If cliches are to be believed, millennials are responsible for everything from marriage to those big department shops. Even American cheese is available. You may have heard that the same millennials (those born between 1981 and 1996) are putting an end to automobiles as we know them, primarily because they don't want to drive.
However, new research from Hagerty, a historic automobile insurance firm, reveals that we can add the assumption that millennials despise cars and driving them to the fiction pile, just like so many other stereotypes about them.
"Whether you call them clichés, proven trends, or whatever you want to call them, there's simply this conventional sense that millennials aren't interested in vehicles," says Jonathan Klinger, vice president of public relations at Hagerty. According to Klinger, facts such as the gradual reduction in young people receiving driver's licences at the age of 16, the rise in mass urbanisation, and the popularity of ride-sharing applications make that conclusion easy to reach. However, one thing that millennials may be remembered for is saving the pastime of vehicle collecting.
Baby Boomers vs. Millennials
"We're looking at the aspect of the automotive industry that attracts individuals who are passionate about vehicles," Klinger says, adding that "in late 2018, market activity from Gen X and millennials combined overtook that of baby boomers and older." "That was the first time that shift occurred, and the common thought in the vehicle industry, on the enthusiast side of the automotive market, was that the pastime of car collecting would die with the baby boomer generation. That is no longer the case, according to our statistics."
To be clear, automobile collecting does not necessarily imply having multiple vehicles; rather, it refers to the desire of owning a vehicle for enjoyment rather than daily use. Here are some facts from Hagerty on millennials' automobile collecting habits and lifestyle:
For millennials, the average value of a collector automobile is $21,000 (which is less than the $30,000 average value in North America).
The average annual insurance rate for collector automobiles owned by millennials is $674.
Men own 90% of the cars, while women own 10%. This includes circumstances where a couple shares a car but the man's name is on the insurance as the primary driver.
autocars are, on the whole, the most popular among enthusiasts, although there are some exceptions.
When compared to pre-boomers (those born between 1930 and 1945), who are more interested in British automobiles, millennials are more than four times as interested in Japanese cars.
German automobiles continue to pique the interest of successive generations.
When compared to pre-boomers and boomers, Gen X and millennials are 35 percent more likely to be interested in trucks and SUVs.
What Kinds of Automobiles Do Millennials Collect?
According to Klinger, younger collectors' growing interest in trucks and SUVs isn't surprising given their overall popularity in the United States, but it is one of the most noticeable swings away from the older generation of collectors.
"Corvette, Mustang, Camaro, European sports car, British sports car were all considered collectable cars by previous generations. Younger generations are several times more likely to seek for a first-generation Ford Bronco, which was produced from 1969 to 1977, or a 1960s or 1970s Chevrolet pickup "According to Klinger. "Rather than 'Oh, I need this to haul the yard waste' or 'I need this because I want to go off-roading,' there's this sense that a truck, an SUV, or something meant to go off-road is sought after as something exciting to own."
Furthermore, Klinger points out that having a historic truck or SUV rather than a collector automobile has different advantages. They're more common, often less expensive, easier to maintain, and parts are more readily available. Purchasing a vintage vehicle with the intention of repairing it, according to Klinger, corresponds to the growth of "do-it-yourself" or "maker" culture.
Not only do millennials want different automobiles than their parents, but they also operate them differently, according to Hagerty. Younger collectors are more inclined to drive their vehicles and attend driving-related events, whereas older collectors' idea of fun is to take their car to a car show and hope to win a trophy, according to Klinger.
Despite the fact that the pastime might be a nice break from technology, Klinger admits that younger car collectors or newbies may not agree. Even while the objective of the event is to reminisce about days gone by, he notes that a relatively new event called Radwood, which highlights historically neglected vehicles from the 1980s and 1990s, thrives on social media.
Why Are Millennials Collecting Right Now?
Now that the reasons behind millennials' interest in collectible cars are better known, the question remains: why now? The explanation is complicated, but one factor is that Gen Xers are in the peak of their earning years, and Hagerty's research discovered that they collect with the same zeal as the boomers before them. We may also credit the 100 million millennials who are on the verge of amassing massive sums of money.
In other words, data shows that when millennials acquire their driver's licences, buy their first vehicles, get married, and buy their first homes, the timing is now different, according to Klinger.
It's also a wonderful opportunity for them to rekindle their passion. There are lots of desirable collectible automobiles available for less than $10,000 or even $5,000, according to Klinger.