The Impact of Demographic Lifecycle States on Time to Vehicle Purchase: Insights from the Panel Study of Income Dynamics

Abstract

This study examines the impact of demographic lifecycle stages on the timing of vehicle purchases, using data from the Panel Study of Income Dynamics from 1999 to 2021. Survival analysis was employed to model the duration until households purchase vehicles, incorporating key lifecycle variables such as age, employment status, marital status, childbirth, home ownership, and the presence of school-going children. The life table results indicate that early adulthood (ages 20–35) is the prime period for vehicle acquisition, with significant peaks around ages 25 to 30. Additionally, the instantaneous hazard of purchasing a vehicle is highest in the late 40s and early 50s. According to the Cox proportional hazards model, employment, marital status, and home ownership significantly increase the likelihood of purchasing a vehicle, while living in multi-unit dwellings decreases it. Interaction effects reveal that married individuals with employed spouses are substantially more likely to purchase vehicles. This study serves as a steppingstone toward integrating demographic lifecycle analysis into car ownership modeling that better reflects real-world scenarios and increases the accuracy of policy and strategic planning.