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People Keeping Cars Longer, Says Finance Survey

It seems that people in the current economy are holding onto their vehicles fo

There are always going to be some bad used

It seems that people in the current economy are holding onto their vehicles for longer before getting rid of them, according to the results of a recent finance survey.

There are always going to be some bad used vehicles out there, but the current economic climate is simplifying the age-old argument as to whether people should buy new or pre-owned autos, according to The Washington Post.

Survey data

A survey of almost 4,000 car owners conducted by AutoMD.com reflects this new mindset. Three-fourths of participants stated that buying a new vehicle every two or three years is something that is long gone, and 78 percent stated that people should keep a vehicle for 10 years or until it dies.

As far as metrics involving actual use of a vehicle instead of opinions on how long they should be kept, the survey indicated that 60 percent had a primary vehicle with more than 100,000 miles. This percentage has not changed from 2011, but is 13 percent higher than in 2010. Two-thirds indicated that they plan to operate their vehicle for more than 150,000 miles or until it no longer functions, and 80 percent plan to drive their car for more than 100,000 miles.

More-than half of all respondents plan to put 75,000 more miles on their current vehicle than on their previous one.

Coping with our economy

"There is nothing surprising about the economy driving car owners to hold onto their vehicles for longer - our data has been showing this trend for the past three years; but what is most compelling is that longer ownership has become an embedded habit for car owners, regardless of what the economy does," Brian Hafer, vice president of marketing at AutoMD.com, said in the statement. "This significant lengthening in the ownership cycle looks to be here to stay, and it's being supported by better made vehicles on the road, more choices for – and information online about - repairing those vehicles, and a more scrupulous focus on service and maintenance."

The economy was cited as the number one cause for people holding onto their vehicles. Other contributors to vehicle longevity were servicing and vigilant repair. Of the people who specified that they plan to hold their vehicles for longer, more-than half indicated that practicality was more important than style when buying a vehicle. 

Comments

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

This may be an example of survey data leading to the wrong conclusions, i.e. purchase drivers leading to new vehicle sales. To say I want to keep my car to 100,000 to 150,000 sounds good, but in reality you have no control. There are always people on the fringe. "I will keep my car until it dies." or "I want a new car every two years."

But in my opinion - I will keep my car as long as the economic benefit exceeds the cost. If I invest on average $100 2x's a year for maintenance, I am good. As the car gets older that number rises. I just recently got rid of a car that had 145,000 miles on it, because the maintenance became $1,000 2 x's a year.

To me the driving factor is not the cost of the new vehicle but the maintenance cost of the current vehicle.

I agree with the quote at the end by Brian Hafer - "This significant lengthening in the ownership cycle looks to be here to stay, and it's being supported by better made vehicles on the road, more choices for – and information online about - repairing those vehicles, and a more scrupulous focus on service and maintenance."

Mara Efron
Title: Clerk
Company: ABC Staffing
(Clerk, ABC Staffing) |

People keep their cars longer because it is very important to any individuals for their transportation. Others love to collect cars or car accessories because they consider it as their passion. Despite the economic crisis, somebody can still afford to buy new vehicles. Marketers have greenville used car dealerships because for them it will help the economy and it boosts their income.

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