Average Age of Motor Vehicles

IBISWorld estimates that the average age of vehicles in the United Kingdom will rise at a compound annual rate of 0.6% over the five years through 2023 to 8.9 years. The average age of the UK car stock is determined by the number of new car registrations and the number and age of cars being taken off the road. The combination of the two shifts the average age of UK cars on the road from year to year.

Over the past five years, the number of new car registrations has decreased. However, this has not led to a reduction in the average age of motor vehicles on UK roads, as people continue to hold on to older cars for a longer time. New car registrations were up strongly again over 2015-16 and 2016-17, contributing to a decline in the age of the average car on the road. However, new registration growth reversed in 2017 for the first time in six years, with the SMMT reporting new car registrations decline of 5.4% during the year. Confusion about the future of diesel fuel types and confusion over emissions testing contributed to a significant decline in diesel sales.

In 2018, 2019 and 2020, the number of new car registrations has continued to fall, according data from the Society of Motor Manufacturers and Traders. This is while the number of vehicles on UK roads, meaning that people have held onto cars for a longer time. In 2020, the average age of motor vehicles rose by 5.6%, as the COVID-19 pandemic severely affected the automotive industry in several ways. This included the temporary closure of automotive factories and car show rooms for much of the year, which significantly reduced the ability to supply and register new motor vehicles. Additionally, coronavirus restrictions caused customers to delay purchases of new vehicles, instead repairing older vehicles. Over the 12 months through December 2020, new car registrations fell by 29.4%, according to SMMT data, because car dealerships remain closed for much of the year. New car registrations have recovered in 2021 in line with easing of coronavirus restrictions, which brought down the average age of UK vehicles. In 2021, new car registrations expanded by 1%, when compared to the previous year, however this remains below pre-pandemic levels. Customers are holding on to vehicles for longer and opting for repairs, which has benefited the repair and maintenance industry. This trend and longer lasting vehicles have kept average age of vehicles high. New car registrations have remained low in the first six months of 2022, falling by 11.5% when compared to the same period in the previous year. The sharp expansion in the cost of living driven by inflationary pressure, which has caused more households to delay discretionary purchases including new vehicles, raising the average age of UK vehicles. New car registrations are rising in 2023, depressing the average age of UK cars as the market recovers.