Thanks to record new vehicle prices, drivers are working to keep their current cars on the road longer — so much so, in fact, that the average age of the 284 million vehicles in use in the U.S. just hit an all-time high of 12 ,5 years.
That’s according to a report released Monday by S&P Global Mobility that found the average age of the U.S. fleet increased for the sixth year in a row and also just saw the highest year-over-year jump in age since the 2008 recession- 2009
While widespread supply chain issues and a critical shortage of computer chips led to extremely low inventories and subsequent price increases during the worst of the COVID-19 pandemic, economic forces such as high interest rates and high vehicle prices are the main drivers of the current decline in new vehicle purchases.
Those higher prices are partly the result of continued inflationary pressures, but major automakers have also focused on what cars they make, shedding low-end models and beefing up selections at the higher end of the range. price spectrum
According to the Washington Post, automakers are selling fewer new vehicles in the U.S. than before the pandemic — about 13.9 million last year, down from 17 million in 2019. But their 2022 revenue was still $15 billion dollars more than in 2019, because the mix they sell is more expensive, according to Cox Automotive.
The average age of light-duty vehicles in the US reaches a record high of 12.5 years. The aging trend of the vehicle fleet continues as new vehicle sales remain under pressure. Number of passenger cars hit lowest point since 1978; Aftermarket repair opportunities increase.https://t.co/RR7NUyZUxD pic.twitter.com/M6SPbVlCsd
— S&P Global Mobility (@SPGMobility) May 15, 2023
New vehicle prices have risen 24% since the start of the pandemic, and in April the average cost was near $48,000, according to Edmunds.com. And, opting to add a pre-owned vehicle to the family fleet isn’t the deal it used to be either, with used car prices up 40% since COVID-19 hit and now nearing $29,000 on average
“The repair versus buy equation changed,” Todd Campau, associate director at S&P Global, told the Associated Press. Even with rising repair costs, Campau said, it’s usually still more cost-effective to fix up an older vehicle than to buy one.
The average age of vehicles, which has been increasing since 2019, has accelerated this year by a substantial three months. And while 12.5 years is the average, Campau noted, more vehicles stay on the road for 20 years or more, sometimes with three or four successive owners.
Mason Waters replaces the skid plate after changing the oil on a vehicle at Burt Brothers Tire & Service in Farmington on Monday, May 15, 2023.
Spencer Heaps, Deseret News
That’s a dynamic on display at service and repair shops across the country, including Utah-based Burt Brothers Tire and Service Centers across the state.
Trent Paver, manager of the Burt Brothers store in Farmington, said the shift from owners looking to keep their vehicles on the road as long as possible in the face of exorbitant new and used vehicle prices is showing both in the volumes of service as in conversations. is having with customers.
“What I’m hearing is that nobody wants to go out and take on a new car payment of $900 a month with astronomical interest rates,” Paver said. “For many people, the choice is whether to buy a new car or keep what they have and be able to take a holiday.”
Paver said vehicle repair volumes have increased at Burt Brothers shops, and they’re seeing more high-mileage vehicles come through as customers decide to trade in their current cars and trucks for expensive upgrades.
And that trend looks likely to continue, according to S&P Global’s analysis.
According to the report, volumes of vehicles aged between 6 and 14 years will grow by another 10 million units by 2028, adding to an already favorable volume of vehicles in the aftermarket target range.
“Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6 to 11 years, but with an average age of 12.5 years, the aftermarket repair sweet spot is growing,” he said. say Campau in the report. “There are almost 122 million vehicles in operation that are more than 12 years old.”
Paver said that while newer vehicles generally have longer lifespans, the far more significant factor in getting the most miles out of your car or truck is how well it’s been maintained. take care of yourself.
Mason Waters, bottom, changes the oil on a vehicle at Burt Brothers Tire & Service in Farmington on Monday, May 15, 2023.
Spencer Heaps, Deseret News
“It really comes down to whether you keep the vehicle or not,” Paver said. “If you’re not doing regular maintenance, that’s a durability deal.
“The little things count. Keeping up with fluid changes, regular oil changes, vehicle inspections, even regular car washes make all the difference.”
Paver said another factor contributing to repair volumes in Utah, outside of the new and used car ecosystem, is the decision by state lawmakers to eliminate the safety inspection that was previously required as part of the process of utah vehicle registration. Paver said many problems that were once caught in these required inspections now don’t show up, for those who don’t pamper their vehicles, until something major goes wrong. Safety inspections were removed from the state registration process in 2018.
Paver said the key to getting the most life out of older vehicles is to carefully follow the manufacturer’s scheduled maintenance instructions and, when possible, take advantage of free inspection services offered by repair service providers.
“Catching these problems early can prevent dangerous mistakes and save customers a lot of money,” Paver said. “Sometimes thousands of dollars.”
