The United States car industry is experiencing a welcome phenomenon since the economic crisis; a higher number of customers are considering selling old car in order to purchase a new one or a car trade in thus ensuring that the auto industry is seeing an increase in sales. This in essence means that the average age of cars on the roads is much lower compare to the last three years. A decline in the age of cars on the road has been consistently experienced since 2012. This is report has been recorded by Experian Automotive.
Car purchase ability has gone up among the consumers and this has actually turned the automotive industry around as their business is purely dependent on new car sales. The volumes of financial and technological investment in producing new cars only means that the market needs to consistently maintain a reduction in the age of the cars on the road. Customers must be willing to buy or lease new cars every few years. This can only happen if the economy continues improving as it has in the last few years.
The third quarter of 2014 saw the average age of cars calculated at 7.4 years, which is two points less than the last quarter of 2013 which recorded an average of 7.6. If this trend is maintained, then this is good news for the automotive industry. It also means that they can maintain production and support the economy through job creation and maintenance as well as productive business.
