Cars, trucks and SUVs in the U.S. keep getting older, hitting a record average age of 12.6 years in 2024 as people hang on to their vehicles largely because new ones cost so much. S&P Global Mobility, which tracks state vehicle registration data nationwide, said Wednesday that the average vehicle age grew about two months from last year’s record.
Quick Read
- Average vehicle age in the U.S. hits a record 12.6 years in 2024 as high prices force people to keep their cars, trucks, and SUVs longer.
- The increase in vehicle age slowed to about two months from last year, down from three months in 2023.
- High new vehicle prices, averaging over $45,000, are a significant factor in consumers’ decision to hold onto their vehicles.
- New vehicle sales are recovering from pandemic-related shortages, expected to reach 16 million this year, up from 15.6 million last year.
- Consumers are hesitant to buy new vehicles, contemplating between electric, hybrid, or gasoline options and concerns about the charging network.
- Vehicles are lasting longer due to better manufacturing.
- The stabilization of vehicle age is anticipated as new sales increase and replace older vehicles in the fleet of 286 million passenger vehicles.
- Extended vehicle use benefits local auto repair shops, with about 70% of vehicles on the road being 6 or more years old and out of manufacturer warranties.
The Associated Press has the story:
Average US vehicle age hits record 12.6 years as high prices force people to keep them longer
Newslooks- DETROIT (AP) —
Cars, trucks and SUVs in the U.S. keep getting older, hitting a record average age of 12.6 years in 2024 as people hang on to their vehicles largely because new ones cost so much.
S&P Global Mobility, which tracks state vehicle registration data nationwide, said Wednesday that the average vehicle age grew about two months from last year’s record.
But the growth in average age is starting to slow as new vehicle sales start to recover from pandemic-related shortages of parts, including computer chips. The average increased by three months in 2023.
Still, with an average U.S. new-vehicle selling price of just over $45,000 last month, many can’t afford to buy new — even though prices are down more than $2,000 from the peak in December of 2022, according to J.D. Power.
“It’s prohibitively high for a lot of households now,” said Todd Campau, aftermarket leader for S&P Global Mobility. “So I think consumers are being painted into the corner of having to keep the vehicle on the road longer.”
Other factors include people waiting to see if they want to buy an electric vehicle or go with a gas-electric hybrid or a gasoline vehicle. Many, he said, are worried about the charging network being built up so they can travel without worrying about running out of battery power. Also, he said, vehicles are made better these days and simply are lasting a long time.
New vehicle sales in the U.S. are starting to return to pre-pandemic levels, with prices and interest rates the big influencing factors rather than illness and supply-chain problems, Compau said. He said he expects sales to hit around 16 million this year, up from 15.6 million last year and 13.9 million in 2022.
As more new vehicles are sold and replace aging vehicles in the nation’s fleet of 286 million passenger vehicles, the average age should stop growing and stabilize, Compau said. And unlike immediately after the pandemic, more lower-cost vehicles are being sold, which likely will bring down the average price, he said.
People keeping vehicles longer is good news for the local auto repair shop. About 70% of vehicles on the road are 6 or more years old, he said, beyond manufacturer warranties.
Those who are able to keep their rides for multiple years usually get the oil changed regularly and follow manufacturer maintenance schedules, Campau noted.
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