According to data from IHS Markit Ltd, the average age of vehicles on the roads in the US are around 12 years old which is the highest level in almost two decades.
Although negative for emissions and safety, it’s positive for companies selling secondhand parts.
According to insurance journal.com, from data gathered by IHS Markit, the average age of cars, sport utility vehicles and pickup trucks rose to 11.9 years as of January 2020 from 11.8 years for the prior year.
Todd Campau, Associate Director of Aftermarket Solutions for IHS Markit said:
“Data for the period since the coronavirus pandemic hit the global economy are not final, but the sharp slowdown in vehicle sales is likely to push the average age of vehicles on U.S. roads over 12 years.”
“We definitely expect to eclipse the 12-year barrier,” he said. “People working from home could put fewer miles on vehicles, allowing them to last longer.”
“The average age of cars and light trucks has been increasing steadily for nearly 20 years, reflecting rising prices for new vehicles and improved durability that allows older vehicles to travel more miles with more owners before they are scrapped.”
Proposals in the US to provide government-funded incentives to scrap older, more polluting vehicles, or encourage drivers to get new vehicles with more advanced safety technology have so far not gained much traction.
The upshot is that in the US, with over 280 million vehicles on the road, manufacturers of repair parts and vehicle repair companies should benefit from this ageing and expanding vehicle fleet in the US, IHS Markit forecast.
Source: www.insurancejournal.com
