Newsroom
July 29, 2015
Average vehicle age grows to highest level, 11.5 years, but may level
New data released by IHS Automotive shows Americans are holding onto their vehicles longer, with the average age of a vehicle on the road at 11.5 years – up from 10 years in 2007 and the highest level recorded by IHS.
The increase was about one month more than last year and continues a trend that began during the recession when consumers put new-vehicle purchases on hold.
In addition to economic reasons, IHS said consumers are keeping vehicles longer due to the increasing quality of cars and trucks.
IHS said that, on average, buyers are holding onto their new vehicles for 6.5 years compared to an average of 4.3 years in 2006. Used vehicle buyers are holding onto their cars and trucks an average 5.3 years, more than two years longer than in 2006.
However, IHS predicted that this trend may be plateauing, with new car sales nearing record numbers and new technology making new vehicles more attractive to consumers.
"We're now seeing average age begin to plateau and return to its traditional rate of increase as consumers have recovered from the great recession and have begun buying new vehicles again," said Mark Seng, global aftermarket practice leader at IHS.
NAFCU Chief Economist and Director of Research Curt Long said credit union auto loan growth has been robust in recent years due in part to this pent-up consumer demand.
"We may see auto sales diminish in coming years," he observed, "but credit unions have been slowly gaining market share – now 24.3 percent of the market. Even with growth tapering, credit unions will do better than other lenders if they continue to capture additional market share."
The increase was about one month more than last year and continues a trend that began during the recession when consumers put new-vehicle purchases on hold.
In addition to economic reasons, IHS said consumers are keeping vehicles longer due to the increasing quality of cars and trucks.
IHS said that, on average, buyers are holding onto their new vehicles for 6.5 years compared to an average of 4.3 years in 2006. Used vehicle buyers are holding onto their cars and trucks an average 5.3 years, more than two years longer than in 2006.
However, IHS predicted that this trend may be plateauing, with new car sales nearing record numbers and new technology making new vehicles more attractive to consumers.
"We're now seeing average age begin to plateau and return to its traditional rate of increase as consumers have recovered from the great recession and have begun buying new vehicles again," said Mark Seng, global aftermarket practice leader at IHS.
NAFCU Chief Economist and Director of Research Curt Long said credit union auto loan growth has been robust in recent years due in part to this pent-up consumer demand.
"We may see auto sales diminish in coming years," he observed, "but credit unions have been slowly gaining market share – now 24.3 percent of the market. Even with growth tapering, credit unions will do better than other lenders if they continue to capture additional market share."
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