The typical age of U.S. gentle autos in operation has risen for a fifth straight yr, S&P World Mobility stated in a report launched Monday.
The typical age rose to 12.2 years in 2022 — an almost 2 p.c improve from the common life in 2021 of simply over 12 years, in response to the analysis.
S&P World stated in an announcement that the rise was pushed by the worldwide microchip scarcity and provide chain points inflicting a “constrained provide of latest vehicles and lightweight vans, amid a robust demand for private transportation.”
Todd Campau, automotive aftermarket apply lead for S&P World, instructed Automotive Information that provide shortages are inflicting house owners to both preserve their autos longer or buy used ones.
“Folks do worth their autos; individuals do nonetheless really feel the necessity to have a automobile out there to them, perhaps much more popping out of the pandemic, in order that’s induced the automobile fleet simply to develop a bit bit,” Campau stated. “And since the new-vehicle gross sales have not been out there, it has been rising from inside actually from autos which were on the street, they usually’re simply staying out there longer.”
The analysis reveals the common age of autos has been growing since 2011, highlighting a development in recognition of older and higher-mileage autos. Information from a Cox Automotive evaluation reveals that the sale of high-mileage autos grew 7 p.c within the first quarter of 2022. Beforehand, autos with over 150,000 miles have been typically deemed unqualified for retail sale and have been as a substitute despatched to public sale to be bought by unbiased sellers.
The U.S. automobile fleet — which incorporates all gentle vehicles and vans — elevated by 3.5 million autos to a complete of 283 million in 2022, in response to S&P World.
The assertion stated a continued decline in automobile scrappage and a flux in demand for used autos have contributed to the rise in automobile age. Car miles additionally returned to pre-pandemic ranges, in response to the research, “growing by greater than 10 p.c in 2021 as lockdowns eased and folks returned to work and leisure journey,” with every gentle automobile averaging 12,300 miles in 2021.
Electrical autos, nevertheless, have seen a lower of their common life from final yr. S&P World stated the entire variety of battery-electric autos in operation has elevated practically 40 p.c to 1.44 million in 2022, with the common age lowering to three.8 years from 3.9 years in 2021.
“It is a operate of the truth that proper now, the share of latest EVs being bought annually is such a big share of the general [EV] inhabitants,” Campau stated.
S&P World predicted within the research that the problems surrounding provide and microchip shortages will proceed to extend the common age of sunshine autos by means of at the least 2023.
“I believe there’s positively going to be upward stress on common age by means of in all probability 2024, perhaps even ’25,” Campau stated. “Then I believe it can degree off as soon as the new-vehicle provide begins to meet up with demand. There’s even a possible, I believe, that we may see common age perhaps even come down barely … when that pent-up demand for brand spanking new autos is launched.”