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[an error occurred while processing this directive]   Stat Corner

Scrappage Rate Declines

Posted 5/13/2006
By Karin White

Motor vehicle scrappage rates decline as vehicle longevity steadily rises to record numbers. In 2005, passenger car scrappage rates dropped to a record low of 4.5 percent from 6.4 percent in 2000. The median age of cars in 2005 is 9 years, compared to 2000 at 8.3 years.

Between 1970 and 1980, the scrappage rate declined 1.5 percent and useful age increased by 1.1 percent. Relating years 1980 and 1990, the longevity increased .5 percent, and the scrappage rate was just below 1 percent. Data gathered in years 1990 and 2000 indicated scrappage continued its decline from 7.2 percent to 6.4 percent and vehicle longevity increased by almost two years.

This news is significant for the estimated 81,533 independent general automotive repair facilities. According to mechanical members polled in the 2005 "How's Your Business?" survey, the number of work orders in 2005 has increased by an average of 16 percent from 2004. Fifty-four percent of ASA members report a sales increase in 2005, and eight out of 10 members are predicting an increase in 2006. With scrappage rates dropping, vehicle life increasing, warranties expiring and the motoring public in the United States nearing an average of 3 trillion miles driven annually, independent mechanical shops are poised for success.

Karin White [an error occurred while processing this directive]


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