According to S&P Global Mobility, the average age of cars, trucks, and SUVs in the United States has hit a new record of 12.6 years in 2024. This increase in vehicle age can be attributed to the rising cost of new vehicles, prompting consumers to hold onto their cars for longer periods.

The average vehicle age has grown by approximately two months from the previous year, indicating a gradual slowdown in the growth rate. This trend is expected to continue as new vehicle sales recover from pandemic-induced supply shortages, particularly in computer chips. In 2023, the average age increased by three months.

Despite a slight decrease in prices, with the average U.S. new-vehicle selling price standing at a little over $45,000 last month, many households still find it prohibitively expensive to purchase new vehicles. Todd Campau, aftermarket leader for S&P Global Mobility, states that "consumers are being painted into the corner of having to keep the vehicle on the road longer."

Factors contributing to the reluctance in purchasing new vehicles include consumers waiting to decide on electric vehicles, gas-electric hybrids, or gasoline vehicles. Concerns over the development of a robust charging network further deter potential buyers from investing in electric vehicles. Additionally, vehicles are now built to higher standards and are capable of lasting longer.

New vehicle sales in the U.S. are gradually returning to pre-pandemic levels, with prices and interest rates playing a significant role in influencing consumer behavior. Campau predicts that sales will reach approximately 16 million this year, up from 15.6 million in 2023 and 13.9 million in 2022. As newer vehicles replace aging ones in the country's fleet of 286 million passenger vehicles, the average age is expected to stabilize.

Furthermore, the shift towards selling more lower-cost vehicles is expected to bring down the average price. This trend is positive news for local auto repair shops, as about 70% of vehicles on the road are six or more years old and no longer covered by manufacturer warranties.

Campau highlights the importance of regular maintenance for those looking to keep their vehicles for an extended period. Keeping up with oil changes and adhering to manufacturer maintenance schedules can prolong the lifespan of a vehicle.

Overall, the rising average age of vehicles in the U.S. reflects the financial constraints facing consumers and their preference for long-term ownership. As new vehicle sales recover and more affordable options become available, the average age is projected to stabilize in the coming years.