Americans Hold onto their Cars Longer

08/19/96

Reuters has reported a Polk study that says Americans are hanging onto their cars for longer than they ever have. Polk, a database marketing firm out of Detroit, says the reason for this shift in Americans' automotive habits results from prices that put new cars out of reach and better quality cars.

The study also said that Americans are going for light trucks--including sport utility vehicles and minivans--like never before. Sales of light trucks are growing much faster than cars.

The registered U.S. population of light trucks and cars combined hit 193.4 million vehicles, an all-time record and 4.7 million vehicles above what it had been the year before. The number of registered cars comprised 64% of those vehicles, while the number of registered trucks accounted for 36% of them. A decade ago cars accounted for 73% of all registered vehicles, while trucks made up only 27% of them.

Predicting that the trend toward light trucks will carry into the future, Rich Seleno, Polk's aftermarket managing director said, "Sales of these vehicles are expected to continue their strong pace as more manufacturers get into the sport utility market and minivan manufacturers introduce new designs."

Two signs the Polk study used to determine that consumers are keeping their cars longer are a lengthening median age and less scrappage. In July 1995, the median age of all cars in the U.S. was 7.7 years, while the median age for all U.S. trucks was 7.6 years. A year earlier, the median age for both cars and trucks was 7.5 years. Additionally, fewer motor vehicles got scrapped during the 1995 than in 1994. As of July 1, 1995, 10.3 million cars and trucks failed to be re-registered, and were presumed to have been scrapped. That figure fell 17 percent from the previous year.

Seleno said the results of the Polk study reflect higher quality cars and the inability of American families to keep up with rising price tags: "The increasing age of the U.S. passenger vehicle fleet, and the lower scrappage rate, reflects that manufacturers have done an outstanding job in increasing quality, which has led to a greater longevity for cars and trucks.

"It also indicates that as prices for new vehicles continue to rise, many families may consider it more economical to keep their existing vehicle rather than purchase a new one."

Paul Dever -- The Auto Channel