2 min read
Today, most of us are sticking with our current rides. In 2023, the average age of a car on the road was 12.5 years, making it the sixth year in a row their lifespan has increased. This has to do with how the wind is blowing for the economy, technology, and the way we make cars.
Money bugaboos
With inflation circling our heads like a kettle of vultures, the cost of new vehicles has gone up. A recent report estimates the average car loan is about $750 a month. One reason is the advanced tech being crammed into today's Jetson-esque whips. But these fancy features took a hit when the pandemic went down, which led to cars being built at a snail's pace because of a microchip shortage.
Lanky loans
Because of the shortage of car inventory, folks have stretched out their loan terms. While this may lower monthly payments, it also means that owners are slower to build equity and may be less willing to trade it in for a new model.
Fab fabrication
Cars from the last decade have been built with more pizazz and quality. Slick manufacturing techniques, top-notch materials, and cutting-edge engineering have raised the lifespan of engines, transmissions, and drivetrains. Ten-year-old cars can travel well over 100,000 miles with low maintenance—some can outshine the 200,000-mile mark. S&P predicts the number of older cars carrying the load will keep growing until at least 2028.
Back to reality
While owners may have some swagger about holding onto their older cars, they can't ride its coattails forever. Some new data shows that phones are ringing off the hook at auto shops due to the amount of older cars on the road.
Luckily, new car prices have eased from their record highs during the pandemic. So, if your car is nearing its teenage years, it's only a matter of time before the next repair may cost more than it is worth. As you weigh your budget, Peddle can help grow it. We'll give you an instant offer no matter how old or busted your car is.
