The average age of cars and light truck in the United States it rose to a new record of 12.5 years. According to a study presented by S&P Global Mobility, there are more than 284 million vehicles on U.S. roads, and that record average age has increased by three months since 2022. This is the sixth consecutive year that the age average increased, and the continuation of the trend was not unexpected.
“We expected that the confluence of factors impacting the fleet exiting 2021 would provide additional upward pressure on the average vehicle age,” said Todd Campau, associate director of accessories market solutions for S&P Global Mobility. The reasons for the aging vehicle fleet are now well known. The Covid pandemic initially took its toll new vehicle sales, so the shortages were caused by the lack of microprocessor chips for the automotive industry. “But the pressure was amplified in the second half of 2022 as interest rates and inflation started to kick in,” Campau added.
The combined effect of these factors caused U.S. retail and new light vehicle fleet sales to decline by 8%, from 14.6 million units in 2021 to 13.9 million units in 2022. S&P Global Mobility says this is the lowest level recorded in over a decade. “There are nearly 122 million vehicles in operation that are more than 12 years old,” Campau said.
But signs suggest there may be little reversal after this year, with 14.5 million vehicles expected to be sold. “While pressure will remain on the average age in 2023, we expect the curve to begin to flatten out this year as we look to a return to historic norms for new vehicle sales in 2024,” Campau said.
Equally surprising is the data showing a dramatic decrease in the number of passenger cars – particularly sedans, coupes, station wagons and hatchbacks – as well as light trucks and sport utility vehicles they make up the majority of new vehicle sales. Last year, 78% of all new vehicles sold were light trucks or commercial vehicles, and currently 63% of all vehicles on American roads are trucks or commercial vehicles. By 2028, light trucks and utility vehicles are projected to make up approximately 80 percent of the total vehicle fleet on US roads.
All this data is seen as a boon for the aftermarket industry and service centers. As the vehicle fleet ages, more repair the work is needed to keep older vehicles on the road. Owners are also likely to upgrade their vehicles instead of replacing them.
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