People Replace Their Gas-powered Cars Every 12 Years, While Electric Cars Are Renewed Every 3 Years

According to a study by S&P Global, a noticeable divide has emerged in how long Americans keep their cars, depending on whether the vehicle runs on gasoline or electricity. While internal combustion engine (ICE) vehicles are being held onto for longer periods, electric vehicles (EVs) are being replaced more frequently.

The study, conducted in the United States, a country where cars are often essential to daily life, revealed that the average vehicle age has climbed to 12.5 years, and even higher to 13.6 years for privately owned passenger cars, excluding vans. This trend marks the sixth consecutive year of growth in vehicle lifespan, and S&P Global interprets it as a clear sign of a broader shift: people are keeping their gas-powered cars longer than ever. Several factors are behind this.

One is a noticeable slowdown in new vehicle sales, which fell by 8 percent in 2022 compared to the previous year. With just 13.9 million new units sold, the market reached its lowest point in over a decade. This echoed patterns seen during the 2008–2009 financial crisis, when declining demand led to an aging national fleet. In 2022, lingering supply chain issues, cautious consumer spending, and the effects of inflation and high interest rates reinforced this aging trend.

In contrast, electric vehicles are on a far shorter replacement cycle. On average, EVs are traded in or replaced every 3.6 years. This faster turnover is largely attributed to the profile of EV buyers, who tend to be more affluent and willing to upgrade often. These consumers are drawn to newer models boasting longer driving ranges, improved technology, and better performance. With companies like Tesla and BYD pushing out more advanced vehicles every year, there’s a constant incentive for early adopters to stay on the cutting edge.

Another key reason ICE vehicles are retained longer is their perceived reliability for long-distance travel. Even in households that own both types of vehicles, many choose to keep a gasoline car on hand, even if it’s driven less frequently. The peace of mind offered by an unrestricted driving range is something EVs, despite all their progress, are still working to fully match. The limitations of charging infrastructure and concerns about range continue to hold sway over driver confidence.

Price inflation in the automotive sector has also played a role. Both ICE and EV models have become more expensive in recent years, which further encourages car owners to hang onto their vehicles instead of venturing into costly new purchases. Interestingly, while EVs change hands more often, the majority of those who switch to electric power tend to stay within the segment. The loyalty to electric drive systems is strong once a buyer is converted.