Americans are keeping their cars for longer than ever before

The average age of cars on the road today have hit a new record of 12.6 years, according to data from S&P Global Mobility.

May 25, 2024 - 06:30

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Americans are keeping their cars for longer than ever before

TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Friday, May 24.

Full Video Transcript Below:

CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Investors look ahead to a holiday-shortened week, hoping for good news on the inflation front. Wall Street will gain fresh insight from personal income and spending data, which are the Federal Reserve’s preferred measure of inflation, as well as the Fed’s summary of economic conditions.

Wall Street will also digest quarterly reports from Gap, Foot Locker, and Dollar General.

In other news, drivers aren’t in a rush to trade in their car keys for a newer model. According to a new study by S&P Mobility, the average age of a car on the road is now at a record 12.6 years, which is 2 months longer than in 2023.

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Higher loan costs and rising insurance premiums are the main reasons drivers are choosing to stick with the vehicles they have. There are also fewer new models at the dealership due to lingering, yet easing, supply constraints caused by the pandemic.

The report predicts that within the next 5 years, passenger vehicles that are 6 to 14 years or older will make up 70 percent of all cars, SUVs, and small trucks on the road.

And if it feels like those older cars are crowding the roadway this holiday weekend, you may not be wrong. AAA expects a record 38.4 million drivers to hit the highways over this three-day weekend.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.