FI showroom red and grey logo
MenuMENU
SearchSEARCH

New Study: Generation Gap On Auto Ownership Is as Wide as a Highway

Teens say they're ready for car ownership, while parents disagree. The reason, a new study from American Honda Finance Corp. reveals, will make Baby Boomers shake their heads.

by Staff
May 16, 2017
New Study: Generation Gap On Auto Ownership Is as Wide as a Highway

 

3 min to read


COLORADO SPRINGS, Colo. — Teens ages 15 to 17 are confident they full understand the financial responsibilities of owning a car, a new study shows. Unfortunately, 85% of parents of those 15- to 17-year-old teens disagree.

The discord, according to independent research conducted for Junior Achievement and American Honda Finance Corp., may lie in the fact that 86% of teens feel that parents should help them with automobile expenses such as insurance, repairs and gas. Unfortunately for teens, however, 91% of parents believe assistance is unreasonable.

Ad Loading...

"When it comes to newly licensed drivers, in addition to important discussions about distractions and curfews, parents should rev up the car talk about the financial aspects of car ownership," said Jack E. Kosakowski, president and CEO of Junior Achievement USA. "It's a great way to prepare them for future financial security both on and off the road."

The Junior Achievement Surveys were conducted by Wakefield Research between Feb. 8 and Feb. 21 using an email invitation and an online survey. Polled were 500 teens ages 15 to 17, 500 young adults ages 18 to 25, and 500 parents with teens ages 15 to 17.

Results revealed that nearly one-fourth of teens expect a car with their cap and gown on gradation day, while 61% of parents surveyed at the time said they expect their teen to complain about financial upkeep of a car within 30 days of getting their vehicle.

Interestingly, 61% of parents say a car is a more effective means of teaching kids financial responsibility than a credit card. To that end, 96% of parents say they would only help their teen buy a car if they first demonstrated responsibility, such as by preparing a budget to pay for expected and unexpected expenses, having a certain amount of money saved or explaining what is required to buy a car.

"When parents walk their young adult drivers through the smart steps of buying and maintaining a car, it becomes an opportune time to introduce key financial concepts that will last a lifetime, from the importance of budgeting, to negotiating and maintaining healthy credit," said personal finance expert Farnoosh Torabi, who provides 10 tips for financially-sound teen drivers.

Ad Loading...

A third JA-AHFC survey conducted among young adults ages 18-25 may reveal the truth about teens' financial understanding. According to this more mature cohort, looking in the rearview mirror, 73% admit they did not understand the financial responsibilities of owning a car when they were in high school.

And with age comes wisdom, as 93% of these young adults are confident that they fully understand the financial responsibilities of owning a car. And result show they turn to a wide variety of sources for information when considering purchasing a vehicle, including financial institutions, car dealers, online forums, magazines and social media.

"Vehicle ownership is often a teen's first real-world experience managing their own money," said David Paul, senior vice president of American Honda Finance Corp. "The important lessons learned at this stage in their lives will help them manage their responsibilities today, as well as help them succeed in their future financial obligations and aspirations in life."

More F&I

Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

Timing the Market Can Hurt Long-Term Program Performance

For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.

Read More →
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →
Ad Loading...
"Effective training ensures the customer’s needs remain at the heart of everything we do. When that is the focus, both sales and profits naturally improve." by Rick McCormick with F&I and Showroom logo and picture of Rick McCormick
F&IMay 1, 2026

F&I Training Fundamentals

How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.

Read More →
Photo of car tire and the tread mark it left in snow
F&Iby Hannah MitchellApril 29, 2026

Not Just Any Tire Will Do

More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.

Read More →
Photo of robot holding a laptop
F&Iby Hannah MitchellApril 27, 2026

How AI Will Drive the Next Wave of Innovation in Finance & Insurance

It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.

Read More →
Ad Loading...
Photo of notepad and pen next to computer keyboard on desktop
F&IApril 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Read More →
Photo of external keyboard on office deak next to window
F&IApril 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Read More →
Woman in casual clothing sitting at a desk
F&Iby Rick McCormickMarch 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Read More →
Ad Loading...
Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →