FOX Business host Charles Payne reflected on his lecture on “How to Make Money” at the University of Central Florida.
With the cost of car ownership rising, more and more young Americans are choosing to take public transportation.
Amid the rise of ride-sharing apps and a national economic downturn, Gen Z is exploring alternative transportation options, with impacts ranging from fewer road trips to fewer car purchases. . The Wall Street Journal reported, “The percentage of 19-year-olds with a driver’s license has steadily declined from 87.3% in 1983 to 68.7% in 2022, according to the latest data from the Federal Highway Administration.” .
The data also showed that Gen Z’s share of both new and used car sales decreased by 0.1% from 2022 to 2024. While this number may seem small at first glance, it’s actually a complete decline for the generation that includes Gen Z members. Their twenties are seen as a shocking transformation. Tyson Jominy, J.D. Power’s vice president of data and analytics, told the Wall Street Journal that “demographically, it’s extremely rare for this to reverse.”
According to the magazine, “Young consumers’ declining interest in buying cars is driven in part by rising car prices in recent years. The average price of a new car has increased 32.2% since 2019, according to J.D. Power data. “I’m doing it.” “As of July, the average is $44,604.”
The proportion of 19-year-olds with a driver’s license has steadily declined over the past 40 years. (Photo Credit: Jens Schlueter/Getty Images) ((Photo Credit: Jens Schlueter/Getty Images) / Getty Images)
Car insurance premiums are on the rise again and could soar as much as 22% by the end of the year.
As the prices of cars, parts and insurance have skyrocketed in recent years, young people talked about why this is happening and how to avoid it.
John Kamou, a high school senior from Alabama, has his own driver’s license. He told the press that many of his classmates would not participate because of the high cost. He was driving a 2001 Ford Expedition until it broke down earlier this year.
“It’s a really big financial burden,” Kamou told the Journal. While attending high school, Kamou worked at a fast food restaurant to pay for fuel and insurance for his car. “I was spending a lot of time at work just to buy a car to go to work.”
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Rising car insurance costs are a key factor, especially since young drivers are more likely to be involved in an accident and their premiums are also rising.
A J.D. Power survey of 41,242 U.S. adults released in June found that three in 10 18- to 24-year-olds said their insurance premiums had increased by 300% in the past year. “They answered that it was more than $1,000,” the magazine summarized. “This is more than any other age group and twice as common as in 2016.”
Traffic conditions on Highway 405 in Los Angeles, California on Tuesday, April 2, 2024. (Photographer: Eric Thayer/Bloomberg via Getty Images / Getty Images)
Auto insurance premiums continue to rise, with no signs of easing anytime soon.
The survey of more than 2,000 Americans by research firm GWI also revealed another notable trend. The data shows that the percentage of travelers aged 16 to 25 who say they are planning a road trip or travel frequently plunged 24% in the first quarter of 2024, out of all the age groups surveyed by the company. This was the sharpest decline.
Ben Goldberg, a 29-year-old IT worker who lives near Washington, D.C., has yet to learn to drive, saying, “It’s not a priority in my life,” and instead relies on public transportation. he said.
While working at the Transportation Research Institute at the University of Michigan, Brandon Schottle researched the lack of interest among teens in learning to drive.
He argued that beyond the issue of cost, many young people rely on their parents instead of cycling or using public transport.
FOX Business Correspondent Kelly O’Grady and FOX News Contributor Tammy Bruce discuss the financial impact of immigration and generational differences in the workplace on How to Make Money.
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Jonathon Ehsani, a transportation researcher at Johns Hopkins University, disagrees that the rise of ride-hailing apps like Uber and Lyft doesn’t fully explain why teens are driving less. said they only use cars for a small portion of their transportation.
