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"CRASH COURSE 25: DRIVING THE FUTURE"

The Forces Shaping the U.S. Car Parc in 2025 and Beyond

The U.S. car parc is rapidly evolving, driven by technological advancements, economic shifts, manufacturer production trends, and changing consumer preferences and behaviors. Rising vehicle costs and higher interest rates are leading to longer vehicle ownership, with the average vehicle age projected to increase to 13 years by 2026. At the same time, the adoption of Alternative Fuel Vehicles (AFV) is accelerating, reshaping manufacturing, insurance models, and repair complexity.

Combined with the increase in Advanced Driver Assistance Systems (ADAS), the shift toward larger vehicles, and increasing vehicle complexity – particularly with EVs and hybrids - these forces are fundamentally transforming the makeup of the U.S. car parc.

As the industry adapts, stakeholders must navigate these shifts strategically to stay ahead. This Q1 2025 Crash Course report analyzes these trends and how they’re creating both challenges and opportunities for automakers, insurers, and repairers.

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