Cars, trucks, and SUVs in the United States are continuing to age, with the average vehicle reaching a record age of 12.6 years by 2024. This trend is primarily due to the high cost of purchasing new vehicles, causing people to hold onto their existing vehicles for longer periods of time.
According to S&P Global Mobility, the average vehicle age has increased by approximately two months compared to last year’s record, based on state vehicle registration data nationwide.
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The average age growth is gradually slowing down as the sales of new vehicles begin to rebound from the shortages caused by the pandemic, including computer chips. In 2023, the average age only saw an increase of three months.
According to J.D. Power, the average selling price of new vehicles in the U.S. last month was just over $45,000. Despite a decrease of more than $2,000 from the peak in December 2022, many people still cannot afford to purchase new cars.
According to Todd Campau, aftermarket leader for S&P Global Mobility, the rising cost of vehicles is becoming increasingly unaffordable for many households. As a result, consumers are finding themselves forced to keep their vehicles on the road for longer periods of time.
Many people are hesitant to make a decision about whether to purchase an electric vehicle or opt for a gas-electric hybrid or a traditional gasoline vehicle. They are concerned about the development of the charging network, which would allow them to travel without the constant worry of running out of battery power. Additionally, modern vehicles are built to a higher standard and have a longer lifespan.
According to Compau, new vehicle sales in the U.S. are gradually bouncing back to the levels seen before the pandemic. Instead of being impacted by illness and supply-chain issues, the major factors influencing sales are now prices and interest rates. Compau predicts that sales will reach approximately 16 million this year, compared to 15.6 million last year and 13.9 million in 2022.
According to Compau, as new vehicles continue to be sold and replace older ones in the existing fleet of 286 million passenger vehicles, the average age is expected to stabilize and no longer increase. Additionally, there is a shift towards the sale of more affordable vehicles, which is likely to contribute to a decrease in the average price.
Keeping vehicles for longer periods of time is a positive development for local auto repair shops. According to industry experts, approximately 70% of the vehicles currently on the road are 6 years old or older, which means they have surpassed their manufacturer warranties.
Campau noted that individuals who can maintain their vehicles for extended periods of time typically prioritize regular oil changes and adhere to the maintenance schedules recommended by the manufacturer.
