{"id":12517,"date":"2023-08-02T05:43:45","date_gmt":"2023-08-02T04:43:45","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/as-america-becomes-a-nation-of-old-cars-mechanics.html"},"modified":"2023-08-02T05:43:45","modified_gmt":"2023-08-02T04:43:45","slug":"as-america-becomes-a-nation-of-old-cars-mechanics-and-the-aftermarket-may-see-boom-times","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2023\/08\/02\/as-america-becomes-a-nation-of-old-cars-mechanics-and-the-aftermarket-may-see-boom-times\/","title":{"rendered":"As America becomes a nation of old cars, mechanics and the aftermarket may see boom times"},"content":{"rendered":"<h3 ><strong>With a record-high average vehicle age in the US, the<br \/>\naftermarket is likely to see robust growth in repair and<br \/>\nmaintenance work, as older cars will see even more miles driven<br \/>\nthan traditionally expected, according to analysis by S&amp;amp;P<br \/>\nGlobal Mobility.<\/strong><\/h3>\n<p >Two years of short supply of new vehicles has driven consumers<br \/>\ninto the used-car market. Now, there could be a counterintuitive<br \/>\nshift: Surging new-vehicle supply could further boost expansion of<br \/>\nthe used-vehicle fleet, bringing more high-mileage vehicles into<br \/>\nservice bays.<\/p>\n<p >How is this possible? <a href=\"https:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/average-age-of-light-vehicles-in-the-us-hits-record-high.html\"><br \/>\nThe aging car parc<\/a> has already expanded the repair business<br \/>\nsweet spot, which we consider as vehicles from six to 11 years old.<br \/>\nNow 12- and 13-year-old vehicles are becoming a bigger part of the<br \/>\nbusiness &#8211; even though they were originally sold during the<br \/>\nslow-sales years of the Great Recession.<\/p>\n<p ><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.ihsmarkit.com\/www\/images\/0723\/vehicle-age-blog-img1.png\" alt=\"\" width=\"1000\" height=\"507\" \/><\/p>\n<p >\nGrowth in vehicle age won&#39;t be uniform. <a id=\"_Int_rkrsqsDd\" name=\"_Int_rkrsqsDd\" style=\"position:absolute;visibility:hidden;\">&amp;lt;span\/&amp;gt;<\/a>While the share of 7-year-old vehicles in<br \/>\noperation is expected to decline through 2028, vehicles more than<br \/>\neight years old will swell in number,<a id=\"_Int_URiwCoEh\" name=\"_Int_URiwCoEh\" style=\"position:absolute;visibility:hidden;\">&amp;lt;span\/&amp;gt;<\/a> said Todd Campau, associate director for<br \/>\naftermarket solutions for S&amp;amp;P Global Mobility<a id=\"_Int_7UylBTAh\" name=\"_Int_7UylBTAh\" style=\"position:absolute;visibility:hidden;\">&amp;lt;span\/&amp;gt;<\/a>. That age group is<br \/>\nexpected to grow by more than 25 million units by 2028, according<br \/>\nto S&amp;amp;P Global Mobility projections.<\/p>\n<p >&#8220;As vehicles with more electronic sophistication continue to age<br \/>\nand increase in overall share, the aftermarket&#39;s role in<br \/>\nmaintaining the aging vehicle fleet will become increasingly<br \/>\ncritical,&#8221; Campau said. &#8220;That&#39;s where the real opportunity is in<br \/>\nthe aftermarket space.&#8221;<\/p>\n<p >In addition, drivers of older, lower-priced, out-of-warranty<br \/>\nvehicles are likely to drive more miles, because they may have jobs<br \/>\nwithout a work-from-home option. During the pandemic years,<br \/>\nvehicles from six to 13 years old &#8211; the new aftermarket sweet spot<br \/>\n&#8211; will increase their share of annual miles traveled, outstripping<br \/>\nboth vehicles zero to 5-years-old and 14-years-plus, according to<br \/>\nS&amp;amp;P Global Mobility projections.<\/p>\n<p ><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.ihsmarkit.com\/www\/images\/0723\/vehicle-age-blog-img2.png\" alt=\"\" width=\"1000\" height=\"581\" \/><\/p>\n<p ><strong>Supply chain, inventory, and macroeconomics fuel<br \/>\ndisparity<\/strong><\/p>\n<p >For several years, pandemic-related supply-chain headaches have<br \/>\nkept automotive production below demand. Light vehicle sales of<br \/>\n13.8 million in the US in 2022 &#8211; the lowest in a decade &#8211; were a<br \/>\nkey factor boosting the average vehicle age to 12.5 years.<\/p>\n<p >The situation wasn&#39;t entirely unwelcome for automakers and<br \/>\ndealers. Automakers shifted their production mix to high-ticket,<br \/>\nhigh-margin vehicles. At the same time, tight inventories meant<br \/>\nthat dealers could sell new vehicles quickly to desperate shoppers<br \/>\nwilling to pay sticker prices &#8211; or higher.<\/p>\n<p >Now that&#39;s changing, Campau said. It was expected that as the<br \/>\navailability of components like semiconductor chips improved, new<br \/>\nvehicle sales would increase, slowing the rate of used vehicle<br \/>\ngrowth. S&amp;amp;P Global Mobility forecasts 15.4 million light<br \/>\nvehicle sales in the U.S. this year, followed by 15.8 million in<br \/>\n2024 and 16.5 million in 2025, based on its July forecast.<\/p>\n<p ><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.ihsmarkit.com\/www\/images\/0723\/vehicle-age-blog-img3.png\" alt=\"\" width=\"800\" height=\"520\" \/><\/p>\n<p >\nBut the consumer side of the equation remains a little shaky,<br \/>\ndespite some positive macroeconomic signs. Lingering inflation and<br \/>\nhigh interest rates are expected to weaken the recovery of new<br \/>\nvehicle demand just as inventory increases. The market is<br \/>\ntransitioning from being supply-constrained to being<br \/>\ndemand-constrained, Campau said.<\/p>\n<p >One key indicator: Demand for auto loans has slipped below<br \/>\nthird-quarter 2020 levels, according to analysis by S&amp;amp;P Global<br \/>\nMobility and TransUnion.<\/p>\n<p >The question now, Campau noted, is whether OEMs will start<br \/>\nbuilding more economy or mid-priced vehicles and trims to provide<br \/>\naffordable options to middle- and lower-income families currently<br \/>\ntrapped in a used-vehicle spiral, or if automakers will stick with<br \/>\na mix that favors higher-margin vehicles.<\/p>\n<p >&#8220;Will the consumers continue to support that premium model?&#8221;<br \/>\nCampau said. &#8220;The question is who&#39;s going to blink first?&#8221;<\/p>\n<p >Of course, automakers can always stimulate demand by the age-old<br \/>\nmethod of piling on incentives. The market is already starting to<br \/>\nsee increased incentives as new vehicle inventories have risen this<br \/>\nyear, he says. But spiffs are still at less than half of<br \/>\npre-pandemic levels. That said, price cuts by Tesla and Ford on<br \/>\ntheir respective EV lines show that inventory concerns are<br \/>\ngrowing.<\/p>\n<p ><strong>Older cars becoming trickier to fix<\/strong><\/p>\n<p >All of this suggests that a growing used-vehicle fleet will<br \/>\ncontinue to benefit the aftermarket business. But while aftermarket<br \/>\nrepair shops should see more business coming in the door, they face<br \/>\nnew challenges.<\/p>\n<p >The vehicles in their service bays will be <a href=\"https:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/fuel-for-thought-auto-safety-systems-calibration-challenges-repair-modification.html\"><br \/>\nincreasingly loaded with sensors<\/a> for infotainment,<br \/>\ncommunications, and advanced driver assistance systems like<br \/>\nadaptive cruise control, lane departure warning and collision<br \/>\navoidance. Adaptive cruise<a id=\"_Int_DiRXJspe\" name=\"_Int_DiRXJspe\" style=\"position:absolute;visibility:hidden;\">&amp;lt;span\/&amp;gt;<\/a>, in particular, has been on a steady<br \/>\nupward penetration trend since 2015; it is projected to be in<br \/>\nnearly 70 percent of model-year 2023 vehicles, according to S&amp;amp;P<br \/>\nGlobal Mobility estimates.<\/p>\n<p >&#8220;I think sensors are where the next big opportunity is for the<br \/>\naftermarket,&#8221; Campau said. <a id=\"_Int_AfD4d1tI\" name=\"_Int_AfD4d1tI\" style=\"position:absolute;visibility:hidden;\">&amp;lt;span\/&amp;gt;<\/a>Likewise, as 5G connectivity becomes<br \/>\ndominant in new vehicles, a growing share of vehicles in operation<br \/>\nwill be capable of receiving over-the-air (OTA) software updates.<br \/>\nBy 2028, S&amp;amp;P Global Mobility projects, more than one-third of<br \/>\nvehicles in operation will be connected, with more than 95 percent<br \/>\nof those OTA-ready.<\/p>\n<p >As the used vehicle parc grows in technological sophistication,<br \/>\nright-to-repair issues will come to the fore, as automakers wrestle<br \/>\nwith wanting to maintain control over intellectual property while<br \/>\ntheir service bays become more crowded.<\/p>\n<p >&#8220;For consumers, the option to have the choice to maintain their<br \/>\nvehicle in a timely fashion where convenient will be increasingly<br \/>\nimportant,&#8221; Campau said. &#8220;The volume of the vehicle fleet will make<br \/>\ncooperation between OE aftersales service and aftermarket service<br \/>\nshops a requirement to keep the nearly 300 million-vehicle<br \/>\npopulation working as safely and efficiently as possible.&#8221;<\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/average-age-of-light-vehicles-in-the-us-hits-record-high.html\"><br \/>\nAVERAGE AGE OF VEHICLES HITS RECORD HIGH<\/a><\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/fuel-for-thought-auto-safety-systems-calibration-challenges-repair-modification.html\"><br \/>\nADAS SYSTEM CALIBRATION CHALLENGES AND OPPORTUNITIES<\/a><\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/products\/technology-vio.html\"><br \/>\nFOR MORE ABOUT TECHNOLOGY VEHICLES IN OPERATION<\/a><\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/products\/vehicle-miles-traveled.html\"><br \/>\nFOR MORE ABOUT VEHICLE MILES TRAVELED<\/a><\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/products\/parts-demand-and-fitment.html\"><br \/>\nFOR MORE ABOUT PARTS DEMAND AND FITMENT<\/a><\/p>\n<p ><a class=\"primary-button\" href=\"https:\/\/www.spglobal.com\/mobility\/en\/products\/aftermarketinsight.html\"><br \/>\nFOR MORE AFTERMARKET INSIGHTS<\/a><\/p>\n\n<h2><b>Commercials Cooperation 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Mobi&#8230;<\/p>\n","protected":false},"author":479,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[3267],"tags":[61,122,127,129,124,128,125,132,131,133,126,130,123,66,94,88,97,56,64,65,60,3344,3351,3357,3360,3335,3340,3362,112,3353,40,75,95,3350,3352,3356,3343,3359,3339,3345,3334,3341,104,3354,33,120,3358,3349,3337,3348,105,101,98,115,30,29,41,86,3342,3361,70,69,68,72,71,26,118,108,87,3355,46,55,48,52,54,51,50,83,3338,62,58,57,3336,109,35,3346,59,63,85,79,82,96,80,27,81,114,44,42,43,45,38,39,110,117,100,111,116,3300,73,89,90,92,91,93,84,78,37,102,34,36,77,67,74,99,113,3347,119,28,121,32,47,49,53,103,31,76],"class_list":["post-12517","post","type-post","status-publish","format-standard","hentry","category-car-or-automobile","tag-airpods","tag-anime","tag-anime-characters","tag-anime-cosplay","tag-anime-edits","tag-anime-merchandise","tag-anime-movies","tag-anime-news","tag-anime-recommendations","tag-anime-reviews","tag-anime-series","tag-anime-streaming","tag-animes","tag-app-store","tag-app-store-samsung","tag-appgallery","tag-appgallery-oneplus","tag-apple","tag-apple-music","tag-apple-tv","tag-apple-watch","tag-auto-financing-guide","tag-automobile-industry-news","tag-automobile-laws-and-regulations","tag-automobile-shows-and-expos","tag-automobile-specifications","tag-automobile-technology","tag-autonomous-vehicles","tag-bbc-sport","tag-best-cars-for-long-drives","tag-best-mobile-games","tag-bixby","tag-bixby-xiaomi","tag-car-accessories","tag-car-comparison","tag-car-customization-ideas","tag-car-insurance-advice","tag-car-interior-design-ideas","tag-car-maintenance-tips","tag-car-resale-value","tag-car-reviews","tag-car-safety-features","tag-champions-league","tag-city-cars","tag-cyberpunk","tag-cyberpunk-2077","tag-driving-tips-and-tricks","tag-eco-friendly-cars","tag-electric-vehicles","tag-family-cars","tag-fantasy-football","tag-fifa","tag-football","tag-formula-1","tag-fortnite","tag-free-fire","tag-free-mobile-games","tag-freebuds-pro","tag-fuel-efficiency-tips","tag-future-of-automobiles","tag-galaxy-a52","tag-galaxy-note-20","tag-galaxy-s21","tag-galaxy-watch-4","tag-galaxy-z-fold-3","tag-game","tag-games","tag-golf","tag-harmonyos","tag-highway-cars","tag-how-to-backup-iphone","tag-how-to-factory-reset-iphone","tag-how-to-reset-iphone","tag-how-to-restore-iphone","tag-how-to-unlock-iphone","tag-how-to-unlock-iphone-5","tag-how-to-unlock-iphone-6","tag-huawei","tag-hybrid-cars","tag-ios","tag-ipad","tag-iphone","tag-latest-car-models","tag-live-soccer","tag-lol","tag-luxury-cars","tag-macbook","tag-macos","tag-mate-40-pro","tag-mi-11-lite","tag-mi-home-security-camera-basic-1080p","tag-mi-home-security-camera-basic-1080p-huawei","tag-mi-smart-band-6","tag-minecraft","tag-miui","tag-mlb-scores","tag-mobile-game-design","tag-mobile-game-development","tag-mobile-game-marketing","tag-mobile-game-monetization","tag-mobile-games","tag-mobile-gaming","tag-nba-scores","tag-nba-standings","tag-nfl","tag-nfl-scores","tag-nhl-scores","tag-off-road-vehicles","tag-one-ui","tag-oneplus","tag-oneplus-9-pro","tag-oneplus-buds-pro","tag-oneplus-nord-ce-5g","tag-oxygenos","tag-p40-pro-plus","tag-poco-x3-pro","tag-pokemon","tag-premier-league","tag-pubg","tag-pubg-mobile","tag-redmi-note-10-pro","tag-samsung","tag-samsung-pay","tag-soccer","tag-sports","tag-sports-cars","tag-steam","tag-steeam","tag-top-10-anime","tag-valorant","tag-when-do-the-iphone-7-come-out","tag-when-does-the-iphone-7-come-out","tag-when-is-the-iphone-7-coming-out","tag-world-cup","tag-xbox-series-x","tag-xiaomi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/12517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/users\/479"}],"replies":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/comments?post=12517"}],"version-history":[{"count":1,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/12517\/revisions"}],"predecessor-version":[{"id":12518,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/12517\/revisions\/12518"}],"wp:attachment":[{"href":"ht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