased for teens each year. Compact and smaller econo cars like the Chevy Cobalt and Ford Focus account for 24 percent of sales to teens this year, up sharply from only 15 percent a year ago.
Compact SUVs like the Jeep Wrangler, however, also account for 24 percent of all vehicles bought for teens this year, but that's down sharply from 33 percent of sales last year.
A study by CNW Marketing Research, which focuses on why people buy the vehicles they do, also found that thanks to the economy the vehicles teens are getting are low-end models. The average transaction price is $16,000 in 2008, down from $19,200 in 2007 and well below the nationwide average transaction price for all ages this year, $27,800.
While 29 percent of parents picked up the tab on their teen's new vehicle in 2007, only 26 percent are paying for the vehicle this year. Meanwhile, 44 percent of those teens are being asked to kick in some dough on the payments, up from 38 percent a year ago.
One other stat: 58 percent of vehicles purchased for teens are domestics, versus 37 percent coming from Japanese or South Korean automakers. That domestic dominance is falling steadily, though; it accounted for 63 percent in 2000, while Asian makes have grown in popularity, up from 32 percent of the mix in 2000.
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My kids are 11 and 14. Everytime they see a car they like their first question is "what's its gas mileage" and their second question is "is it reliable". I guess it's a sign of the times or I've got them trained right.
are these new cars, used cars, leased? domestic brands on average depreciate more, so it would make sense for most people to buy a used domestic for/with a teen. the situation with new cars purchases are probably more complex....
what about parents who "sell" their older cars to their kids for a small nominal sum?
Funny. When I was 19 I bought a Wrangler and now that I'm 20 I also have a focus.
Same thing is happening in Australia. Young males are no longer buying V6 and V8 Holden Commodores (Pontiac G8) but going for 4 cylinder Mitsubishi Lancers and Mazda 3's. Bye bye Aussie petrol guzzlers!
"My kids are 11 and 14. Everytime they see a car they like their first question is "what's its gas mileage" and their second question is "is it reliable". I guess it's a sign of the times or I've got them trained right."
Although gas mileage and reliability are important, at those ages I seem to remember wanting a cool car, not worrying about the responsibility of owning one. Do kids still dream? A sign of the times indeed.
and it seems to me that it would be smarter to buy a couple year old loaded vehicle instead of a brand new stripper model...
John,
Kids do still dream, but they became smarter.
I remember when I was in high school that I wished I have a cool car, but only if I was rich enough for all the costs. And when I searched for my first ride, I compared basically everything, but cool-looking was not one of the factors.
I still wanted a cool car, but I don't NEED one.
I am perfectly happy with my highly efficient 1.8L 4-cylinder engine powered 4 door sedan.
My son, who's 14, doesn't think cars like the Corvette or Mustang are cool. Trucks and SUV's are out (unless it's an Element). The whole muscle car thing is not popular at his school. His idea of cool is the xB (or anything from Scion) or the Fit or Mini.
If I were a teen and this was a real car (which we think it will be)
http://blogs.cars.com/kickingtires/2007/10/crz-hybrid.html
Then I'd be lusting after that.
I think my son would like this. I haven't shown him a picture of it. For some reason he likes the scion hako concept.
A lot of teens would probably lust after the CR-Z until they see it's price tag lol. It'll probably cost more than an Accord, so most will end up with Fits and Civics.
Cj
Hey! What's wrong with Fits and Civics?! :P
i,m sorry i,m not setting for less i pay my way no teen shud be in a new car intel college sorry i had a 1995 ford taurus with 127000 miles on it when i got it i raged it out that is all every teen is going to do to there first car i,m now 18 and i just got a 98 Ford expedition 4WD loaded and i love it i dont look at the gas much and intel cars get beter gas milage im not getting rid of it any time soon i love this thing and with a 5.4L V8 motor when i,m driving good i get like 16 to 18 MPG and when i,m in a hurry it drops like a rock to about 12 to 15 but your moving 2 TONS hello duh and it not a toy don't go out and buy one for a first timer it a great 2 or 3 or 4 not first never first tooo much power tooo fast and too heavy too roll cause 2 tons one a roof of something that is not spost to hold over 400 pounds is not good so GREAT FIRST CAR Is the 2008 Ford Taurus Cheap SAFE Great power just go test drive one youll buy it looks great too