US consumers are holding onto their current vehicles longer, study says

Before the economic crisis in late 2008, the average length of new vehicle ownership rose at an average of 3.7% each year. But now, US consumers are holding onto their current vehicles longer and this rate has increased more than 14%, "with no signs of slowing down," according to automotive consultant Polk.

This trend has started in 2008 when new-vehicle sales had dropped coinciding with the financial downturn. On average, consumers are holding onto a new vehicle for 64 months, 4.5 months longer compared to a year ago. Polk mentioned that with more older vehicles on the road, firms that serve the automotive aftermarket stand to benefit.
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theman440 - 11/10/2010 11:14:52 PM

+7 Boost

Duh...

Steve - 11/11/2010 12:40:15 AM

+3 Boost

Yup, less disposable income mean repair rather than replace. There is a certain beauty and freedom in owning my vehicles outright, even though they are non-current. FYI, annual maintenance and repairs, even in my worst years, are less than a year's lease or financing payments, even when "free maintenance" is factored in.

And with an aging North American population in which 1/3 are Baby Boomers between the ages of around 46 to 63, we can expect to see less spending on toys, and more saving/investment for retirement.

dotuno - 11/11/2010 10:45:41 AM

+1 Boost

Seems economic difficulty drives us to do what we ought to have always done. Let's see how many lessons on wise spending persist once things are better again...

quizz - 11/11/2010 11:51:33 AM

+1 Boost

LOL... and U.S. consumers discover savings accounts are better than credit cards.