New research from the Specialty Equipment Market Association (SEMA) explores the lifecycle, cost, and dependability of vehicles on the roadway today. 

The average U.S. vehicle stays on the road for 12.6 years, a news release about the research says. It is the highest number of years in more than a decade, according to SEMA. This includes passenger cars on the road for an average of 14 years, an increase from 13.6 years in 2023. Light trucks slightly rose from 11.8 to 11.9. 

IHS Markit first reported vehicle age breaking the 12-year mark in early 2021, when it rose from 11.9 years to 12.1 years.

Used vehicle prices remain historically high but have fallen to an average listing price of $25,251 as of July 2024, according to the release. It says car values have fallen faster than light trucks. However, EVs saw the sharpest decrease of 11%. 

New vehicle prices have also decreased slightly with the average price at $48,644, the release says. It notes, that climbing interest rates offset the price decreases, which remain significantly higher than rates offered in 2021 and 2022. 

Automakers are making more cars, reaching a three-and-a-half-year high, it says. Yet, fewer of the vehicles are small cars or other entry-level vehicles priced below $20,000. Entry-level vehicles made up 0.7% of the market in 2024 compared to 7% five years ago. 

“This lack of affordability has a profound impact on younger people who are historically more price-sensitive than older drivers,” the release says. 

As automakers add new technology features, there’s been an increase in vehicle issues tied to them, the release says. This includes driving assistance and infotainment systems. Yet, for two decades consumers have experienced fewer problems and a growing reliability with vehicles. 

There was a net addition of 3 million more vehicles added to the roads in the past year, according to the release. Passenger vehicles remained dominant at 89.2 million. Crossovers increased in popularity to 72.7 million. Over the last 10 years, vehicle registrations skew more heavily toward light trucks than cars, it says. 

Specialty equipment retail sales in 2023 surpassed $52.3 billion and are expected to increase to more than $57 billion by 2026, the release says. 

“The research also reveals trends across four categories of vehicles (classic, aged, core, and modern) highlighting age, popularity, usage, and consumer spending habits,” the release said. “For accessorizing, pickups and muscle cars are the top choice for enthusiasts. Meanwhile, vehicles in the aged category are driving spending for performance products as a way to refresh their older vehicle.”

Aftermarket product spending for modern (59%) and core (54%) vehicles were primarily on accessory and appearance products, the release said. Those spending on classic vehicles (43%) focused on performance products.

Images

Photo courtesy of SEMA 

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