The Average Age Of U.S. Vehicles Keeps Going Up

I utilized to deliberation that owning a 10-year-old vehicle was a awesome financial accomplishment. It signaled frugality, discipline, and appreciation for what you have.

However, nan latest mean property of U.S. vehicles from an S&P 500 Global Mobility study shows Americans are keeping their vehicles overmuch longer than 10 years aliases buying older vehicles connected average.

As of 2023, nan mean property of U.S. cars is 13.6 years and nan mean property of U.S. ray trucks is 11.8 years. The wide full mean of U.S. vehicles is an awesome 12.4 years!

The Desire To Drive A Vehicle Longer Than The Average

Here astatine Financial Samurai, if we want to build much wealthiness than nan mean person, we request to beryllium much fiscally responsible than nan mean person.

Instead of redeeming only ~5% of our income for illustration nan mean American, we prevention astatine slightest 20% of our income. Instead of only relying connected 1 job, we gain further money done side hustles, and truthful forth.

Given this desire to outperform, we should purpose to thrust our vehicles longer than nan mean 12.4 years successful America. Spending excessively overmuch money connected a car is 1 of nan apical money wasters successful this country. By extension, buying caller cars excessively often is another.

We cognize nan average caller car value is almost $50,000, an absurd magnitude fixed nan median family income is only astir $75,000. We besides cognize that nan median status savings equilibrium successful America is only astir $110,000. The money we walk connected cars could beryllium invested for our status instead.

Given nan mean property of U.S. vehicles has climbed to 12.4 years, to outperform, we should bump up driving our vehicles until they are astatine slightest 13 years. So agelong arsenic nan conveyance is decently maintained and safe, driving a conveyance for 15 years seems reasonable.

Why The Average Age Of A Vehicle In America Getting Older

There are respective factors contributing to nan expanding mean property of vehicles successful America:

1) Improved conveyance quality

Vehicles coming are mostly built pinch amended value materials and components compared to erstwhile decades. Advancements successful manufacturing and engineering person led to much durable and long-lasting vehicles. As a result, cars tin stay reliable and functional for longer periods, starring to an summation successful their mean age.

The Volvo 850 GLT, BMW M3, and MB G500 I owned successful nan 2000s each had galore electrical and mechanical issues. Their problems are why I became friends pinch a mechanic.

2) Economic factors

The costs of caller vehicles has been rising steadily, making it much costly for galore group to acquisition brand-new cars. As a result, group are holding onto their vehicles for longer, opting for attraction and repairs alternatively of buying caller ones.

The costs of some utilized and caller vehicles changeable up during nan pandemic. In immoderate cases, you could person bought a caller conveyance and sold it 3 years later for nan aforesaid price.

3) Financing and leasing options

The readiness of financing and leasing options has allowed group to dispersed retired nan costs of caller vehicles complete longer terms. This has led to individuals keeping their vehicles longer, arsenic they proceed making payments beyond nan emblematic ownership period.

This type of financial engineering tin beryllium vulnerable for consumers because it enables consumers to bargain much car than they tin comfortably afford. The aforesaid point happened pinch nan lodging market, which resulted successful a clang betwixt 2007-2009.

4) Improved exertion and features

Modern vehicles are equipped pinch precocious exertion and features, specified arsenic improved information systems, infotainment options, and substance efficiency. As a result, incremental caller car features don't make arsenic large of an effect anymore.

I still retrieve being thrilled to spell from inserting a CD successful nan dashboard to utilizing Bluetooth to play music. Nowadays, almost each car has Bluetooth arsenic standard. The aforesaid point goes for backup cameras.

5) Reliability and maintenance

With regular attraction and due care, vehicles tin easy deed 200,000 miles if truthful desired. If nan mean personification drives 12,000 miles a year, that's 16.7 years of car ownership. Repairing a car is usually nan much economical measurement to go.

The mean property of a conveyance whitethorn besides beryllium expanding because nan wide marketplace is waiting for electrical vehicles to amended successful reliability. Personally, I've been considering getting an EV since 2020. However, each twelvemonth I hold intends amended artillery technology, much charging stations, and much reliable vehicles.

The Debate On Driving A Safe Car

One of nan financial moves I made that reduced my stress aft my boy was calved was buying a larger vehicle. As a caller father, my desire to protect and supply for my family went into overdrive. Owning a compact car pinch paper-thin doors was nary longer going to trim it.

My Range Rover Sport was calved successful July 2015. It is now astir 8 years aged pinch nary mechanical problems aliases failing parts. I've maintained nan car connected schedule. I besides astir apt alteration my tires, brakes, and lipid somewhat quicker than nan mean person.

So agelong arsenic my conveyance works, I do not spot a problem driving it for 7 much years until it is 15 years old. By 2030, my conveyance will person astir 80,000 miles connected it fixed I thrust astir 6,000 miles a year. 80,000 miles is still thing compared to nan 130,000 miles I had connected nan $2,000 hatchback I drove successful 1997.

I conscionable wonderment what type of amended information features I will forego by not changing cars sooner. 13 years is simply a agelong clip for car engineers to tinker. Hence, astatine nan ten-year people successful 2025, I will person to really see whether buying a caller utilized conveyance is simply a bully idea.

The Car Buying Plan For Now

As of now, I scheme to bargain a 2023 Range Rover successful 2026. The latest Range Rover was wholly redesigned and introduced for waste successful 2022. Therefore, buying nan 2023 type will thief maine skip immoderate of nan first-year bugs each recently designed vehicles spell through.

Buying a three-year-old car from a backstage statement is nan saccharine spot for getting nan champion bang for your buck. You skip nan largest portion of nan depreciation curve, yet nan car is apt still nether warranty pinch a new-car smell. If you past clasp nan car for 10 years, you get a full car property of 13 earlier considering buying another.

However, I mightiness alteration my mind successful 2026 depending connected nan information of my existing car, different caller cars, and proscription alternatives specified arsenic self-driving cars. Waymo and Cruise will grow their self-driving offerings by nan extremity of 2023. If so, I whitethorn extremity up driving moreover less miles connected my existing car, thereby extending its useful life.

Finally, nan lengthening of nan mean property of U.S. vehicles bodes good for nan mean American's individual finances. This is simply a bullish information constituent for nan U.S. system acknowledgment to much disposable income and little car debt. Maybe I should beryllium much optimistic astir wherever we are successful nan economical rhythm aft all!

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Reader Questions and Suggestions

Did you cognize nan mean property of U.S. vehicles is now complete 12 years? How aged is your conveyance and really agelong do you scheme to thrust your conveyance for?

For much nuanced individual finance content, subordinate 60,000+ others and motion up for the free Financial Samurai newsletter and posts via e-mail. Financial Samurai is 1 of nan largest independently-owned individual finance sites that started successful 2009.