Study: Cars are Lasting Longer in the US

-- Median age for passenger cars was a record high at 9.2 years

-- Five percent of all U.S. motor vehicles were scrapped in 2006

SOUTHFIELD, Mich., Feb. 15 -- According to the vehicle population report released today by R. L. Polk & Co., the median age of passenger cars in operation increased to 9.2 years in 2006, a record high. For trucks, the median age increased slightly from 6.8 years in 2005 to 6.9 years in 2006. Specifically, light truck median age increased by 3.0 percent to 6.8 years, the largest increase across the major vehicle categories (TABLE A). Polk's vehicle population report data is updated annually on July 1, following an in-depth analysis of more than 230 million vehicles.

"The median age of trucks continues to be lower than cars, due in part to the increased variety of light trucks and SUVs available in the market over the last five years," said Mike Gingell, vice president of Polk's Aftermarket team. "However, the increase in median age for light trucks in 2006 suggests light truck owners are driving their vehicles longer before considering or switching to a car. We anticipate light trucks to continue making up a larger percentage of the vehicle population."

The percentage of total passenger cars and trucks scrapped in 2006 was 5.0 percent, a near historic low. The passenger car scrappage rate was 4.9 percent in 2006. For all trucks the scrappage rate was 5.1 percent and light truck scrappage was 5.2 percent (TABLE B).

"Despite the increase in the scrappage rate for 2006, the percentage of light vehicles in use that were 11 years of age and older increased one percentage point over last year to a new all-time high, representing 35.8 percent of the light vehicle population," said Dave Goebel, a consultant for Polk's Aftermarket Solutions. "This is more evidence that vehicle engineering and durability continues to improve with each new model year."

  Table A

            MEDIAN AGE OF VEHICLES
     Statistics as of July 1, Each Year
                           All      Light
  Year         Cars      Trucks*   Trucks**
  1997         8.1         7.8         7.3
  1998         8.3         7.6         7.1
  1999         8.3         7.2         6.9
  2000         8.3         6.9         6.7
  2001         8.3         6.8         6.1
  2002         8.4         6.8         6.6
  2003         8.6         6.7         6.5
  2004         8.9         6.6         6.4
  2005         9.0         6.8         6.6
  2006         9.2         6.9         6.8

  Source: R. L. Polk & Co.; *GVW 1-8; **GVW 1-3

  Table B

          VEHICLE SCRAPPAGE RATES
    Statistics as of July 1, Each Year
                    All        Light        All
  Year     Cars    Trucks*    Trucks**    Vehicles
  1970     9.5%     5.0%       NA           8.7%
  1980     8.1%     5.1%       NA           7.4%
  1990     7.2%     4.1%       NA           6.3%
  1995     6.1%     4.4%       NA           5.5%
  2000     6.4%     7.5%      7.4%          6.8%
  2001     6.0%     7.6%      7.1%          6.6%
  2002     5.6%     7.0%      7.2%          6.1%
  2003     5.2%     7.7%      6.0%          5.5%
  2004     4.8%     6.0%      4.7%          5.3%
  2005     4.5%     4.0%      4.1%          4.3%
  2006     4.9%     5.1%      5.2%          5.0%

   Source: R. L. Polk & Co.; *GVW 1-8; **GVW 1-3