In 2021, the average age of vehicles on American roads reached 12.1 years, mainly due to cars becoming more durable and expensive. People are holding onto their vehicles longer, and more are opting for used vehicles as new car prices rise. While some worry this may impact new car sales, they reached a record high in 2016. Toyota vehicles, like the Land Cruiser, are known for lasting exceptionally long. However, the rise of electric vehicles and rapidly evolving technology could change the landscape. Vehicle subscriptions that bundle costs and allow for vehicle swaps may become more popular. Factors like higher fuel prices and shifting preferences towards light trucks are influencing car-buying decisions, with some consumers opting for older, beloved cars.
1. In 2021, the average age of vehicles on the road in America reached a record 12.1 years .
2. Cars are getting faster, safer, more technologically advanced, and more expensive .
3. The average age of a vehicle in the U.S is rising, which has been the case ever since recording began .
4. Two major reasons for this trend are that cars are becoming more durable and expensive, causing drivers to hold onto their cars for longer .
5. Cars are spending more time in the used vehicle market before heading to the junkyard .
6. Despite fears that the rising cost of new vehicles will reduce the churn rate or the number of folks buying new vehicles, plenty of Americans seem to be buying new cars .
7. New vehicle sales reached a record high of 17.5 million in 2016 .
8. The number of vehicles per household has gradually increased over time, even as vehicle age has risen .
9. Every driver that chooses to hold onto a car for another year is postponing a trip to the dealership .
10. Automakers are stuffing cars with new technology and improvements, but it's unclear if this will be enough to keep buyers wanting the latest and greatest .
11. In the 1970s, a car would be expected to last at most 100,000 miles, but now it is typical for cars to last well over a hundred thousand miles, and many will make it to 200,000 or more .
12. 25 of the cars on the road in the US are at least 16 years old .
13. There is some concern that the rising vehicle ages and prices indicate trouble for new car sales in the future .
14. The average price of a new vehicle in America reached a record high of 38 thousand dollars in December 2020 .
15. The availability of parts over the Internet has made it easier to hold onto vehicles longer .
16. As cars age, they need more repairs, which is expected to make car dealers more important .
17. Despite the rising age, there hasn't been a decrease in demand for new vehicles .
18. Many consumers are starting to think of their cars as investments, which might make it more appealing for consumers to put money into the cars they already own .
19. Automakers are constantly updating their products, which makes the vehicle market a rapidly changing industry .
20. New vehicle sales hit a historic high of 17.5 million units in 2016. Since then, they have been falling .
21. The rise of electric vehicle technology is changing so quickly that an EV made one year might be pretty obsolete in a very short time .
22. The rapid change in the pace of technological development poses questions about vehicle value for dealers, banks, and customers .
23. The idea of vehicle subscriptions, where customers can swap out one vehicle for another as their needs change, is being explored .
24. The European Union plans to start phasing out the sale of new internal combustion vehicles by 2035 .
25. The covid-19 pandemic has changed what kinds of cars people are buying,