The average age of cars, trucks, and SUVs in the United States has reached a record high of 12.6 years in 2024, according to a report by S&P Global Mobility. This is due to the high prices of new vehicles, with the average U.S. new-vehicle selling price being just over $45,000. Many households cannot afford to buy new vehicles, even though prices have decreased by more than $2,000 from the peak in December 2022 [6ecd10bd].
People are also waiting to see if they want to buy electric vehicles or gas-electric hybrids, and are concerned about the charging network for electric vehicles. Additionally, vehicles are made better these days and are lasting longer. New vehicle sales are starting to recover from pandemic-related shortages, and it is expected that sales will reach around 16 million this year. As more new vehicles are sold and replace aging vehicles, the average age of vehicles should stabilize [6ecd10bd].
Keeping vehicles longer is good news for local auto repair shops. About 70% of vehicles on the road are 6 or more years old. People who keep their vehicles for multiple years usually follow manufacturer maintenance schedules [6ecd10bd].
The growth in average vehicle age is starting to slow as new vehicle sales recover from pandemic-related shortages. The average vehicle age increased by two months from the previous year's record. The average US new-vehicle selling price is over $45,000, making it unaffordable for many households. Other factors contributing to the increase in average vehicle age include people waiting to buy electric vehicles or hybrids and the improved durability of vehicles [6ecd10bd].
New vehicle sales are expected to reach around 16 million in 2024. As more new vehicles are sold and replace older vehicles, the average age should stabilize [6ecd10bd].
The average age of battery-powered vehicles is also expected to increase in the short term, after remaining steady at around 3.5 years since 2019. High interest rates have dampened consumer sentiment for electric vehicles (EVs) and contributed to a slowdown in demand. However, S&P still anticipates significant growth in the share of electric vehicles in operation over the next decade [6ecd10bd].
Electric-vehicle prices are falling fast in the U.S., but the cheapest models remain far more costly than what other countries have on offer. However, the U.S. is expected to get its first $25,000 electric vehicle (EV) soon. General Motors is revamping the Chevy Bolt to make it the most affordable vehicle on the market by 2025. Stellantis plans to launch a $25,000 electric Jeep Renegade in the near future. Ford is developing a more affordable line of EVs, with the first model expected to arrive in late 2026 with a starting price of around $25,000. Tesla has been the biggest source of pressure to develop a $25,000 car in the U.S., but there is uncertainty about whether they will prioritize it or focus on building cars for a self-driving taxi. Overall, automakers are pivoting from luxury to practicality and aiming to offer affordable EVs with good range and features [9d60d9a5].