The Average Age Of Cars On American Roads Is Older Than Ever

American cars, light trucks, and SUVs are now older than ever, hitting a record 12.5 years old on average according to an analysis from S&P Global Mobility. This number is up three months over this time last year and is a result of the lingering effects of new vehicle inventory shortages pushing Americans to buy used along with the Federal government pushing interest rates up to curb inflation. This is the sixth straight year of average vehicle age increases.

The good news is the company expects 2023 to be the last year we feel these lingering effects of the pandemic, as we end up returning to conventional trends in 2024. Whether or not the Inflation Reduction Act is actually succeeding to curb inflation is yet to be seen, but what we do know is it's spurring huge investments in the automotive sector that won't be realized for a few more years at least.

The effects of older vehicles on the road can be far-reaching, with two industries benefitting the most being the repair and aftermarket industries. As vehicles get older, there's obviously more money to be made in repairs, and new parts need to be created when automakers decide to stop supporting older models. S&P says that the US light-duty aftermarket alone has grown to $356.5 billion in 2022, an 8.5% increase over 2021. The company is now forecasting it to grow 5% in 2023.

On top of this, S&P is projecting the volumes of vehicles aged 6-14 will grow by 10 million by 2028, which shifts the understood dynamics of the aftermarket industry. "Traditionally, the 'sweet spot' for aftermarket repair was considered 6-11 years of age, but with the average age at 12.5 years, the sweet spot for aftermarket repair is growing," said Todd Campau, associate director of aftermarket solutions for S&P Global Mobility. "There are almost 122 million vehicles in operation over 12 years old."