Average Age of Vehicles on the Road is Approaching 12 Years
How long will you want to replace a car?
Or decide based on the mileage?
Vehicles on the road have only been getting older, a study from IHS Markit found, in part due to slow new-vehicle sales during the pandemic.
- A study from IHS Markit found that the average age of vehicles on the road rose to 11.9 years this year, one month older than in 2019.
- Fewer new-vehicle purchases as a result of the pandemic coupled with vehicles lasting longer and increases in prices have pushed the average age of vehicles on the road higher.
- New vehicles made up 6.1 percent of vehicles on the road last year; IHS Markit predicts they will be closer to 5 percent this year.
In the last decade, the average age of vehicles on the road has steadily risen after jumping in response to the recession in 2008. With new-vehicle sales dipping this year as a result of the coronavirus pandemic, the average age of vehicles on the road has risen again, to 11.9 years, roughly one month older than last year, according to research from IHS Markit.PANDEMIC PRESSURENew-Car Sales Fall for Second Consecutive QuarterPeople Will Be Swapping Air Travel for Road Trips
A number of factors beyond the pandemic have pushed the average vehicle age upwards this year and in years past, including higher average vehicle prices of a new vehicle and the fact that many new vehicles last longer. The average price of a new vehicle in January of this year was $37,851, a 3.5 percent increase from January of 2019, according to Kelley Blue Book.
IHS Markit predicts that the average vehicle age will only continue to rise, increasing four to six months in the coming years. Nonetheless, it may be hard to predict how the pandemic has changed total miles driven and the total wear on vehicles.