Cars, trucks, and SUVs in the United States are becoming increasingly older, reaching a new milestone with an average age of 12.6 years by 2024. This trend can be attributed to the fact that people are holding onto their vehicles for longer periods due to the high costs associated with purchasing new ones.
According to S&P Global Mobility, the average age of vehicles in the United States increased by approximately two months compared to last year’s record.
The average age is gradually slowing down as the automotive industry rebounds from the impact of parts shortages caused by the pandemic, particularly computer chips. In 2023, there was a modest increase of three months in the average age.
According to J.D. Power, the average selling price of new vehicles in the U.S. last month was slightly over $45,000. Despite a decrease of over $2,000 from the peak in December 2022, many people still find it difficult to afford buying new vehicles.
Todd Campau, aftermarket leader for S&P Global Mobility, expressed concern over the rising cost of owning a vehicle. He stated, “It’s prohibitively high for a lot of households now.” According to Campau, this financial burden is forcing consumers to extend the lifespan of their vehicles and keep them on the road for longer periods of time.
Many individuals are currently in a state of indecision as they contemplate whether to invest in an electric vehicle or opt for a gas-electric hybrid or a traditional gasoline-powered vehicle. The primary concern for these individuals revolves around the development of a reliable and extensive charging network that would alleviate any anxieties about running out of battery power while on the road. Additionally, the improved durability and longevity of vehicles in recent years have further contributed to this decision-making process.
New vehicle sales in the U.S. are rebounding to pre-pandemic levels, driven by factors such as prices and interest rates rather than illness and supply-chain disruptions, according to Compau. He anticipates sales to reach approximately 16 million this year, surpassing last year’s 15.6 million and 2022’s 13.9 million.
According to Compau, the average age of the nation’s fleet of 286 million passenger vehicles should stabilize and stop growing as more new vehicles are sold to replace aging ones. He also notes that the average price of vehicles is likely to decrease due to the higher sales of lower-cost vehicles, in contrast to the immediate aftermath of the pandemic.
Keeping vehicles longer is great news for the local auto repair shop. According to the expert, approximately 70% of vehicles on the road are 6 years or older, which means they are no longer covered by manufacturer warranties.
Campau pointed out that individuals who can maintain their vehicles for several years often make it a priority to have their oil changed on a regular basis and adhere to the maintenance schedules recommended by the manufacturer.
