.jpg)
An old saying that many Americans live by is “if it ain’t broke, don’t fix it.”
However, in the context of newly released data about the age of cars roaming American streets, the famous phrase should be reworked to say “if it ain’t broke, don’t buy a new one.”
Related: New GM tech seeks to cure an overlooked safety issue
According to new data from S&P Global Mobility, the average American is holding onto some pretty old cars. In 2024, the age of the average car, pickup truck and SUV has increased to a record 12.6 years — rising by two months since last year’s record-breaking statistic.
Though the pandemic-related shortages of critical parts are long behind and new data shows a positive turn in new car registrations compared to other years, many Americans are hanging onto their cars for longer than ever before thanks to unfavorable conditions in the new-car market.
Cars these days are pretty expensive, so much so that price will turn off many buyers in a bad time for interest rates. As per Kelly Blue Book, the average price of a new car in the United States is $47,400, which can incentivize people to hang onto their cars for a little bit longer.
“It’s prohibitively high for a lot of households now,” S&P Global Mobility aftermarket practice lead Todd Campau told the AP. “So I think consumers are being painted into the corner of having to keep the vehicle on the road longer.”
According to Campau, new-car sales growth is also being stunted by buyers looking to adopt a plug-in hybrid or an EV, as they wait for the appropriate infrastructure to expand. Additionally, he states that more low-cost cars are being sold since the pandemic, which he estimates will soon bring down the average price.
With 70% of vehicles out on the road being six years old and older, professionals like private mechanics can see a boost in business as a result; given that most vehicles in that timeframe have lasted longer than most manufacturer warranties.
However, keeping an older car for longer does not generate sales for automakers; whom, amidst this push for electrification, have seen their EV sales dwindle due to their prohibitively high prices. But while some automakers like Ford and Mercedes-Benz are delaying or shifting resources away from EVs towards other alternatives, one automaker from left field looks to ride the storm.
More Automotive:
- Maserati exec defends the use of a car feature drivers hate
- Feds are skeptical about the safety of popular driver-assist tech
- Young guys who like loud cars are likely to be psychopaths, study suggests
Related: Italian Government ups its petty feud with Stellantis
Kia’s clever solution: cheaper, cooler cars.
2025 Kia EV3 GT-Line Kia
In an announcement on May 21, South Korean automaker Kia unveiled its latest creation: the EV3, a small crossover SUV designed to edge the likes of Tesla on looks, features and price.
Featuring a stunning, futuristic design, a full suite of technology, room for five adults and 300 miles of estimated range, Kia President and CEO Ho Sung Song is confident that the cute EV3’s estimated asking price of just $35,000 will finally convince the masses to adopt EVs (and ditch that 12-year old gas guzzler).
2025 Kia EV3 Kia
“By providing groundbreaking design, an industry-leading electric drivetrain, and practical, innovative lifestyle solutions, the EV3 aims to extend Kia’s exceptional EV SUV experience to a wider audience,” Song said in a statement. “It will reassure those who may have been hesitant to make the switch to electric mobility and will lead the mass adoption of EVs.”
Kia is looking to release the EV3 by 2025 or 2026. In the meantime, the automaker is evaluating its options to fully maximize the EV3’s eligibility for federal tax credits, which could bring the price down to under $30,000.
According to a report by Automotive News, Kia is setting out for the EV3 to be a best-seller for the brand, estimating that it can sell 70,000 to 80,000 units per year in the U.S. alone.
Related: Veteran fund manager picks favorite stocks for 2024
