Americans keeping cars longer amid rising new vehicle costs, hits nearly 13-year high

WASHINGTON (TND) Americans are holding onto their cars longer than ever, mostly because of high prices. S & P Global Mobility reports the average age of an American vehicle is a record high of 12.6 years old, which is three months more than last year.

WASHINGTON (TND) — Americans are holding onto their cars longer than ever, mostly because of high prices.

S & P Global Mobility reports the average age of an American vehicle is a record high of 12.6 years old, which is three months more than last year.

"With average age growth, more vehicles are entering the prime range for aftermarket service, typically from 6 to 14 years of age," said Todd Campau, aftermarket practice lead at S&P Global Mobility. "With more than 110 million vehicles in that sweet spot — reflecting nearly 38 percent of the fleet on the road — we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40% through 2028."

According to J.D. Power, the average U.S. new-vehicle selling price was just over $45,000 last month. Prices are down more than $2,000 from the peak in Dec. 2022.

“New car? I don’t have money to buy a new car," declared M.K. of Virginia. "Everything go up now, everything up."

He said he might buy a new one in five years or more.

Nate Astle, a financial therapist with Beyond Finance, saves money by holding onto his car for as long as he can.

I absolutely love my old car. I have a 2005 Corolla that is still kicking and I love that thing.

"As inflation and the cost of consumer goods continue to, even if it's not rising all the time, even if they just remain high. It eats away at people's budget and one of the things that people can choose for the most part is can I hold on to my car a little bit longer?" he noted.

Astle said people still need to be prepared even if they are holding on to an older car.

Save up for a down payment on a new car. But, don't let the savings of holding on to a new car get eaten away by other things. If you can try and build up something so that when, not if your car breaks down, you're not going to be stranded, literally and metaphorically.

Leaders with S & P Global Mobility noted cars are made better and last longer. They added people are also holding off on buying a new car because they want to see if they want an electric vehicle or a hybrid. However, there are concerns about having enough chargers.

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