President, Automotive
ALWAYS Bikes, a division of eBliss Global
To view the downloadable article, click here
Reason #2: Declining rates of driver’s license acquisition
This fact should worry every dealer: when comparing the rates of young people obtaining driver’s licenses with those of their parents, it is evident that there has been a decline. A study conducted by the Federal Highway Administration found that in 2017, only 61% of 18-year-olds had a driver’s license, compared to 80% in 1983. This data suggests a significant shift in the behavior of young people regarding driver’s license acquisition; in fact, there is a growing trend of putting off getting their driver’s license until deep into their 20’s. According to a study by the University of Michigan, the percentage of 16- to 44-year-olds with driver’s licenses decreased from 91.8% in 1983 to 76.7% in 2014.
Many factors are contributing to this, like socioeconomic ones such as student loan debt and a competitive job market, coupled with the ever-increasing cost of automobiles. The rise in alternative transportation options like Uber, an increase in the availability of public transportation and biking infrastructure, and the growing emphasis on environmental sustainability have influenced young people’s transportation choices, reducing the desire for vehicle ownership. This delay in obtaining a driver’s license also means they delay vehicle ownership, keeping this large and important buying segment OUT of dealers’ showrooms. However, dealers who offer alternative forms of affordable, eco-friendly transportation like e-bikes will have a leg-up by developing a brand relationship with these future car buyers during this period of not needing/wanting an automobile.
If you’re an automotive dealer interested in learning more about adding e-bikes to your sales portfolio, call us at 888 341 6450, or visit us online at www.alwaysbikes.com.