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According to an S&P Global Mobility report, the average age of U.S. light vehicles has risen for the fifth straight year. The average age reached 12.2 years in 2022, two months over the average recorded a year before.
Americans find it more challenging to change their cars, and they keep their existing ones longer. The main reason is a constrained supply of new cars amid strong demand for personal transportation. The latest automobiles are also a lot more expensive, which prompted more people to keep operating their existing autos. This is reflected in a reduction in scrappage to 4.2% of the number of vehicles in operation, the lowest in two decades.
As the production of new light vehicles suffered due to microchip shortages and supply chain issues, the demand for used cars accelerated, boosting the average age even further. This led to more vehicles taken out of circulation during the pandemic to return on the roads. Indeed, the fleet has increased by 3.5 million units to 238 million passenger cars and light trucks.
There’s also an unwanted effect on the market as the popularity of older and high-mileage vehicles continues to soar. According to a Cox Automotive study cited by Automotive News, the sale of high-mileage vehicles grew 7 percent in the first quarter of 2022. Previously, cars with more than 150,000 miles (241.000 km) were usually sold at auction, but now they are increasingly sold through dealerships.
While the overall fleet aged during the past years, the EVs’ average age actually decreased. It was 3.9 years in 2021, and it now sits at 3.8 years on average, thanks to an influx of electric vehicles into the market. The total number of BEVs in operation reached 1.44 million cars this year, up nearly 40% from the year before. This also explains why the average age declined, considering the significant number of new BEVs entering the fleet.
As the production of new light vehicles suffered due to microchip shortages and supply chain issues, the demand for used cars accelerated, boosting the average age even further. This led to more vehicles taken out of circulation during the pandemic to return on the roads. Indeed, the fleet has increased by 3.5 million units to 238 million passenger cars and light trucks.
There’s also an unwanted effect on the market as the popularity of older and high-mileage vehicles continues to soar. According to a Cox Automotive study cited by Automotive News, the sale of high-mileage vehicles grew 7 percent in the first quarter of 2022. Previously, cars with more than 150,000 miles (241.000 km) were usually sold at auction, but now they are increasingly sold through dealerships.
While the overall fleet aged during the past years, the EVs’ average age actually decreased. It was 3.9 years in 2021, and it now sits at 3.8 years on average, thanks to an influx of electric vehicles into the market. The total number of BEVs in operation reached 1.44 million cars this year, up nearly 40% from the year before. This also explains why the average age declined, considering the significant number of new BEVs entering the fleet.
Google News