As we assess the landscape of the automotive industry in the United States, one trend continues to stand out: vehicles on the roads are aging.
Current data from S&P Global Mobility highlights a significant increase in the average age of vehicles. The average life expectancy of cars and light trucks has now surpassed 12 years.
This ongoing trend has notable implications not just for consumers and auto manufacturers, but also for service industries and the broader economy.
Our deep dive into this phenomenon reveals that a convergence of factors is influencing the upward shift in vehicle age.
Supply chain disruptions, which have been especially pronounced in recent years, play a key role. They affect the production of new cars and push potential buyers towards older vehicles.
Moreover, the economic landscape, marked by inflation and higher used car prices, has led consumers to hold onto their vehicles longer.
The evolution of the U.S. automotive fleet does not end with traditional gas-powered vehicles. Electric vehicles (EVs) are also becoming a more common sight on American roads.
Although they represent a smaller fraction of the total vehicle population, their presence is growing, and they tend to be newer than their fossil-fueled counterparts.
This shift is indicative of a broader movement towards greener technology—a trend that is likely to influence the average vehicle age as the market share of EVs increases.
JUMP TO TOPIC
State of the Automotive Market
We are witnessing several influencing factors that shape the current automotive market.
The aftereffects of the pandemic, changes in buying behavior involving new and used vehicles, and the pivotal shift towards SUVs and electric vehicles (EVs) are all paints on this vast canvas.
Impact of the Pandemic on Vehicle Sales
The pandemic has caused unprecedented disruptions in new vehicle production, leading to a record average age of vehicles in the United States.
In 2022, data reflected an increase in this average age to 12.2 years. The decline in production constrained the availability of new cars, which directly impacted vehicle sales.
Key Pandemic Sales Impact:
- Decline in new vehicle production.
- Record average vehicle age: 12.2 years.
Trends in New and Used Car Transactions
During 2022, we saw a growing demand for used cars, mainly due to the decline in the number of new cars caused by the pandemic.
Inflation also played a crucial role, as buyers sought more cost-effective transportation options. This trend has significantly influenced both the new and used vehicle markets.
SUV and Electric Vehicle Popularity
SUVs continue to capture the market’s interest, but the EV segment is growing particularly fast.
With a global push towards sustainability, electric vehicles are gaining traction. BEV (Battery Electric Vehicle) registrations are on the rise, indicating a tangible shift as consumers move away from traditional combustion engines toward electric alternatives.
| Vehicle Type | Market Demand (2022) |
| SUVs | Stable Growth |
| Electric Vehicles | Rapid Increase in Registrations |
Vehicle Age and Maintenance Dynamics
As the average age of vehicles on US roads increases, so does the impact on the aftermarket industry and potential for battery electric vehicles. We explore these dynamics and their implications for consumers and businesses alike.
Increasing Average Age of Vehicles
The average age of light vehicles in the United States has hit a new record.
S&P Global Mobility and IHS Markit report that the average age has climbed to 12.5 years as of 2023.
This uptick is due to various factors, such as parts shortages and economic considerations which have influenced consumers to hold onto their vehicles longer.
Aftermarket Solutions and Repair Opportunities
The longer lifespan of vehicles directly correlates with heightened demand for aftermarket parts and services.
Todd Campau of IHS Markit highlights the increase in vehicle maintenance opportunities.
With an aging fleet, consumers seek cost-effective solutions to extend the service life of their vehicles, which presents profitable avenues for aftermarket providers.
Prospects of BEVs in an Aging Fleet
While currently a small fraction, their presence is expected to grow, altering the traditional maintenance and repair models.
BEVs, known for fewer moving parts, could redefine our approach to vehicle longevity and the nature of aftermarket services.
Operational and Economic Pressures
The lifespan of vehicles on US roads has been lengthening due to a combination of supply constraints and economic factors. These pressures not only affect car buyers but also ripple through the vehicle fleet, aftermarket segment, and shared mobility services.
Supply Chain and Production Challenges
Supply chain disruptions have led to production delays for new cars, particularly affecting the availability of critical components like semiconductor chips.
Manufacturers of vehicles, including SUVs and light trucks, face operational difficulties that slow down output and delay delivery to dealerships.
These constraints have had an upward pressure on the average age of the US vehicle fleet:
| Entity | Impact of Supply Chain | Effect on Average Vehicle Age |
| New Car Production | Decreased | Increased Age |
| Aftermarket Segment | Demand Growth | Increased Age |
Interest Rates, Recession, and Car Ownership Costs
Economic fluctuations, such as rising interest rates and signs of recession, have made financing more expensive, deterring new vehicle purchases.
Meanwhile, pre-owned vehicle residual values have climbed, reflecting a robust used car market.
Elevated ownership costs persuade consumers to retain their cars longer, contributing to the rising average age of vehicles in operation.
Additionally, as shared mobility solutions face their own economic stressors, individuals may prefer personal vehicle use, increasing vehicle miles traveled and heightening demand for maintenance services.
We love what we do, and it shows in everything we do and more. We share our knowledge, here on Ran When Parked.
- Best Exhaust Tip for Deep Sound: Top Picks for 2025 - May 3, 2025
- Best Clear Coat for Headlights Reviewed: Top Picks for Enhanced Visibility - May 3, 2025
- Best Car Coffee Table Books for Auto Enthusiasts - May 3, 2025