Over 90% of US households own at least one car, and this required cost could represent an increasing burden for many Americans. Owning a car is more expensive than ever, as car insurance costs rose 12% last year alone.
How American car ownership changes in 2025
Auto ownership has long been a central part of American life, business and even culture. However, the cost of ownership, from initial purchase prices to ongoing costs such as insurance, maintenance, repairs and fuel, is rebuilding American parking. Bankrate has identified three major ownership trends for 2025. Older cars, more EVs, and higher costs.
Americans keep their cars longer
According to CCC Intelligent Solutions’ Q1 crash course report, the average age of passenger cars on US roads reached a new record in 2024. The average vehicle age is currently 12.7 years old, only 10 years ago, 11. It has increased since 4 years. By 2026, experts predict that the average vehicle on the road will be over 13 years old.
Is this a positive trend or is it a sign of economic trouble? Older cars on the roads may reflect improvements in automotive technology, but some Americans have shown that they are more reluctant to buy new cars due to financial difficulties and uncertainties.
EV ownership has risen
Electric vehicles (EVs) account for just 1.44% of the US total freight PARC, but the share of new vehicle sales is increasing, according to CCC Intelligent Solutions. In the third quarter of 2024, EVS accounted for nearly 10% of new vehicle sales, reaching a high of 1.3 million annual EV sales compared to just 257,872 in 2020.
The rise of EVs is expected to continue in 2025 as Kelley Blue Book reports roughly 300,000 EVSs on 300,000 EVs sold in the first quarter of 2025. Also, Tesla has not led the charges. Tesla sales actually fell in the first quarter, with automakers like GMC, Toyota and Subaru looking at their biggest profits.
Rising costs could be a barrier to ownership for some Americans
In 2024, the hidden costs of Bankrate’s car ownership investigation discovered that Americans pay an average of nearly $7,000 per year in hidden car ownership costs, including insurance, maintenance, fuel and taxes. With the automotive industry ready to rattle, these costs, when combined with those with high vehicle value, could potentially take a price from ownership of a car.
That’s the problem – and not just people who struggle to buy a car. As cars are a practical need in most parts of the country, some drivers may be forced to cut their budgets in areas such as insurance and maintenance that protect not only themselves but others on the road. The Insurance Research Council (IRC) estimates that as of 2023, one in three people in the United States is uninsured or uninsured.
How many cars are there in the US?
According to the Federal Highways Administration (FHWA), in 2023 there were 284,614,269 registered vehicles in the United States, with 279.9 million private and commercial vehicles and 4.7 million public vehicles.
US Civil and Commercial Vehicles, 2013-2023 (FWHA)
| class | car | bus | track | motorcycle | total |
|---|---|---|---|---|---|
| 2023 | 95,507,350 | 526,193 | 174,428,196 | 9,483,793 | 279,945,533 |
| 2013 | 112,128,355 | 361,427 | 130,997,583 | 8,375,310 | 251,862,675 |
Although the total number of ownership has steadily creeped upward over the past decade, FHWA data shows that the number of registered private passenger cars, including pickups, SUVs and sedans, has shrunk by nearly 15% since 2013.
Where do Americans own most cars?
To understand trends in US vehicle ownership, we have examined two regional trends in the US Census Bureau’s 2023 American Community Survey. Areas where the highest percentage of residents own at least one car, and areas where the highest percentage of residents own multiple cars.
Vehicle ownership is generally the highest in the western, rural areas and states with affordable costs of ownership. Places like Bozeman, Montana and Casper, Wyoming, are the lowest percentage of households where vehicles are not available due to limited access to affordable cost of ownership and transportation alternatives.
Meanwhile, census data show that the lowest vehicle ownership rate, meaning the highest percentage of households where vehicles are not available, particularly in urban areas in the northeast. The New York City metro area leads, with cities like Philadelphia and San Francisco nearby. While access to public transport clearly plays a major role in choosing to refrain from ownership of cars, it is worth noting that the three metropolitan areas with the highest number of cars-free households, Ithaca, Uticalom and Binghamton, are located in areas in upstate New York where robust public transport is not known to be below.
But what about places owned by Americans? Most cars -So is it the area where there are the most households with three or more vehicles available? This map looks a little different. Utah has led to a large number of car ownership, with four metro areas with at least three vehicles in more than a third of households.
Finally, what about areas with high ownership rates but not large amounts of ownership? We looked for a Metropolitan area where the overall ownership rate was over 90%, but the minimum percentage of households could accommodate three or more vehicles. These high-ownership low-volume metropolitan areas have appeared in two areas: Florida and upstate New York. Higher premiums and limited transportation options could result in higher proportions of households with one or two vehicles.
Auto Ownership Statistics by State
| state | 0 Vehicles | 1 Vehicle | Two vehicles | 3 or more vehicles |
|---|---|---|---|---|
| Alabama | 5.5% | 31.4% | 36.8% | 26.3% |
| under | 9.2% | 32.7% | 34.3% | 23.8% |
| Arizona | 5.6% | 34.1% | 37.3% | 23.0% |
| Arkansa | 6.1% | 33.8% | 37.0% | 23.2% |
| California | 7.3% | 31.1% | 36.1% | 25.5% |
| Colorado | 5.4% | 31.0% | 38.7% | 24.9% |
| Connecticut | 9.0% | 33.6% | 37.5% | 20.0% |
| Delaware | 6.6% | 32.5% | 39.0% | 21.8% |
| Columbia area | 36.3% | 47.3% | 13.3% | 3.1% |
| Florida | 5.8% | 39.1% | 38.3% | 16.9% |
| Georgia | 5.9% | 32.7% | 37.3% | 24.2% |
| Hawaii | 8.8% | 33.0% | 34.4% | 23.8% |
| Idaho | 3.5% | 23.8% | 39.6% | 33.1% |
| Illinois | 11.1% | 36.2% | 35.0% | 17.7% |
| Indiana | 6.5% | 32.0% | 37.9% | 23.7% |
| Iowa | 5.3% | 31.2% | 37.0% | 26.5% |
| Kansas | 5.0% | 30.7% | 38.0% | 26.3% |
| Kentucky | 6.7% | 32.7% | 37.0% | 23.6% |
| Louisiana | 8.4% | 37.1% | 36.8% | 17.7% |
| main | 6.4% | 33.8% | 39.8% | 20.0% |
| Maryland | 8.9% | 34.1% | 35.5% | 21.5% |
| Massachusetts | 11.6% | 37.3% | 35.2% | 15.9% |
| Michigan | 7.1% | 34.9% | 38.4% | 19.6% |
| Minnesota | 6.4% | 31.7% | 39.5% | 22.4% |
| Mississippi | 6.1% | 32.2% | 35.9% | 25.8% |
| Missouri | 6.6% | 33.1% | 37.5% | 22.8% |
| Montana | 4.7% | 26.2% | 36.7% | 32.4% |
| Nebraska | 5.4% | 29.5% | 37.4% | 27.6% |
| Nevada | 7.3% | 34.4% | 36.3% | 22.0% |
| New Hampshire | 4.5% | 31.4% | 39.8% | 24.3% |
| New Jersey | 11.4% | 34.7% | 35.9% | 18.0% |
| New Mexico | 5.3% | 32.8% | 36.0% | 25.9% |
| new york | 29.7% | 33.6% | 25.1% | 11.6% |
| North Carolina | 5.5% | 31.1% | 38.4% | 25.0% |
| North Dakota | 6.9% | 29.5% | 38.0% | 25.6% |
| Ohio | 7.6% | 34.4% | 37.1% | 20.9% |
| Oklahora | 6.2% | 32.2% | 37.5% | 24.1% |
| Oregon | 7.1% | 32.5% | 37.1% | 23.2% |
| Pennsylvania | 10.6% | 35.1% | 35.8% | 18.5% |
| Rhode Island | 9.2% | 36.6% | 36.1% | 18.0% |
| South Carolina | 6.0% | 32.0% | 38.3% | 23.7% |
| South Dakota | 5.3% | 27.4% | 37.5% | 29.8% |
| Tennessee | 5.3% | 31.3% | 37.5% | 25.9% |
| Texas | 5.5% | 33.3% | 38.7% | 22.5% |
| Yuta | 4.1% | 23.8% | 38.4% | 33.7% |
| Vermont | 5.7% | 34.9% | 42.0% | 17.5% |
| Virginia | 5.9% | 31.2% | 37.7% | 25.2% |
| Washington | 7.2% | 31.1% | 36.4% | 25.4% |
| West Virginia | 8.8% | 34.6% | 36.4% | 20.2% |
| Wisconsin | 6.5% | 33.1% | 39.4% | 21.0% |
| Wyoming | 4.4% | 26.8% | 35.8% | 32.9% |
What factors drive ownership of high or low vehicles?
The US car ownership statistics are very diverse. Two important factors may explain high or low vehicle ownership rates in a given geographical area. Access to affordable prices and alternative transport.
- Affordable prices: The cost of ownership of cars is not the same nationwide. High car insurance and fuel costs can be a factor in decisions for non-car residents in states and cities, such as New York, where vehicle ownership rates are low.
- Access to alternative transport: Areas with the lowest number of cars-free households are consistently unable to access alternative modes of transport, including public transport, ride-sharing services, and walking areas.
How to save on car ownership costs
As the financial burden of car ownership increases for many Americans, understanding the costs of vehicles and how they are managed becomes more and more important. The following strategies may help you keep your car ownership more affordable:
- I shop for insurance every year: If your car insurance is renewed, take the time to compare prices from different insurance companies in your area. Insurance companies frequently adjust their pricing models and may qualify for a more advantageous premium from another insurer.
- Limit driving if possible: If possible, alternative transport from public transport to carpools and bikes can reduce fuel costs and qualify for the fuel economy insurance option.
- Consider refinancing your car loan. If your financial situation has improved since the start of your car loan, refinance or renegotiation of your car loan may be a viable option to save money in the long term.
