The automotive landscape is evolving, but the transition to EVs and greener technology faces a significant hurdle: the longer lifespan of internal-combustion cars. Recent data from S&P Global Mobility reveals that the average age of light vehicles on U.S. roads has reached a record high of 12.5 years, compared to the value of 9.7 years two decades ago.
The increasing longevity of cars can be attributed to higher costs and improved durability. New vehicles come with a heftier price tag but offer enhanced reliability, giving owners a compelling reason to hold onto their cars for longer periods. However, older vehicles need frequent repairs and part replacements, increasing the likelihood of being sold or retired.
According to Kelley Blue Book, the average transaction price for a new car in April 2023 was $48,275, an increase of 3.7% from the previous year. The main cause of this growth is the growing appeal of more expensive trucks and SUVs, which extend the average lifespan of vehicles on the road.
While the report acknowledges the eventual shift towards electric vehicles (EVs), it highlights the challenges in achieving widespread adoption. Experts suggest that petrol-powered cars will remain prevalent until at least 2050, citing current EV models’ outrageous prices, limited reliability, and shorter lifespans.
The analysis shows that an EV’s average age in 2023 will only be 3.6 years. However, battery data from Recurrent indicates that EVs outlast their 8-year, 100,000-mile warranties. EV manufacturers claim that their vehicles can last 15-20 years, but the industry has yet to substantiate these assertions due to the relative newness of modern EVs. Despite this, EVs do offer an advantage over petrol cars in terms of their lower global carbon footprint.
The main cause of this growth is the growing appeal of more expensive trucks and SUVs, which extend the average lifespan of vehicles on the road. The transition to greener technology requires time, infrastructure development, and advancements in electric vehicle technology to address the concerns surrounding cost, reliability, and lifespan.
