Answer: 63%

Questions:

• Do you think the first car that you buy will be a new or used car? Explain.
• What are the advantages/disadvantages of buying a used car? 
• Why do you think a lower percentage of older generations buy used instead of new? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (WSJ; subscription required):

“Gen Z buyers’ participation in the new-car space is declining year after year,” said Tyson Jominy, an analyst with research firm J.D. Power. “We expect to see them get their first job” and buy a car. “But we’re not seeing this.”

J.D. Power estimates that Gen Zers will purchase about 120,000 fewer new vehicles this year compared with millennials in 2004, when they were the new generation of drivers—or 488,198 vehicles versus 607,329 then.

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Want to help your students shop for a used car? Check out the NGPF Project: Buying a Used Car here. 

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.

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