This means big changes for dealers selling OEM parts. According to S&P Global, the average age of vehicles in the U.S. is now 12.6 years. Among other factors, better vehicle quality and economic considerations have led to people keeping their passenger and light truck vehicles for longer. As these vehicles get older, they need continued maintenance and repairs, which is increasing the demand for replacement parts and services. This trend has a significant impact on the automotive industry, especially for new car dealers who need to adapt to meet this growing demand.
Source: S&P Global Mobility
Why Are Vehicles Getting Older?
Over the years, new advances have been made in automotive technology, resulting in vehicles that are more durable and designed to last longer. This reduces the rate at which consumers need to purchase new vehicles.
In addition to the higher quality of modern vehicles, vehicle production in the years following the 2008 economic downturn was at reduced levels compared to before 2008, so the availability of late-model used vehicles is more constrained, contributing both to higher prices of late-model used vehicles and encouraging customers to retain vehicles for longer periods.
Since the pandemic, economic factors have significantly impacted consumers’ ability to buy new vehicles. The Federal Reserve has raised interest rates multiple times in response to rising inflation. Higher interest rates make financing new vehicle purchases more expensive, and the average interest rate for new car loans has risen to over 7%. This increase translates to significantly higher monthly payments for many consumers, making new cars less affordable.
While inflation as a whole is beginning to slow, new vehicle prices remain high, with a 29% rise since the start of the pandemic. Currently, the average monthly payment for a new car loan has increased to over $700, a record high. This financial burden deters many potential buyers, pushing them to keep their older vehicles longer or purchase used vehicles.
Impact of Aging Vehicles on Maintenance Needs
Increased durability is great for consumers, but it often means more expensive servicing is needed to keep vehicles running. As cars get older, they need more regular maintenance like oil changes, brake repairs, tire rotations, and new tires, and high-quality parts cost more, while the complexity of repairs increases the hourly time needed to complete many jobs. Older vehicles are also more likely to have major issues with transmissions and electrical systems. This increase in mechanical problems leads to a higher demand for new parts and regular repairs.
What This Means for Dealers Selling OEM Parts
As vehicles age and require more maintenance and repairs, it is unsurprising that many consumers will turn to aftermarket parts, which have a reputation for being a cost-saving alternative to OEM parts. However, this doesn’t mean that dealers cannot capitalize on this rising trend.
As vehicles on the road age and the demand for parts rises, many owners will seek quality OEM replacements that match their original vehicle specifications. OEM parts have a reputation for quality and durability among car owners, something they often hold over aftermarket parts. This provides dealers with a unique opportunity to highlight the superior quality of the OEM part as a way to help extend the lifespan of the vehicle.
Moreover, dealers can ensure synergy between their parts department and service lane by providing a one-stop solution for vehicle owners, who are often attracted by convenience.
Dealers can also compete with the aftermarket by selling parts online. This not only broadens their market reach but also offers consumers the convenience of buying OEM parts from home, giving them the same experience aftermarket suppliers are already offering. Platforms like RevolutionParts make it easy for dealers to set up and manage online parts stores to meet the growing demand efficiently.
By selling online, dealers can also increase profits by selling parts in volume at a more competitive price.
Conclusion
As the average age of vehicles on U.S. roads reaches a record 12.6 years, the need for maintenance and replacement parts is growing. This is a prime opportunity for dealers who are the exclusive sellers of OEM parts. By emphasizing the durability and reliability of OEM parts, dealers can attract customers looking for high-quality replacements. By connecting their parts departments with service lanes and selling parts online, dealers can meet the rising demand more easily and profitably. Platforms like RevolutionParts help dealers reach more customers and offer easy online buying options, leading to long-term customer relationships and repeat business.
Dealers should take this chance to improve their parts sales strategies and cater to the growing demand. Start by selling your parts online with RevolutionParts, today’s leading eCommerce platform. Your parts department can increase revenue and sell more parts by setting up an online store and using popular marketplaces like Amazon and eBay. RevolutionParts makes selling online easy. Click the button below to schedule a demo and learn how your parts department can scale sales with ease.
Impact of Aging Vehicles on Maintenance Needs
Increased durability is great for consumers, but it often means more frequent servicing to keep vehicles running. As cars get older, they need more regular maintenance like oil changes, brake repairs, tire rotations, and new tires. Older vehicles are also more likely to have major issues with parts like transmissions and electrical systems. This increase in mechanical problems leads to a higher demand for new parts and frequent servicing.
What This Means for Dealers Selling OEM Parts
As vehicles age and require more maintenance and repairs, it is unsurprising that many consumers will turn to aftermarket parts, which have a reputation for being a cost-saving alternative to OEM parts. However, this doesn’t mean dealers cannot capitalize on this rising trend.
As demand for parts grows, many car owners will look for quality OEM parts that match their vehicle’s original specifications. OEM parts are known for their quality and durability, which many car owners prefer. Dealers can use this opportunity to highlight the superior quality of OEM parts to help extend the lifespan of vehicles.
Moreover, dealers can ensure synergy between their parts department and service lane by providing a one-stop solution for vehicle owners, who are often attracted by convenience.
Dealers can also compete with the aftermarket by selling parts online. This broadens their market reach and offers consumers the convenience of buying OEM parts from home, giving them the same experience aftermarket suppliers offer. Platforms like RevolutionParts make it easy for dealers to set up and manage online parts stores to meet the growing demand efficiently.
By selling online, dealers can also increase profits by selling parts in volume at a more competitive price.
Bottom Line
As the average age of vehicles on U.S. roads reaches a record 12.6 years, the need for maintenance and replacement parts is growing. This is a big opportunity for dealers who sell OEM parts. By emphasizing the durability and reliability of OEM parts, dealers can attract customers looking for high-quality replacements. By connecting their parts departments with service lanes and selling parts online, dealers can meet the rising demand more easily and profitably. Platforms like RevolutionParts help dealers reach more customers and offer easy online buying options, leading to long-term customer relationships and repeat business.
Dealers should take this chance to improve their parts sales strategies and cater to the growing demand. Start by selling your parts online with RevolutionParts, today’s leading eCommerce platform. Your parts department can increase revenue and sell more parts by setting up an online store and using popular marketplaces like Amazon and eBay. RevolutionParts makes selling online easy. Click the button below to schedule a demo and learn how your parts department can scale sales with ease.
