Average Age of U.S. Vehicles Hits Record High

Average Age of U.S. Vehicles Hits Record High 1

American drivers began to operate existing cars longer than before because of the scarcity of new cars at dealers. It is reported by Reuters, referring to a recent report of S & P Global. According to analysts, this year the average age of a passenger car in the U.S. was 12.2 years – almost two months more than in 2021.

There are several reasons for the “aging” of the fleet: from the pandemic to problems with the supply of parts due to the situation in Ukraine.

In 2020 and 2021, U.S. residents switched en masse from public transport to private cars for fear of contracting the coronavirus. Not everyone could afford a new car, which led to a surge in demand on the secondary market and contributed to an increase in the average age of cars in the country.

At the beginning of this year, the situation worsened because of the large outbreak of COVID-19 in China and the situation in Ukraine. Logistics slowed down, component shipping prices skyrocketed, and some supply chains were broken altogether. This led to issues at local factories and long queues for new machines.

Analysts predict that the age of cars will continue to rise until the parts issues are solved. For now, they continue to slow production and will likely continue to affect it in 2023.

Curiously, electric cars, on the other hand, have gotten slightly “younger,” with the average age of battery cars in the U.S. this year being 3.8 years, up from 3.9 years in 2021. Since 2016, it has fluctuated between three and 4.1 years.

With a shortage of new cars, a number of companies are allowing their dealers to trade in used cars from other brands. Among them are Nissan, which thus plans to retain its audience in a difficult period, as well as Ford and General Motors.