Gen Z has seen the world transitioning faster than the others. The results? A set of seemingly eccentric and out-of-the-box ideas, beliefs, and concepts. Experiences mean more than material things to them; therefore, the 43% of 16-year-olds possessing a driving license in 1997 has reduced to just 25% today. Yes, owning a vehicle was a lifelong dream for older generations, but Gen Z doesn’t seem interested in buying one. Let’s find out why!
Environmental Concerns
It’s no secret that the environmental situation has never been as bad as it has become in the last few decades. What’s worse is that there is no end to this continuous degradation because of technical advancements. These aspects are worrisome for Gen Z, and they try to promote sustainability as much as possible. Since vehicle smoke is one of the biggest sources of carbon emission and pollution, Gen Z tends to avoid owning a car, especially with all sorts of alternatives available.
Online Ride Services
Online rides have been hyping so much lately. We have Uber, Lyft, and hundreds of such services operating worldwide. With technological advancement, having a vehicle at your doorstep is now just a tap away. You can choose your preferred vehicle and fare and track it all the way, even for a one-time journey. So, owning a car doesn’t feel like a necessity for Gen Z.
Ownership Cost
Today’s generation is wiser and more concerned about inflation. They try to cut expenses as much as possible. And when it comes to buying a vehicle, they know it’s more than just paying once and bringing it home. The fuel and maintenance costs comprise a significant share of the monthly budget. Looking up parking spots and paying for them further adds to the expenses. The insurance costs are also higher than ever, making the ownership less appealing. Gen Z understands that public transport or going for other means of transportation can save them money.
Subscription Models
According to a study by Deloitte, one in every five young drivers prefers car subscription models over ownership. The reason? These plans let people try different cars by renewing their plans without being stuck with just one. Secondly, subscriptions often include things like insurance, maintenance, and roadside assistance, making it a budget-friendly option. The best part? You can cancel the subscription anytime if your preferences regarding traveling or budget change, giving you complete control over your transportation options. All these points make subscription models perfect for Gen Z, which focuses on experiences rather than buying things outright.
Urban Living Style and Facilities
On the same note, Gen Zers mostly live in urban areas with access to an excellent public transportation system. Subway, metro, and similar services make their everyday commute effortless, wholly eliminating the need to buy a vehicle.
Remote Work Settings
Remember how the working dimensions shifted in the COVID era? It showed the world that working from home is a practical, sustainable option. In fact, Upwork has predicted that 22% of Americans will be working remotely by 2025. So, with many jobs and social interactions happening online, Gen Z feels no need for daily commuting and, thus, to own a vehicle.
Driving Anxiety
Despite the high budgets auto manufacturers spend on innovative safety features for cars and all the traffic rules, accidents have increased dramatically from 2018 to 2022. Being concerned about road safety is the need of the hour. So, Gen Z prefers leaving the driving to the professionals due to the increasing driving anxiety, further losing their interest in owning a car.
Economic Uncertainty
We live in a time when there is huge economic instability, regardless of all technological advancement. Wars, pandemics, poor strategies, polluted nature, etc., can be the culprits. However, the blame game is not for Gen Z; they’d rather look at how they can improve it. They understand that long-term financial commitments like owning a car might not currently be viable, so they prefer choosing alternatives.
Carpooling Opportunities
You must have heard that necessity leads to invention, and that’s quite true. Considering the expenses of owning a vehicle and the economic situation, carpooling is highly trending. It’s a very cost-effective method to get around, as it allows several people to share the commute to reach destinations. Companies especially offer this service to students at a discount, making the idea of owning a vehicle less attractive to Gen Z.
Government Policies
Many regions in the world have realized that vehicles are causing issues that will be irreversible if not addressed promptly. Therefore, some states have taken steps, e.g., increased taxes, limited parking provision, etc., to discourage vehicle ownership. Gen Z sees how these policies can take over the whole world someday, and investing in a car will only hurt more.
Digitalization
It won’t be wrong to say that the world has gone online. You no longer need to leave the house to buy stuff. Need something urgently? Get it delivered to your doorstep. Need to drop something off at a friend’s house? Just get a cargo pick-and-drop service! Gen Z gladly enjoys these facilities to the fullest without needing to buy a personal vehicle.
Health and Fitness
Another reason car brands are seeing low sales from Gen Z is their living priorities. They haven’t had enough chances to move around like previous generations, and their lifestyle has become sedentary. However, they have an idea of how inactivity can impact their health, so they try to take every chance to spend time doing physical activity. Gen Z may see cycling, biking, and walking as healthier and more sustainable options to get around.
Parental Support
About one-third, or 31%, of Gen Z still live with their parents because they can’t afford to buy or rent a place. This financial constraint makes vehicle ownership an even lower priority on their list. Moreover, living at home might limit their need for a car, as they can use family transportation to fulfill their commuting needs.
Since these concerns are mostly environmental and economic issues, e-vehicles are expected to change the interest paradigm. Let’s see how it works!
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Zainab Noor is a motoring journalist. Childhood rides in Nissan Almera fueled her love for cars. After graduating from AIOU in 2021, she steered her passion into freelance writing. You can find Zainab on LinkedIn.
