The average age of cars and other light vehicles on the road in the United States has been slowly rising in recent years and has continued to rise throughout 2020 amid the COVID-19 pandemic, according to a recent study conducted by IHS Markit.
The firm found that the average age of cars and trucks in operation in the U.S. has risen to 11.9 years this year, or about one month older than in 2019. This trend can be chalked up to several different factors, including rising new vehicle prices, though it has been somewhat exacerbated by the COVID-19 pandemic.
“Underlying weakness in several segments of the market, combined with increased vehicle prices, provided upwards pressure on average age of vehicles, as consumers weigh their cyclical goods expenditure, opt for longer-term financing options or hold onto their vehicles for a longer period of time,” IHS Markit said.
Before the pandemic hit, new vehicles represented just 6.1 percent of all vehicles in operation in 2019 – down from 6.7 percent in 2016, which was the previous record-setting year. Analysts predict further troubles for the automotive industry in the coming months due to the COVID-19 pandemic, with new vehicles expected to account for less than 5 percent of all registered cars, trucks and SUVs on the road this year.
The COVID-19 pandemic has people driving less as many are working from home, have not returned to work yet or have been let go from their place of employment entirely. Additionally, many are not driving to attend leisure activities (ie. going to restaurants, the gym etc.) or visiting friends and family as often. It’s hard to say how long these practices will last and what type of impact they will have on new vehicle sales going forward, but it seems the effects are already being felt.
Additionally, IHS Markit says the U.S. vehicle population is expected to surpass 280 million vehicles this year, up 1 percent from 2019. With so many older vehicles on the roads and the average of cars rising, the research firm believes there will be major opportunities within the aftermarket sector and for smaller mechanics shops to grow their business.
“Based on the analysis, the volume of vehicles 6 to 11 years old is expected to expand, which presents major opportunities for the sector due to dealer service plans and warranties expiring, netting new business opportunities for independent service and repair shops,” IHS Markit added.
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Comments
Eleven years is less than my average. I drove my 1984 Olds Ciera for 26 years, and my 1995 Buick Regal for 21 years, and both had more than 130,000 miles each. My present 2009 Chevy Equinox is already past 11 years and six months. If you car is great, don;t change it! This is bad for car brands but as a consumer I hold on for longer years and save money. Just change the oil on time (I always use Mobil 1 synthetics) and keep the rest of the car in top shape.
Saw a Show last night about a 1970 Blazer rebuild. Blazer MSRP was $2900. According to Show that translates to $20000 today. What can you buy for that price today? Not much, left alone a 4wd truck.
LOL well 30K today will buy you a FWD base L Blazer with a 2.5 4 cylinder and currently no advanced safety features other than the mandatory backup camera. 20K gets you a base Trailblazer FWD with the 1.2 3 cylinder engine, auto braking, lane keep and departure warning and rear seat reminder.
No surprise. Between the prices and lack of choice for a lot of people why get rid of your car if you maintain it? Look at what it costs for shipping, title and if you have to pay 7 or 8 % sales tax. In my case, I ‘m waiting for a mini truck size(S10). For now will hold on to my Silverado rcsb, which they don’t sell, either.
lack of choice is right. Remember when the silverado offered 6 engines and 3 transmissions? Or when the cadillac SRX had 2 Engine options? Or when car companies used to offer many more interior color options (besides “Black” and “gray with black accents”)? Or you could get heated seats as a standalone option without having to pay for 6k worth of other BS gingerbread?? Or you could get a base model truck that was really a base model? Or you could have multiple sizes of wheels (not just 22’s).
Good times!
I’ve started doing work on my own cars due to suspicions that the dealer took my car out for a joy ride and then the other car I got fixed they only did half of the work and then told me after that I had to go to another shop to get the rest fix, (would of been nice to know that before hand). With that being said I’d like to buy a older classic car, and a new truck. Maybe start my own jay leno collection of cars. But I don’t have Leno money
I think the average cost of a new vehicle is a major player in this.
Would love a new truck but these prices are putting new vehicles out of my price range
True that, the cost of newer vehicles has become outrageously expensive. Granted there’s many more features in new cars and trucks, but the price is ridiculous. If you add up registration, sales tax, financing, and insurance cost, it can easily bankrupt a average person. Let alone take up a lot of their monthly expenses. I personally try to have the least amount of debt possible, but others are up to their eyeballs in it and can care less.
Plus with all the new tech, the use of more plastic engine parts and components, with cut throat cost cutting measures taking place for all automakers, with that brand new 2020 vehicle last 20 years without major problems? I personally don’t think so.
My mother drives a 2004 Lexus ES330. It’s an amazing car for its age as it runs extremely well for having a 197,000 miles on the odometer. It’s like a brand new car inside and out. The level of quality and reliability of this Lexus IS a testament of how long lasting these cars are. Now can a new Lexus last as long as the older models? Who knows, in the era of 1. Nothing turbo charged engines, I doubt it. The old Lexus has the bulletproof Toyota 3.3 V6 in it that is ultra smooth and quiet. To be honest the engine is smoother running than my 17 Impala 3.6 V6. This is with a car that has close to 200,000 miles on it. Yet it still feels nice and tight to drive and everything still works great on it too.
I don’t think my mother has any reason to sell her Lexus, it still runs perfect, no car payment, low insurance cost and she has a peace of mind knowing that the car will start, run and drive for another 200,000 miles.
Thank you Tokyo Rose, nothing special about a camry with chrome.
And this is surprising? My friends have a used car dealer that specializes in GM/Ford/Chrysler rust free vehicles and they have been operating since the 80’s. Thus we have an ear to the ground and often have long conversations with consumers and what annoys them. Here is the top ten list of why so many are hanging onto there older rides-
1) Costs. I don’t care that certain cars haven’t moved up in actual base sticker price when inflation is factored in. There is so much more at work here. Taxes are much higher than back then. Insurance is at record highs because today’s cars are so complex and expensive to repair. Add in all the crap everybody thinks they need like Onstar or equivalent, XM radio, wifi, rustproofing and added warranty coverage because the company is too cheap to offer 10/100 like Kia/Hyundai. The total cost of buying a car is much higher all around and the average transaction is now up to 34K! Trucks have surged well past that
2) Annoying technology- alarms going off, seats that vibrate the second you go out of your lane, warning lights blaring, auto braking that gets confused. Stop/start. Most of the 60 on up crowd hate the current batch of Toyota’s and Subaru’s with these now std features. Thank goodness some can be defeated.
3) An annoying array of different shifters. Dials, push buttons, push and pull, electronic shifters that are not intuitive. And it’s not just the above 60 crowd that complain about this!
4) Lack of choice (interiors)- when you have seen one interior these days you have mostly seen them all. Black or grey with the option to possibly see a dark brown in high end versions. Years ago vehicle interiors were mostly able to be identified by manufacturer and were able to be customized with choices in 4-6 colors, floor shifters or column shifters, basic bench or split bench, bucket or high end luxury velour. Today it’s mainly going from fake synthetic cloth to leather or some sort of fake leather material as the only choice.
5) Lack of choice (exterior)- notice how the color choices seem to be shrinking? Also notice how it’s difficult telling a high end model from a basic trim level. About the only way the eagle eyed customer can tell a base from high trim is the wheels, maybe the exhaust if the company still has one that is visible and fog lamps if still offered. This of course varies between company and vehicle.
6) Ever shrinking choices (vehicles themselves) Sedans are disappearing at an alarming rate, 2 door coupes all but gone, stick shift transmissions very rare and hard to find. The customer that just wants a cheap commuter car for their college kid is now forced to look at a foreign company unless they want to spend 25K on a Trailblazer or Ecosport. Wagons are pretty much Subaru or Volvo and the consumer’s choices are at an all time low
7) Complexity- the average person can’t even change the blasted headlight on many cars today because the entire bumper assembly has to come off or change the battery because doing so will disable the entire vehicle without a trickle charge. When the dealers can’t figure it out you know there is a real problem. And if they do plan on taking out a second mortgage if it’s not covered under the mostly useless current warranty’s.
8) Terrible packaging and option groups- Looking for some pep in your Malibu? Well plan on spending well over 30K for a top end Premier to get it. Want a leather steering wheel or radar cruise control? That will cost 2500 more for package A and another 1500 for package B. I sometimes think these car companies do this to annoy the consumer as much as possible when trying to order a vehicle the way they want it. We can thank companies like Honda for this insanity!
9) Styling- Or lack of styling. Your average vehicle today is a raised bubble hatch or wagon like body with AWD and a barely adequate 4 cylinder or a gas swilling 4 door 4X4 pickup truck with a V8 or Ecothurst engine that is lucky to see 15-16 MPG on average. Trying to tell one vehicle apart from another is literally impossible in many cases unless you can get up close and see the badge. It’s as if each company has hired the same designers and in some cases that is true. But then you can only alter a tall riding bar of soap so many ways.
10) 21st century annoyances- rear windows that are all but impossible to see out of. Gun slit side windows. Gargantuan oversized hard riding tires that bang over bumps, pickup nails and road hazards, generate more tire roar and are treacherous in the Winter months necessitating a costly switch over to snow tires on smaller rims. The ugly black wheel and exterior trim fad. Trunks with openings so small a simple baby stroller won’t fit in easily let alone a bike or larger sized box. Too many buttons, capacitive touch that doesn’t work with gloves on, having to scroll through various screens to turn the seat heaters on or simply adjust the fan speeds. Also annoying- low slung cars that scrape curbs and entrance ways, headlights that don’t work well or blind you when coming from another car, silly rubber band tires that look frankly dorky and fussy alloy wheel designs that are hard to clean. Many also dislike the silly fake exhaust outlets or upturned hidden units siting it as cost cutting.
Wow, what a tirade. You must be a riot at parties! Welcome to the twenty-first century….
New vehicles are too expensive. No surprise.