The average car on the road is now 14 years old. What about light trucks? The average one is 11.9 years old. So the combined average is 12.6 years. That’s up two months since 2023, and the highest number on record. The reason is less-than-glamourous. But the result is great for both the environment and small businesses.
So why in the world are we driving our old cars for so long? Likely because new ones cost so much. The average transaction price for buying a new car is now a hair above $45,000. That’s down from a $47,000 record high in 2022. But it’s still a far cry from the $33,695 average before the COVID pandemic and all the supply chain shortages it created.
There are two possible contributing factors to the fact that the average age of the cars we drive is going up: The first possibility is that drivers are keeping cars they buy for longer. The second is that more buyers are considering used vehicles, and rolling the dice on older used vehicles than ever before. The truth is probably a combination of both.
There is a positive reason we are keeping our old cars for so long: We can. There was a time when it was a big deal if a car’s engine made it to 100,000 miles. Now the average vehicle has an 11.8% chance of making it to 250,000 miles. Many full frame trucks and SUVs have a 40% chance of hitting those numbers.
Keeping the most efficient older cars longer is great for the environment. It takes six metric tons of carbon dioxide emissions to manufacture the average sedan. So scrapping an entire vehicle after just a few years on the road would be a real waste.
S&P Global Mobility has been keeping track of the average age of used vehicles since 2012. The overall average broke 12 years in 2021, and has just kept climbing steadily since. The organization says this is a great thing for small businesses, namely repair shops.
Todd Campau, aftermarket practice lead at S&P Global Mobility said, “With average age growth, more vehicles are entering the prime range for aftermarket service, typically from six to 14 years of age.” Instead of handing their hard-earned cash over to automakers and car loan financiers, drivers are skipping shiny new cars and paying local mechanics to keep their trusty old cars on the road.
So yes, the average age of the cars we drive is older than ever. But I’d say for both our environment and our economy, this is a step in the right direction.
Next, read which used cars are selling above MSRP, or learn more about how high the average age of cars on the road is in the video below: