Average Age of Cars = 13.6 Yrs, CO Dethrones CA, Billions Lost Due To Poor Experiences

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As we enter a new week, we’re considering how the average age of cars is affecting parts and service. Plus Colorado is now the most EV state in the US, topping California, and a new study is showing that bad customer service is costing retail stores billions.

Show Notes with links:

• Despite a record number of aging vehicles on the road, the auto repair and parts industry is facing challenges as economic pressures affect consumer spending habits.
  • The average passenger car is now 13.6 years old, up from 8.4 years three decades ago, creating a high demand for maintenance.
  • Inflation, higher interest rates, and supply chain issues have led consumers to defer maintenance or opt for cheaper, off-brand parts.
  • Companies like Monro, Genuine Parts, and Valvoline have reported significant drops in sales, citing cautious consumer spending.
  • Carfax data shows 30% of vehicles are overdue for tire rotations, while 19% are late for oil changes, despite the high return on maintenance investment.
  • Executives from AutoZone and O’Reilly Automotive predict a bounce-back as deferred repairs eventually become unavoidable.

• Colorado has dethroned California, emerging as the nation’s leader in EV sales, with a stunning 25.3% of new vehicle sales being electric in Q3 of 2024. Here's what’s driving the surge:
  • Residents enjoy up to $12,500 in combined state and federal EV tax credits.
  • Over 5,500 public charging ports are operational, with $5M allocated for 576 additional ports in 2024.
  • 82% of EVs sold in the state are fully electric, signaling robust consumer demand.
  • Governor Jared Polis champions EVs as key to achieving net-zero emissions by 2050, urging residents to act before state tax credits decrease in 2025 from $5000 to $3500.
  • Will Toor, Colorado Energy Office Director, states, “Our commitment to making electric vehicles affordable and reliable is paying off.”

• Retailers are losing an estimated $262 billion annually due to inadequate in-store experiences, according to a study by Forsta.
  • Nearly half of negative customer reviews are tied to issues like mismanaged checkouts and unhelpful staff, leading to frustration and lost sales.
  • The study revealed that 74% of US adults will abandon a store without making a purchase after a bad experience.
  • While online sales on Black Friday saw a 14.6% increase, in-store sales grew just 0.7%, with foot traffic dropping by 3.2%.
  • Forsta CEO Kyle Ferguson emphasized the importance of in-store experiences, stating that poor service erodes trust and loyalty. He pointed to Walmart’s use of AI-powered tools to improve customer interactions as a model for others to follow, urging retailers to prioritize in-store environments during peak retail periods.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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