Cost of Car Ownership: 2021 Data

Key insights + statistics

  • 93% of households in the U.S. had access to at least one car in 2019 (Federal Highway Administration).
  • The number of registered vehicles from 2012 to 2019 declined by over 25 million (Statistica).
  • California, Texas, and Florida account for 28% of all registered vehicles (Federal Highway Administration)
  • In 2019, 8.7% percent of American households do not have access to a working vehicle (United States Department of Housing and Urban Development).
  • The average American household owns at least two cars. (Statistica)
  • Roughly 88% of Americans ages 15 or older are reported as drivers. (Bureau of Transportation) 
  • Around 6% of the households preferred to lease cars (Cesus.gov).

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What's the cost of owning a car?

Owning a car is seen as a source of pride and accomplishment in the United States. For most, it is a significant rite of passage into adulthood. But there is a wide disparity among Americans as to who can afford a new car from the dealership, or purchased one used, or even own a car at all. Effective public transportation is virtually non-existent, or limited by weak infrastructure, in most American cities. Despite the rise in popularity and availability of rideshare apps and programs, it is not enough to keep up with the demand and value of car ownership. 

Here, you will find major data points regarding the usage and ownership of automobiles in America by race, gender, location, and class. These data points are either taken from reputable sources such as the Bureau of Labor Statistics and the University of Helsinki. Additional data is provided by The Zebra's proprietary surveys and its internal quotes engine.

 

Table of contents 

  1. Cost of car ownership in 2020
  2. Cost of car ownership in 2019
  3. Car ownership in the United States
  4. Car ownership by state
  5. Death statistics by car type 
  6. Car ownership and poverty
  7. Car ownership by age
  8. Car ownership by race
  9. Electric car ownership statistics 
  10. Luxury car ownership
  11. Car ownership and insurance
  12. FAQs about car ownership

 

Car ownership in 2020

The general pattern of car buying and selling has been disrupted significantly due to the global coronavirus pandemic. In late 2020, The Zebra surveyed 1,500 Americans to obtain a deeper understanding of their attitudes about owning a car.

As was the same with the study last year, most Americans believe car ownership is still necessary.

  • 77.3% of respondents think owning a car is necessary, despite the evolution of rideshare.
  • 22.7% said no, owning a car was not necessary.
  • This is a 22.7% increase of those believing strongly in car ownership from last year's survey.

This survey also revealed a lack of understanding about what goes into car ownership. After purchasing a car from somewhere other than a dealership, the first step is to take the signed title to the DMV. We asked the question, "after buying a car from someone other than a dealership, what do you do with the signed title?"

  • 57.4% correctly answered the question.
  • 5.7% responded, "Never take it out of the glove box."
  • 2.4% said, "Send it back to the buyer with your signature."
  • But 33.4% said none of these options was the correct next step.

When asked, "what is a car title?", respondents said:

  • A document proving auto insurance (4.6%)
  • The make and model of a car (5.5%)
  • A document that indicates ownership (89.9%)
what is a car title

 

Additional questions in the survey looked to identify any buying habits prior to COVID-19. When it comes to buying a car, people responded as such:

  • 5.8% of respondents prefer to buy from a family member or friend.
  • 8.6% prefer to shop online.
  • 10.7% have never purchased a car.
  • 13.5% buy from a private seller.
  • 61.4% of car buyers prefer to buy from a dealership.

Based on this data, we found it necessary to investigate when the last time a new car was purchased for the average American, as the pandemic might have affected purchasing habits.

  • 51.6% of people said it had been more than a year since they purchased a new car. 
  • 8.9% said they had never purchased a new car in their lives.
  • 2.0% responded with having purchased a car within the last month.

Despite purchase activity being wildly variant, many Americans share similar experiences when it comes to their first car:

  • 33.0% had old beaters they purchased as their first cars.
  • 31.3% were given their first cars as a hand-me-down from an older sibling or parent.
  • 13.9% purchased a newer car themselves for their first car.
  • 7.9% were gifted a newer car from family or friends.

What was the condition of your first car?

Hand-me-down from family31.3%
Old beater you purchased33.3%
Nicer car as a gift 7.9%
Nicer car you purchased13.9
Never owned a car1.8%
None of the above12.2%

 

Car ownership in 2019

Is owning a car really necessary in America today? A nationwide survey conducted by The Zebra shows the majority of people believe it is, despite the availability of other options like public transportation and ridesharing.

  • 63% of people said yes, owning a car was necessary for easy living.
  • 14% said no, public transportation was easier and cheaper.

Some respondents mentioned the downsides of driving, including the inability to drive due to disabilities or the inconvenience of public transportation in major cities.

One respondent said, "I wouldn't use an Uber or Lyft due to safety reasons and public transportation takes such a big amount of time to get to a destination."

Another respondent said, "I like to have access to go when I please, leave when I please, and not be depend on various strangers driving me around."

Other interesting findings from The Zebra's driving and transportation survey:

  • 17.4% said they did not have access to a personal vehicle.
  • 38.1% of respondents said they never used public transportation.
  • 57.3% of respondents said they could not get to work easily without their car.

 

Reported car ownership by gender in 2019

  • More men than women reported having access to a personal vehicle.
  • Men were more likely than women to report they could get to work easily without a personal vehicle. 
  • Women are less likely to take public transportation than men.
MenWomen
20.5%14.6%Reported access to a personal vehicle
22.6%21.2%Reported access to work without a personal vehicle
34.9%41.0%Never use public transportation

 

Reported use of public transportation by age group in 2019

The majority of survey respondents said they use some form of public transportation. Of these respondents:

  • 30.4% of Gen Z-ers (aged 18-24) reported using public transportation for any distance too far to walk. 
  • 45.5% of Millennials (aged 25-34) reported never using public transportation at all.
  • 7.1% of Baby Boomers (aged 55-65+) reported using public transportation to reduce air pollution and traffic. 
pie chart displaying reasons for using public transportation

 

Car ownership statistics in the United States

According toMove.orgin 2021, it costs roughly $5,264.58 every year to own a car in the United States. This includes the average costs for car payments, gas, car insurance, and replacement parts across every state in the country—some of which have much higher costs than others.

  • Wyoming residents drive on average 21,821 miles annually.
  •  The average car insurance rate in Michigan is $3,096 per year — twice as expensive as the national average, making it the most expensive state in America for car insurance.
  • The average Texan spends $4,145 every year on their car, roughly $345.41 every month. 

Before purchasing a car, consider depreciation, interest on your loan, additional taxes and fees,insurance premiums, fuel costs, yearly maintenance, and out-of-pocket repairs.

Vehicle category statistics

According to the Federal Highway Administration, in 2018, more trucks were owned by Americans than cars, buses, or motorcycles. Buses make up less than 10% of all state motor-vehicle registrations in 2018. For further insight, consider the FHA data below:

 Private/Commercially OwnedPublicly OwnedTotal
Automobiles30.76%34.19%40.66%
Buses0.21%9.97%0.36%
Trucks55.82%55.13%55.81%
Motorcycles3.21%0.70%3.17%

What does car ownership look like in the United States?

The following is derived from a variety of sources, including Edmunds.com, Hedges & Company, and the Bureau of Labor Statistics.

  • From 1960 to 2010, the percentage of households owning zero cars in the U.S. dropped to 8.9% from greater than 20%.
  • From 2012 to 2019, the number of registered vehicles in the U.S. decreased by more than 27.3 million.
  • 6% of all U.S. households lease one or more cars.
  • In 2001, Baby Boomers alone were responsible for just 39% of all new car purchases.
  • On average, 62% of all new cars purchased in the United States are bought by elderly drivers aged 55 to 75. 
  • In 2015, the average buyer of a new car earned about $80,000 per year, according to the National Automobile Dealers Association.

Cheapest cars to own

  • Compact cars have the lowest cost of ownership, according to an analysis conducted by Kelley Blue Book.
  • Maintenance is a huge factor when considering the lowest cost of ownership for used cars. The Toyota Camry is a roughly more expensive purchase than the Mazda6, but it is also $2,000 cheaper to maintain.
  • A Dodge Journey ($23,425 MSRP) is a more affordable purchase than a Toyota Highlander ($31,830 MSRP), but overall, owners will spend about $5000 maintaining the Highlander over the Journey.

Owning vs. leasing a car

Cox Automotive and Hedges & Company were the original sources of these statistics, taken from various research such as the Automotive Trends report compiled by Hedge & Company and the 2017 Used Market Car Report.

  • A recent study by Cox Automotive shows new vehicle lease originations increased from just over 1 million to nearly 4.5 million between 2009 and 2016.
  • Vehicle leases comprised more than one-third (31.9%) of all new car transactions in 2016, and 31.1% of such transactions in Q1 and the first half of Q2 in 2017.
  • Nearly one-third of millennials chose to lease their cars rather than buy in 2016. This age cohort made up 12% of all leases in the U.S.
  • The following is a breakdown of income brackets with the percentage of those income levels that lease a car:
    • Household income under $25,000 — 4%
    • Household income $25,000 to $50,000 — 5%
    • Household income $50,000 to $100,000 — 10%
    • Household income $100,000 and up — 13%

 

Car ownership statistics by state

The Federal Highway Administration has the most recent registration data nationwide, starting in 2018. According to the data, Texas and California have the most vehicles. These are America's two most populous states.

Motor-vehicle registrations by state, as a percentage of all registrations

StatePercentage
Alabama1.94%
Alaska0.29%
Arizona2.12%
Arkansas1.03%
California11.34%
Colorado1.96%
Connecticut1.05%
Delaware0.37%
Florida6.39%
Georgia3.11%
Hawaii0.46%
Idaho0.69%
Illinois3.87%
Indiana2.26%
Iowa1.35%
Kansas0.98%
Kentucky1.60%
Louisiana1.42%
Maine0.41%
Maryland1.54%
Massachusetts1.85%
Michigan3.07%
Minnesota1.98%
Mississippi0.76%
Missouri2.01%
Montana0.67%
Nebraska0.72%
Nevada0.92%
New Hampshire0.49%
New Jersey2.21%
New Mexico0.67%
New York4.20%
North Carolina3.00%
North Dakota0.33%
Ohio3.99%
Oklahoma1.35%
Oregon1.44%
Pennsylvania3.92%
Rhode Island0.32%
South Carolina1.63%
South Dakota0.46%
Tennessee2.11%
Texas8.11%
Utah0.87%
Vermont0.23%
Virginia2.78%
Washington2.61%
West Virginia0.62%
Wisconsin2.08%
Wyoming0.31%
Washington DC0.13%

 

Driver death rates by car type and model

In October of 2020, ValuePenguin identified the top 10 deadliest cars of 2020.

Vehicle make and modelTotal fatal crashes between 2014-2018Occupants killed per vehicle in a deadly crash
GMC Sierra3,2450.48
Nissan Altima3,2670.60
Ford Explorer3,3320.61
Toyota Corolla3,4300.64
Honda Civic4,3970.70
Toyota Corolla3,4300.64
Ram Pick up5,8970.43
Toyota Camry4,7340.59
Honda Accord5,0790.65
Chevrolet Silverado7,7180.47
Ford F-Series10,8450.46

 

Insurance Institute Study

In May of 2020, the Insurance Institute found the fatalities in cars were the highest of all. 

Death rates are per million registered vehicle years, as indicated. 

  1. Cars — 48 million
  2. Pick up trucks — 29 million
  3. SUVs — 25 million
  4. Minivans — 22 million

The same study looked at the car makes and models with the highest and lowest driver death rates. 

Cars with the lowest death rates

Make/ModelNumber of driver deaths per million registered vehicle years
GMC Yukon XL0
Infiniti QX600
Land Rover Range Rover Evoque0
Lexus NX 200t0
Mercedes-Benz C-Class0
Porsche Cayenne0
Volkswagen Golf0
Lexus GX 4603
Subaru Outback3
Acura RDX4

Cars with the highest death rates

Make/ModelNumber of driver deaths per million registered vehicle years
Ford Fiesta141
Hyundai Accent116
Chevrolet Sonic98
Nissan Versa Note0
Mercedes-Benz C-Class0
Porsche Cayenne0
Volkswagen Golf0
Lexus GX 4603
Subaru Outback3
Acura RDX4

 

Car ownership and poverty in the United States

  • In 2006, 22% of low-income adults reported having no access to a vehicle. 
  • In 2016, 20% of low-income adults reported having no access to a personal vehicle. 
  • In 2018, researchers at UCLA reported the biggest factor in declining public transportation usage was overall increased car ownership among lower-income residents.
  • Researchers tied this increase in car ownership to the migration of low-income families to cheaper suburbs with limited public transportation options. 
  • The Panel Study of Income Dynamics, beginning in 1968, found that households with access to a personal vehicle were wealthier than those without.
  • The Panel Study of Income Dynamics also found that in 1955, those with cars had twice the amount of income as those who didn’t. Nearly sixty years later, data show car owners made nearly three times as much as their non-owner counterparts.
  • Despite this increase in low-income car ownership, the average cost of an auto loan has increased for the past six-plus years, according to the Federal Reserve Board of New York.
  • Steven Raphael and Alan Berube at UC Berkeley found five of the 10 cities with the highest percentage of residents without cars were located on the East Coast:

Medicaid and exempt status

According to AARP, 20% of all Americans are on Medicaid. 39.7 million Americans in total are living below the poverty line. Medicaid is an incredibly important program for the millions of Americans struggling to meet basic needs. Discover what is exempt from the standardized income levels before you need it.

  • A single vehicle is often excluded from the $2,000 limit on assets mandated by Medicaid. The car must fit into one of five categories to be considered exempt.
  • Category 1-4: The automobile is needed for daily activities such as transportation to and from medical appointments.
  • Category 5: The vehicle is transferred to a spouse. This is especially true where the person lives in a community property state. The value of the vehicle is not important to the exemption status, as long as the transfer is not considered to be an unqualified transfer under Medicaid rules. 
  • The vehicle is considered non-exempt when a Medicaid client owns a vehicle that does not fall into one of the five exemption categories listed above. Any value above $4,500 is counted toward the $2,000 total assets limitation. 

Community support

If public transportation or ridesharing are not viable options and you or a loved one are in need of additional assistance getting around, consider the following organizations for aid for those without a personal vehicle. See also the Medicaid exempt rules for car ownership below.

 

Car ownership by age

In 2018, the most recent data from the Federal Highway Association identified the age group of 55-59-year-olds as being the population with the highest percentage of licensed drivers for both males and females. The population with the lowest percentage of licensed drivers are drivers 85 and older. The below data is taken from the Office of Highway Policy Information.

 MalesFemales
19 and Under3.94%3.8%
20-247.89%7.5%
25-298.98%8.8%
30-348.85%8.7%
35-398.65%8.6%
40-447.96%7.9%
45-498.49%8.4%
50-548.59%8.5%
55-599.01%9.0%
60-648.29%8.4%
65-696.90%7.1%
70-745.30%5.5%
75-793.45%3.6%
80-842.06%2.3%
85 and older1.64%1.9%

For a deeper investigation of these age-specific statistics, please review the full reports at J.D Power and Associations, Hedges & Company, and the Federal Highway Administration.

  • According to J.D. Power and Associates, in 2000, the average age of new-vehicle buyers was 43. Nine years later, the average age was 49.
  • Between 2000 and 2015, the share of new vehicles bought by those aged 16 to 34 fell by about 6%, according to Hedges & Company.
  • In 15 years, the share of new vehicles bought by those aged 35 to 49 decreased by 9%.
  • Today, thoseaged 16 to 34 are the least frequent buyers of new vehicles. This (along with other economic and cost factors) aligns with research conducted by the Federal Highway Administration, which found the share of American 16-year-olds with driver’s licenses was roughly 25% in 2014, a significant drop from about 46% in 1983.
  • The average age of new-vehicle buyers increased by almost seven years between 2000 and 2015, cites Hedges & Company. Some of that increase reflected the aging of the population, but it also reflected changes in buying patterns among people in different age groups.
car ownership by age

 

Car ownership by race

Formore information on the statistics surrounding car ownership and race, consider reading more at UC Berkeley News, Governing.com, and the University of Michigan.

  • Researchers at UC Berkeley found in 2006 black households were much less likely to own a car than were white households, identifying a growing gap between car ownership in white and black households that spanned income levels.
  • 19% of African Americans reported living in a household without access to a vehicle.
  • 4.6% of White Americans reported living in a home without access to a vehicle.
  • 13.7% of Latino households reported not having access to a vehicle.
  • White Americans comprised 64.7% of U.S. car buyers in 2015.
  • In 2015, Hispanic buyers accounted for 12.2% of U.S. car buyers.
  • That same year, the purchasing power of African- and Asian-Americans combined made up less than 15% of total car buying power in the U.S.

 

Electric car ownership statistics

Electric vehicle ownership increases by the day. The following statistics are taken from recognized authorities such as the International Energy Association, CBT News, CBS, and the World Atlas. 

  • Due to the COVID 19 pandemic, the passenger car market will shrink by 15% compared to 2019, while electric sales for passenger and commercial light-duty vehicles will stay at around 2019 levels.
  • According to the IEA, in 2019, China accounted for 3.35 million electric car sales. Europe follows with 560,000 sales, followed by the United States, with roughly 330,000 electric passenger cars sold.
  • In 2017, an estimated 3.1 millionelectric vehicleswere on the road globally, up 54% from 2016.
  • The United States has the second-most electric vehicle owners among all countries (762,000).
  • Electric vehicle sales in the United States in 2018 numbered 361,307, nearly doubling the 2017 total.
  • According to the International Energy Agency, by 2030, there will be 125 million electric vehicles operating globally.
  • Tesla sold 139,782 units of theModel 3in 2018. This accounted for almost half of all plug-in vehicle sales.
  • The Toyota Prius Prime was the second-best-selling electric car of 2018, with nearly 30,000 units sold. The Chevy Bolt made the top 10 list but was well behind the market leader, with just 18,019 sales in 2018.

Best-selling electric cars in 2020

Electric vehicleEstimated sales
Porsche Taycan1,038
Audi e-tron2,872
Nissan Leaf3,006
Tesla Model S 20144,700
Chevy Bolt8,370
Tesla Model X9,500
Tesla Model Y18,861
Tesla Model 338,314

 

Luxury car ownership

According to Edmunds.com, Allied Market Research, and theUniversity of Helsinki:

  • The global luxury car market size was valued at $495.7 billion in 2018 and is projected to reach $733.2 billion by 2026.
  • Luxury cars account for 18% of all car sales revenue, contributing more than $100 billion to the market.
  • Argumentative, stubborn and unempathetic men were more likely to drive high-status cars. Additionally, both men and women who are thoughtful and pay attention to details, also were likely to drive these luxury cars in order to send the message that they’re responsible and reliable.
  • Most wealthy American drivers do not ownluxury cars: in fact, 61% of car buyers with household incomes of $250,000 or more don’t own a luxury car, according to Money Under 30.
  • The age group most likely to purchase a luxury car in 2014 was the 18-to-34 cohort, which comprised 45% of luxury vehicle buyers. 

 

Car ownership and insurance

Insurance is a major contributor to auto-related costs. While you might save some money on the original purchase by purchasing aused car, you could shell out extra money each month because of your insurance company’s concerns about ongoing repairs. 

American Automobile Associationidentified the average annual new ownership cost by vehicle category. The Zebra compared the insurance costs of each vehicle category.

New Vehicle CategoryAverage Annual Ownership CostAverage Annual Insurance Premium
Sedan$8,720$2,258
Green$8,028$2,224
SUV$9,330$1,198
Minivan$10,036$1,617
Pickup$10,839$1,698

 

FAQs about the cost of car ownership 

What percentage of the population owns a car?

According to Bloomberg News, about 88% of Americans own cars. 

How many cars does the average person own?

In a February study conducted by Experian Automotive, the average American household owns 2.28 vehicles. This study also found that 35% of households own three or more cars.

What percentage of cars are owned outright?

As of September 2017, only 36% of car owners were able to make the full payment and purchase their vehicle outright.  

Is car ownership declining in the UK?

According to the Driver and Vehicle Licensing Agency, most young people are adopting electric scooters and bicycles as their preferred mode of transportation, resulting in a drop in car ownership by one-third of England’s population.

Data sources

 

Methodology

This study was conducted for The Zebra using Google Consumer Surveys. The sample consisted of no less than 1,000 completed responses per question. Post-stratification weighting has been applied to ensure an accurate and reliable representation of the total population. This survey was conducted in June 2021. 

Copyright © 2021 InsuranceZebra, Inc. All rights reserved. For inquiries regarding this content, please contact our team at statistics@thezebra.com.

Taylor Covington
Taylor Covington LinkedIn

An in-house quantitative researcher for The Zebra, Taylor collects, organizes, and analyzes opinions and data to solve problems, explore issues, and predict trends. In her hometown of Austin, Texas, she can be found reading at Half Price Books or eating the world's greatest pizza at Via 313.