This One Chart Perfectly Explains Why
The Auto Market Is Doomed
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- ..if only 13 million cars are getting scrapped each year, that implies a 20-year average useful life and a 'normalized' annual SAAR of 13 million...not that complicated but somewhat inconvenient for the auto OEMs.
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The problem is that the useful life of cars has actually improved dramatically over the past 20 years which only makes the 'normalized' number even worse. Per data from the Bureau of Transportation, the average age of vehicles has increased at a CAGR of 1.6% per year over the past two decades
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...more than enough to offset population growth.
in other words...sales have topped off. From now on it's down..down...DOWN.
But WAIT...there's MORE
No need to buy an automobile any more.
You always appear with a good post mr. @everittdmickey
Thank you.
I surf the net , find the good stuff
and post it.
So you don't have to.
Will be very interesting to see how self-driving cars disrupt this market.
Pretty much kill it I imagine.
Why buy cars any longer?
The issue with self driving cars is how they will share the road with human drivers, should be interesting!
I'm a retired trucker.
3 million accident free miles.
Need I say more?
I do not trust my GPS to get me to my destination!