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The owners of gas-powered cars keep them for longer than those of electric cars, despite their relatively higher cost, a global study confirmed.
S&P Global, a company that studies the economy, looked at how long people keep their cars. The US-based study implied that since cars play a huge role in everyday life, there is a massive difference between gas-powered vehicles and electric vehicles. People are holding on to their cars longer than ever, especially traditional gas models. On average, a vehicle is kept for 12.5 years, and that number goes up to 13.6 years for personal cars (excluding vans).
The U.S. now has more than 284 million vehicles on the road, which is over three times more than the previous year’s growth. S&P Global says this proves its prediction was right: cars are lasting longer, partly because fewer new cars are being sold.
This marks the sixth year in a row that the average age of vehicles has gone up, reaching its highest point since the 2008–2009 financial crisis, when weak demand also left cars getting older.
In 2022, low demand and economic changes like inflation and falling interest rates made the trend even stronger. Sale of new cars dropped by 8% as compared to the previous year, with only 13.9 million sold compared to 14.6 million in 2021, the lowest in more than a decade.
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Key trend: "Slowing EV (electric car) momentum" https://t.co/id1YbeBkCu pic.twitter.com/jILwCnA06u
— Bjorn Lomborg (@BjornLomborg) January 16, 2024
There are specific reasons why people are holding on to gas-powered cars for longer. That one big factor is that drivers see them as more reliable for long trips. Many families keep at least one gas car, even if they don’t use it often, so they know they can travel long distances without worrying about range.
The increase in purchasing power affects both gas and electric cars, but electric vehicles are usually replaced much faster, about every 3.6 years. This is mostly because EVs are expensive and often bought by rich people who prefer to change models regularly.
The electric car market is changing rapidly. Every year, better models hit the market, tempting drivers to switch. Brands like Tesla and BYD fuel this excitement. And once drivers use electric cars, most prefers them more.
Even though electric cars popularity is increasing day by day, majority of Americans still prefer gas-powered vehicles. A recent Pew Research Center survey shows that 53% of people would choose a gas-powered car over an electric one if both cost the same price. The main reason behind this preference is that 72% feel EVs are expensive, and many are concerned about battery life and replacement costs.
Regarding reliability, only 9% of Americans believe EVs are more reliable than gas-powered cars. These reasons, combined with higher costs and limited infrastructure, explain why the majority of drivers continue to stick with gas-powered cars even as EV technology continues to advance in today’s generation.