Even with discounts, new-vehicle prices are likely to stay much higher than pre-pandemic levels for years to come.Īs for Holdsworth, the Chevy Cruze owner, he plans to keep up with the scheduled maintenance on his car, especially routine oil changes. Still, no one is predicting a return to pre-pandemic annual sales of around 17 million anytime soon. It’s a trend that could slow the advancing age of the U.S. The result is that many people who can afford to buy can now do so. Automakers have also begun to restore some discounts that had long helped keep a lid on prices. A big reason is that the supply at dealerships is finally growing. new vehicle sales will reach 14.5 million this year, from about 13.9 million last year. It took up to three weeks to get an appointment, whether for repairs or the routine maintenance that older vehicles, in particular, require. Through most of last year, Nuber’s Japanese Auto was overwhelmed with customers. S&P predicts that the number of older vehicles will keep growing until at least 2028.Įven with more durable vehicles able to last longer, all of this has created a boom time for auto shops. Nearly 122 million vehicles on the road are more than a dozen years old, Campau said. In such cases, the third or fourth owner is getting a much older car than they would have in the past. And while 12.5 years is the average, Campau noted, more vehicles are staying on the road for 20 years or more, sometimes with three or four successive owners. The average vehicle age, which has been edging up since 2019, accelerated this year by a substantial three months. Even with rising repair costs, Campau said, it’s still typically more cost-effective to fix an older vehicle than to spring for a purchase. “The repair-versus-buy equation changed,” said Todd Campau, an associate director with S&P. GOP fears Trump’s problems with suburban women will only get worse And though they’ve eased somewhat, the cost of a vehicle still feels punishingly expensive to many Americans, especially when coupled with now much-higher loan rates. The shortage drastically slowed global assembly lines, making new vehicles scarce on dealer lots just when consumers were increasingly eager to buy. (AP Photo/Tom Krisher)īlame it mainly on the pandemic, which in 2020 triggered a global shortage of automotive computer chips, the vital component that runs everything from radios to gas pedals to transmissions. ![]() vehicle age up to a record 12.5 years in 2022, according to S&P Global Mobility. People are keeping their vehicles longer due to shortages of new ones and high prices. Mechanic Jon Guthrie inspects the underside of a 2014 Honda Ridgeline pickup truck at Japanese Auto Professional Service in Ann Arbor, Michigan. Sedans like Holdsworth’s are even older, on average - 13.6 years. The average age of a passenger vehicle on the road hit a record 12.5 years this year, according to data gathered by S&P Global Mobility. Americans are keeping their cars longer than ever. ![]() “You’re not going to get one for a price you can afford,” he said. ![]() Limiting his car payments and his overall debt is a bigger priority for him than having a new vehicle.Ī 35-year-old grocery store worker from Grand Rapids, Michigan, Holdsworth would probably be in the market for a vehicle within a few years - if not for the high cost. (AP) - With new and used cars still painfully expensive, Ryan Holdsworth says he plans to keep his 9-year-old Chevy Cruze for at least four more years.
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