America’s average vehicle age is growing, and while that might not be great news for dealers trying to shift new metal, it could present mechanics, repair shops and aftermarket parts suppliers with a great money-making opportunity.
The supply of new cars has been limited in recent years and that has forced many drivers to either buy used or hang on to their existing vehicle for longer. Data crunched by S&P Global Mobility showed that the 13.8 million cars, SUVs and light trucks sold in 2022 was the lowest in a decade and helped push the average vehicle age to 12.5 years.
But while the supply of new cars has now increased, demand hasn’t kept pace. S&P Global Mobility cites lingering inflation and high interest rates affecting financing costs as factors that might continue to prevent the recovery of new vehicle demand. It says demand for auto loans is currently lower than in was in the third quarter of 2020.
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