Older Cars: The Good & The Bad

1999 Mazda626: one example of a median age vehicle
Photo © Mazda

Interesting news from R.L. Polk & Company via BlackBook.com’s April 2008 newsletter. The median age of cars on U.S. roads rose to 9.2 years in 2007, and 41.3 percent of all cars were 11 years old or older.

That’s good news for people buying a used car. As people keep their cars longer, used car dealers are going to feel pressure to move their products. That means lower prices all around.

But, there’s also concern that the cars are on our roads are getting older. While I’m sure our roads will never resemble the classic-car showcase look of Havana’s streets, it means there are lots of vehicles out there with more than 150,000 miles on them (on average) and lacking modern safety equipment.

Of course, older used cars are also a great way to get out from under punishing new car loans. Buy one for a couple of years, save a bunch of money, and then buy that new car you’re been thinking about. About.com’s Miriam Caldwell, who writes about Money for Folks in their 20s, outlines how it works.