Number of motor vehicle registrations

The number of motor vehicle registrations in the United States has risen over the last two decades. This has been driven by various persistent factors including increasing populations, higher incomes and a more comprehensive, array of budget options. However, the growth rate from year to year is influenced by broader economic conditions that impact the affordability of cars, such as interest rates, as well as factors that sway consumer willingness to purchase, including unemployment rates and consumer sentiment. Consistent with these factors, the number of motor vehicle registrations outpaced long-term population growth between 2004 and 2007 as the economy roared and interest rates stayed low. However, as the tremors of the financial meltdown reverberated through the economy, unemployment soared to more than 10.0% and consumers became hesitant or unable to make big purchases. Fewer new cars were purchased and registered, causing growth in the amount of motor vehicle registrations stalling to 0.6% in 2008 before falling by 0.7% to 254.2 million in 2009. The number of vehicle registrations went down more in 2010 before rebounding in 2011.

The rebound resulted from an unrelenting increase in the number of US drivers combined with economic recovery and declining unemployment. In the current period, the US economy steadily improved; thus, consumers and businesses were willing and able to purchase vehicles. However growth in this period was dragged down by a 0.2% decline in 2020, driven by the COVID-19 (coronavirus) pandemic, which resulted in a drastic rise in unemployment and a drop in consumer spending. Conversely, in 2021 the number of motor vehicle registrations went up 2.3% as businesses reopened, which culled the need for workers to come back to the office while recreationally consumers that want to travel felt safer because of the increased availability of the vaccines.

Even with inflationary pressures happening in 2022 and 2023, these pressures have not led to more people using fewer motor vehicles rather the need for registrations for automobiles has remained elevated because of the high amount of people in the country who live in areas that have fewer public transit options limits exactly how people can travel which in turn has led to more registrations for motor vehicles alike in the period as with previous years especially as with the lack of economic downturn in the same period, more people have not been discouraged from inflation to make necessary trips. While higher energy prices and insurance costs have occurred in the same period, these costs represent more essential costs that consumers have to spend their budget on to sustain their lifestyles being their ability to travel and commute easily while having the ability to financially protect themselves if accidents on their vehicles occur which in turn has made such registrations to cover these vehicles just as essential. The appeal of such items will in turn help push up the amount of motor vehicles that are registered in the period being as they resemble a effective way for travel for many people especially for those living in areas without effective means of public transport. With these factors entailed, the amount of motor vehicle registrations is set to grow in 2024 and 2025 with factors like new drivers entering the road as they obtain licenses will also help elevate the amount of motor vehicle registrations in the years ahead.