Auto sales may be slow-going right now, but don’t be surprised if we see a burst in sales when the economy improves. The average age of a vehicle on the road in the U.S. is now at its highest since 1995, and less cars were registered than were scrapped last year; a sign that consumers’ vehicles are wearing out and will soon have to be replaced.
14.8 million cars met their fate last year, while only 13.6 million registrations were issued in the U.S., according to R.L. Polk. Remember however, that 2009 also saw ‘Cash for Clunkers‘ which would increase the scrappage rate.
The average age of a vehicle on the road in the U.S. today is 10.2 years old. With all the gimmicks recently being employed by dealers, it seems that good old wear and tear is what’s going to be forcing buyers back into showrooms.
– By: Stephen Calogera