“An unnecessary financial burden”: Why young people are turning away from car ownership

Young adults are increasingly questioning whether owning a car is worth the cost. A survey of 1,000 people aged 18 to 29 found that 27% considered it unlikely they would buy a vehicle in the next three years.

The research, commissioned by short-term car insurance company Tempcover, found that 12% viewed a car as an unnecessary financial commitment. Instead, they preferred walking, borrowing a vehicle or using public transport. Almost half, 47%, described a car as a functional item, comparable to a vacuum cleaner or lawnmower.

Many respondents said they would rather spend their money elsewhere. Nineteen percent preferred upgrading their phones, gaming setups or other technology. Another 27% chose mental health days and personal care, while 23% favored restaurant visits and food deliveries. Eleven percent said they would rather spend the money on daily specialty coffees and iced lattes than on buying a car.

The survey also pointed to growing interest in access without ownership. Nearly one-quarter, 23%, said they would prefer to treat cars like a streaming service subscription, using a vehicle on demand when needed. Forty-three percent said they would feel entirely comfortable relying on borrowed cars. Eighteen percent believed their generation was less interested in owning cars than earlier generations were at the same age.