Our Aging Car Population Is Great News For Repair Shops

America’s average vehicle age is growing, and while that might not be great news for dealers trying to shift new metal, it could present mechanics, repair shops, and aftermarket parts suppliers with a great money-making opportunity.

The supply of new cars has been limited in recent years, forcing many drivers to either buy used or hang on to their existing vehicle for longer. Data crunched by S&P Global Mobility showed that the 13.8 million cars, SUVs, and light trucks sold in 2022 was the lowest in a decade and helped push the average vehicle age to 12.5 years.

But while the supply of new cars has now increased, demand hasn’t kept pace. S&P Global Mobility cites lingering inflation and high-interest rates affecting financing costs as factors that might continue to prevent the recovery of new vehicle demand. It says demand for auto loans is currently lower than it was in the third quarter of 2020.

Which means more used cars on the road and more older cars being pressed into the kind of high-mile service that’s normally handled by newer, theoretically more reliable, vehicles. S&P Global Mobility predicts that vehicles between six and 13 years old will increase their share of annual miles traveled, taking a bigger slice of the usage pie than vehicles in the zero to five-year-old group and those over 14 years old.

That’s great news for mechanics and auto repair shops, and it’s also great news for aftermarket parts suppliers, not just those making the kind of parts that always need replacing on older cars, like exhausts and suspension components, but sensors too. S&P notes that cars in service bays will increasingly be loaded with sensors used by infotainment, communication, and safety systems, such as adaptive cruise control, which has become increasingly common over the past eight years.

S&P’s Todd Campau suggests that it could be boom time for suppliers making and selling sensors, and of course, mechanics should have a healthy stream of work replacing them. The downside is that these increasingly complicated new cars require repair shops to invest time and money in the equipment and training to handle repairs.

Why Repair Shops Are Benefitting

As the average vehicle age increases, repair shops are seeing a surge in business. Older cars require more maintenance and repairs, providing a steady stream of work for mechanics. From routine oil changes to major engine repairs, repair shops are in high demand.

Additionally, the increasing number of sensors in modern vehicles presents a lucrative opportunity for repair shops. Sensors used in infotainment, communication, and safety systems are prone to failure over time. Mechanics skilled in diagnosing and replacing these sensors will have a competitive edge in the market.

The Growing Market for Aftermarket Parts

With more older cars on the road, there is also an increased demand for aftermarket parts. Aftermarket parts suppliers cater to the needs of car owners who want affordable alternatives to original equipment manufacturer (OEM) parts. These suppliers offer a wide range of parts, including exhausts, suspension components, and sensors.

Sensors, in particular, are becoming a major growth area for aftermarket parts suppliers. As vehicles age, their sensors may start to malfunction or become outdated. Aftermarket suppliers can provide cost-effective replacements for these sensors, allowing car owners to keep their vehicles running smoothly without breaking the bank.

Investing in Equipment and Training

While the growing market for repairs and aftermarket parts presents opportunities for mechanics and suppliers, it also comes with challenges. Modern vehicles are equipped with advanced technology that requires specialized equipment and training to diagnose and repair.

Repair shops need to invest in the latest diagnostic tools and equipment to effectively service these vehicles. Additionally, mechanics must stay updated on the latest advancements in automotive technology through continuous training and education. By investing in equipment and training, repair shops can position themselves as trusted experts in handling repairs for older vehicles.

Conclusion

The aging car population in America presents a unique opportunity for mechanics, repair shops, and aftermarket parts suppliers. As the average vehicle age increases, the demand for repairs and replacement parts grows. Repair shops that adapt to the changing market by investing in equipment and training will thrive in this new landscape. Similarly, aftermarket parts suppliers that cater to the needs of older vehicles will find a steady customer base. With the right strategies and expertise, businesses in the automotive industry can capitalize on the growing market for servicing and maintaining older cars.