College Students Drive Toyotas and Hondas but Dream of Teslas

The majority of undergraduate college students (56{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) have a vehicle with them while attending school. And while many of these undergrads might dream of Teslas, most drive around campus in Toyotas or Hondas instead.

The latest ValuePenguin survey of more than 1,000 undergraduate students looks at all things vehicles — from what undergrads are driving to how they pay for everything (including car insurance for college students). The survey also analyzes what students would drive if money weren’t an obstacle, their driving behaviors and more.

Key findings

College students and cars: Toyotas, Hondas and…Teslas?

More college students drive Toyotas (16{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) or Hondas (15{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) than other types of vehicles. Here’s a complete look at the brands you might spot coming in and out of college campuses across the U.S.:

If college students could drive any car they wanted, the highest rate of students (15{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) would find themselves behind the wheel of a shiny new Tesla. Some other luxury car brands students wish they were driving include BMW and Mercedes-Benz (both 6{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}).

Here’s a closer look at the top 10 vehicles on the wish lists of undergraduates:

Undergrads drive used while dreaming big

Most undergraduate students (56{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) have a vehicle they can rely on while attending school. Students attending school in the South are most likely to have a car (66{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}), while those going to school in the Northeast are least likely (40{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}). For most of those students with vehicles, their cars were also used (79{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) when they acquired them.

Car prices for used and new vehicles have been painfully high in recent months, and consumers feel the financial impact of these changes. The U.S. Bureau of Labor Statistics consumer price index showed a 6.6{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} year-over-year increase in the cost of used cars and trucks in July 2022. With new vehicles, however, the cost increase was an even greater 10.4{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}.

While most college students drive used vehicles, the ages of their vehicles vary. Nearly half (47{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) drive a car 10 years or older. Also, men drive older vehicles than women.

Below are the top highlights of the vehicle models being driven by undergraduate students:

While only 2{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of undergraduates don’t know their vehicle’s model year, 12{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of college students don’t know how much their car cost when it was purchased. Among those who know the price of their vehicle, most (31{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) drive a car that costs less than $10,000. Another 28{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} drive a vehicle with a price tag between $10,000 and $19,999. On the other end of the spectrum, just 1{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of students have cars with price tags of $50,000 or higher.

Of course, just because a student knows how much their vehicle cost doesn’t mean they purchased it. One quarter (25{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) of undergraduate students say their parents bought a car for them, not as a birthday or graduation gift. Meanwhile, 22{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of students paid for a vehicle on their own, including 30{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} in the Northeast.

Here’s a look at how the undergraduates in our survey acquired their vehicles:

Other car costs for college students: Gas, insurance, loans and more

Having a car on campus can make life more convenient for an undergraduate student. However, a vehicle can also be a big expense.

Rising gas prices, for one, have had a meaningful impact on the finances of many undergraduate students.

Car insurance is another cost that comes with owning a vehicle. More than 6 in 10 (62{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) of these undergrads have full-coverage insurance. Yet a troubling 17{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of college students don’t know whether they have a full-coverage or minimum-coverage policy.

Ask your agent questions to ensure you have enough collision coverage so that you’re covered in case the other person isn’t, VinZant says, and enough liability and medical coverage. You might also be able to find discounts like ones for good grades, a clean driving record, low mileage or rental cars buried in the fine print.

Younger drivers pay more than older drivers for car insurance coverage. Yet when it comes to this expense, most college students aren’t covering the cost of car insurance on their own:

For those looking to save money, it costs about 62{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} less for an 18-year-old to be on their parents’ car insurance policy than to take out one of their own. However, some parents may eventually want or need to take a college student off their auto insurance policy.

Continuing the theme of different costs, most undergraduates (64{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) don’t owe an auto loan on their vehicle. And even those who have an auto loan might not pay it on their own:

Undergraduates living at home with their families while attending college are less likely to pay their monthly auto loan payments (13{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}). Yet those same students are more likely not to have auto loans (71{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}). Men are also more likely (57{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}) to pay their monthly auto loan payments than women (51{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}).

For students who have a car at school and also owe money to a lender for a car loan, monthly payment amounts vary:

“Member programs like AAA can give you peace of mind and discounts on everything from travel to auto repairs,” VinZant says.

AAA and similar programs may offer roadside assistance where a professional will change your tire, tow your car or bring you gas. There can also be special discounts on hotels, rental cars, cruises, auto insurance and auto repairs.

How much do students pay to park at school?

Many colleges charge students additional fees to park on campus. In fact, only 37{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of undergrads report they park for free. Here’s a look at the cost that other students have to pay yearly to park their vehicles at school:

In general, students say they feel safe parking on campus, with 36{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} answering “definitely” and 56{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} saying they feel safe “for the most part.” Yet not everyone agrees. When thinking about where they typically park their vehicle at school, 1{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of students definitely don’t feel safe, while 7{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} don’t feel safe for the most part.

Driving behaviors, from seemingly minor to seriously dangerous

College students are no strangers to risky behaviors behind the wheel. Here’s a look at some of the driving behaviors undergraduates say apply to them, whether minor or dangerous:

“Dangerous driving isn’t just dangerous to yourself and the people you share the road with — it’s also very expensive,” VinZant says. (More on this soon.)

3 driving tips for college students

If you’re planning to drive a vehicle while in college, the following tips could help you stay safer on the road and perhaps save a bit of money.

1. Slow down and don’t drive while impaired

Traffic fatalities increased by 12{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} in the first nine months of 2021 compared to the same period in 2020. And speeding is involved in 22{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9} of fatal accidents, while alcohol is involved in 14{e3fa8c93bbc40c5a69d9feca38dfe7b99f2900dad9038a568cd0f4101441c3f9}.

2. Take a defensive driving course

A defensive driving course can significantly enhance your driving skills and help you learn how to protect yourself behind the wheel. You might also be able to save money on your auto insurance via a discount.

3. Don’t drive distracted

Mobile phones or similar devices can be a constant distraction when driving. According to the National Highway Traffic Safety Administration, 3,142 people died in 2020 in motor vehicle crashes that involved distracted drivers.

Technology can help with this problem, whether that’s hands-free products or settings on your smartphone that disable notifications. You can also stash your phone in the glove compartment or on the back seat to avoid temptation altogether.