The vehicles running on the road these days are getting old almost completed their life span. The pandemic has hit the automotive industry and resulted in low sales of new vehicles. The research has shown the vehicles running have crossed 12 years of age and still, Americans are running them due to the COVID-19 crisis.
The study from IHS Markit has shown the vehicles running have an age of 11.9 years. The pandemic has resulted in a worse year for the Automobile market as new vehicle sales in the market recorded at 6.1 percent and by the end of the year, it can go down by 5 percent.
It has given rise to scrap cars, junk cars, and more old cars running on the road which is polluting the environment as well as it can change the structure of total miles driven and wear and tear on vehicles to secure them for running on roads.
The decline in the sale of new vehicles is giving rise old aged vehicles. However, automakers lend them a hand by offering long-term financing plans, extensions, and deferred payments. The customer’s financial position has been majorly affected by the COVID-19 Pandemic which has decreased their buying power or in other words, they cannot afford a new vehicle.