IHS Markit tracks data for all kinds of businesses. The latest information the company has generated is not good for Detroit or the auto-making business as a whole. The average age of cars and trucks in the U.S. has hit record old age.
What? Record old age. We actually do track that kind of stuff.
The average age of a vehicle in this country is 11.8 years. That’s up 0.1 years from 2018. By 2020, IHS spokesman Mark Seng said he expects the average age to hit 12-years. People are keeping vehicles longer because they’re being built better.
“The quality is higher, lasting longer, withstanding the weather,” Seng said. Another factor? The original owners are doing a better job of maintaining them. Part of that is because they’re financing them for longer periods — six or even seven years in many cases.
The Western states have the oldest vehicles and average 12.4 years. The Northeast average is 10.9 years. Weather and less stop and go traffic are the reasons.
The PIA Western Alliance state of Montana has the oldest vehicles. They average 16.6 years. Vermont possesses the youngest at 9.9. Seng says all this is bad news for automakers but good news for auto repair shops. He suggests they ought to change their marketing strategies to cater to the owners of older autos.
Source link: The Independent Record