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Cars Getting Gray on the Top

Average age of vehicles in operation ticks up as a lingering pandemic-spurred effect.

May 22, 2024
Cars Getting Gray on the Top

The average age ticked up to 12.6 years, and S&P says the prime age range for after-market service is 6 to 14 years.

Credit:

Pexels/Jose Ricardo Barraza Morachis

2 min to read


The average age of vehicles on U.S. roads has reached a record high of nearly 13 years, presenting service drive business opportunities.

An S&P Global Mobility data analysis shows the average age of cars and light trucks increased by two months over last year to 12.6 years, though it says the growth appears to be slowing as new-vehicle purchases continue their shift toward a volume more in keeping with prepandemic normals.

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Meanwhile, aging vehicles represent increased service-drive business. S&P says the prime age range for after-market service is 6 to 14 years.

"With more than 110 million vehicles in that sweet spot – reflecting nearly 38 percent of the fleet on the road – we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40 percent through 2028" S&P Aftermarket Practice Lead Todd Campau said in a press release on the study.

In fact, S&P expects the 6-to-14 and older age range to fuel the growth of vehicles on the road, making up at least 70% of operating units in the next five years.

The fleet of U.S. vehicles in operation was up by two million to 286 million, but the percentage of those under age 6 is down from 35% before the pandemic to about 32% today, said S&P, which forecasts that they’ll make up just 30% by 2028. It points out that the 2015 to 2019 period saw “historically high” vehicle registration volume.

S&P indicates that the rate of vehicles being taken off the market for scrap is flat year-over-year at 4.6%.

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Originally posted on Auto Dealer Today

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