Passenger cars and light trucks in the United States had an average age of **** years in 2024. This figure represents a slight increase from **** years in 2023. New vehicle sales decline amid pandemic Long-term auto loans and good quality might be reasons why American motorists keep their automobiles longer. That said, vehicle sales in the United States declined dramatically in the second quarter of 2020. As a result, U.S. vehicle age is expected to rise further as U.S. motorists put off vehicle purchases among the COVID-19 crisis in the country and took an interest in buying used cars. Throughout 2022 and 2023, U.S. vehicle sales remained relatively stable, despite geopolitical disruptions. Amid supply chain shortages, North American automobile sales are projected to increase to around ** million units by 2024. The future market At **** years old, the average vehicle age in the United States is at a record high but the newest cars on the market are entering the next era of automotive technology. Shared mobility, automation, and electrification are several key aspects of the modernization of the motor industry. Electric vehicles are anticipated to witness growing demand in the U.S. Already, electric cars are the favored choice in other important auto markets, including China.

On average, motorists in the United States continue to hold on to their vehicles for a longer time. In 2021, the average age of light vehicles on U.S. roads stood at **** years, up from **** years in 2009.

Graph and download economic data for Consumer Unit Characteristics: Number of Vehicles by Age: from Age 25 to 34 (CXUVEHICLESLB0403M) from 1984 to 2023 about consumer unit, age, 25 years +, vehicles, and USA.

Forecast: Light Vehicles Average Age in Operation in the US 2024 - 2028 Discover more data with ReportLinker!

Around **** of all car owners in the U.S. are over the age of 60 years old. High upfront and running costs can be expensive, and many Americans must either save up or wait until they have the income to afford vehicle ownership.

Forecast: Passenger Cars Average Age in Operation in the US 2024 - 2028 Discover more data with ReportLinker!

As of 2020, Russia was the country with the highest average vehicle age when compared to China, the United States, and Germany. All the country's registered vehicles were on average just under ** years of age. By contrast, China's licensed vehicle fleet was overall younger, with a mean age of *** years.

The average vehicle fleet age is an equally weighted average of automobiles and trucks that are registered in the United States. Data is sourced from the US Department of Transportation's Bureau of Transport Statistics.

In 2024, the average selling price of used vehicles came to around ****** U.S. dollars. In 2024, new automobiles and light trucks were on average almost ****** U.S. dollars more expensive than used light vehicles. The used car boom As the price for new vehicles has been increasing, more Americans are turning towards buying second-hand cars and light trucks. Buying new cars and light trucks is typically seen as a privilege that few may do often. Generally, used vehicle sales are on the rise in most countries. Thanks to ever-improving technology, automobiles may keep running for many years and remain in good condition. This allows the average age of light vehicles in operation in the United States to increase slowly. Although new cars are often seen as status symbols, vintage cars are also very popular in the United States, the main reason for this trend being aesthetic and cultural values.

In the fourth quarter of 2024, there were around ***** million vehicles operating on roads throughout the United States. Almost **** million used vehicles changed owners in the U.S. between the fourth quarter of 2023 and the fourth quarter of 2024, while new registrations of vehicles came to about **** million units during that period. Automotive market disparities The number of licensed drivers had been steadily increasing up to just under ******* in 2023, but the automotive market has been impacted by economic developments over the past few years. The U.S. vehicle fleet is aging, reflected by the slow increase in the average vehicle age from **** years in 2018 to over ** years in 2024. This is in part due to market disparities. The average selling price of new vehicles has been increasing to nearly ****** U.S. dollars in 2024, up from under ****** in 2016. Used car prices have been declining after the chip shortages linked to the COVID-19 pandemic, reaching around ****** U.S. dollars in 2024. The majority of U.S. car owners earned more than ****** U.S. dollars per years, with the ****** to ****** income group owning over ** percent of the vehicles in use. The boom of the used vehicle market Close to ************* of new car buyers were born between 1946 and 1981, with Gen X being the leading consumers by age group for both the new and used vehicle market. Used light vehicle sales have been steadily increasing since 2010, representing well over double the size of the new light vehicle market in 2024. With a product range priced below new vehicle prices, used vehicles are gaining momentum in the United States. The average American household spends some ***** U.S. dollars on vehicle purchases annually, with consumers in income groups earning above 100,000 U.S. dollars per year spending above ***** dollars annually on car buying. Used vehicle financing options are naturally more affordable than new vehicle financing options, with an average monthly payment over *** dollars for loan payments for new vehicles.

This statistic illustrates the average age of North American freight rail cars from 2014 to 2020. In 2020, the average age stood at 19.6 years, a slight increase from 19.5 years in the previous year.

In 2021, Baby Boomers were the main new car buyers in the United States, representing around ** percent of new car sales. By contrast, Gen X made up the majority of the used car buyers, at close to ** percent of the sales.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Used Cars and Trucks in U.S. City Average (CUSR0000SETA02) from Jan 1953 to May 2025 about used, trucks, vehicles, urban, consumer, CPI, inflation, price index, indexes, price, and USA.

The global passenger car aftermarket service market is experiencing robust growth, driven by an aging vehicle fleet, increasing vehicle complexity, and a rising preference for vehicle maintenance over replacement. The market size in 2025 is estimated at $500 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the increasing average age of vehicles globally leads to a higher demand for repairs and maintenance services. Secondly, modern vehicles incorporate advanced technologies, making repairs more specialized and expensive, thus contributing to market expansion. Lastly, consumers are increasingly opting for cost-effective maintenance and repair options rather than purchasing new vehicles, particularly in the face of economic uncertainty or rising new car prices. This trend significantly boosts the demand for aftermarket services. The segment is further segmented by service type (cleaning, general repair, overhaul) and vehicle type (passenger cars, vans, SUVs, pickup trucks). Passenger cars constitute the largest segment, reflecting their higher penetration rates globally. Within the passenger car segment, the general repair and maintenance sub-segment dominates, driven by routine servicing needs and the relatively lower cost compared to overhauls. However, the overhaul segment is projected to witness faster growth due to the increasing age and mileage of vehicles in operation. Geographically, North America and Europe currently hold the largest market share, benefiting from a high density of vehicles and a well-established aftermarket infrastructure. However, rapidly developing economies in Asia-Pacific, particularly China and India, are emerging as significant growth hotspots, driven by expanding vehicle ownership and increasing disposable incomes. The competitive landscape is characterized by a mix of large multinational corporations and smaller, regional players, catering to diverse needs and service levels. Companies like Dynatrade, Allison Transmission, and ZF Friedrichshafen AG are key players, while numerous independent garages and specialized workshops also contribute significantly to the market's vibrancy.

The used car warranty market is experiencing robust growth, driven by increasing used car sales, consumer demand for protection against unexpected repair costs, and a growing preference for extended warranties beyond the manufacturer's coverage. The market's expansion is fueled by a multitude of factors, including the rising average age of vehicles on the road, the increasing complexity and cost of modern car repairs, and a shift in consumer behavior towards seeking financial safeguards against potential mechanical failures. Several key players dominate the market, including Carchex, AutoAssure, Endurance, and others, each offering varying coverage options and price points to cater to diverse consumer needs. This competitive landscape fosters innovation and drives the development of more comprehensive and flexible warranty plans. Geographical variations exist in market penetration and consumer preferences, with North America and Europe currently holding significant market shares, though growth is anticipated in other regions as awareness and adoption increase. Furthermore, the emergence of digital platforms and online purchasing options is streamlining the warranty acquisition process and making it more accessible to a wider consumer base. Looking ahead, the used car warranty market is poised for continued expansion. Several factors point to a sustained growth trajectory, including the projected increase in used car transactions driven by economic fluctuations and the preference for pre-owned vehicles. Technological advancements that allow for more precise risk assessment and predictive maintenance will also shape future market trends. However, challenges remain, such as managing increasing claim volumes and mitigating fraud. The industry's response to these challenges, through robust claims management systems and improved data analytics, will be crucial in sustaining profitable growth. The forecast period from 2025 to 2033 suggests considerable potential for market expansion, presenting opportunities for both established players and emerging entrants.

The average age of passenger cars on the road in the European Union was 12 years in 2021, while the average truck was about 14.2 years old. Germany and the United Kingdom are the leading passenger car markets in Europe as of 2022.

Lithuanians hold on to their cars the longest

Of European countries, the oldest passenger cars were found in Eastern Europe in 2019. The average car in Lithuania was almost 17 years old. High-income countries like Luxembourg had a comparatively younger fleet. The average age of passenger cars in Luxembourg came to about 6.5 years.

World fleet comparison

Across the Atlantic the car and light truck fleet had a slightly higher average age to that reported in the European Union. Light vehicles registered in the United States were on average 12.1 years old. Comparatively, the age of passenger cars in Japan was noticeably lower. The average age of passenger cars on Japanese roads was just over nine years old.

The US Automotive Service & Repair Industry is Segmented by Vehicle Type (Passenger Cars and Commercial Vehicles), Service Type (Mechanical, Exterior and Structural, and Electrical and Electronics), and Equipment Type (Tires, Seats, Batteries, and Other Equipment Types). The report offers market size and forecasts for the United States Automotive Service Market in value (USD Billion) for all the above segments.

The Auto Extended Warranty Providers industry has climbed over the past five years. Industry servicers provide automobile owners warranties that extend past the warranty a car's manufacturer provides for a new vehicle. Participants in this industry include car manufacturers, car dealers and other third-party warranty providers. During the period, the industry has benefited from the average age of the vehicle fleet in the United States increasing, as consumers typically purchase auto extended warranties or vehicle service contracts after their manufacturing warranty expires. In addition, despite an increase in per capita disposable income, new car sales fell due to the negative impact of the pandemic and inflationary pressures in the latter part of the current period, limiting industry growth. Overall, industry revenue increased at a CAGR of 1.0% to $22.0 billion over the past five years, including an expected 0.9% increase in 2024 alone. Evolving trends in warranty plans offered by auto manufacturers and dealerships have led to increased competition for third-party auto extended warranty providers. Automobile manufacturers are increasingly offering more comprehensive warranty plans, making extended warranties less attractive. To stay competitive with extended warranty offerings from auto manufacturers and dealerships, third-party providers were forced to cut prices. Additionally, increased competition within the industry has led to some merger activity among the largest operators. These mergers look to achieve economies of scale that allow the new company to more competitively price policies. Nonetheless, rising inflationary pressures that ate into consumers' purchasing power lowered their propensity to acquire vehicles, causing industry profit to slump. Over the next five years, the industry is poised to rebound in large part due to rebounding economic conditions. An increase in the average age of the vehicle fleet, per capita disposable income and new car sales are all expected to support the industry. Nonetheless, growth is expected to be pressured early in the period as high inflation is expected to be persistent. In addition, industry servicers may be challenged as price-based competition increases. Overall, industry revenue is expected to grow at a CAGR of 2.3% to $24.7 billion over the next five years.

16-year-olds paid the highest amount for full coverage car insurance in the United States in 2023. It was found that 16-year-old drivers in the U.S. had to pay approximately *** U.S. dollars per year for car insurance, whereas their 21-year-old counterparts paid only *** U.S. dollars for the same coverage.

Online automotive parts and accessories retailers have reaped robust growth through the current period, particularly as consumers accept online shopping models. As a result, many traditional brick-and-mortar retailers have invested in omnichannel sales systems that take advantage of their distribution infrastructure. Traditional auto parts retailers with online shopping experiences have been able to fend off fully e-commerce-based companies. Specialization in auto parts and the ability to order online and pick up merchandise in-store have enabled auto parts retailers to capture a growing share of online purchases. Overall, revenue has climbed at an expected CAGR of 5.8% to $6.5 billion through the current period, including a 2.2% jump in 2024, where profit reached 9.8% As a subsection of the overall auto parts retail market, the industry has largely grown in line with auto parts retailers. As incomes rise, consumers purchase more cars and spend more on noncritical replacement parts. The number of motor vehicles registered in the United States has grown steadily along with the average age of vehicles, expanding the portion of the vehicle fleet in the repair-and-replacement age range. However, the wider trend towards online retailing accelerated in 2020 amid the COVID-19 pandemic, enabling the online subsegment to outpace brick-and-mortar retailers; this, along with supply chain issues limiting supply for new and used cars, shifted demand toward repairs, supporting growth. However, supply chain disruptions also led to higher input costs, pressuring profit. The industry will continue to expand as more consumers and companies conduct business online. Similarly, increased disposable income will support greater sales of replacement auto parts. In particular, retailers will see demand from hobbyists and car collectors surge, especially as classic car ownership rises among younger generations. In general, online stores will give consumers more pricing power and alternatives compared with brick-and-mortar stores, facilitating growth. Overall, revenue will expand at an expected CAGR of 3.8% to $7.8 billion through the outlook period, where profit will reach 10.3%.