Increase in vehicle ownership (VO) as a result of rapid economic and population growth and its negative environmental effects have gradually become a potential threat to the physical and social environment. A wide range of factors influences the propensity for VO by individuals or firms; however, the existing body of literature lacks a critical review which provides an understanding of their underlying associations and potential implications for policymaking in one holistic frame. To fill this research gap, this study presents a systematic review of factors affecting private and commercial VO using the PRISMA framework (Preferred Reporting Items for Systematic Reviews and Meta-Analysis). The factors influencing private VO decisions are extracted from the reviewed articles; subsequently, the identified factors are topologically divided into seven categories. The findings show that most studies identified the factors contributing to VO as related to socio-economic, demographic, and built environmental characteristics. A lack of research has been identified for attitudinal, technological, and parking-related variables. It is also concluded that there are gaps in the knowledge base on factors contributing to the commercial VO of a business establishment. Designing informed policy measures based on such factors that can induce a sustainable transition in the mobility sector is important to mitigate transportation-related negative externalities on the environment. The overall review findings offer actionable guidance for low-carbon mobility transition and outline a future research agenda for academic researchers and decision makers. The quantifiable factors revealed in this study are expected to assist policy makers in discouraging VO propensity among individuals or firms.