When Jack Price needed a car, he did not want a new one. A new vehicle was too expensive. Instead, he bought a 2010 Volkswagen car for 6,000 dollars in cash. Five years later, he still drives the same car every day.
Many young people in the United States are making the same choice. Today, an average new car costs more than 50,000 dollars. Buyers often pay hundreds of dollars every month for six or seven years. For young adults with student loans and high living costs, this debt is too heavy. In 2024, drivers under 35 bought less than 10 percent of new cars.
Now, older cars from the late 1990s and 2000s are very popular with young drivers. People can often pay for these vehicles in cash, so they do not owe money to a bank. These cars are also cheaper to insure, and they have simple buttons instead of complex computer screens.
Drivers also like that they can repair older cars by themselves. Newer cars are digitally complicated, and owners must go to expensive dealerships for repairs. For many young Americans, an older car may have broken parts or scratches, but it is reliable and affordable.