[prateekm]

At 26, I might not be from the "millennial" generation, but I have similar spending habits. Don't own a car, and I'm not sure if I want to - at least till 2022/23 when the metro work is supposed to end and we can actually 'drive' on the roads.

I stick to Uber and have a monthly expenditure of around 10-12k or so, and that works for me. I can complete my work in the cab (or sleep), not lose my mind each time somebody cuts me, and all this at hardly any extra cost. Sure, there are a few negatives too, but the positives outweigh them easily.

Since analytics interests me and I have my raw data, I've been wanting to start a thread here on the same topic. Maybe I'll begin that on my Uber ride back home today..

[Nav-i-gator]

From personal experience:

Never buy a house, if it is not ready to move in (means for investment purpose alone). Paying rent as well as EMI would ruin your life's many years. And it does not appreciates faster than other investment options anymore, nor is it a liquid asset.

EMIs are good at times: I bought my first AC, first TV and a lot of other household items through Credit card (most of these were no-cost EMIs; where interest is discounted from the purchase price and effectively you pay only the buying price- spread over few months). I still buy most of the items like Mobile phones, furniture, appliances etc through that route, esp if there is a cashback scheme. Most of the times where you end up paying interest on EMIs, cashback adjusted means very less (if any) interest outgo.

However, the items one buy through EMI route should be either needs or wants within your means only. That way, interest you pay can be slotted as the cost of luxury or, in case of cars, cost of fulfilling your hobby.

[Samurai]

My elder son turned 18 year last year. We own two cars. He hasn't shown any interest in learning how to drive. When we asked him recently, he said he will learn after he graduates, that is 2022. He doesn't want a motorcycle either.

He is happy to take bus to college, and Uber/Auto to anywhere else.

[clevermax]

The first major spend that I undertook after working for 6 years was to buy a car in early 2006. That was the number #1 item in the list from day 1 of my career. I was totally looking forward to that moment when I can drive my own car out of the showroom. I couldn't get any companion to accompany me so I just went ahead and did it alone. The euphoria of that exuberant moment still lingers! Boy, what a moment that was.

Will you ever get bored of driving? Will you ever consider car just as a medium to take you from point A to B? My answers are a clear 'No' for both these questions. In fact, during most of the weekdays, the best part of the day is sitting behind the wheel, driving.

Coming to the case of the Millennials, there are less number of Auto enthusiasts than the Gen X. I guess that number would see a sharper decline going from Gen Y to Gen Z.

During the childhood of a now-Gen-X person, cars were mostly considered luxury and were owned by a micro minority of people in the society. Very few of those now-Gen-X kids would get to ride on one, let alone see one in rural areas. In today's world, cars are everywhere and there are no big reasons for a child to get fascinated by a car. No wonder they consider it as a means of transport, and it is so convenient for them to rely on Uber / Auto-rickshaws to take them from point A to B.

Enthusiasts in any of these generations are still the same, they would always want to own a car, drive them everyday, wash them, keep them clean, service them, modify them and most importantly, they'll take pride in their possession!

There are two women bikers in my team (One is Gen Z, one is a Millennial), and most Gen Z guys in the team doesn't know how to drive a car! This would have been a very unlikely scenario if it was in year 2000.

[FrodoOfTheShire]

At 32, I am definitely not a millennial and even compared to others my age, I am positively old fashioned when it comes to any kind of debt or credit. I did buy a car but only after 8 years into my career after saving up for it. As far as buying a house is concerned, I am in no mood of getting burdened by a massive home loan which I then have to slog it out for another 2 decades to repay! No, thank you! Here's a brilliant article that I have bookmarked on my phone and send to people who give me free gyan on why I should buy an apartment.

[Gansan]

My son is 19, entering second year in college. He wants to take driving classes and get a DL, for both car and Motorcycle with gear. He lives in NITT campus, and can't drive or ride anywhere in campus for the next three years. Any kind of automobile is prohibited for students, only bicycles allowed.

He just wants to get the licence (and a passport) because that will be one thing out of the way. And be on equal footing with his peers! So that he will be able buy his own vehicle and drive/ride in the future, should the need arise. Hardly any passion about driving or riding.

[Sheel]

Its a blessing. Less people buying cars would mean [hopefully] improved public transport in coming years, [hopefully] less number of personal cars on road and the prices of automobiles having a sensible and practical rate.

But as most hopes come crashing down, lets see how these pan out.

My daughter at 4 wants to drive a car and ride a bike when she grows up, hopeful that this spark stays [again hopeful ].

[landcruiser123]

I'm less than a quarter of a century old and I think a car is a requirement. Right through life, I've been taught to do everything myself and not rely on someone else. I've just started a new job in the SF Bay Area. There are some student loans over my head and I want to save up for an MBA. Taxi/rideshare was always something I used only when I went on a trip, collecting a car from service or a party.

Even with Uber and half-decent public transportation- I see a car as a necessity. I really don't need a car for commute purposes, but I can't rely on Uber for going to a remote hill and do some hiking/mountain biking. For me, relying on uber is like relying on a piece of rubber attached to a center. If you try to stretch it too much, it will give up on you.

It is also the psychology of small purchases hurting me rather than one large purchase. I'd only consider a loan for a car(not fully)/house/education. For everything else, I believe that if you need a loan, you probably can't afford it. But unlike many in my generation, I'm not seen as someone who cares too much about fashion. I'd rather be seen next to a good car rather than wearing some super fancy apparel. Would be nice to have both :P

In the same breath, I may also add that in the future when I'm married, I don't see me and my partner having two cars (unless our job absolutely demands it) and driving around like how my parents did. My parents had 2 cars for 20 years and reduced it to 1 after I left India for my MS and my dad took up a new job which would require him to travel extensively.

[boniver]

I'm 20, and for now I try my best to follow the following two rules:

1. Invest aggressively. No matter how small the amount is, I keep on investing in various things. "My" money is the money I get from my parents for my conveyance, food etc, and I save a major chunk of that amount and invest. My thumb rule is, any amount that is in excess of Rs. 5000 in my savings account should get invested. I sincerely believe that I don't need more than Rs. 5000 to spend at any given time, and if an emergency does arise, I can take money from my parents. It's best to invest now since I have no liabilities.

2. Zero debt. Learnt this from my dad, who has never bought anything on EMI, loan etc. I might be viewed upon as conservative, but having no debt to worry about is a good feeling. Of course, I understand the benefits of taking loans from a financial standpoint, and I'm sure this rule will change soon.

I do not plan to own a house or an apartment in future, because once you call a place your home, it becomes difficult to adjust to another place, and you keep longing to go back.

I do however, definitely intend to buy a car, or multiple vehicles for that matter. I enjoy my independence behind the wheel, and I've observed the same among most of my friends too.

As for other worldly things, nope, not interested. My current desktop is 13 years old, laptop is 4 years old, camera is 5 years old and so on and so forth and I'm happy with all of them. I don't feel the itch to upgrade unless there's an absolute need to do so.

[aniyo]

Originally Posted by navin

My son is 17 and so are his friends. They don't view a car as a possession but rather as a service. For them the reasons not to bother to even learn to drive are plenty but mostly it boils down to:

"Uber/OIa/kaali-peeli taxis are plentiful why have the stress of traffic when you can be peacefully Instagram/WhatsApp your friends in that same time."

We learned to drive because that was our path to independence. They have their independence without having to deal with the stress of traffic or parking or car maintenance.

In addition in many cases our ego / self worth was tied into the car we had. Now that has shifted to the clothes you wear ands the food you eat and the places you have to be seen at. I don't know what else explains the rise of brands such as Canadian Goose, Vans, Moncler, etc. Where as we were happy in Levis and any old t-shirt, brands like Gucci, Chanel, Louis Vuitton, Hermès, Tiffany, Dior, Armani, Prada are not uncommon in college campuses today.

My Wife though much older, nearing 30, has the same point of view. Why buy, lets take Ola/uber, hire cars for long drives.
She is not much into clothes, brands and make-up, I am a lucky man. However she loves to travel, 1 foreign vacation a year is the least expected. 2 will be satisfying for her. She like to own gadgets, hates Iphone though. Their priorities are different.
I on the other hand think only about cars as a possession. Not interested in fancy phones and gadgets but cars and politics i can go on the whole day.

I have a junior who bought a car Ameo Auto and has driven it a grand 8K in 2 years. Now sold the car and used some on the funds for a foreign vacation.

I think the biggest challenge for the car makers is the mind and wallet share of the new generation. Peer pressure is so real and for every generation it made us do things that we never wanted to. We bought house, got married had kids more under peer and society pressure than our own will.
The newer generation is all into gaming, vacation, lifestyle etc the "experience generation". Sure is a challenge for the auto makers

[sumeethaldankar]

Well on the flip side if the newer generation is not keen on buying cars for me it seems like a positive thing with respect to below.

1. You will have more parking space since no one in your society will buy a car.
2. Less cars on the road means you can drive yours peacefully.
3. More discounts since fewer people are buying so better for the consumer.
4. Cars will have better features to attract more buyers.

The UK counterpart of a Swift buyer has more features in his car than his Indian counterpart (me for example even in the top end I don't have cruise control or 7 air bags).

All in all I believe only true enthusiasts will buy a car because one has to be crazy enough to live through all the hassles one has to undergo while buying and owning a car.

[vermasach]

Most of us born in 60-80s were primed to earn and then accumulate possessions. Buying a house and a Bike/Car was one of the prestigious ones.

Houses were mostly treated as investment of necessity. It was something that one could hand it over to your next generation. Cars were things of desire and independence. The easily available loans trends started towards the end of previous century and still it was some thing that most people were not very comfortable with.

I borrowed a home-loan for 20 years tenure. I never felt very comfortable with the thought of my house being leined. I cut down on many other expenses and ensured that all increments/ incentives go towards repaying it. I could hence close it in 7 years flat.

But in the hind sight, do I think a house as a possession now? Not really!! In fact it becomes a liability because of changing Jobs, locations and also cities. We generally would not buy a house just to be rented out.

I think not buying house or car for the next generation is right thinking. It keeps them asset lite, more freedom,flexibility and thus makes them more mobile in terms of geographies.

However learning to Drive, engaging in construction/interiors of your own house are pleasures one should definitely taste once in their lifetime!

[aniyo]

Originally Posted by GTO

After talking to millennials, I also realised they have something we didn't = DEBT .

I had taken an education loan for my MBA, did not want to burden parents. Had my engineering paid through part scholarship (60K for 4 years, nursery schools are more expensive now).
MBA loan was promptly paid in 22 months flat. Lived like a beggar those days.

Got my first car pre-owned. 18K driven Brio for 3L. Second car, new, full cash.

House is the only loan I have. Hope to close it in 6-7 years. That's the last loan I will be taking in my life.

[sharktale]

Maybe Off-Topic :

Originally Posted by ashis89

+1.

They don't want to be "attached" to a place or thing.

+1.
Also, being "attached" to a person is not the norm anymore. I cannot fathom the reason why.

I myself am 24, and see so many instances of friends not being attached to a place or thing.

I'm pretty old-school in my thought process in many aspects, Eg: when I am suggesting cars to people. I'd buy it for 7-8 years minimum, thus I often recommend Toyotas to people if their requirement is basic. However, my friends often buy/lease cars for a short term, 2-3 years, and sell/exchange it for a newer model. This is appalling to me! 2-3 years would be the time I would be taking to get comfortable with every inch of the car and it's proper maintenance would start only then.

Planning on my future education, my prime most concern apart from the usual college selection is to minimize any chance of a loan. I'd settle for a college 2 ranks below than take a college which would make my heart ache with debt, the moment I step out of it.

I think that we become independent, sometimes, by getting enslaved to debt.

[ValarMorghulis]

Another reason of not buying cars is high tuition fees for graduation.

For example, let's consider the fees of IIMs (and other top B-Schools).
In 2004, IIMs charged INR 1.5 lakhs, which helped you have a lot of disposable income when you graduated with a good package.

For 2019-21 batch, the fees is INR 23 lakhs (and this is not counting misc. expenses). Even if you secure a top job which pays ~INR 25lakhs on graduation (which not many get mind you), you're not left with much to buy a big car, post education loan repayment.



And if one buys a home (prices of which have again skyrocketed) then a car becomes an after thought, esp. when it is a fast depreciating asset.