Why Americans Are Keeping Their Cars Longer Than Ever 

According to S&P Global Mobility, the average age of light vehicles on U.S. roads reached 12.8 years in 2025, while passenger cars averaged 14.5 years. S&P points to economic conditions, changing consumer behavior, and the durability of modern vehicles as factors contributing to the aging vehicle fleet.  

The trend is expected to continue. S&P Global Mobility estimates that vehicles 6 to 14 years old will grow from about 38% of vehicles on the road in 2024 to an estimated 40% through 2028.  

Several factors are encouraging drivers to keep vehicles longer: 

• High new-car prices. Kelley Blue Book reported that the average transaction price for a new vehicle reached a record $50,080 in September 2025.  

• High financing costs. Edmunds reported that the average annual percentage rate (APR) for financed new vehicles was 6.7% in the fourth quarter of 2025.  

• Vehicle durability. S&P Global Mobility cites the durability of modern vehicles as one factor contributing to the rising average age of vehicles on U.S. roads.  

For drivers who already have a reliable vehicle, keeping it longer can mean putting off the cost of replacing it. Longer ownership can also change how you think about maintenance, repair costs, and insurance coverage over time. 

Key Takeaways 

• The average age of vehicles on U.S. roads has reached roughly 12.8 years in 2025, a record high. 

• High new-car prices, financing costs, and vehicle durability are among the factors contributing to longer vehicle ownership. 

• Keeping a car longer changes how you should think about maintenance, insurance coverage (including comprehensive and collision), and total cost of ownership over time. 

• Freeway Auto Insurance can help drivers of older and newer cars compare available coverage options based on their needs, budget, and vehicle. 

Economic Pressures: Prices, Interest Rates, and Household Budgets 

For many drivers, cost is a major reason to keep a vehicle longer. New cars can be expensive, and financing can add significantly to the monthly cost of replacing a vehicle. For someone with a reliable, paid-off car, keeping it on the road may be more manageable than taking on a new loan. 

Higher borrowing costs can make replacement even less appealing. Longer loan terms may lower the monthly payment, but they also keep drivers in debt for more years. That can make holding on to a vehicle after the loan is paid off an attractive option. 

The cost of owning a car goes beyond the purchase price. Fuel, insurance, maintenance, repairs, registration fees, and other expenses all compete for room in a household budget. When those costs rise, replacing a working vehicle may be easier to postpone. 

Drivers who keep a vehicle longer may also want to review their insurance coverage and deductibles as the vehicle’s value and their financial needs change. If the vehicle is financed or leased, they should also check any coverage requirements from the lender or lessor. 

Technology and Reliability: Why Old Cars Last Longer Now 

Another reason drivers can keep vehicles longer is that many cars remain reliable well into later years when they receive regular maintenance and needed repairs. How long a vehicle lasts depends on factors such as its make and model, maintenance history, driving conditions, climate, and how heavily it is used. 

Better materials, manufacturing, and vehicle technology can also help extend a car’s usable life. For owners who stay on top of routine service and address problems as they arise, an older vehicle may continue to provide dependable transportation without the immediate need for replacement. 

Safety features can also factor into the decision to keep an older vehicle. Depending on the model and year, a car may already have features such as stability control, antilock brakes, backup cameras, or other driver-assistance technology. Available features vary widely, so age alone does not tell you how well equipped a vehicle is. 

There can be a trade-off as vehicles become more complex. Electronics, sensors, and driver-assistance systems can make some repairs more involved, and certain work may require specialized parts, equipment, or calibration. That can make maintenance and repair costs an increasingly important part of the decision to keep an older vehicle or replace it. 

Consumer Mindset: From “New Every Few Years” to Long-Term Ownership 

Longer ownership can also reflect a change in priorities. Once a loan is paid off, many owners may prefer to keep a reliable vehicle rather than take on another monthly payment. 

Personal attachment can play a role, too. A vehicle that has been part of road trips, moves, and other milestones may be harder to replace simply because something newer is available. 

For many drivers, dependable transportation and manageable costs matter more than having the latest infotainment features. A paid-off SUV that still fits a family’s needs may remain useful even if its technology is dated. 

Longer ownership can also be a reason to revisit insurance coverage over time. As a vehicle’s value, condition, and financing status change, the coverage that made sense when it was newer may not be the same coverage that fits years later. 

Maintenance and Repair: What Longer Ownership Really Requires 

Keeping a vehicle longer can be cost effective, but regular maintenance becomes increasingly important as it ages. Putting off needed service can also lead to more expensive repairs later. 

Basic long-term maintenance for aging vehicles: 

• Follow the manufacturer’s schedule for oil, filters, coolant, transmission fluid, and other routine service  

• Have brakes inspected and replace worn pads or rotors as needed  

• Check belts, hoses, and tires regularly and replace them based on condition and manufacturer guidance 

As mileage increases, some vehicles may need more expensive repairs or replacement parts. Suspension components, alternators, fuel-system parts, and other components can wear over time, while timing-belt or timing-chain service needs vary by vehicle. The cost of a major repair depends heavily on the make, model, labor rates, parts, and the specific work required. 

When to repair versus replace: 

A vehicle’s current value is one factor to consider when deciding whether to make a major repair or replace the car. The repair cost, overall condition of the vehicle, and likelihood of additional work can also help you decide whether it makes sense to keep investing in the car or start looking for a replacement. 

Drivers of older cars may also want to consider roadside assistance coverage or a dedicated roadside assistance plan. Depending on the plan, roadside assistance may include services such as towing or help after a breakdown. Rental reimbursement is a separate coverage option that may be available after certain covered losses, depending on the policy. 

As a vehicle gets older, Freeway Insurance can help you review how deductibles and optional coverages fit your vehicle’s value, budget, and coverage needs. 

Insurance Considerations for Keeping Vehicles Longer 

As a vehicle gets older, it can be worth reviewing whether your current coverage still fits the car’s value and your budget. One common question is whether to keep comprehensive and collision coverage, especially once the vehicle is paid off. 

Liability coverage helps pay for injuries or property damage you’re legally responsible for, subject to policy terms and limits. “Full coverage” is a common term for a policy that typically includes liability, collision, and comprehensive coverage. Collision and comprehensive may help pay for covered damage to your own vehicle, subject to deductibles, limits, and exclusions. 

As a vehicle’s value changes, it can make sense to compare the cost of those optional coverages with what you might receive after a covered loss. If the vehicle is financed or leased, check your lender’s or lessor’s coverage requirements before making changes. 

Long-Term Value: Depreciation, Resale, and Total Cost of Ownership 

New cars typically lose value more quickly during their earlier years of ownership, with depreciation often slowing as the vehicle gets older. Resale value still varies based on factors such as mileage, condition, maintenance history, model, and market demand. 

A well-maintained older vehicle can still have resale or trade-in value. Keeping service records and addressing maintenance issues can also give a potential buyer or dealer a clearer picture of how the vehicle has been cared for. 

Tips to preserve long-term value: 

• Keep detailed service records and receipts for every repair 

• Fix small issues before they cascade into expensive problems 

• Protect the interior from sun damage and wear 

• Address rust promptly, especially in harsh winter climates 

• Park in covered or shaded areas when possible 

Insurance choices can affect how much financial protection you have after a covered loss. Comprehensive or collision coverage may help pay for covered damage to the vehicle, subject to the policy’s deductible, limits, exclusions, and the vehicle’s value at the time of the loss. 

How Freeway Insurance Supports Drivers of Older and Newer Vehicles 

At Freeway Insurance, we work with customers who own everything from brand-new cars to 15-year-old daily drivers and commercial vehicles. Our shop, compare, save approach lets you quickly review quotes from over 200 carriers, including options tailored to older vehicles, high-mileage cars, or drivers with tickets or previous lapses in coverage. 

Our agents can explain available coverage options for both newer financed vehicles and older paid-off cars. You can also visit a nearby Freeway office if you prefer to speak with an agent in person. 

Ready to see if your current policy still fits? Give us a call at 800-777-5620, stop by one of our offices near you, or start a quick quote online.    

Frequently Asked Questions About Keeping Cars Longer 

How long does the average person keep their vehicle today? 

Recent data shows a typical person keeps a vehicle around six to eight years before selling or trading it. However, the average age of vehicles on the road is about 12.8 years because many cars pass to second or third owners rather than being scrapped. Both numbers matter: ownership length affects your loan and insurance planning, while vehicle age on the road reflects how long cars actually last. 

When does it make sense to replace an old car instead of repairing it? 

A straightforward rule: consider replacement when a single repair will cost more than the vehicle’s current market value, or when yearly repair bills consistently approach what you would pay for monthly payments on a reliable used car. Also weigh safety and dependability – if you cannot trust the vehicle to get your family to work or school, the savings are not worth the risk. 

At what point should I drop full coverage on an older car? 

There is no single vehicle age when you should drop comprehensive and collision coverage. If you own the vehicle outright, you can compare the cost of those coverages with the vehicle’s current value, your deductible, and whether you could afford to replace the car after a total loss. If the vehicle is financed or leased, check your lender’s or lessor’s coverage requirements before making a change. 

Are older cars always cheaper to insure than new cars? 

Not necessarily. While very new cars often cost more to insure due to higher replacement values, older vehicles are not automatically cheap, particularly in large metro areas. Driving record, location, city versus rural environment, usage, and chosen coverage all play a role. Comparing quotes periodically can help you see how different carriers price coverage for older or high-mileage vehicles. 

What extra protections should I consider if I am keeping my car 10 to 15 years? 

Look into roadside assistance, towing coverage, and rental car reimbursement. Longer ownership increases the chance of needing help after a breakdown. You may also want to review your liability limits periodically based on your coverage needs and financial circumstances. Maintaining continuous coverage can also help avoid a lapse, which may affect pricing or eligibility with some insurers.