Cars on The Road Are Getting Much Older
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Usually, as a car gets older, it might be tempting to sell it or trade it in for an updated model. But, advancements in car technology make newer vehicles more durable and reliable. New cars are often equipped with better safety technology like advanced driver-assistance systems.
USA Today reported that for this reason, and other factors, the average age for vehicles on the road is at an all-time high. Why are car owners keeping their vehicles for longer periods of time?
How old are cars on the road?
The average vehicle on the road is 12.1 years old, which is slightly higher than the average last year. This is the first time the average vehicle age has passed 12 years old, as mentioned by USA Today. The rising prices of new cars and factors related to the pandemic, such as increased remote work, may influence consumers to keep their vehicles longer.
As pandemic restrictions lift, automakers have had trouble meeting the demand for new cars. Manufacturers are also experiencing chip shortages which is driving car prices up—both for new vehicles and used vehicles.
PR NewsWire reported that according to Kelley Blue Book, the average cost of a light vehicle in May 2021 was $41,263. This is an increase of over 5% from May 2020. The average cost of luxury vehicles also increased by $1,597 since May last year.
The average price for a used vehicle in May was $20,426, which is 46.7% more than the average price last year. In general, drivers are also more likely to hold onto valuable and reliable vehicles longer.
What’s helping drivers keep their cars longer?
It’d be difficult for drivers to keep a car that isn’t durable. Websites like Consumer Reports can show you any vehicle's predicted reliability, or how long it will last through the years.
A vehicle with a high reliability rating will generally need less maintenance or repairs than those with low ratings. This helps consumers find vehicles that can last for a long time. Automakers are constantly improving safety technology and making improvements to their vehicles to make them more reliable.
The resale value of newer vehicles also stays higher for longer. This means you can keep it longer without worrying about it losing value.
Will this trend continue in the future?
Car technology will likely become even more advanced in the future. We may see cars get more expensive due to the costs associated with manufacturing and implementing new technology. On the plus side, a car with more safety features is less likely to be involved in accidents, and to last a longer time.
When your car eventually does need repairs, good insurance coverage can make it more affordable. No matter how old your car, Jerry can help you find the best insurance rates for it. The free app will compare rates from 45 top insurance companies so you don’t have to overpay for coverage.