The cars people drive are getting older and older. According to IHS Markit, a study firm, the typical age of cars, light duty trucks and SUV's currently on the highway in america has risen to 12.1 years old.
“This reflects a trend of vehicles staying on the road longer,” says Ellsworth Buck, V . p . of Insurance, Florida's leading independent car insurance company.
The report explains COVID-19 and it is impact across the US caused an extreme reduction in new vehicle sales. Many dealerships needed to adjust to pandemic protocols modifying sales processes and deliveries and adapting to social distancing guidelines in showrooms to create customers feel comfortable.
The report also documents new car sales are now being hindered with a global semiconductor chip shortage because of the pandemic. According to Autotrader, “Automakers have been unable to source enough computer chips to finish assembling vehicles, which has led to a virtually depleted inventory of some popular models.”
COVID isn't entirely to blame. Cars are lasting longer. Thanks to improvements in auto reliability and safety technology cars are running past the standard 100,000 miles.
Low inventory, less driving and greater vehicle dependability have kept many car owners driving in their current vehicles. “If a person paid a nice income for a vehicle they're inclined to help keep it longer,” says Ellsworth Buck, Vice President of Insurance, Florida's top independent car insurance company.
Car owners not content to stay in their current vehicle or in the market for another car are turning to the used-car market and experiencing sticker shock.
The most recent Consumer Price Index report in the US Department at work shows the highest overall annual inflation rate in 13 years. The index reports used-car prices climbing a staggering 29.7 percent in the last 12 months.
Whether your brand car is totally new or perhaps an older model, Insurance has you covered with affordable and dependable auto insurance, contact us today.
