A 15-percent age increase over the past 10 years has been one of the largest increases in more than three decades
Fort Wayne, Ind.—Cars and light trucks on U.S. roads reached a record-high average age at the beginning of 2021, according to a new study. A 15-percent age increase over the past 10 years has been one of the largest increases in more than three decades.
“Vehicle age will continue to climb over the next several years, generating big aftermarket changes, ranging from the age boundaries of the repair-age sweet-spot to the types of products used in vehicle repair, where products are purchased and installed, and how they are distributed,” stated the “2022 Lang Aftermarket Annual.”
Other key findings include the following:
Record-Breaking Average Age
Light vehicles in the U.S. averaged 12.6 years at the beginning of January 2021, up from 9.2 years in 2000. Vehicles are lasting longer (as a result of improved manufacturing techniques and materials) and the prices of new and used cars and light trucks keep increasing.
These factors (along with others) are boosting the average age of vehicles in the U.S. and the population of older vehicles.
Remarkable Growth in Recent Years
What makes the growth of vehicle average age in recent years more remarkable is that it has occurred despite a record level of new car and light truck sales between 2015 and 2019, which should have dampened vehicle age growth.
The impact of COVID-19 on 2020 new car and light truck sales and the surge in vehicle demand propelled by remote-working have helped to boost the growth of vehicle age in the U.S.
Expanding Repair-Age Sweet-Spot
The repair-age sweet-spot of cars and light trucks (the age group with above-average rates of product replacement) is being pushed upward into higher age categories by the changing age mix of vehicles in the U.S.
The repair-age sweet-spot for many products now includes vehicles 8 to 14 years old, significantly higher than the traditional repair-age sweet-spot.
Brand Impact
The increasing U.S. vehicle population and the rapid growth of cars and light trucks at least 12 years old are reshaping the types of aftermarket brands sold.
“Value Brands” (which provide reasonable quality at moderate prices) are gaining Do-It-For-Me (DIFM) and Do-It-Yourself (DIY) volume share as consumers opt for less expensive products to repair older vehicles.
Differences in the average ages of domestic and foreign nameplates are causing shifts in the types of products used (Value versus Premium) according to the vehicle nameplate (domestic and foreign).
Aftermarket Brands Versus OE Brands
The aging vehicle population is generally positive for aftermarket (non-OE) brands. They are less expensive than OE brands and owners of older vehicles are usually price sensitive to vehicle repair costs.
Where Products Are Sold and Installed
Consumers with older vehicles are more likely to have them repaired at independent (non-dealer) outlets than to take them to dealers.
This is positive for the independent aftermarket in terms of product volume growth, outlet strength and aftermarket brand use.
How Brands Are Distributed
The greater frequency with which aftermarket brands are used to repair older vehicles is influencing how products are distributed.
Aftermarket brands are most frequently distributed by three channels: traditional, integrated, and import. Aftermarket brand growth will help boost the product volume and share of each of these channels in the light vehicle aftermarket.
Primary Market Drivers
The aging vehicle population is a primary factor changing the usage rates of many types of products and reshaping aftermarket product distribution patterns.
Extra Product Use Cycles
The increasing average age of vehicles and the growing number of older cars and light trucks on U.S. roads are providing additional cycles of replacement use for many products. This has the potential to increase the volume of a number of aftermarket product categories among older groups of light vehicles.
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