Average Age Of Vehicles In US Now Older Than Ever, Study Shows
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The average age of registered vehicles on the roads in the United States is now older than ever, a potential sign that improved quality and reliability is driving consumers to hold onto their vehicles for longer.
According to a study from IHS Markit, the average age of cars and trucks in the US is currently 11.8 years, up 0.1 years from 2018.
In addition to vehicle reliability, financing is another major contributor to how long people keep their vehicles. Cars are, on average, more expensive in the current day and consumers are more likely to finance them for longer periods – sometimes up to six or seven years.
IHS Markit’s data indicates that those in western states have the oldest cars – hardly surprising, seeing as they also get the driest, sunniest weather. Western residents’ average vehicle age is 12.4 years, while the Northeast’s is just 10.9 years, for comparison. Montana residents’ have an alarmingly old vehicle age of 16.6 years.
While a study like this may seem a bit inconsequential, it is actually quite indicative of current automotive trends. US auto sales are predicted to dip 1.5% this month and experts are chalking that up to the rising average transaction prices for new vehicles. With many consumers priced out of new vehicles, more and more Americans will be holding onto their old vehicles or shopping used instead of replacing it with a new one.
According to data obtained by J.D. Power, the average vehicle transaction price in the first six months of the year is about $33,346 – up 4% year-over-year. Not only is this much higher than last year, it is also the highest-ever average vehicle transaction price for a six-month period.
Source: Autoblog
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The auto industry has left the middle class behind. I understand that the EPA and other government agencies around the world force their hand when it comes to emissions and trying to come up with new technologies to meet ever tightening demands, but all that does is force the car companies to stay at cutting edge and EXPENSIVE tech, which just drives up car costs and prices. It’d be nice for the middle class to actually be able to afford vehicles again.
To be fair though, not everyone wants a car with keyless entry/start, heated mirrors, power seats, and in some cases, power windows even. I understand that automakers have to stay on top of the new tech, but at the same time, they do not have to offer every single piece of technology in a base model vehicle.
For example, I would rather pay $40k for a base Chevy Suburban with the small screen from the truck, the manual DIC, manual seats, no third row, nor second row climate control, than to pay $50k for the current base model which includes all of that. with that extra $10k, I could choose different options or even pay off more of the loan.
In my neighborhood.. I see a number of first GEN Lexus LS400 sedans as they’re everywhere as the odometers of most of these cars are over 200K and tells the workmanship that went into them.
Cleaner burning engines to meet EPA requirements and synthetic oils that are better than ever has big part of it.
Being in the auto industry, I often think about the people buying these high-tech vehicles with so many high priced features once they are used. Maybe not the second owners, but with cars lasting so long (engine/trans/body), many might see a third or even fourth owner. Unlike years ago when you could tune up a car, re-build the engine or trans and then drive them for a long time, what’s it going to be like having to replace an entire computer system in order to continue driving them? Not sure I’m getting my thought out correctly, but with so much high-tech going on, I’m not much interested in being the person buying one of these down the road. It’s why I only buy (or lease) new.
It’s the same in Australia.
Well when you are finnacing a new vehicle for 96 months (8yrs), there’s incentive to hold onto it and avoid the negative equity trap.
There is nothing that I want to replace my ’13 Silverado crew cab 4X4 with though……………
I don’t think that there is something bad that the average age of vehicles in US now older than ever. In some cases, it is a sign that repairing cars is at a decent level but on the other hand, it’s a sign of economic stagnation.