2000 Buick Century-12

Americans are holding on to their vehicles longer. In 2012, the average household vehicle was 11.3 years, up from 10.1 years in 2007, the year the recession began. People usually opt for new vehicles during an economic recovery, but not recently. That means cars, like this 2000 Buick, can still be found in many driveways.

(GM)

CLEVELAND, Ohio - Clunker. Jalopy. Hooptie.

In the past, older vehicles were often referred to by such names, even if they were in decent running condition. Now the old buggy is more apt to be called something else: the family car.

The average age of vehicles in American households was more than 11.3 years in 2012, according to the Labor Department's Bureau of Labor Statistics, or BLS. That was up from 10.1 years in 2007. The figure included cars, vans, sport utility vehicles and trucks.

One would have expected the average age of vehicles to have dropped after the recession, said Ryan Pfirrmann-Powell, the Washington, DC-based economist, who authored the recent BLS article on aging automobiles. Better economic times often prompt drivers to replace their old vehicles. The recession officially began in December 2007, and ended in June 2009.

When Pfirrmann-Powell analyzed data from BLS' Consumer Expenditure Survey, he saw Americans were bucking the trend that had held true following most recessions. The national survey contains information from households including their buying habits and incomes. The survey has two components: a quarterly interview survey, aimed at capturing large purchases and a weekly survey in which consumers keep diaries, aimed at capturing smaller purchases.

"All but the wealthiest income groups in the Consumer Expenditure Survey appear to have delayed their decision to purchase a new car by more than a year," he said in an email. "Additionally, many households that might have purchased a newer vehicle before the recession are now buying older, used vehicles."

In 2007, 33.9 percent of vehicles were between 11 and 20 years old. By 2012, the figure had increased to 42.4 percent. In 2007, 22.2 percent of vehicles were five years or less. By 2012, the figure had fallen to just under 15 percent.

A snapshot from 2012 offers another glimpse at how Americans like holding on to their vehicles. For households selling vehicles that year, the average age of the car or truck was 15. For families donating or giving away a set of wheels, the average age of the vehicle was 14. The average age of a trade-in was 9.

Owning an older vehicle can save family money in addition to not having a car payment. On average, operating an older car is less expensive than one several years newer. For example, annual maintenance and repair expenditures for a 6- to 10-year-old vehicle was $588. Operating an 11- to 15-year-old one decreased slightly to $576.

As expected, cars five years or newer had the lowest maintenance and repair expenditures at $437 a year. But surprisingly, right behind the newest group was the oldest group of vehicles. Expenditures for vehicles 21 to 25 years old were $457 and $483 for those 16 to 20 years old.

"[M]y analysis suggests the existence of a "sweet spot" for vehicle costs after about 16-20 years of age," Pfirrmann-Powell wrote in the email.

He said that a vehicle 16-20 years was four times more likely to have a motor repair or replacement than a vehicle 5-years-old or newer. However, "declining expenditures on tires, oil changes/filters, body work, vehicle products and cleaning offset these costs.

"The shape of this curve suggests households that hang on to cars longer (16+ years) are shifting expenditures away from routine maintenance and aesthetic repairs and focusing on just keeping their older cars running," he wrote.

Perhaps this supports the phrase often uttered by the owners of older vehicles, that goes something like this: "It may look bad, but it still runs."

Nearly all of the terms for older vehicles - beater and bucket of bolts among them, suggest that an old vehicle has to be poor-running vehicle. Perhaps as people keep their vehicles longer, new words will come into the lexicon that won't divorce age from good condition.

Money Saver? Sweet Spot? Driving all the way to the bank?

Even though the survey shows how owning an older vehicle may save a family money, it doesn't offer a reason why households are holding on to their vehicles longer. Pfirrmann-Powell excludes at least one reason.

"Some have suggested that cars are aging because the quality of cars has improved, but looking at historic maintenance/repair costs and given that the duration of ownership for each vehicle is increasing coextensively, I don't see evidence of this," he wrote.

One thing the recession didn't do was cause Americans to abandon our love affair with the automobile. We've just grown to take them older. (Fifteen is the new 5.)

"During the recession there was no noticeable decline in car ownership rates, which remained close to one vehicle per driving age member of the household over the last decade," Pfirrmann-Powell wrote.

This may be changing among at least one group.

"There may be a slight, recent decline in car ownership for young professionals in dense urban areas," he added.