Used Cars Continue to Age, Leading to an Increased Demand in Vehicle Servicing

S&P Mobility recently reported that the average U.S. vehicle age hit an all-time high as consumers have been buying more used vehicles due to supply chain constraints and rising new vehicle prices.  As a result of the increasing number of used vehicle purchases, the number of vehicles aged between 6 and 11 years old has grown significantly since the beginning of COVID.  Vehicles aged between 12 and 13 years old have also been growing.

S&P predicts that the share of 7 year old vehicles should drop through 2028 while those over 8 years old will grow by more than 25 million during that time period.  This shift will cause vehicles in the “after-market sweet spot” (vehicles aged between 6 and 13 years old) to continue to increase, leading to additional opportunity for vehicle service departments.