Automakers face a looming reality: Families are ditching the second car.
Although America leads the way in global car purchases -- about 57% of U.S. households have two or more cars -- major cities across the country have seen a decline in ownership.
In New York City, only about 14% of households own two or more cars, auditing firm KPMG said Tuesday at the L.A. Auto Show. In Los Angeles, that figure is much higher at nearly 48%, but still lower than the national average.
Over the next 25 years, the number of two-car households will drop to 43% because of on-demand services such as Uber and Lyft in urban areas, the Holland-based company said.
The argument for owning a car is only getting weaker, according to KPMG -- spending about $30,000 for something that loses 11% of its value when driven off the lot, and then sits unused for much of the time, is not the most sound investment.
The upshot is that the future of automotive supply and demand will look much different. Vehicle turnover will probably be quicker, while shared vehicles would be used efficiently.