The average age of passenger cars in operation in the US is projected to steadily increase from 12.4 years in 2024 to 12.7 years by 2028. In comparison to the previous years, this represents a gradual rise. Based on 2023 data, which must be under 12.4 years for 2024 to show an increase, the growth seems consistent, averaging a slight year-on-year increase with a compounded annual growth rate (CAGR) identically minimal over these five years.
Future trends to watch include advancements in vehicle durability and technology, which may influence car retention times, as well as broader economic factors such as consumer spending capacity and interest rates impacting new car purchase trends. Additionally, shifts in policies around electric vehicles and emissions standards could alter market dynamics significantly.
