R.L. Polk & Co. recently announced that the vehicle scrappage rate hit a historic low in 2005, 4.3 percent. The last time the rate came in this low was in 1949, according to the company. The scrappage rate for passenger cars for the year was 4.5 percent, which Polk said is another record low. Along with cars, light truck scrappage rates also experienced a decline, coming in at 4.1 percent. Executives said this was the third straight year fewer light trucks were scrapped.
In 2004, all vehicles scrapped came in at 5.3 percent. The scrappage rate for cars was 4.8 percent; 4.7 percent for light trucks; and scrappage for all trucks reached 6 percent.
As a result of declining scrappage rates and vehicles lasting longer, the median age of US vehicles increased across all major vehicle categories, according to Polk. The average car age was nine years in 2005, up from 8.9 years in 2004; while the average age for light trucks grew to 6.6 years from 6.4 years old in 2004.
In 2005, 34.8 percent of the light vehicle population came in at 11 years of age and older, as compared to 29.1 percent in 1996. Reviewing the same decade, Polk executives said the number of vehicles 11 years of age and older grew an average 4.5 percent each year.
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