People are holding onto their vehicles longer than ever with the dip in the economy a good part of the reason. According to the Polk research firm, the average age of cars and trucks on the road in the US is 10.8 years old, still pretty high from a record high of 11.1 years the year prior.

While the economy is a factor, one can also take into consideration that the reliability of cars has and continues to go up. Then again, that all depends on who you talk to as we all have our own preference and opinions.

Via USA Today:

“But Polk Vice President Mark Seng says a rebound in sales last year and expected growth the next couple of years is likely to slow the aging trend. Polk has not predicted if or when the age will start to drop, but Seng doesn’t see that happening for two or three years, if not longer.”

“It’s going to take the good economy several years of very high sales again, and people being willing to let go of those older vehicles that they’ve been holding onto,” Seng said.”

Fortunately, auto sales continue to rise after reaching a 30 year low of 10.4 Million in 2009. Polk expects sales to rise about 1 Million per year through 2015.

“The aging of the American auto fleet has been a boon to repair shops and companies that sell replacement auto parts, and Seng expects that to continue. He says people can hang onto their cars longer because automakers are making them far better than they did in 1995, the first year that Polk began tracking the average age.”

Do you drive an older car?

Average Car On The Road Gets Older, Now Almost 11 Years Old is a post from: The Inquisitr

With consumers still concerned about the economy, Automakers across the country are beefing up their production of compact cars. Ford, GM, Toyota, and Hyundai have all added Saturday shifts to keep up with consumer demand as customers continue to look for smaller ticket prices and better gas mileage.

Compact car sales are up nearly 13 percent from last year. Through July, Automakers sold nearly 1 million compact cars, despite the fact that sales for the two most popular models, the Honda Civic and the Toyota Corolla, have dropped.

According to Boston.com, companies like Ford and GM are trying to scoop up compact car sales as Japanese manufacturers continue to struggle to find parts after the march earthquake.

Chevrolet is leading the compact car charge with the Chevrolet Cruze. Sales numbers for the Cruze are up 74% over Chevy’s previous compact offering, the Cobalt. GM introduced the Cruze last year, and this July it was the top selling car in the country.

Sales for the Nissan Sentra are up 33%, while Hyundai Elantra sales are up 54%.

In fact, automakers are selling so many compact cars that they are having a hard time keeping them in stock. At current sales rates, GM only has enough Cruzes for 27 days on their lots, which is well below the 60 day mark which is considered optimal.

Scott Fink, the president of Hyundai of New Port Richey in Tampa, Florida, told the CS Monitor:

“As the Elantras come in, nine out of 10 of them are pre-sold. So we really don’t have any in stock.”

But despite the compact car boom, the auto industry is still expecting sales to drop. IHS, which originally estimated that 12.7 million cars would be sold this year. Has dropped that number to 12.5 million. Automakers are expected to discount cars and add incentives at the end of the year to boost sales. Will you be buying a compact car?

Automakers Increase Compact Car Production is a post from: The Inquisitr

The American auto industry may be on the edge of collapse with the US Senate set to reject the proposed $14 billion auto bailout, the last opportunity to approve the bailout until the new year.

The formal vote is still to be had, and Democrats said that they would present it anyway, but talks with minority Republicans failed to find support.

The White House said in a statement that it would evaluate its options, but declined to say what those options may be. Democrats have previously asked that some of the $700 billion bailout package approved in October be used to prop up the auto industry, an approach President Bush has so far rejected.

Oh well, they can always sell their corporate jets, that might cover GM and Chrysler for a day of two until they file for Chapter 11 bankruptcy.

Senate to Auto Industry: No Bailout for You is a post from: The Inquisitr