Drivers hang onto their cars longer

DETROIT -- People are keeping cars and trucks longer as quality improves and the shaky economy makes new purchases less appealing, according to a study out this week from automotive consultancy firm R.L. Polk.

Polk said the median age of cars on U.S. roads was 9.2 years in 2007, tying the record set in 2006. In 2007, 41.3% of all cars were 11 years or older, vs. 40.9% the year before.

The median age for trucks and SUVs rose 4% to 7.1 years. Dave Goebel, a consultant for Polk's aftermarket team, said those numbers are starting to reflect a surge in truck and SUV purchases in the mid- to late 1990s.

Goebel said he expects the average age of trucks and SUVs will rise to match cars once growth slows and the segment settles into a more stable pattern.

U.S. new car sales fell 3% in 2007 as factors including gas prices and the economy weighed on consumers.

But Goebel said durability really is the main driver of rising vehicle age. There are more vehicles per household than ever, he said, indicating that people buy cars and then hang on to them because they last longer.

"Each new model year the technology continues to get better, and there are fewer components that fail, so we expect to see these trends continue," Goebel said.

The Service Contract Industry Council, a trade group for extended warranty providers, also sees evidence people are keeping vehicles longer. Despite the 3% drop in sales last year, there was a 3% to 7% increase in auto service contracts sold as buyers sought more coverage than the traditional three-year manufacturer's warranty, says Tim Meenan, executive director.

The group sees sales this year of 5 million auto service contracts, which may cover parts that manufacturers' warranties don't and may extend up to seven years. Meenan predicts continuing growth as more buyers are taking longer loans. While 79% of loans are for five to six years, 4% now are seven and 0.1% are for eight or more, according to auto data firm J.D. Power.

The Polk report was based on a survey of 240.9 million cars and light trucks.