Cars, trucks, and SUVs within the United States are aging, reaching a record average age of 12.6 years in 2024. People keep their vehicles primarily because a brand new automobile is so expensive.
S&P Global Mobility, which tracks government vehicle registration data nationwide, said Wednesday that the common vehicle age increased by about two months Record from last yr.
But the expansion in average age is starting to slow as latest automobile sales begin to recuperate from pandemic-related shortages of parts, including computer chips. The average increased by three months in 2023.
Still, many individuals cannot afford to purchase a brand new automobile, as the common sales price for brand spanking new cars within the U.S. was just over $45,000 last month – though prices have fallen by greater than $2,000 since their peak in December 2022, based on JD Power .
“The cost is now prohibitive for many households,” says Todd Campau, aftermarket director at S&P Global Mobility. “I think consumers will be forced into the situation of having to keep their cars on the road longer.”
Other aspects include people waiting to make a decision whether to purchase an electrical vehicle or go for a gasoline hybrid or gasoline vehicle. Many, he said, are concerned about constructing the charging network in order that they can drive without worrying about running out of battery. Also, he said, vehicles are higher today and easily last an extended time.
New automobile sales within the U.S. are slowly returning to pre-pandemic levels, with prices and rates of interest the most important influencers, fairly than disease and provide chain issues, Compau said. He expects sales to achieve about 16 million this yr, up from 15.6 million last yr. last yr and 13.9 million in 2022.
As more latest vehicles are sold and replace aging vehicles within the country’s fleet of 286 million passenger vehicles, the common age should stop growing and stabilize, Compau said. And unlike immediately after the pandemic, more cheaper vehicles are being sold, which is able to likely result in a decline in the common price, he said.
The indisputable fact that persons are keeping their vehicles longer is sweet news for the local auto repair shop. About 70% of the vehicles on the road are six years old or older, he said, and their manufacturer warranties have expired.
Those who’re capable of keep their vehicles for several years normally have their oil modified frequently and follow the manufacturer’s maintenance schedule, says Campau.
