Here’s Why Your Old Beater Car Doesn’t Look So Bad Now
Is your used car or truck getting pretty advanced in years? Don’t worry, it’s not alone. A recent study by S&P Global Mobility reveals that the average age of vehicles is at an all-time high and will likely continue to increase.
More specifically, the research firm says vehicles on U.S. roads right now are 12.5 years old on average, up by more than three months over 2022. This is the sixth straight year of increase and the highest since the 2008-2009 recession. The average age was 9.7 years two decades ago.
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The study doesn’t include data on Canada, but it’s reasonable to assume that the average age of vehicles north of the border is also higher than it’s ever been. Of course, due to the harsher weather and road conditions, Canadian vehicles typically have a shorter lifespan. For example, they averaged 9.66 years in 2016 versus 11.6 years in the U.S., according to Statista.
Bad News for Some, Good News for Others
Why do cars and trucks keep getting older? There’s an easy explanation. S&P Global Mobility says constrained new vehicle availability, combined with rising prices and interest rates, continue to impact and put upward pressure on the average age. People are holding on to their current vehicle longer.
This is bad news for car dealers, obviously, but a reason to rejoice for their service and parts departments, independent repair shops, as well as aftermarket retailers. In the U.S. alone, that particular sector of the auto industry has increased its revenues by 8.5 percent since 2021.
The average age of vehicles on the road should stabilize in 2024, claims Todd Campau, associate director of aftermarket solutions for S&P Global Mobility. However, based on the firm’s estimations, vehicles older than six years will account for more than 74 percent of the vehicle fleet in 2028.
