March 18, 2014

Peak Car: Reasons for the decline in driving

One explanation for the phenomenon noted below.

From Yahoo Autos:

The average median-income household can no longer afford to purchase the “average-priced” new car or truck in 24 of the country’s 25 largest metro areas …

The average new vehicle now goes for $32,086, according to Interest.com – which works out to a typical monthly payment of $633. While the number quoted by other tracking services vary slightly, there’s general agreement that prices are rising a good bit faster than the rate of inflation.

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Car price

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Nonetheless, there do seem to be contradictory things going on: an increase in the sales of new cars by some automakers (up as much as 15 percent recently), but a measured decline in vehicle kilometres travelled.  People may be replacing cars after delaying purchase post-recession, but still driving less.  Perhaps technology, transit and car-sharing are offering practical alternatives for some trips.   Clearly, young people are delaying getting a licence, and boomers are no longer as commuting as much.

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Comments

  1. Yeah, there were a lot of delays in car purchases starting with the 2008 crash. A bunch of people are getting to the “I *have* to get a new car” point now, hence more sales of new cars. But there’s an overall drop as most people simply can’t afford to drive as much.

  2. Definitively, there is a social responsibility to drive less, and some people may be proactively acknowledging their power to improve the environment by including alternative forms of transportation in their daily lives. However, it is likely the increasing cost of living that is resulting in less driving (driving for need more than luxury) while people are still purchasing cars as a recognized necessity for many daily activities. If transportation infrastructure continues to improve and expand, such that the need for cars decreases, the amount of driving will continue to decrease. The trend will become the norm.

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