There are two kinds of car owners in this world: the people who buy a new car every few years, and the people who continue driving their older cars until the transmission drops out onto the pavement. A recent study shows that a growing number of people are shifting from the former to the latter, and the trend has been going on for a while. In 1977, only 16.9% of cars on the road were at least 10 years old. Today that figure is just under 45%.
What's going on? There are several factors at play. One is the increased durability of cars manufactured in the recent past vs. a decade or two ago, which means they can stay on the road for anymore miles. A vehicle owner with a reliable car might be hesitant to trade it in for a new model that is pricier (especially at today’s interest rates), and which also has more built-in electronics that can malfunction and increase repair costs. The average price of a new vehicle is $46,660, compared with $39,950 three years ago. Repair and maintenance costs are up 8.2% in the past year alone, and insurance prices are up a painful 22.2% over this time last year.
As more drivers are squeezing more miles out of their existing cars, it has become increasingly common to find odometers above 200,000 miles, and even 300,000. This, of course, assumes that the car is durable enough to last that long. Lexus and Toyota vehicles have a reputation for giving their owners the fewest repair problems, while electric vehicles in general have been less reliable.
But, as mentioned earlier, it all comes down to preferences. The financially-minded person might compare repair costs on the existing vehicle with the cost of a new one, and conclude that repair is the less expensive option. Others like the idea of hitting the road in a shiny new ride.