FOX Business’ Jeff Flock reports that auto repair costs have risen 33% in the past four years.
As new vehicle prices remain high, the average age of cars and light trucks currently on the road in the U.S. will reach a new record of 12.6 years in 2024, according to vehicle registration data tracked by S&P Global Mobility.
According to the company, this is the second month of price increases since the end of 2023. The average selling price of a new car in the U.S. last month was about $45,000, The Associated Press reports, citing data from J.D. Power.
“Right now, that amount is prohibitive for many households,” Todd Campau, aftermarket practice lead at S&P Global Mobility, told The Associated Press. “So I think consumers are being forced into a corner where they have to keep their vehicles on the road longer.”
S&P Global reports that the number of vehicles in the U.S. surged to 286 million vehicles in operation (VIO) in January, an increase of 2 million vehicles compared to 2023, but the distribution of vehicles by model year has changed. It’s happening,” he said.
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According to S&P Global Mobility, the average age of cars and light trucks on the road in the United States has increased to 12.6 years. (Bill O’Leary/Washington Post via Getty Images/Getty Images)
“In 2019, there were 98 million vehicles under 6 years old, or about 35% of VIO.Currently, there are fewer than 90 million vehicles under 6 years old, accounting for about 30% of VIO. That threshold is not expected to be reached again until 2028, based on S&P Global Mobility estimates.
“This is due to disruptions in vehicle supply and registration due to the impact of coronavirus and subsequent supply chain shortages, as well as the historically high volumes experienced between 2015 and 2019.” the company added.
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Commuters sit in traffic on southbound Interstate 5 during the afternoon commute in San Diego, March 12, 2024. (Kevin Carter/Getty Images/Getty Images)
S&P Global says companies in the U.S. aftermarket and auto service sectors should see increased business opportunities as vehicles age and repairs become more frequent.
According to the report, the use of electric vehicles in the United States is also on the rise, with 3.2 million vehicles on the road as of January.
A driver plugs in his Tesla electric vehicle for charging at a Tesla Supercharger location in Santa Monica, California, May 15, 2024. The number of electric vehicles on U.S. roads is increasing, S&P Global Mobility says. (Photo: Patrick T. Fallon/AFP via Getty Images/Getty Images)
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According to S&P Global, “EV registrations will surpass 1 million for the first time in 2023, up about 52% from 2022. “The growth rate of EVs has been slower than some automakers had anticipated, which could lead to an increase in the average age of EVs in the near term as consumer adoption slows.”
