According to the analysts at R. L. Polk & Co, consumers are starting to hold onto their new vehicles for 63.9 months, based on second quarter 2010 data. That’s up from 4.5 months from the same period last year.
“Length of ownership has risen each quarter since the end of 2008 and serves as an indicator of business opportunities available to the automotive aftermarket, based on the increasing numbers of older vehicles in operation that may need service or parts, and an increasing number of vehicles on the road falling out of warranty,” the firm said in a press release.
Polk says that new vehicle ownership increased an average of 3.7 percent annually prior to the economic and auto industry downturn in 2008. Since then, the average length of ownership of new vehicles has increase more than 14 percent.
“Ownership trends are something our customers watch very closely,” said Eric Papacek, Polk solutions consultant. “Armed with insightful data on these trends, aftermarket and retail customers are able to appropriately plan for levels of service work and parts that may be required based on the increased age of vehicles on the road,” he continued.
– By: Omar Rana