Photo: Getty Images
The average age of a car on our highways is now up to twelve years old, a new record. The age increase began about five years ago.
The cause? New and used cars are simply hard to find. Supply chain problems and a shortage of semiconductor chips are forcing manufacturers to cut back on new car production. Car buyers are now turning to pre-owned cars creating a shortage in that market, as well as a 40.5% spike on the average price of a used car over last year.
The car shortage has also trickled down to junk yards too. Parts from junked cars, or “scrappage” are now harder to find. 11 million cars were taken off the road permanently last year, down from 15 million in 2020.