Average Age of U.S. Light Vehicles Older Than Ever

average age of u s light vehicles older than ever

S&P Global Mobility has reported that the average U.S. automobile is now 12.2 years old, which it said represented a 2 percent increase since 2021. While relatively modest, the general trend for the last five years has been for vehicles to get older as drivers attempted to milk more life from beleaguered hardware.

Much of this has been attributed to North America’s broadening wealth gap and general improvements in vehicle longevity. If you look back at Department of Transportation data from the 1990s, the average age of a car was under nine years. By 2007, the typical car would see its 10th birthday before scrappage and the number has continued to climb from there. Much of that is due to households having to make do with tighter budgets, which was arguably made easier by modern powertrains that can easily exceed 100,000 miles before needing any serious maintenance.

The only real difference from previous decades is that there’s usually a period where the average light vehicle age stays put for a handful of Christmases before pitching up again, whereas the last five have showcased consistent, year-over-year increases. S&P Global attributed the matter to the planetary microchip shortage and ongoing supply chain issues that have created a deficit of new product. In practical terms, that means fewer new vehicles for people to buy and elevated prices on both the new and used markets.

Though it probably should be said that S&P Global’s entire existence is dedicated to financial research and the framing of the resulting data. Known as McGraw Hill prior to 2016, the business has spent the last hundred years shifting from the publishing of textbooks to the purchasing research groups, financial service institutions, broadcasting firms, and more. Since 2005, it’s taken ownership of J.D. Power (which it later sold), 451 Research, IHS Markit, and The Climate Service Inc.

The above information certainly doesn’t change the age of your average automobile. But it may help explain why S&P Global is focused almost exclusively on supply problems when there are numerous financial factors contributing to the issue.

“People do value their vehicles; people do still feel the need to have a vehicle available to them, maybe even more coming out of the pandemic, so that’s caused the vehicle fleet just to grow a little bit,” Todd Campau, automotive aftermarket practice lead for S&P Global, told Automotive News. “And because the new-vehicle sales haven’t been available, it’s been growing from within really from vehicles that have been on the road, and they’re just staying available longer.”

From AN:

The research shows the average age of vehicles has been increasing since 2011, highlighting a trend in popularity of older and higher-mileage vehicles. Data from a Cox Automotive analysis shows that the sale of high-mileage vehicles grew 7 percent in the first quarter of 2022. Previously, vehicles with over 150,000 miles were often deemed unqualified for retail sale and were instead sent to auction to be purchased by independent dealers.

The U.S. vehicle fleet — which includes all light cars and trucks — increased by 3.5 million vehicles to a total of 283 million in 2022, according to S&P Global.

The statement said a continued decline in vehicle scrappage and a flux in demand for used vehicles have contributed to the increase in vehicle age. Vehicle miles also returned to pre-pandemic levels, according to the study, “increasing by more than 10 percent in 2021 as lockdowns eased and people returned to work and leisure travel,” with each light vehicle averaging 12,300 miles in 2021.

That certainly hits close to home. Your author recently took possession of a two-decade-old Toyota Corolla in truly rough shape because the price was right and I wanted to minimize the burden placed upon my other vehicles. But this only happened due to the current state of the market. Had MSRPs and availability remained normal, I’d never have held off on purchasing a new model. Instead, I am now attempting to wait out the market while the cost of literally everything else goes up in the hopes I’m not the first to flinch. Though I would wager this situation (and worse) have become increasingly normal scenarios for average Americans.

So cars are absolutely getting older — with one exception. According to S&P Global, electric vehicles actually saw a decrease in their average lifespan vs last year. Data shows the total number of battery-electric vehicles in operation has increased nearly 40 percent to 1.44 million in 2022, with the average age decreasing to 3.8 years from the previous annum’s 3.9.

“It’s a function of the fact that right now, the share of new EVs being sold each year is such a large share of the overall [EV] population,” Campau concluded.

With fuel prices exploding, EV sales have been on the rise. This matter is further aided by the kind of people buying electrics typically having fatter wallets than their gasoline-dependent counterparts. However, their pace may also endure a few setbacks as energy prices are poised to increase in general. Thus far, most data shows residential electricity prices have increased by between 4 and 11 percent (depending on location) over the last year. But just about every market analysis conducted since the start of 2022 suggests things will worsen throughout the summer. That’s true whether we’re talking about natural gas, gasoline, electricity, or diesel — the latter of which is presumed to see massive shortages going into the fall.

“I think there’s definitely going to be upward pressure on average age through probably 2024, maybe even ’25,” Campau said. “Then I think it will level off once the new-vehicle supply starts to catch up with demand. There’s even a potential, I think, that we could see average age maybe even come down slightly … when that pent-up demand for new vehicles is released.”

[Image: Alex Millauer/Shutterstock]

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  • 285exp 285exp on May 24, 2022

    My current ride is 16 years old, I bought it 3 years ago to replace the 22 year old car I bought new. I’d still be driving that car if some dingbat hadn’t run into it while it was parked in front of my house. The 16 year old car is worth more now than it was when I bought it. Thanks Joe! I also have a 22 year old truck I bought 19 years ago, and the newest car in the fleet is 8, bought it 5 years ago coming off a lease. I think it’s safe to say I’m helping push the average up.

  • Skippity Skippity on Jul 25, 2022

    Move over Cuba!

  • ToolGuy @Matt, let me throw this at you:Let's say I drive a typical ICE vehicle 15,000 miles/year at a typical 18 mpg (observed). Let's say fuel is $4.50/gallon and electricity cost for my EV will be one-third of my gasoline cost - so replacing the ICE with an EV would save me $2,500 per year. Let's say I keep my vehicles 8 years. That's $20,000 in fuel savings over the life of the vehicle.If the vehicles have equal capabilities and are otherwise comparable, a rational typical consumer should be willing to pay up to a $20,000 premium for the EV over the ICE. (More if they drive more.)TL;DR: Why do they cost more? Because they are worth it (potentially).
  • Inside Looking Out Why EBFlex dominates this EV discussion? Just because he is a Ford expert?
  • Marky S. Very nice article and photos. I am a HUGE Edsel fan. I have always been fascinated with the "Charlie Brown of Cars." Allow me to make a minor correction to add here: the Pacer line was the second-from-bottom rung Edsel, not the entry-level trim. That would be the Edsel Ranger for 1958. It had the widest array of body styles. The Ranger 2-door sedan (with a "B-pillar", not a pillarless hardtop), was priced at $2,484. So, the Ranger and Pacer both used the smaller Ford body. The next two upscale Edsel's were based on the Mercury body, are were: Corsair, and, top-line Citation. Although the 1959 style is my fav. I would love a '58 Edsel Pacer 4-door hardtop sedan!
  • Lou_BC Stupid to kill the 6ft box in the crewcab. That's the most common Canyon/Colorado trim I see. That kills the utility of a small truck. The extended cab was a poor seller so that makes sense. GM should have kept the diesel. It's a decent engine that mates well with the 6 speed. Fuel economy is impressive.
  • Lou_BC High end EV's are selling well. Car companies are taking advantage of that fact. I see quite a few $100k pickups in my travels so why is that ok but $100k EV's are bad? The cynical side of me sees car companies tack on 8k premiums to EV's around the time we see governments up EV credits. Coincidence? No fooking way.
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