Published: Wednesday, February 22, 2012
Cheaper to keep the car
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Associated Press
Ford introduces a 2013 Ford Focus ST during the media preview of the Chicago Auto Show at McCormick Place in Chicago on Feb. 8. As automakers make more reliable cars, owners are keeping them longer, a study finds.
DETROIT -- Americans are keeping new and used vehicles longer because of better quality, concern about debt and economic uncertainty, according to a report released Tuesday by the Southfield, Mich., research firm R.L. Polk.
Based on data collected in the third quarter of 2011, new vehicle owners kept them an average of 71.4 months, or nearly six years, the longest in the eight years Polk has done the survey, and nearly two years longer than the average life of ownership in 2003.
The trend was similar for used cars and trucks, which consumers kept an average of 49.9 months, also a record, and up from 32.2 months in early 2003.
Polk officials cited several contributing factors to the trend toward keeping vehicles longer.
Consumer spending remains conservative in a still-weak job market with relatively high unemployment rates. Many buyers have longer-term financing options to secure more affordable payments. In addition, vehicles produced in recent years have been more durable and reliable than their predecessors.
The trend presents an opportunity to companies making and selling replacement parts.
"As the aftermarket prepares to service this aging vehicle population, this creates concerns about appropriate parts inventory," said Mark Seng, global aftermarket practice leader at Polk. "We're currently working with customers in the aftermarket to help them prepare for increasing demand throughout the entire supply chain."
Last month in a separate report, Polk found that the average age of cars and light trucks on U.S. roads reached a record 10.8 years.
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(c)2012 the Detroit Free Press
Visit the Detroit Free Press at www.freep.com
Distributed by MCT Information Services
Based on data collected in the third quarter of 2011, new vehicle owners kept them an average of 71.4 months, or nearly six years, the longest in the eight years Polk has done the survey, and nearly two years longer than the average life of ownership in 2003.
The trend was similar for used cars and trucks, which consumers kept an average of 49.9 months, also a record, and up from 32.2 months in early 2003.
Polk officials cited several contributing factors to the trend toward keeping vehicles longer.
Consumer spending remains conservative in a still-weak job market with relatively high unemployment rates. Many buyers have longer-term financing options to secure more affordable payments. In addition, vehicles produced in recent years have been more durable and reliable than their predecessors.
The trend presents an opportunity to companies making and selling replacement parts.
"As the aftermarket prepares to service this aging vehicle population, this creates concerns about appropriate parts inventory," said Mark Seng, global aftermarket practice leader at Polk. "We're currently working with customers in the aftermarket to help them prepare for increasing demand throughout the entire supply chain."
Last month in a separate report, Polk found that the average age of cars and light trucks on U.S. roads reached a record 10.8 years.
------
(c)2012 the Detroit Free Press
Visit the Detroit Free Press at www.freep.com
Distributed by MCT Information Services
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