IHS on Why Vehicle Age Lengthening, Black Book on Car Depreciation Picking Up July 30, 2015
Seng_Mark_IHS Automotive

Average Age of Light Vehicles Increased to 11.5 Years

Mark Seng
Global Aftermarket Practice Leader
IHS Automotive

The combined average age of all light vehicles on the road in the U.S. has climbed slightly to 11.5 years, based on a snapshot of vehicles in operation (VIO) taken Jan. 1 of this year. Registrations for light VIO in the U.S. also reached a record level of 257,900,000 – an increase of more than 5.3 million (2.1%) since last year. It’s the highest annual increase since IHS began tracking VIO growth.

Read more about the IHS Automotive report

Vehicles 12-Plus Years Old Should Continue to Grow and Will Increase 15% by 2020:
Happening due to improved quality and consumers holding their vehicles longer.

Now Seeing Vehicle Age Plateau and Return to Traditional Rate of Increase:
New vehicle sales had dropped 40% in 2008-09 and had been increasing about five times its traditional rate.

New Vehicle Registrations Surpassed Scrappage by More than 42%:
Vehicles take out of fleet at highest rate since the statistic has been tracked.
Anil Goyal

Used Cars Saw Twice the Depreciation Rate as Trucks Last Week

Anil Goyal
VP of Automotive Valuation and Analytics
Black Book

Cars segments depreciated at twice the rate of trucks last week. Volume-weighted car values decreased by 0.62%, which was higher than the depreciation rate seen in the previous four weeks. Truck values decreased by 0.27%, at the average depreciation rate that’s been seen in the previous four weeks. Car depreciation had picked up slightly from the week before; trucks were stronger on the market, but two segments saw a market correction.

Here’s the latest edition of Black Book Market Insights

Full-Size Car, Upper Mid-Size Car and Compact Car Dropped in Value Over 0.75%:
Sporty cars and luxury cars performed relatively better than overall car segments.

Compact Pickup and Full Size Cargo Van Segments Had Market Correction:
After several weeks of strong value retention for these two truck segments.

Gap Between Diesel and Gasoline Prices Has Been Eroding Lately:
Gasoline price decreased by $0.032 to $2.802, and diesel saw same price drop to finish week at $2.782.
Expert Video Recap
Video news that moves people and ideas
How Ford Seized Dress Color Debate to Create Successful Real-time Marketing Campaign

Ford jumped into the fray on a Twit­ter debate through a dynamic and fluid strat­egy. Other com­pa­nies are also fol­low­ing that lead.

Video News & Opinions
Video news that moves people and ideas
How Three Dealers Got to Be Dealers of the Month

Focus­ing more on the prod­uct and less on get­ting the con­sumer into the car and out the door has been a key ingredient.

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