High prices for new cars and massive economic pressures on buyers account for the trend
Cars, trucks, and SUVs across the U.S. are getting older, with the average vehicle age now at a record 12.6 years. According to S&P Global Mobility, which monitors state vehicle registration data, high prices for new cars and massive economic pressures on buyers account for the trend, ABC News reports.
Despite a small recovery in new vehicle sales and a recent drop in prices — the average new car cost just over $45,000 last month, down from a peak in December 2022 — many people still find new cars too expensive. “It’s prohibitively high for a lot of households now,” said Todd Campau, aftermarket leader at S&P Global Mobility. “So I think consumers are being painted into the corner of having to keep the vehicle on the road longer.”
In April of 2019, the average car cost $33,695.
Another possible factor is that people are hesitating on vehicle purchasing decisions due to uncertainty about whether to choose an electric vehicle (EV), a hybrid, or stick with gasoline – as many are concerned that the availability of EV charging stations (VW recently stepped away from plans to go all-electric). However, Campau notes that cars are better made now and last longer, which is good news for car owners.
That said, new car sales are picking up, while around 16 million new vehicles are projected to be sold this year, which would be an increase over last year.
As new car sales increase, the fleet of aging vehicles, which currently stands at 286 million passenger vehicles in the nation, should see its average age stabilize. Increased sales of lower-cost vehicles might also help reduce the average price of new cars, making them more accessible.
Auto repair shops are loving America’s aging fleet – of which around 70% of vehicles on the road are over six years old and no longer under manufacturer warranty.
Overall, while the high cost of new vehicles continues to influence consumer choices, the improved quality and durability of cars are helping Americans manage by keeping their older vehicles on the road longer.
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