A recent report from S&P Global Mobility reveals that vehicles on U.S. roads are getting older. The average age of cars and trucks has reached 12.6 years in 2024, up slightly from 2023. This trend has been ongoing for the past six years, partly due to the pandemic causing a shortage in new vehicle supplies. However, there’s a glimmer of hope as new vehicle registrations are on the rise.
The rise in popularity of light trucks and utility vehicles is contributing to a decline in the number of passenger cars on U.S. roads. This shift reflects both consumer preferences and automakers’ focus on higher-profit vehicles. Interestingly, this could be the first time since 1978 that the number of passenger cars falls below 100 million.
If you’re still driving an older car, don’t worry too much. With interest rates expected to drop soon, it might be a good time to consider upgrading to a new vehicle. Dealers and automakers are offering discounts and incentives to clear out their inventory and make room for new models.
The aftermarket industry is also poised for growth, according to S&P. As more vehicles reach the prime age for aftermarket service, which is typically between 6 and 14 years old, there will be increased demand for parts and repair services.
In recent years, there has been a significant shift towards light trucks. Since 2020, over 27 million passenger cars have been scrapped or destroyed, while 13 million new ones have been added. In contrast, 26 million light trucks have been scrapped, with 45 million new ones taking their place. The total U.S. vehicle fleet now stands at 286 million, with light trucks dominating the market.
Although electric vehicles (EVs) have seen some growth, particularly in 2023 when registrations surpassed one million vehicles for the first time, they still represent a small fraction of the overall market. However, with ongoing developments in EV technology and infrastructure, their numbers are expected to continue increasing in the coming years.
