Average age of U.S. vehicle now a record 12.2 years old
The average age of light vehicles in operation has hit a record, increasing by two months this year to 12.2 years, as a shortage of vehicles is keeping Americans in their cars for longer, according to a study released on Monday.
It’s the fifth consecutive year of increase even as the U.S. vehicle fleet recovered, growing by 3.5 million vehicles in the past year, according to the report from financial information firm S&P Global. Inc’s mobility team. The results are indicative of pentup demand that’s likely to keep automakers, their dealers and repair shops happy for years to come.
Prior to the pandemic, researchers had expected the average age of vehicles to flatten because of declining sales from their more than 17 million annual peak. Interrupted production from the COVID-19 pandemic followed by a global microchip shortage and other scarce parts, however, has depleted dealership lots and sent up the price of vehicles.
“It is a little bit of a unique situation driving the growth trajectory,” said Todd Campau, automotive aftermarket practice lead at S&P Global. “We expect it to continue to grow for a few years and then drop off in the ‘25, ‘26 range, depending on how the pandemic, pent-up demand and scrappage work out.”
The average age of a car on the road is 13.1 years, while trucks sit at 11.6 years, according to the analysis.
Scrappage volume for 2021 was at more than 11 million vehicles, a rate of 4.2% of vehicles in operation. That was the lowest annual rate in the past two decades, a reverse from 2020 that saw the highest volume in two decades at more than 15 million vehicles, the second highest rate at 5.6%.
A return to work and other activities as well as increasing demand for rental fleets contributed to the reversal with drivers traveling more than 12,300 miles on average, a 10% increase year-over-year. Unused vehicles during lockdowns may have once again been registered, Campau said, also contributing to the increased number of vehicles in operation.