The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances

20 Pages Posted: 22 Oct 2003

See all articles by Ana M. Aizcorbe

Ana M. Aizcorbe

U.S. Bureau of Economic Analysis (BEA)

Martha Starr

American University - Department of Economics

James T. Hickman

affiliation not provided to SSRN

Date Written: July 2003

Abstract

The motor vehicle industry has undergone important changes in recent years, including a shift in production from autos to light trucks and growth of vehicle leasing. This paper uses household-level data from the Federal Reserve's Survey of Consumer Finances to document changes in households' acquisitions and financing of motor vehicles from 1989 to 2001. We examine what types of vehicles households had, what financing arrangements were used to acquire them, and how vehicle holdings vary with such household characteristics as income, age, wealth, and creditworthiness. The data provide useful insights into the determinants of replacement demand and the use of alternative financing arrangements like leasing.

Keywords: Vehicles, consumer, replacement demand

JEL Classification: L62, E66, D14, D12

Suggested Citation

Aizcorbe, Ana M. and Starr, Martha and Hickman, James T., The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances (July 2003). FEDS Working Paper No. 2003-44, Available at SSRN: https://ssrn.com/abstract=445582 or http://dx.doi.org/10.2139/ssrn.445582

Ana M. Aizcorbe (Contact Author)

U.S. Bureau of Economic Analysis (BEA) ( email )

1441 L Street NW
Washington, DC 20910
United States

Martha Starr

American University - Department of Economics ( email )

4400 Massachusetts Avenue, N.W.
Washington, DC 20016-8029
United States
202-885-3747 (Phone)

James T. Hickman

affiliation not provided to SSRN

No Address Available

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