The vehicles that we see on the roads are increasingly older. This was revealed in a report by S&P Global Mobility. According to the new analysis, the average age of cars and trucks in the country has risen again to a record 12.6 years in 2024, two months older than in 2023.
The study explained that there were 286 million vehicles in operation in January, 2 million more than in 2023. However, the distribution of vehicles by age is changing. There were 98 million cars under six years old in 2019, accounting for 35 percent of vehicles in operation.
There are currently 90 million vehicles under the age of six on the road. By 2028, this will account for around 30% of all vehicles in operation.
One of the reasons Americans aren't upgrading their vehicles is because of rising prices. Data from JD Power, reviewed by AP, indicates that vehicles cost an average of just over $45,000 in March. Even though prices have dropped by $2,000 compared to the highest peak recorded in December 2022, many people cannot afford to buy a new car.
"It’s prohibitively high for a lot of households now. So I think consumers are being painted into the corner of having to keep the vehicle on the road longer," said Todd Campau, aftermarket leader at S&P Global Mobility.
Likewise, the S&P Global Mobility report showed that, although there was growth in electric cars on the road, the growth rate of this type of vehicle was slower than some automakers had anticipated.
