Cars, trucks and SUVs in the U.S. keep getting older
Cars, trucks, and SUVs in the U.S. are getting older, with the average age hitting a record 12.6 years in 2024. This trend is largely due to the high cost of new vehicles, causing many people to hold on to their current cars.
S&P Global Mobility, which monitors state vehicle registration data, reported that the average vehicle age increased by about two months from last year’s record. This growth in vehicle age is slowing down as new vehicle sales begin to recover from pandemic-related parts shortages, including computer chips. In 2023, the average vehicle age rose by three months.
Despite this, the average new-vehicle selling price in the U.S. was just over $45,000 last month, making new cars unaffordable for many. Although prices have dropped by more than $2,000 from their peak in December 2022, many people still cannot afford a new vehicle, according to J.D. Power.
Mary Aguirre, who has driven her Toyota Camry for 15 years and racked up over 300,000 miles, says,
No way can I afford a new or used car payment. That would be almost $800 a month. I would rather take ride share, Uber or Lyft to give my car a break sometimes. I am not buying a new car.
Todd Campau, aftermarket leader for S&P Global Mobility, said, “It’s prohibitively high for a lot of households now. So I think consumers are being painted into the corner of having to keep the vehicle on the road longer.”
Other factors influencing this trend include the decision to buy an electric vehicle, a gas-electric hybrid, or a gasoline vehicle. Many people are concerned about the availability of charging networks and the possibility of running out of battery power. Additionally, vehicles are being built better and lasting longer.
New vehicle sales in the U.S. are beginning to approach pre-pandemic levels, with prices and interest rates being the major factors rather than illness and supply-chain issues. Campau expects sales to reach around 16 million this year, up from 15.6 million last year and 13.9 million in 2022.
As more new vehicles are sold, replacing aging ones in the nation’s fleet of 286 million passenger vehicles, the average vehicle age is expected to stabilize, according to Campau. He also noted that more lower-cost vehicles are being sold now, which will likely reduce the average price.
The trend of keeping vehicles longer benefits local auto repair shops. About 70% of vehicles on the road are six or more years old, beyond their manufacturer warranties. Those who manage to keep their cars for many years usually adhere to regular oil changes and follow manufacturer maintenance schedules, Campau added.
