Average New-Vehicle Age Reaches Nearly Six Years, Polk Reports
SOUTHFIELD — An analysis by Polk revealed that the average length of ownership of vehicles that were purchased new has risen to a record 71.4 months, or nearly six years. For consumers who purchased used vehicles, the average length of ownership is nearly 49.9 months.
Combined, new and used vehicle owners are holding on to their vehicles for an average 57 months, according to Polk. For new and used owners combined, the length of vehicle ownership among U.S. consumers has increased 23 percent since the third quarter of 2008.
A number of factors contribute to the increased length of ownership, according to Polk, which analyzed vehicle registration data through Sept. 2011. First, consumer spending remains conservative in a still-weak job market with relatively high unemployment rates. Second, many buyers have longer-term financing options to secure more affordable payments. Third, vehicles produced in recent years have been more durable and more reliable than their predecessors, according to different industry reports.
Several manufacturers also are offering longer warranties for new vehicles, reducing the risk for consumers who want to keep vehicles longer.
Polk’s findings, coupled with the increased average age of vehicles on the road, which now stands at 10.8 years for cars and light trucks combined, offer promise for the automotive aftermarket. “As the aftermarket prepares to service this aging vehicle population, this creates concerns about appropriate parts inventory,” said Mark Seng, global aftermarket practice leader at Polk. “As a result of our analysis, we’re currently working with customers in the aftermarket to help them prepare for increasing demand throughout the entire supply chain."
Polk analysts do not anticipate new-vehicle sales will reach pre-downturn levels of 16 million units until 2015, and Polk does not expect to see an immediate decline in the length of ownership trend over the next few years, according to Seng. “Unemployment rates continue to be high, and we expect many consumers will suffer from the lingering effects of the downturn, further contributing to longer ownership trends,” he said.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →