Interesting WSJ article (subscription) highlights how dramatically the concept of car ownership is changing in light of current ride-sharing trends and the potential for autonomous vehicles in the future. Here’s a graph that shows how new car buying has slowed dramatically among younger Americans:

Other key points from this article (about a 5 minute read):

• 1/4 of miles driven may be through shared, self-driving vehicles by 2030: “Car ownership, for a long time, has symbolized freedom and independence. But in the future, it may be akin to owning a horse today—a rare luxury. Ride sharing as we know it will grow in popularity as people get even more comfortable with the sharing economy, and more people migrate to dense cities where owning a car is a burden. One-quarter of miles driven in the U.S. may be through shared, self-driving vehicles by 2030, according to an estimate by Boston Consulting Group.”
• Other ownership models may surface which involve renting out your own car to strangers: “Chief Executive Elon Musk has hinted that he’s preparing to create a network of Tesla owners that could rent out their self-driving cars to make money. Already, some drivers are testing this idea using other services that let them market their cars, something like Airbnb rentals on wheels.”
• Businesses will develop to help people figure out what to do with all that time as a passenger in their car: “The advent of self-driving cars will give people more free time while in the vehicle. And that will create new opportunities for car makers and others to make money. Autonomous vehicles could ultimately free up more than 250 million hours of consumers’ commuting time a year, unlocking a new so-called passenger economy, according to Intel Corp. , which is trying to provide the computing power behind self-driving software.”

Questions for students:

• When do you anticipate buying your own car (if you haven’t already)?
• Have you ever used a ride sharing service (Uber or Lyft)?
• What do you see as pros/cons of owning your own car vs. using a ride sharing service?
• What are the costs that come to mind when you think about owning a car?
• Do you believe in a future of autonomous vehicles? Why or why not?

_________

Here’s an awesome NGPF activity where students research will help them answer the question: Do I Need A Car? 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.