Cars Getting Gray on the Top
Average age of vehicles in operation ticks up as a lingering pandemic-spurred effect.

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.
Pexels/Jose Ricardo Barraza Morachis
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.
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%.
Originally posted on Auto Dealer Today
More Industry

EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
New Mexico Stores Change Hands
Three dealerships owned by three brothers are renamed for a new partnership bridging the founders’ family and a new auto retail leader.
Read More →
International Automakers Overpower Domestic Output
As the current U.S. administration pushes for domestic automotive production, a new report sheds light on the prevalence of international automakers here.
Read More →
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 →