Cars, trucks and SUVs in the U.S. are getting older, reaching a record average age of 12.6 years in 2024, as people hold on to them vehicles especially because new ones cost so much.
S&P Global Mobility, which tracks nationwide vehicle registration data, said Wednesday that the average vehicle age fell by about two months Record from last year.
But the growth in average age is beginning to slow as new car sales begin to recover from pandemic-related shortages of parts, including computer chips. The average increased by three months in 2023.
Nevertheless, with an average US New car sales price of just over $45,000 last monthMany cannot afford to buy new ones – even though prices have fallen by more than $2,000 since their peak in December 2022, according to JD Power.
“It’s now prohibitively high for many households,” said Todd Campau, head of aftermarket at S&P Global Mobility. “So I think consumers are being put in a corner because they have to keep the vehicle on the road longer.”
Other factors include people waiting to decide whether to buy an electric vehicle or opting for a gas-electric hybrid or a gasoline vehicle. Many, he said, are concerned about the charging network being built so they can travel without fear of running out of battery. In addition, vehicles are better made these days and simply have a long service life.
New car sales in the U.S. are starting to return to pre-pandemic levels, with prices and interest rates being the big influencers rather than disease and supply chain issues, Compau said. He said he expected sales to be about 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 country’s fleet of 286 million passenger vehicles, the average age should stop growing and stabilize, Compau said. And unlike immediately after the pandemic, more cheaper vehicles are being sold, which will likely lead to a decline in the average price, he said.
The fact that people are keeping their vehicles longer is good 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 are able to keep their vehicles for several years usually have their oil changed regularly and follow the manufacturer’s maintenance schedule, says Campau.