Consumers may not need to take out a loan for their next automobile purchase, as more drivers on the road are sticking with older models, according to a new report from Experian Automotive. The Automotive Market Trends study found that 28.3 percent of cars on the road during the first quarter of 2014 were models predating 2001.
Some of the most popular card included the Ford F-150, Honda Accord, Ford Ranger and Toyota Camry. The number of old cars on the road from the first quarter is up 22.1 percent from the the first quarter of 2008. Melinda Zabritski, Experian Automotive's senior director of automotive credit, said that these cars are dependable, but sticking with older models could hurt the automotive industry.
"Auto companies have been seeing the benefits from consumers coming back to market due to pent up demand following the recession," Zabritski said. "However, it's clear that more and more consumers continue to drive older-model vehicles."
She went on to say that consumers are clinging to their older cars because they are trying to get the most out of them and are holding off on buying new ones for the time being.
Entry-level crossover utility vehicles have also been a popular option during the first three months of the year. Among new registrations, entry-level CUVs usurped the No. 1 spot from full-size pickup trucks. Experian Automotive noted this is the first time that CUVs have been the top new registered vehicle in 10 years. During that time, full-size pickups and small economy cars have dominated the market.
New models are still popular options for potential buyers, but the data showed these automobiles only accounted for 27 percent of all registrations during the first quarter of 2014, relatively unchanged compared to the previous year.