In 2018, a Cox Automotive study found that alternatives to traditional car ownership – like car-sharing, ride-hailing services, and car subscriptions – were growing fast. Even many people who hadn’t adopted alternative ways of getting around said they would once the monthly cost was comparable to that of owning a car. It seemed that Americans were moving away from the transportation model where most people owned their own car.
In 2021, a repeat of the same study found that those trends have reversed.
COVID Convinced Many
According to the Cox Automotive Evolution of Mobility report, more than one-third (38%) of consumers are open to transportation alternatives. But most still view owning a car as the most convenient (78%), practical (76%), and flexible (58%) option for daily transportation. Cox Automotive is the parent company of Kelley Blue Book.
The COVID-19 pandemic saw survey respondents decrease their reliance on public transit, ride-hailing, taxis, rental cars, and car-sharing.
Car subscriptions saw a slight increase. But subscription services may be considered as safe as owning a car since they allow subscribers exclusive use of a car for a monthly fee.
Gen Z Driving the Results
The young consumers who were driving the movement away from car ownership have begun to change their minds. In 2018, 68% of Gen Z respondents agreed that having access to transportation is necessary, but owning your own vehicle is not. In 2021, just 46% agreed.
Overall, 35% of respondents plan to increase the number of vehicles they own or lease in the next five years. Among Gen Z respondents, fully 64% plan the same.
Changes Come Despite Rising Prices
New vehicle transaction prices have hit monthly records throughout most of 2021 – the average new car sold for $43,355 in August. Yet, the perception that vehicle ownership is affordable increased to 60% in 2021 — a 3-percentage point increase over 2018.
The average cost of a ride with a hailing service climbed 49.5% over the first half of 2021 compared to the first half of 2019.
Consumers Want Safety Tech, But Not Self-Driving Cars
Consumers want more safety features in their next car. An astonishing 93% of respondents said that advanced driver assistance technologies, like automatic emergency braking and rear cross-traffic alerts, were either a must-have or a nice-to-have feature in their next vehicle.
Americans are growing more skeptical, however, about vehicles that drive themselves without human input. In 2016, 63% of those surveyed agreed that “roadways would be safer if vehicles were fully autonomous.” In 2018, 44% agreed. In this year’s survey, just 40% agreed.
Related: Self-Driving Cars: Everything You Need to Know
