Analysis states that these vehicle age differences have important consequences across many key aftermarket sectors
Fort Wayne, Ind.—At the beginning of 2024, light vehicles on U.S. roads reached a record-high average age. While the increase in vehicle average age over the past years has been widely reported, little attention has been given to the significant differences in the average ages of major types of vehicles, according to the latest Lang Aftermarket iReport. The analysis states that vehicle age differences have important consequences across many key aftermarket sectors.
“As the average age of autos reached a record-high at the beginning of 2024, there were great differences in the average ages and rates of age growth among cars, light trucks, domestic nameplates and foreign nameplates,” reports Lang.
The following are key takeaways from the study.
Record-High Vehicle Average Age
The average age of cars and light trucks reached a record-high 12.9 years in January 2024, creating the oldest mix of light vehicles on U.S. roads.
Although the average age of all vehicles is important, it does not reveal the significant differences in the average ages and rates of age growth among the four major types of vehicles: cars, light trucks, domestic nameplates and foreign nameplates.
Ages of Cars and Light Trucks
Cars have decreased in their share of new vehicle sales in the U.S. over the past several decades. Accordingly, the average age of passenger cars has increased much faster than that of light trucks, especially among domestic nameplates.
As a result, passenger cars, especially domestic nameplates, represent a large and growing share of older vehicles. The opposite is true of light trucks, which have dominated new vehicle sales across the U.S. in the past few decades.
Ages of Foreign and Domestic Nameplates
Domestic nameplates are significantly higher in average age than foreign nameplates on U.S. roads. This reflects the decreasing new sales share of domestic nameplates over the past two decades and their increasing share of older vehicles in operation.
At the beginning of 2024, domestic nameplates averaged almost three years older than foreign nameplates. Accordingly, domestic nameplates represented a much larger share of older vehicles, especially those at least 15 years, than foreign nameplates.
Average Age by Vehicle Type
Lang projects that the average age of light vehicles will increase on U.S. roads, as annual new light vehicle sales continue at a slower pace compared to the record-high sales from 2015 to 2019. The analysis also expects cars to remain significantly higher in average age than light trucks, especially among domestic nameplates, and their age difference will climb from 2024 to 2026.
Impact of Increasing Vehicle Average Age
The aging vehicle population and the differing rates at which the ages of major types of vehicles are increasing are primary factors changing the usage rates of many kinds of products and reshaping aftermarket distribution patterns.
Product Brand Impact
The aging vehicle population and the rapidly growing number of vehicles at least 15 years old are reshaping the mix of aftermarket products sold. “Value Products,” which provide reasonable quality at moderate prices, are gaining DIFM and DIY volume share as consumers opt for lower-priced products to repair older vehicles.
Due to the differing ages of major types of vehicles, Value Product usage is growing fastest among cars, particularly domestic nameplate cars, and faster among domestic nameplates than foreign nameplates.
Aftermarket Brands Versus OE Brands
The increasing age of the vehicle population is generally positive for aftermarket (non-OE) brands. They are not as expensive as OE brands, and owners of older vehicles are often price-sensitive about vehicle repair costs.
In contrast, OE brands find greater acceptance among owners of foreign nameplates, which are significantly lower in average age than domestic nameplates.
Where Auto Parts Are Sold and Installed
Consumers with older vehicles are more likely to have them repaired at independent (non-dealer) outlets than in dealer service bays. This is positive for Independent aftermarket growth in both repair outlet strength and non-OE brand share.
Recognizing this trend, many dealers are marketing their service bays to all-makes and all-age groups of vehicles. To appeal to owners of older vehicles and nameplates that they do not sell new, dealers are offering a wider range of product brands (beyond OE brands) and often adjusting labor rates for older vehicles to be more price competitive with independent repair outlets.
Product Distribution
The greater use of aftermarket brands in the repair of older vehicles is influencing how products are distributed. Aftermarket (non-dealer) product brands are most frequently distributed by three channels: integrated, traditional, and import. This has helped boost the product volume and share of these channels in the light vehicle aftermarket.
Future Developments
The rising average age of vehicles and the growth of older cars and light trucks will generally increase aftermarket product volume. An additional contributing factor is the reduction of new vehicle sales since 2020, which has shifted annual miles driven from newer to older cars and light trucks, with higher rates of aftermarket product use per mile than newer models.
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