Survey: The average age of Americans’ cars has increased to 12.6 years

[New Sancai Compilation First Release] A new U.S. study shows that although supply disruptions caused by the new coronavirus epidemic have eased and dealers have increased supply, U.S. car owners have owned their vehicles longer on average.

A report released by S&P Global Mobility on May 22 showed that the average age of U.S. cars and light trucks rose to a record 12.6 years in 2024, an increase of two months from 2023.

Although the average age of vehicles is growing at a slower pace as new registrations increase, S&P said it expects vehicles between six and 14 years or older to account for 70% of operating vehicles over the next five years.

"This will continue to improve business opportunities for companies in the U.S. aftermarket and automotive service industries, as repair opportunities are expected to grow as vehicles age," S&P said in the report.

The average age of electric vehicles has been stable at around 3.5 years since 2019. Since new vehicles account for a larger proportion of operations, it will also increase in the short term.

But high interest rates aimed at curbing stubborn inflation have undermined consumer confidence in electric vehicles - which are often more expensive than gas-guzzling cars - and slowed demand.

"We begin to see headwinds to the growth of electric vehicle sales at the end of 2023. Although electric vehicles will encounter some challenges in the market and may push up the average life of electric vehicles, we still expect the share of electric vehicles to grow significantly over the next decade. ” Todd Campau, head of S&P’s global liquidity aftermarket business, said in the report.

(Compiled by: Wang Jimin)

(Editor: Jiang Qiming)

(Source of the article: Compiled and published by New Sancai)