DETROIT (AP) — America’s cars, trucks and vans continue to age, reaching a record average age of 12.6 years in 2024, as people keep their vehicles longer because new ones are too expensive.
S&P Global Mobility, a company that tracks state vehicle registrations across the country, said Wednesday that the average age of vehicles was nearly two months above the record set last year.
But the increase in the average age is beginning to slow as new car sales begin to recover from pandemic-related shortages of auto parts, including microprocessors. The increase in the average age was three months in 2023.
The average selling price of new cars barely surpassed $45,000 last month, leaving many unable to buy one even though prices are down more than $2,000 from their peak in December 2022, according to JD. Power.
“For many families, it is prohibitively high in price right now,” said Todd Campau, aftermarket leader for S&P Global Mobility. “So I think consumers are being forced to keep their vehicles on the road longer.”
Other factors include people waiting to decide whether they want to buy an electric, hybrid or gasoline-powered vehicle. He added that many are concerned about the network of chargers still being developed so they can travel without fear of running out of battery. Plus, vehicles are better made these days and simply last longer.
Sales of new cars in the United States are beginning to return to their pre-pandemic levels, and prices and interest rates are factors to take into account, rather than illness and supply chain problems, Compau said. It said it expects sales to be around 16 million units this year, compared to 15.6 million last year and 13.9 million in 2022.
As more new cars are sold to replace old ones in the national fleet of 286 million passenger vehicles, the average age should stop increasing and will stabilize, Compau stated. And unlike in the months after the pandemic, more lower-cost cars are being sold, which will likely drive down the average price, he said.
The fact that people are keeping their vehicles longer is good news for local auto shops. About 70% of the vehicles on the road are at least 6 years old, he said, far exceeding the manufacturer’s warranties.
Those who keep their vehicles for several years tend to do oil changes regularly and stick to the service dates established by the manufacturer, Campau noted.
