The number of cars and light trucks scrapped in the past 15 months substantially outnumbers new vehicle registrations in the US during the same period, according to recent analysis by R. L. Polk & Co.
R. L. Polk & Co. collects and interprets global data, and provides extensive automotive business expertise to help customers understand their market position and identify trends. A privately held global firm, Polk is based in Southfield, Mich. with operations in Australia, Canada, China, France, Germany, Japan, Spain, the United Kingdom and the United States.
More than 14.8 million cars and light trucks were retired from the fleet between July 1, 2008 and September 30, 2009, compared to new registrations of slightly more than 13.6 million, resulting in an overall scrap rate of 6.1 percent. This includes thousands of units scrapped during last year's CARS program, known as 'Cash for Clunkers,' and follows a trend seen by Polk over the past five years.
Polk also reports an increase in the average age of light vehicles on the road, up 21 percent in the past 14 years. The average age for all light vehicles during the 15-month period is 10.2 years. Additionally, increases in the average age are supported by the fact that consumers are keeping their cars and trucks longer. As of September 2009, the average length of ownership for a new or used vehicle among U.S. consumers was 49.9 months, up from 45 months a year ago the same time.
These trends are supported by a number of factors, including the economy, limited financing and leasing options available in the market, extended warranties offered by OEMs, and improved vehicle durability and quality of vehicles.
Polk expects conditions facing the US automotive industry today to remain through 2010 and expects trends for scrappage and vehicle ownership to continue for at least another year.