Rising Car Prices Push Americans to Hold Onto Older Vehicles

According to a recent study by S&P Global Mobility, it has been revealed that American drivers are holding on to their vehicles for a longer period of time. The average age of cars and light trucks in the U.S. has increased to 12.6 years, with the data showing a steady rise in vehicle age. This trend has been attributed to the high prices of newer models, which are deterring consumers from visiting dealerships.

The study also predicts a growing number of vehicles entering the prime range for aftermarket service, typically from 6 to 14 years of age. This signifies that a significant portion of the vehicle fleet on the road is in need of maintenance and repair, with this demand expected to increase in the coming years.

In specific terms, the average age of cars in the U.S. has now reached 14 years, while light trucks average 11.9 years. Interestingly, the average age of electric vehicles has remained steady at 3.5 years since 2019, indicating a lack of consumer interest in this type of vehicle.

The average purchase price of new vehicles hit an eye-watering figure of $48,759 in December, making it increasingly unaffordable for many consumers. This steep price hike is also evident in the used vehicle market, with the average price reaching $25,446.

The prevailing inflation in the economy has significantly impacted the automobile industry, making it more difficult for consumers to afford new vehicles. As the issue of inflation gains prominence, it is expected to influence voters in the upcoming elections. Notably, former President Donald Trump is viewed as more trustworthy than President Joe Biden in addressing rising prices, particularly among younger voters.

With the growing burden of inflation and soaring vehicle prices, it is clear that American drivers are facing economic challenges that are shaping their choices in the automotive market.

Written by Staff Reports

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