I own a beater car even though I could pay cash a new car if I wanted to. One reason is that cars are expenses, not assets, so there is no reason to spend more than you have to for the transportation it provides. Spending money on a nice car is just about one of the worst financial decisions you can make.
The other reason I own a beater is that I live near a major city and can take public transit to and from work. If my car is going to sit in front of my house most of the time, why pay for a nice one?
Public transportation is much better near cities, and the Millenial generation is the most city-bound American generation ever. Americans in general are migrating to cities, and young people more than most. I think the article grossly underplays the importance of this demographic trend.
I would bet this is a major factor in declining car ownership, AND home ownership--since it is so much easier to find reasonable rent near a city. In small towns and even many suburbs, there are typically few rentals, so you have to purchase if you want to live there. Real estate tends to be more affordable there too.
The other reason I own a beater is that I live near a major city and can take public transit to and from work. If my car is going to sit in front of my house most of the time, why pay for a nice one?
Public transportation is much better near cities, and the Millenial generation is the most city-bound American generation ever. Americans in general are migrating to cities, and young people more than most. I think the article grossly underplays the importance of this demographic trend.
I would bet this is a major factor in declining car ownership, AND home ownership--since it is so much easier to find reasonable rent near a city. In small towns and even many suburbs, there are typically few rentals, so you have to purchase if you want to live there. Real estate tends to be more affordable there too.