IHS Markit: Average U.S. vehicle lifespan reaches record 12.1 years in 2020

The average useful life of U.S. cars and light trucks rose to a record 12.1 years in 2020, two months longer than in 2019, as Americans drove fewer miles and scrapped more vehicles during the COVID-19 pandemic, according to IHS Markit.

The research firm said that as the COVID-19 epidemic eases, sales of both new and used vehicles continue to rise, and the increase in the average lifespan of vehicles may be short-lived.

According to IHS data, in 2020, car mileage in the United States decreased by more than 13%, while more than 15 million vehicles were scrapped, accounting for about 5.6% of the total number of vehicles.

Normally, such high scrapping rates would lead to a drop in the average age of vehicles. But fewer miles traveled, combined with a drop in auto sales during the pandemic, had the opposite effect, with the average age of vehicles rising to 12.1 years from 11.9 in 2019.

IHS researchers also said that the continued shortage of semiconductors has led to reduced vehicle production, reduced dealer inventory, and higher transaction prices, which in turn has led to a simultaneous increase in used car prices. These factors may lead to a decline in the average vehicle life in 2021 as more car owners sell their cars or trade in old ones.