Political Views, Education, and Income Effects on U.S. Car Ownership

Introduction

With approximately one personally operated automobile for every man, woman, and child today, consumers in the United States have invested an enormous amount of time, money, and emotion in their preferred means of transportation. The most recent estimates from the U.S. Department of Transportation indicate that Americans have more than $1.2 trillion invested in automobiles alone, and this figure continues to increase year to year, with only a minor exception in 2009 due to the global economic downturn (Automobile profile, 2022).

As a result of this sustained growth in private automobile ownership, the roads and streets of America are filled with personal vehicles of all sizes and types, ranging from aging cars on their last mechanical legs to exotic luxury "prestige" vehicles costing hundreds of thousands of dollars, favored by the wealthy as well as those seeking to project their own sense of celebrity or affluence (Dunn & Searle, 2010). American consumers are eager to purchase virtually any car — including older used vehicles that may require extensive repair — for highly subjective and personal reasons as well as for a wide array of pragmatic ones (Papu Carrone & Rich, 2021). Although some American families own just one car, many others own two, three, or even more, as evidenced by a drive down any suburban street in the country (Karaaslan, 2022).

Based on the sustained proliferation of car ownership in the United States, it is reasonable to suggest that many Americans take significant pride in their vehicles. These vehicles are also virtually essential for most suburbanites in regions of the country that lack accessible and efficient public transportation networks. The overcrowded freeways crossing the nation provide clear evidence that many consumers still prefer commuting alone even when mass transportation is available. Many critics cite the white flight to the suburbs during the second half of the 20th century as having created a geographically sprawling American landscape where cars are essential for work, healthcare, education, entertainment, shopping, and other necessities of modern life (Kye, 2018).

Literature Review

Against the backdrop described above, car ownership represents an exceedingly important part of the American economy and society, but this ownership carries a heavy economic and environmental burden. In response to the greenhouse gas emissions caused by internal combustion engines, some American consumers are choosing to purchase an electric vehicle, with the expectation that they are making a substantive contribution to the fight against climate change. Electric vehicles cost more — sometimes far more — than conventional cars, so the decision to purchase this alternative mode of transportation requires an income level that lower-income consumers may not have. In this regard, a study by Božić (2021) found that, "consumers belonging to the middle class and higher classes as well as consumers satisfied with their lives are more likely to buy electric cars than others" (p. 81). Nevertheless, while electric vehicles still cost more than conventional cars, their prices are becoming more competitive, and it is likely that sales will continue to accelerate as economies of scale are achieved and charging infrastructure becomes readily available nationwide — a process already underway.

Conversely, far too many low-income families in the U.S. are kept in financial hardship simply by trying to maintain an older vehicle prone to breakdowns, while others spend disproportionate percentages of their income on parking alone. Americans spend far more on their cars than on the vast majority of other needs, excepting only housing. This reality makes it important for car manufacturers and governmental policymakers to understand the effect of political views, education, and income on car ownership. By gaining new insights into consumer preferences, steps can be taken to develop automobiles that not only appeal to consumers but are also better for the environment.

As the drive to identify effective strategies — such as electric cars and improved public transportation — to minimize the adverse environmental effects of internal combustion engines continues, it is important to determine the key factors that affect car ownership in the United States today. To this end, the proposed study is guided by the following research question: "Do political views, education, and income have an effect on car ownership in the United States?"

Factors Affecting Private Car Ownership

The political views of automobile consumers may operate in different ways with respect to making a purchase decision. For example, consumers with highly conservative political views may prefer more traditional styles in their automobiles, while consumers with advanced degrees may prefer an electric vehicle out of concern for the environment. Virtually all automobile consumers, however, will be influenced to some extent by their income levels — those with conservative political views or advanced degrees are still more likely to spend more on their cars if they are affluent. Therefore, while there are multiple factors that influence car ownership, income levels stand out as among the most significant. The sole outlier in the sustained growth in automobile ownership over the past several decades is the modest dip experienced following the economic devastation of the Great Recession of 2008–2009.

These sustained trends in car ownership suggest that multiple factors beyond the fundamental need for transportation influence the purchase decision (Wu & Tang, 2019). These considerations gained further importance when disruptions to global supply chains forced automobile manufacturers to prioritize which makes and models to continue producing. Because the need for personal transportation is likely the most important consideration for many American consumers, it is relevant to determine what other factors rank highest in the car ownership decision.

Research to date has identified a number of individual consumer preferences and practical considerations that influence car-purchasing decisions and the number of cars purchased. For example, a study by Karaaslan (2022) examined which factors most influenced the number of automobiles owned in a given household. Factors considered included pride of ownership, age, marital status, gender, working status, educational status, household headship, household size, annual income, shopping practices, second-home ownership, dining and entertainment habits, accessibility of public transportation, compulsory education needs, and saving habits. One of the more interesting findings was that, "We find evidence of a feedback loop among car pride, car ownership, and car use. Individuals with higher car pride are more likely to own a vehicle" (Karaaslan, 2022, p. 175).

This feedback loop also extended to the other purposes for which consumers used their cars. Karaaslan (2022) concludes that, "Enabled with this ownership, individuals use the car more frequently for commuting. Individuals who use their car more frequently have greater pride in their vehicle" (p. 175). In short, consumers who use their cars more tend to develop a greater sense of pride of ownership, and vice versa. The Karaaslan (2022) study did not include the specific models of cars involved, and it is reasonable to posit that the feedback loops identified were more applicable to newer and more stylish vehicles.

A relevant study by Moody and Zhao (2020) examined individual preference factors influencing car ownership and usage — including pride of ownership, personal image, and social status — among a sample of 1,236 adult commuters in two large urban areas (Houston, Texas and Chicago, Illinois). Their findings showed that, "An individual with higher car pride is more likely to own a vehicle, and, enabled with this ownership, use it more frequently. And individuals who use their car more frequently are likely to feel more pride in owning and using their vehicle" (Moody & Zhao, 2020, p. 225).

These findings were consistent with those of the Karaaslan (2022) study. Moody and Zhao (2020) further note that these results can help identify effective marketing strategies for promoting car ownership, and that, "Policies could directly target car ownership and use or could consider influencing behavior through attitude change" (p. 226).

Researchers have also determined that a nation's culture, regional context, and prevailing religious affiliations play a role in influencing car ownership. A study by Newmark and Rearick (2021) examined the impact of national culture and religiosity on car ownership in the United States, and whether including these factors would improve existing predictability models. Their findings indicate that, "Religious affiliation, expressed as countywide adherence rates, is a statistically significant predictor of car ownership and that its inclusion improves model fit" (p. 41). Although the statistical improvement was modest, Newmark and Rearick note that adding cultural considerations improves target marketing of energy-efficient and electric vehicles. They conclude that, "Considering culture is a valuable direction for targeting car consumption policies aimed at curbing climate change" (Newmark & Rearick, 2021, p. 41).

Finally, age has also been found to be a strong predictor of car ownership preferences. A study by Papu Carrone and Rich (2021) examined more than a decade of car ownership data (2007 to 2017) and showed that younger consumers are less likely to purchase a car in the first place, but that consumers tend to purchase one car and then additional vehicles as they grow older. Although income levels were not specifically analyzed in this scenario, it is reasonable to suggest that older consumers generally have greater earning power than younger consumers, which could account for these findings.

Conclusion and Future Steps

The overarching goal of this study is to recruit at least 100 respondents to improve the trustworthiness of the findings. By gaining new insights into consumer preferences for car ownership, steps can be taken to develop automobiles that not only appeal to consumers but are also better for the environment. Understanding how political views, education, and income interact in shaping car ownership decisions has implications not only for automobile manufacturers and marketers, but also for policymakers seeking to promote electric vehicles and reduce the environmental footprint of personal transportation in the United States.

References

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Karaaslan, K. Ç. (2022). Investigation of factors affecting the number of automobiles owned by households: Count data model. Istanbul University Journal of the School of Business Administration, 51(1), 175–188.

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