Photo by Levi Jones
Everyone remembers their first car and how they obtained it. Whether they saved the money themselves or received a hand-me-down vehicle, a first car usually holds a special place in the owner’s heart. But could the method in which someone’s first car was acquired impact them later in life?
In a new study, Leith Cars asked 1,000 Americans how their first car affected their life as adults. They wanted to find out details such as whether respondents helped choose their first car or did their parents choose for them, how that decision might affect an owner’s appreciation of the vehicle, and why they wanted the car to begin with.
First Car Benefits
There are many reasons why people would want a car. Having the independence to go where the owner wants when they want is always a great perk. But what were some of the other reasons respondents wanted their first car?
Approximately 82% of people said they wanted their car to give them more social opportunities. Nearly 4 in 5 people said owning their first car made them more responsible and allowed them more work opportunities. Almost 70% said having a car made them more financially responsible.
First car feelings changed by generation. For example, millennials were more likely to believe that their first car made them a safer driver. Those in Generation X were most likely to think that their first car gave them more work opportunities. Baby boomers were the generation that believed their first car afforded them more time to socialize and made them more responsible.
First-Time Feeling
More than 3 in 4 people said their first car was a used vehicle, and about 2 in 3 respondents were able to choose the car they wanted. Gen Xers (81%) were the generation most likely to have a used first car, followed closely by millennials (75%) and baby boomers (73%).
But baby boomers were at least 11 percentage points more likely to pick out their car than the two other generations analyzed. On average, respondents drove their initial vehicle for about 4.6 years. About 30% of millennials are reportedly still driving their first car, compared to just 8% of Gen Xers and 7% of baby boomers.
The average number of miles respondents drove their first car was 43,000 miles. In order for your car to stay on the road, you need to have it serviced from time to time, and you may even need to find car repair in Arvada, or wherever you are, to get more pressing issues fixed so that you can keep driving.
Road to First Car
Over half (51%) of respondents reported purchasing their first car themselves. More than 1 in 4 people revealed their parents bought their first car, and 21% said they got it secondhand.
Baby boomers (67%) were 21 percentage points more likely to buy their first car than millennials (46%). Of those who purchased their first car themselves, millennials paid $10,800, on average; Generation X paid $7,500; and baby boomers spent $3,500.
Where car payments and car insurance were considered, younger generations were more likely than their older counterparts to get help from their parents or not pay at all. For example, 56% of baby boomers were solely responsible for paying for their car, while just 39% of millennials reported doing the same.
According to the study, the top three first cars that were the most common among respondents were the Honda Civic, Honda Accord, and Toyota Corolla.
First Car Appreciation
Respondents who purchased their first car themselves were more likely to be satisfied with it. Approximately 63% of people who bought their first car were happy, compared to 53% of people who received their car secondhand.
Also, those who could buy their first car on their own were more likely to be satisfied with their careers. About 2 in 5 people who purchased their first car were very satisfied with their jobs, compared to 25% of people whose parents bought their first car.
How might this affect respondents’ children? Nearly 40% of people said their children would be required to buy their first car independently, while 35% said their child would not be responsible for that large of a purchase. About 1 in 4 people were unsure as to how they would handle that decision.
More than half of people who bought their first car on their own have or will require their kids to do the same.
Receiving your first car is such an amazing experience, but the study suggests how that car is obtained can affect you later on in life and how you raise your kids. Since more people found satisfaction with buying their first car on their own, teaching your kids about how to handle money early on might be a great way to set them up for their future.