The average age of a car in the United States is 12.2 years, a new record

Are you noticing fewer new cars on your street or in the grocery store parking lot? You’re not alone.

The average age of a car on US roads is now just over 12 years old, marking a new record, according to S&P Mobility, continuing a five-year climb.

Supply chain issues – particularly those involving the semiconductor chips that power all the technology in modern cars – were the main culprits, forcing automakers to slow or halt production and consumers who had planned to upgrade their vehicles to wait.

Don’t expect that to improve anytime soon, either: “The average age of light-duty vehicles on the road (VIO) in the United States will continue to exert upward pressure through 2022 and 2023, as the new vehicle production and sales pipeline continues to be weighed down by parts shortages,” the report warns.

NEW CAR TREND? Honda and Acura will certify used cars for up to 10 years

The lack of new cars on the lots has, in turn, pushed customers eager to replace their vehicles to buy used ones, making them 40.5% more expensive than last year.

In fact, used car prices have actually risen faster than the rate of inflation, already at record highs, reversing wage increases and reinforcing the Federal Reserve’s decision to start raising interest rates. borrowing across the economy.

Inflation and rising gas prices also consumed extra cash that could have been paid for a down payment or monthly payments on a newer vehicle under normal economic conditions.

YOU READ CORRECTLY : Used cars cost 40.5% more than last year

The average age of electric vehicles is falling

The S&P report also revealed that the number of electric vehicles on the road increased by almost 40% in 2021. The average age of these electric vehicles was 3.8 years, down slightly from the previous year. .

The fastest growing EV segments? Light trucks (which include SUVs), which represent 50% of new registrations and are up 141%.

HAVE VEES BECOME GENERAL? Electric vehicle registration climbs 60%

“BEV market behavior similar to overall market: customers like truck and utility body styles; and manufacturers have responded to position their portfolios to meet that preference,” said Todd Campau, associate director of alternatives at S&P Global Mobility.

Fewer scrap cars

With the average age of cars, it’s no surprise that the number of scrapped vehicles has dropped dramatically. Scrappage volume – the total number of cars permanently taken off the road in 2021 – fell to 11 million from 15 million in 2020. Scrappage rate – the percentage of cars scrapped out of all vehicles in circulation – fell to 4.2%, the number was the lowest in two decades, from 5.6% the previous year.

SUBSCRIBE TO OUR NEWSLETTER: The Daily Money delivers our best personal finance stories to your inbox

The mileage goes up

The S&P report also found miles driven have largely returned to pre-pandemic levels, with the average car owner putting 12,300 miles on their odometer in 2021.

Many people got away with minimal maintenance in 2020 as they worked from home, had goods delivered and avoided road trips. That will change, Campau said, so make room in your budget.

“Combined with the rising average age, the strong average vehicle miles traveled indicates the potential for a notable increase in repair revenue over the coming year,” he said.

Comments are closed.