What's your Most Expensive Purchase?


 

When you think of the most expensive investments you've made in your life, what comes to mind? Maybe something you splurged on? Or was it something you needed to function on a day-to-day basis like a place to live or a way to get around?

As each generation passes, the home-buying and vehicle-purchasing statistics vary. It seems, however, that today, home-owning is beginning to decrease while the automotive industry is thriving. Although purchasing a vehicle used to come in second place to a home, millennials have been changing that trend. But why?

Millennials are more concerned with attending college and establishing careers. They are also waiting to get married and start families, making the need to become a homeowner less of a priority. Having a reliable vehicle, however, is a necessity when attending college and traveling. According to a recent study from the Federal Reserve, the number of young people getting their first mortgage in the early 2000s was almost double the number of those purchasing a home between 2009 and 2011.
Another problem is that young people start their after-university lives in debt. Bob Willis of Bloomberg Businessweek reported that student debt is, "...close to $1 trillion, America's mounting pile of outstanding student debt is a growing drag on the housing recovery, keeping first-time home buyers on the sidelines and limiting the effectiveness of record-low interest rates."

If the current trends continue, vehicle sales will increase for the generations to come. Especially with the lower monthly pricing options available with leasing. According to Time.com, "In 2005, only 16.6% of new car purchases were leased. By 2014, the leasing rate was up to 27%, and then hit a record high of 29% in 2015. During the fourth quarter of 2015, leases represented 33.6% of new vehicles sold. Leasing is increasing among younger car buyers in particular - up by 46% among millennials over the past five years, compared with an uptick of 41% for all buyers."

Whether we look at the historical vehicle-purchasing statistics or the current, one thing is certain - we can always expect the Ford Motor Company to change and adapt to the needs of the market. From past, present and into the future, you will go further with Ford!

https://www.theatlantic.com/business/archive/2012/02/the-end-of-ownership-why-arent-young-people-buying-more-houses/253750/
http://time.com/money/4255785/americans-buying-more-than-ever/


Categories: People
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