Cars, trucks, and SUVs in the United States are continuing to age, reaching a new milestone with an average age of 12.6 years in 2024. This trend can be attributed to the fact that people are holding onto their vehicles for longer periods, primarily due to the high cost of purchasing new ones.
According to S&P Global Mobility, the average age of vehicles in the United States has increased by about two months compared to last year’s record.
The average age is beginning to slow down as new vehicle sales rebound from the shortage of parts caused by the pandemic, including computer chips. In 2023, the average age increased by three months.
According to J.D. Power, the average selling price of new vehicles in the US last month was slightly above $45,000. Despite a decrease of over $2,000 from the peak in December of 2022, many individuals still find it challenging to afford buying a new car.
According to Todd Campau, aftermarket leader for S&P Global Mobility, the cost of owning a vehicle has become unaffordable for many households. As a result, consumers are finding themselves in a situation where they have no choice but to keep their vehicles on the road for longer periods of time.
People are also considering whether they should buy an electric vehicle, a gas-electric hybrid, or stick with a gasoline vehicle. One of their concerns is the availability of a reliable charging network that would allow them to travel without worrying about running out of battery power. Additionally, vehicles are now built to higher quality standards, resulting in their longer lifespan.
According to Compau, new vehicle sales in the U.S. are gradually recovering to pre-pandemic levels. The driving factors behind this resurgence are primarily prices and interest rates, rather than concerns about illness or supply-chain disruptions. Compau predicts that sales will reach approximately 16 million this year, surpassing the figures of 15.6 million in the previous year and 13.9 million in 2022.
According to Compau, as more new vehicles are sold to replace aging ones in the nation’s fleet of 286 million passenger vehicles, the average age is expected to stabilize and stop growing. Additionally, he pointed out that unlike the immediate aftermath of the pandemic, there is now a higher demand for lower-cost vehicles, which will likely result in a decrease in average prices.
Keeping vehicles for longer periods of time is beneficial for local auto repair shops. According to reports, approximately 70% of vehicles currently on the road are 6 years old or older, surpassing the manufacturer warranties.
According to Campau, individuals who can maintain their vehicles for several years typically ensure regular oil changes and adhere to the maintenance schedules provided by the manufacturer.
