Automotive News: Average age of U.S. car, light truck on road hits record 11.4 years

[TomLaPointe]

A ton of built-up demand means dealers need to ensure they have effective systems in place to assure success: Automotive News
August 6, 2013 - 12:01 am ET
LOS ANGELES -- Americans continue to hang onto their cars, minivans and crossovers -- many of them first purchased when President Clinton was in office -- and helping to push the average age of the nation's light-vehicle population to a record high, according to data released from R.L. Polk today.
Polk said the average age of all light vehicles on the road now stands at a record high of 11.4 years. That's up from 11.3 years last year, and 10.8 years in 2010.


Read more: http://www.autonews.com/article/20130806/RETAIL/130809922#ixzz2bA669JAv

 

[abby.campbell]

Tom - In my opinion, I think people are holding onto their vehicles because the economy has hit them hard over these last several years. I'm from the DC/Northern Virginia area. Though areas like that may have been hit by the economy, they are still secured by the government. DC/Northern Virginia is mainly made up of government workers. However, the area I now live (outskirts of Charlotte) have been devastated by the economy. The town my dealership is located has one of the highest unemployment rates in the country (around 15%)! Even those who do have jobs now, their credit is so poor that they can't even buy a vehicle. Though they try! I'd say that half of my buyers are declined due to poor credit, and they can't even get financed with banks dealing with very poor credit customers. Therefore, people are holding onto their vehicles. Many really have no choice. Though this is good for the service departments.

 

[joe.pistell]

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