The average age of vehicles on US roads has reached a new milestone, with cars and light-duty trucks staying in service for an average of 12.5 years. This is an increase of three months compared to the previous year, according to data from S&P Global Mobility.

The trend of older vehicles on the road has steadily risen for the past six years, with the most recent increase being the highest since the 2008-2009 recession. Our experienced California lemon lawyer explains the factors contributing to this trend here.

 

What Has Contributed to the Increase in Average Vehicle Age?

Multiple factors have contributed to the rise in the average age of vehicles on US roads.

One of the main drivers is limited new vehicle sales, which have impacted the market for several years. The COVID-19 pandemic initially affected sales, and microprocessor chip shortages worsened the situation. As a result, retail and fleet sales of new vehicles reached their lowest point in more than ten years.

Additionally, interest rates and inflation have played a role, putting pressure on consumers’ purchasing power and influencing their decision to hold onto their vehicles for longer.

 

How Has This Impacted the Service and Aftermarket Industry?

As cars age, owners spend more money on maintenance and repairs to keep them running. In the past, aftermarket repair focused on vehicles between 6 and 11 years old. However, now that the average vehicle age is 12.5 years, this target market is expanding.

In the United States alone, nearly 122 million vehicles are over 12 years old, creating a significant market for the service and repair industry, as these older vehicles need ongoing maintenance and repairs.

 

Shift Towards Light-Duty Trucks and Utilities

The automotive industry is also experiencing a notable trend towards light-duty and utility vehicles. In 2022, about 78% of newly registered vehicles in the US fell into this category, making up nearly 63% of all cars on the road.

As a result, passenger cars like sedans, coupes, wagons, and hatchbacks have declined. This shift is expected to persist, with projections suggesting that by 2028, approximately 80% of all vehicles on US roads will be light trucks and utility vehicles.

 

Rise of Electric Vehicles

While vehicles on US roads are getting older on average, the opposite is true for electric vehicles (EVs). In 2022, there was a significant 58% increase in new registrations of battery electric vehicles, with nearly 758,000 units sold.

The average age of EVs also decreased slightly from 3.7 years to 3.6 years. This trend indicates the increasing popularity of EVs and the ongoing improvements in electric vehicle technology. As EVs become more accessible and affordable, they’re poised to play a vital role in the future of transportation.

 

What Is the Outlook for New Vehicle Sales?

Despite the current trend of older vehicles on US roads, experts predict a rebound in new vehicle sales in the next few years. Sales are projected to exceed 14.5 million units this year, potentially reducing the average vehicle age. However, economic factors like interest rates and inflation may still affect consumers’ buying choices.

The expectation is that the growth in average vehicle age will start to level off in 2023 and return to normal patterns for new vehicle sales by 2024.

 

Think Your Car Is a Lemon? Contact Us Today!

Need help with a potential lemon car? Contact our experienced lemon law attorneys led by Norman Taylor. With a specialized focus on California lemon law and an authoritative book on the subject, we can assist you in taking legal action to safeguard your consumer rights. Call 818-244-3905 or contact us now for a complimentary case review.

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