Average age of US passenger vehicles on the road raches 12.5 years after its sixth year of increase

Per S&P Global Mobility

It was recently reported that the average age of vehicles in the US that were still operational has increased for the sixth year in a row. Now, that average sits at 12.5 years.

The country reportedly has over 284 million vehicles in operation (VIO) on its roads. This came as no surprise and aligned with S&P Global Mobility's predictions on vehicle age in the US.

The report factored in the constraints on new vehicle sales and how the average age would be affected. The rate increase reflects the 2008-2009 recession, where there was a steep decline in demand for new vehicles, which resulted in a sharp acceleration fo average age above its normal rate.

S&P Global Mobility associate director of aftermarket solutions, Todd Campau, gave a statement regarding the situation and their expectations. He also shared how they are looking towards new vehicle historical norms returning in 2024.

Campau: "We expected the confluence of factors impacting the fleet coming out of 2021 would provide further upward pressure on average vehicle age. But the pressure was amplified in the back half of 2022 as interest rates and inflation began to take their toll,"

Toward the end of April, it was reported that nearly half of Americans thought it to be unlikely that they would buy an electric vehicle as their next car. Per a poll, it was found that only 19% of participants thought that it was "very" or "extremely" likely that their next car purchase would be an EV.

In March, it was reported that the price sale of the average new car also saw a drop to below sticker price for the first time in almost two years. This came as US car dealerships saw around 1.89 million new vehicles in their inventories.

See flow at unusualwhales.com/flow.

Other News:

Resources:

S&P Global Mobility