Consumers who financed an auto loan to purchase a car in the last few years are unlikely to head back to the lot to look for a new one soon, according to a report that indicates car buyers are hanging onto their purchases for a record amount of time.
The average length of ownership of a new car has risen to nearly six years, or 71.4 months, according to researchers at automotive marketing firm Polk. Used car owners are hanging onto their rides for an average of 49.9 months. Together, the average length of ownership for all car purchases is 57 months, a 23 percent increase since 2008.
As with trends in most industries, these findings are largely a result of the recent economic downturn, according to Polk. Consumers have been reluctant to make large purchases while the economy has been weak. People are also financing car credit on longer terms than in past years, and taking out extended warranties to cover repairs and maintenance on their cars.
Those hanging onto their cars for longer may be relieved to know that autos made in the last few years are 13 percent more reliable than those made in the past. A new analysis from J.D. Power and Associates finds a lower rate of problems per 100 vehicles in cars made during 2009 than for cars made in any period dating back to 1987.
