A new study examining the consumer habits of car owners has found that Americans are holding onto their vehicles longer than some might expect.
The study from S&P Global Mobility examined registration data nationwide and found that the average age of a passenger car on the road is 14 years. While for light trucks, it’s 11.9 years, and the average for all vehicles is 12.6 years.
Researchers found that Americans are more likely to own an older car because of high prices for new vehicles and reluctance around electric vehicles are at play.
“A combination of these factors has resulted in consumers keeping their vehicles on the road longer, driving average age upward,” study authors Nishant Parekh and Todd Campau wrote.
According to S&P, the average price of a new vehicle is just over $47,000. This figure is almost double what it was in 2010 when a new car cost $24,296, the Office of Energy Efficiency reported.
With prices remaining high, car dealers continue to feel the hurt, as Cars.com says that the nationwide supply of used vehicles in January was down 4% compared to two years prior. That figure represents 800,000 fewer vehicles that were available.
On top of less inventory are high prices, with the current average cost of a used vehicle sitting at $28,859, which is 36% higher than before the pandemic.
But not everyone is feeling the pain from this trend of owning vehicles longer.
“This continues to improve business opportunities for companies in the aftermarket and vehicle service sector in the US, as repair opportunities are expected to grow alongside vehicle age,” according to the S&P study.
Another report found that consumers are holding onto specific brands more than others.
Honda, Toyota, and Subaru all account for the entire top 10 models people hold onto for 15 or more years, according to iSeeCars.
“Japanese vehicles, especially Toyota and Honda, are known for their reliability and durability and attract practical consumers who want vehicles that can be kept on the road as long as possible,” iSeeCars Executive Analyst Karl Brauer said in the study. “Drivers are more likely to hold onto cars that they know they can rely on and don’t require a great deal of expensive maintenance.”