Polk: Average Length of Used-Vehicle Ownership Reaches New High

Used-vehicle buyers now are keeping their units longer than ever. That’s the finding Polk shared Wednesday.

Polk determined that as of the second quarter of this year, consumers own their used vehicles an average of 46.1 months. It’s a rise from the previous quarter’s reading of 45.9 months.

Meanwhile according to Polk’s data that goes back to the first quarter of 2008, consumers held on to their used vehicles for just 40 months.

The average length of ownership of new vehicles is on an upward trend, too. Polk calculated owners are now holding onto a new unit on average for 63.9 months. That mark is up 4.5 months from the second quarter of last year.

New-vehicle ownership length averaged 54.6 months at the outset of 2008.

New and used vehicles combined to have an average length of ownership of 52.2 months based on Polk’s second quarter analysis.

The firm believes these trends serve as an indicator of business opportunities available to dealership service and parts departments. That’s based on the increasing numbers of older vehicles in operation that may need service or parts and an increasing number of vehicles on the road falling out of warranty.

Polk also contends its data highlights opportunities for manufacturers to consider targeting those consumers who are hanging on to older vehicles as potential customers for new-vehicle purchases.

Analysts figured the average length of new-vehicle ownership has increased an average of 3.7 percent annually prior to the economic and auto industry meltdown in late 2008. Since that time, Polk said the average length of ownership of new vehicles has increased more than 14 percent “with no signs of slowing down.”

Eric Papacek, a Polk solutions consultant, elaborated on this point.

“Ownership trends are something our customers watch very closely,” Papacek insisted.

“Armed with insightful data on these trends, aftermarket and retail customers are able to appropriately plan for levels of service work and parts that may be required based on the increased age of vehicles on the road,” he concluded.