Ed Wallace, an auto guy on the radio in Dallas, asked a really good question: If you are fresh out of college with your very first real job and you have some money to buy your very first brand new car and you have a choice between a Mustang and a smart car renting service - which one are you gonna choose?
With the average college grad making $48,000 and the average new car costing $34,000 I don’t think many buy a brand new car.
In fact, many in the new generation have to be coerced by parents to learn how to drive. They see it as an annoyance, not a right of passage to freedom. It’s the level of connectivity, they’re always connected. They’d rather spend their money on a better phone, internet connection, etc..
It wouldn’t surprise me that GM is doing this especially because of this trend. It’s a different way to get customers they otherwise might not get anything from.