The Increase of Average Service Life of Cars in the US

TapTechNews May 27th news, according to a study by S&P Global Mobility, the average service life of cars on American roads has risen again to a record high, reaching 12.6 years, an increase of two months compared to 2023. There are several reasons behind this increase, including the continuous impact of the pandemic, the rising price of new cars, and consumers' wait-and-see attitude towards electric vehicles.

TapTechNews noticed that this is the seventh consecutive year that the average service life of American cars has increased. In addition to the increase in the average age, the proportion of cars aged 1-5 years is only 35%. Compared to last year, this number has decreased by about 2 million, and currently the total number of cars aged 1-5 years on American roads is about 88 million.

At the same time, the total number of cars on American roads is increasing, reaching 286 million, an increase of about 2 million compared to last year, indicating that more people choose to postpone scrapping their old cars. The research of S&P Global Mobility predicts that cars in the aftermarket sweet spot (6-14 years old) will continue to drive the growth of the average service life of cars.

Since 2020, a total of 27 million sedans and 26 million light trucks have been scrapped in the US. In contrast, the new car registrations in the US during the same period were 13 million sedans and 45 million light trucks, highlighting consumers' preference for practical vehicles.

On the other hand, the number of electric vehicles in possession is also continuously increasing. As of January this year, there are a total of 3.2 million electric vehicles on American roads. In 2023, the registration of electric vehicles in the US exceeded 1 million for the first time, but the popularization speed is still slower than the expectations of many manufacturers.