Automotive technology is improving so fast these days that driverless cars are becoming expectation rather than being a distant dream. We are getting reports that they are being tested successfully. However, we may need to wait a few years more before they are allowed on the roads and economical enough for an ordinary person to buy.
Those advancements are so significant that theycan lead to trend changes. For example, recent car sales figures show that boomers prefer subcompact cars these days. This is probably due to the changes made on them recently that make them more comfortable to drive and safer. If there weren’t such improvements older people wouldn’t want to buy them. They generally have sufficient money to enjoy the finer things in life.
These automobiles’ target market is believed to be Millennials between the ages of 18 – 34. They are fairly cheap to buy and great as a first car. However, they only make up of 12% of the market today. It was 17% only five years ago. Then, who is buying these cars today would be the question since they are selling pretty well these days. In fact, most cars are selling well for the last 12 months or so.
Millennials may have money issues or recent crisis may have affected their confidence to go out and buy a car. But one segment of the market that has little money issues is Boomers. Actually, it would be easier for them to afford these cars instead of buying bigger cars that are symbol of wealth.
People may think that smaller cars are the models mature drivers would buy for their teenagers or grandchildren. However, they are buying these automobiles for themselves and there are plenty good reasons for this choice.
First of all, they are cheaper to buy and keep. They burn less petrol, their maintenance is cheaper and they even keep their value better. When you add all the latest safety features and consider that these cars are now made with comfort in mind you can see why they are preferred.
Spending a lot of money on a car may not be a smart choice of investment for older people. That is why they may be interested in these economy cars. In addition it is easier to get into and get out of them. They are much easier to park as well.
One other significant expense is insurance. As we mentioned above subcompact cars are built safer today and that pleases auto insurance companies enough to offer lower rates. Vehicle insurers consider a few factors when they are pricing their policies. Type of vehicle to be insured is one of the most important factors. As a general rule, the smaller the engine size the cheaper car insurance gets.
Clearly older drivers like these cars enough because they make up 42% of the subcompact auto market today. It is up 13% from only five years ago. It is in a way fair to say that subcompact car manufacturers hit the jackpot with the boomers.
This article is written by Julie Lee who is a regular contributor to http://cheapautoinsurance.net. You can get help on this auto insurance blog about insuring your automobiles, get the best coverage and the lowest price.