How long to own and how much to use a car? A dynamic discrete choice model to explain holding duration and driven mileage

► We develop an optimal use and dispose model for single car owners. ► Agents are forward-looking. ► Decisions are made under uncertainty about future income and fuel prices. ► The approach is based on Rust's dynamic conditional Logit approach. ► Model fits data the best when considering a long-run discounting behavior.