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Despite ride-hailing popularity, people still want to own cars

Posted on Friday, March 11, 2016 at 9:36:33 AM

In the last few years, the popularity of ride-hailing services like Uber and Lyft has soared to the point where both now stand as global powerhouses. Some looked at population trends like the fact that only 77 percent of Americans aged 20 to 24 have a driver's license and concluded that personal car ownership has come to a dead end. New research, however, has pumped the brakes on that gloomy forecast.

Per-dealership average sales rose 4.8 percent in 2015, the fourth annual record in a row, according to Automotive News. On top of that, FICO found in a recent survey that nearly 40 percent of 25-34 year olds had definitive plans to purchase a new car in the next 12 months. Meanwhile, 28 percent of 35-49 year olds - and only 15 percent of drivers over the age of 50 - said they were very likely to buy a new vehicle soon.

It seems that campus living, where cars aren't required or are sometimes even restricted, threw off millennial driving statistics. By utilizing auto financing, millennials across the country are buying cars in numbers that suggest any predictions for driving's demise were overexaggerated.