Americans buying fewer new cars over a lifetime

Chalk another one up for the recession and how it has altered life in America. New analysis by the automotive research firm Polk shows Americans can now expect to buy fewer new cars during their lifetime. On average, we’ll buy almost four fewer new cars by the time each of us hits 76 years old, the age when Polk believes most people are done buying new vehicles.

“The days when you bought a vehicle for 4 or 5 years are likely over,” said Anthony Pratt, Polk director of forecasting.

We’ve talked for some time about Americans holding on to their new cars longer and the reasons have been well-documented. Cars last longer, and as their prices have gone up, people are less inclined to take on a monthly payment. Since the recession they have stretched out the length of time to pay off a new loan. In other words, people now expect to be in their car six, seven or eight years after they buy it. Read more >>

New and Used Car Sales Tumble

Besides GM stuffing its dealers with excess inventory at record levels to create the illusion of car sales, allowing the company to book revenue, not only has there now been a collapse in show room traffic, but car dealers can't close sales.

Based on sales data from roughly midway through May, CNW Marketing forecasts overall U.S. new car sales will be up only about 6 percent from May 2011 -- well below the double-digit pace of 2012 overall, year-to-date.

The used car market, where demand is usually higher than for new cars, is also weakening. And CNW claims there is a sharp decline in new car sales to young buyers. "In the late 1990s and early 2000s, they accounted for about 5 percent of the U.S. market. That’s now down to barely 2 percent among 16- to 21-year-olds."