Scrappage price dropped to lowest in 20 yrs, as used car prices spiked In all probability the most ever.
By Wolf Richter for WOLF Road.
The typical age of all automotives And Lightweight vans in operation in 2022 rose to A mannequin new doc of 12.2 yrs, Based mostly on S&P Worldwide Mobility right now. The metric tracks the common age of automobiles on the roadvert, And by no means the common size of possession.
“Average age” is a carry out of two factors – and we’ll get to these in a second:
- The Quantity Of latest automobiles advertded to the nationwide fleet in operation. Strong gross sales Of latest automobiles decrease the common age of The complete fleet; weak gross sales enhance the common age.
- The Quantity of older automobiles Faraway from the fleet by way of scrappage.
The typical age of “vans” rose to 13.1 yrs. “Trucks” is an enterprise misnomer That options not solely pickup vans, vans, and truck-like SUVs, However in advertdition compact SUVs That are automotive-like and smaller than station wagons Was, and That are immensely properly-respectd. The typical age of “automotives” rose to 11.6 yrs.
New car gross sales plunged by complete of 5.29 million automobiles in 2019, 2020, and 2021.
New car gross sales Inside the US have been marked by 25 yrs of stagnation interrupted by steep plunges and recoveries. The peak was in 2016, when 17.55 million new automobiles have been purchased, Only a hair above the prior doc Inside the yr 2000! Sales started declining as quickly as extra in 2017, and by 2019 have been Proper down to 17.11 million automobiles.
Then acquired here the pandemic in 2020, and car gross sales plunged. In 2021, demand returned, …….