The Rising Age of Vehicles on the Road: What Does It Mean for the Future?

🚗The average age of vehicles on the road in America is increasing, reaching a record 12.1 years.

💰Cars are becoming more durable and expensive, leading drivers to hold on to their vehicles longer.

🔧The availability of parts and repair services, especially online, makes it easier for car owners to maintain their vehicles for longer.

🔄The rise of used vehicle sales may impact new car sales and reduce the frequency at which people purchase new vehicles.

🔌The rapid development of electric vehicles poses challenges in estimating their value and potential obsolescence.

Why are cars on the road getting older?

—Cars are becoming more durable and expensive, leading drivers to hold on to their vehicles longer. The availability of parts and repair services also makes it easier to maintain older cars.

Will the rise of used vehicle sales impact new car sales?

—There is some concern that the increase in used vehicle sales may reduce the number of people buying new cars. However, new car sales have remained strong, and automakers are introducing new technology and features to entice buyers.

What challenges does the rise of electric vehicles pose?

—The rapid development of electric vehicles raises questions about their value and potential obsolescence. It's difficult to estimate their residual values, which can affect financing and buyer confidence.

What are vehicle subscriptions?

—Vehicle subscriptions are similar to leases but often more inclusive of the total cost of ownership, including registration, insurance, and maintenance. They allow customers to swap out vehicles as their needs change.

Why are people holding on to their cars for longer?

—One reason is the increasing durability and reliability of cars. Additionally, new vehicle prices have been rising, leading people to opt for used vehicles instead.

00:00The average age of vehicles on the road in America has reached a record 12.1 years.

02:30Cars are becoming more durable and expensive, leading drivers to hold on to them longer.

05:56The availability of parts and repair services, especially online, makes it easier for car owners to maintain their vehicles for longer.

14:30The rise of used vehicle sales may impact new car sales and reduce the frequency at which people purchase new vehicles.

21:45The rapid development of electric vehicles poses challenges in estimating their value and potential obsolescence.

31:15New vehicle subscriptions offer customers the opportunity to try new vehicles and navigate rapidly changing technology.

38:45The rise of electric vehicles and changes in consumer preferences may impact the future of car ownership and sales.

45:10Despite the rising age of vehicles on the road, new car sales remain strong due to the introduction of new technology and features.