The quality of cars is increasing every year. Now, the average age of a car in the US has set a new record with up to 12.2 years.
To prevent the use of old cars, it is now banned by governments in many countries. However, the quality of cars has also increased over the years. More and more people stick with their old cars for a long time. According to a new report from S&P Mobility, the average lifespan of a car on US roads is now a little over 12 years. While there has been a steady increase for the last five years, this is a new record. Let’s take a quick look!
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Several factors have contributed to this increase in the average age of cars. This includes production declines due to the ongoing pandemic and semiconductor shortages. As customers had to wait a long time to upgrade their vehicles, many people opted to continue with their vehicles or buy older vehicles. This has made older cars 40.5% more expensive than last year. Growth in the average age of light vehicles (VIOs) in the US is expected to continue through 2022 and 2023.
Additionally, the economic situation in the US has also led to an increase in the use of used cars. This includes increased gas prices, inflation, and more. The Federal Reserve has also increased lending rates in the economy. The total number of cars off the roads in 2021 was 11 million (down from 15 million in 2020). The scrappage rate has also come down to 4.2% (as compared to 5.6% last year). This is the lowest number in two decades.
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On the other hand, the average lifespan of electric vehicles has decreased. At 3.8 years, that’s a little less than a year ago. The S&P report claims that the number of electric vehicles on the road was around 40% in 2021. Light trucks (which include SUVs) represent 50% of new registrations and an increase of 141%. Overall, the country’s driving habits have returned to pre-pandemic levels. While repair costs may add up, there are fewer new cars on the roads.
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