According to a new study by Polk, reported by CNBC, the average age of a vehicle in United States has hit an all-time high - now at 11.4 years. This comes as good news for most dealerships, as increased vehicle age will naturally bolster demand for new cars, as well as increase the need for vehicle service.
- The average age of a vehicle in America is now 11.4 years, a record high
- Pent up demand means sales are forecast to remain strong for the next 4-5 years
- Increased age of inventory is projected to be a strong driver for new vehicle sales and maintenance through 2018
As many dealership have seen in their own service bays, a slowed but recovering economy has led many would-be buyers to hang on to older vehicles in recent years. However, strengthening economic signals are now prompting those on-the-fence shoppers to trade-in their old cars for 2013 and 2013 models, a trend that's expected to continue through 2018. As the market shifts, preparing your dealership for this influx of buyers and service customers is key to sustained success at the dealership, providing ample opportunity for growth.
CNBC article: http://www.cnbc.com/id/100940923
How is your dealership preparing to drive new business with given the projected increase in vehicle demand and service opportunities? Share your thoughts in the comments section below!