In the United States, teenage drivers have become a minority, according to a data dive from the Washington Post. Statistics have shown that in 1997, 43% of teens got their license at age 16, a figure that dropped to just 25% in 2020.
An earlier study released by insurance agency Jerry, found that while there’s no one clear reason why Zoomers are reluctant to get behind the wheel, it could have something to do with how they are “less confident about their abilities to drive” compared to older generations.
They found that only 40% of Zoomers are likely to rate themselves as good drivers, versus 72% of Gen Xers.
They also found that the younger generations (Millennials included) appear less likely to pass their road tests the first time. The percentage of those who pass the first time actually got smaller with each new generation: 85% of Baby Boomers, 78% of Generation X, and only 64% of both Millennials and Gen Z.
The younger generations’ waning interest in driving might also have something to do with how it’s become so much more expensive to buy a car — whether new or used — these days, compared to how it was during their parents’ time.
Recent data from Edmunds show that with today’s skyrocketing interest rates, the share of monthly payments amounting to over $1,000 reached record highs in Q4 2022.
Information for this story was found via the Washington Post, Jerry, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.