Vehicle ownership, purchases, and leasing: consumer survey data

Motor vehicles play a central role in the modern American lifestyle. The vast majority of workers travel to work by private vehicle. Motor vehicles are one of the most widely owned assets, with more than 85 percent of U.S. households owning one or more vehicles in 1992. Costs related to vehicles—vehicle purchases, operating expenses and repairs, and insurance—account for a sizable part of the typical household’s budget. Loans related to vehicle purchases are one of the most common forms of household borrowing, and monthly payments are important in expenditure patterns. For all these reasons, developments related to vehicle holding are important for analyzing living standards by households. Several interesting trends related to motor vehicles have developed over the past decade. Climbing sticker prices for new vehicles and quality improvements have encouraged households to keep vehicles for longer periods. The incidence of auto leasing has grown substantially, with leases now estimated to represent as much as 1 in 3 new car acquisitions by consumers. There also have been significant changes in vehicle financing, including the growth of specialized auto lenders and greater competition for customers based on loan terms offered. While there are several sources of information on motor vehicles, few provide much detail on vehicles owned by households. The Federal Reserve Board’s Survey of Consumer Finances (SCF) and the Bureau of Labor Statistics Consumer Expenditure Interview Survey (CE survey) collect detailed information on motor Vehicle ownership, purchases, and leasing: consumer survey data