Polk Report, Average Age of Autos Increase

[Joe Marconi]

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[mmotley]

I would think if the economy improves, you would see more people buying new cars, not holding on to older cars that are in need of repair.... Just my thoughts.

 

Also can't help but wonder how the 'Cash for Clunkers' program affected the numbers in this study... I would think the average age would be higher since the gov't created an incentive for people to trade older cars (and subsequently destroyed and removed from the market) in for new ones.

[nmikmik]

Not sure what the real long term effect of that program will be, but here is some fairly detailed post regarding the program

http://blogs.cars.com/kickingtires/2011/10/cash-for-clunkers-two-years-later.html

imo, nothing that is artificially takes away and/or inserts something into economy can have any long term benefit, but I am not economist, just a regular Joe Schmo, what do I know.

 

What I think I know, is that people are still going to buy new cars because they are shiny and well marketed and we buy on emotions not on logic. Some of them will default on their loans, but car is already in "circulation", so it will go to the auction and another "Joe Schmoe" will end up buying it. Depending on how many hands it will change the reliability of that specific car will be effected and so will our "opportunity" to see it in the shop.

I really wish there was some kind of generic chart, showing - "Buying a new car with payments vs keeping the older car with maintenance". But again, that's logic and people don't use it in general, especially when it comes to new and shiny things

[ATLAuto]

...that's logic and people don't use it in general, especially when it comes to new and shiny things

Well said. A couple from our small group in church just traded in their two used cars for a brand new sedan and SUV right off the lot. They had very little logic behind the decision that didn't boil down to, "we were tired off looking poor and wanted pretty cars." They make $60k combined which does not go very far in Atlanta.