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Americans Forced To Drive Old Cars Because YOU Are Not Selling Enough New Cars!

Americans are holding onto cars longer, pushing the average age of a vehicle on the country's road to a record 11 years.



Americans are holding onto cars longer, pushing the average age of a vehicle on the country's road to a record 11 years


The average age of a car last July was 11.1 years, while the truck average was 10.4, according to automotive research firm Polk.


Unemployment and the sour economy have caused people to put off buying cars and trucks.


Polk says the average vehicle age has been rising since 2008, but a sales rebound last year is likely to slow the aging rate.


Car companies sold 12.8 million vehicles in the U.S. last year, up from 11.6 million in 2010.


In 2010 the average vehicle on U.S. roads was 10.6 years old, up from 10 years in 2008.

Polk gets its numbers from national auto registration data.


Industry expert Jim Henry, said in an article for Forbes: 'In a way, the auto industry is a victim of its own success: cars just don't break down as often or wear out as fast as they used to. People have discovered they really don't need a new car every three or four years.'


The average trade-in at new-car dealerships is now 6.5 years old, one year older than the average in 2007, according to the Power Information Network, a unit of J.D. Power and Associates.

Large traders General Motors and Chrysler fell into bankruptcy after a drop in sales and Ford was forced to restructure itself to avoid the same fate

Large traders General Motors and Chrysler fell into bankruptcy after a drop in sales and Ford was forced to restructure itself to avoid the same fate


'The fact that cars are lasting longer didn't really sink in at first, because new cars were so cheap, and credit was so easy. American consumers replaced cars far more often than necessary.


'After all, Baby Boomers and older generations are conditioned to think that cars start to fall apart after four or five years.' Henry writes.


However, new-car sales fell sharply in 2008 from 16.2 million in 2007 to 13.2 million, according to AutoData Corp.


And falling another 2.8 million, to only 10.4 million in 2009.


Large traders General Motors and Chrysler fell into bankruptcy and Ford was forced to restructure itself to avoid the same fate.


With close to 6 million fewer new cars on the road, the average age of cars on the road climbed.


Polk said there are now 240.5 million cars and trucks on the road in the United States, down from 242.1 million in 2008.



Read more: http://www.dailymail.co.uk/news/article-2089973/Average-age-cars-Am...

Views: 196

Tags: Americans, Are, Because, Cars, Cars!, Drive, Enough, Forced, New, Not, More…Old, Selling, To, YOU

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Comment by George O'Sullivan on January 23, 2012 at 9:25am

Very interesting statistics. I am surprised that the number of cars on the road has dropped so much.  However, there is no question that the trades we are taking in are older and with more miles.

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