As reported by S&P Global Mobility, the average age of used cars and light trucks in the United States has reached a new milestone of 12.5 years. With over 284 million vehicles currently in operation on U.S. roads, this record-breaking average age marks an increase of three months compared to the previous year of 2022. The steady ascent in average age, which has persisted for six consecutive years, aligns with projected expectations and anticipations.
According to Todd Campau, Associate Director of Aftermarket Solutions for S&P Global Mobility, it was anticipated that a confluence of factors arising from the conclusion of 2021 would further contribute to the rise in average vehicle age. The underlying causes for the aging fleet are widely recognized at present. The initial effect of the Covid pandemic resulted in a decline in new vehicle sales, which was subsequently exacerbated by shortages of microprocessor chips in the automotive industry. Campau further explained that the situation became more challenging during the second half of 2022 as rising interest rates and inflation began to have a noticeable impact.
s a result of these factors, both retail and fleet sales of new light vehicles in the United States experienced a decline of 8%, with the number of units sold dropping from 14.6 million in 2021 to 13.9 million in 2022. S&P Global Mobility reports that this figure represents the lowest level observed in more than ten years. According to Campau, the current number of used cars on the road that have exceeded the age of 12 years is approximately 122 million.
However, indications point towards a potential slight reversal following this year, as projections indicate the sale of 14.5 million vehicles. Campau stated, “Although the average age will continue to face pressure in 2023, we anticipate the trend to start plateauing this year as we anticipate a return to historical norms for new vehicle sales by 2024.”
Equally expected is the data highlighting a significant reduction in the quantity of passenger cars, encompassing sedans, coupes, wagons, and hatchbacks, as light trucks and sport utility vehicles dominate the majority of new vehicle sales. In the previous year, light trucks and utility vehicles accounted for 78% of all newly sold vehicles, and at present, trucks and utility vehicles constitute 63% of the entire vehicle population on American roads. By the year 2028, it is projected that light trucks and utility vehicles will represent approximately 80% of the overall vehicle fleet traversing U.S. roadways.
