Average Lifespan of Cars in the U.S. Increased Since Recession

A decade ago, people craved for new technology and newer products, but the recession has brought about a change like never before.

According to a study conducted by the IHS automotive, the average lifespan of cars in the United States has seen a significant increase when compared to the data collected in 2006. People are no longer interested in going for a new vehicle every five years or so. Instead, they opt to keep their old, classic vehicles and use them on a daily basis.

Car lifespan

The surprising fact is that the statistics don’t talk about car collectors or those who love classic vehicles. It is all about the average consumer who is now reluctant to get rid of the vehicle and buy a new one. A lot of solid facts are being advanced for this significant change.

Till 2006, owners preferred to replace a new vehicle on an average time span of 4.3 years. They used to get bored of their existing cars within four years or less. Similarly, in 2007, the total average lifespan of cars in the U.S. was at 10 years.

The number has shot up by one and half years in 2015. A major share of the vehicles used by consumers was manufactured before the year 2000. The average lifespan, is at 11 ½ years, which is much higher than it has ever been in history.

Experts predict that the average cost of new models have become significantly higher, which constrains people from changing their cars every five years or so. The drastic increase in the price has also prompted them to go for auto loans that last much longer than before. It allows buyers to keep their monthly expenses and payments under control so that they don’t go bankrupt again. The recession has definitely taken its toll on the citizens, who are now showing a new found interest in saving money for the future and probably another recession, if it should happen.

lifespan of cars

Despite these claims, the statistical study conducted by the IHS automotive confirmed that things are about to change in the next two or three years. Car technology has witnessed significant boost in the last few years and it will soon be impossible to stick onto old models that hardly have any feature to offer.

A similar trend has also been witnessed in the world of smartphones and tablets. The manufacturers have saturated the market with devices and people no longer show an interest to buy something new unless it offers a significant improvement over their existing device.