The quality of cars is growing every year. Now the average age of a car in the United States has reached a new record of 12.2 years.
Many countries now have government restrictions on the use of used vehicles. However, over the past few years, the quality of cars has also increased. It seems that more and more people keep their old cars for a long time. According to a new report by S&P Mobility, the average age of cars on US roads is now just over 12 years old. Although there has been continuous growth over the past five years, this is a new record. Let’s take a quick look!
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Many factors have contributed to the growth of the average age of cars. This includes a pandemic and a decline in production due to a shortage of semiconductors. Because customers had to wait longer to upgrade their vehicles, most chose to continue their vehicles or purchase used vehicles. This is 40.5% more expensive than last year. Growth in the average age of cars in the United States (VIO) is expected to continue until 2022 and 2023.
In addition, the economic situation in the United States has led to an increase in the use of used cars. This is due to rising gas prices, inflation and so on. The Federal Reserve has also raised interest rates on the economy. In 2021, the total number of derelict cars was 11 million (15 million less in 2020). The level of storage also decreased by 4.2% (compared to 5.6% last year). This is the lowest figure in the last two decades.
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On the other hand, the average age of electric vehicles has decreased. 3.8 years, which is slightly lower than last year. S&P estimates that the number of electric vehicles on the road will increase by about 40% in 2021. Cars (including SUVs) increased by 50% and 141% of new registrations. In general, the habit of driving in the country has returned to pre-pandemic levels. Although the cost of repairs may increase, there are fewer new cars on the roads.