The Average Vehicle Age in America

Money expert Clark Howard says cars are lasting longer than they ever have and as a result they don’t tell their age like they used to.

“Cars just keep getting better, and better, and better,” he says. “Today, because of tremendous improvements in technology and intense competition, the quality of cars is so, so, so much better.”

Recent research from S&P Global Mobility, an automotive data services company, confirms that vehicles on U.S. roads today are older than they’ve ever been.

How Old Is the Average Car on U.S. Roads?

The average age of “light vehicles” (cars and light trucks) on American roads rose to 12.2 years in 2022, according to the report. That mark represents nearly a two-month increase in age from the previous year.

The research highlights several COVID-19-related developments:

• The global microchip shortage: The chip shortage, which has led to inventory issues with new vehicles, has been one of the main culprits pushing the U.S. average vehicle age higher.
• The move back to vehicles: The global health crisis caused many commuters who were using public transportation to return to their vehicles. The report explains: “Since vehicle owners couldn’t upgrade their existing vehicles due to bottlenecks in the supply of new vehicles, the demand for used cars accelerated — boosting vehicle average age further.”
• Scrappage decline: A decrease in vehicle “scrappage,” the measure of cars exiting the active population, has also played a role in increasing car ages.

The report also says that the number of vehicles in operation in the United States has reached a record high of 283 million passenger cars and light trucks. Last year, that figure was 281 million.

Will People Continue To Keep Vehicles Longer?

In a word, “Yes.” Here’s what the report’s news release predicts:

“The average age of light vehicles in operation (VIO) in the U.S. will continue to have upward pressure through 2022 and 2023, as the pipeline for new vehicle production and sales continues to be weighed down by parts shortages.”

The report adds that the Russia-Ukraine crisis could also be a contributor.

The Financial Benefits of Keeping Your Car Longer

When you look at your overall budget, reducing your vehicle expenses is the best way you can save money over the long haul.

“The one area of your budget that you can have the greatest impact over your long-term spending is what you’re paying for your wheels. Not just what they cost, but the real damage to your wallet comes from cycling through vehicles,” Clark explains.

Clark says the overwhelming majority of a car’s depreciation happens in the first few years, so keeping a vehicle for about a decade is “phenomenal for your long-term financial health.”

Follow Clark’s 4-and-4 Rule

If you want to reduce the cost of transportation and still have a vehicle with modern safety features Clark has a tip for you:

“It’s the four-year cycle: Buy a four-year-old vehicle every four years. The economics equate over time to being very similar to buying a new vehicle you keep for 10 or more years.”

Not only will a four-year-old vehicle contain a majority of the modern safety features, but you’ll avoid much of the depreciation that occurs in the first couple of years.

“So follow the four-and-four rule,” Clark says, “Buy four-year-old vehicles that you keep for four years.”

Want more money-saving insights on the vehicle industry? Read Clark’s prediction on when car prices will drop.