3/15/2011
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Vehicle Scrappage Rates Reach Highest Level Since Cash for Clunkers
Additional Experian research shows nearly 29 million vehicles were either introduced, changed owners or were scrapped from July 1 to Dec. 31, 2010.
Experian Automotive has announced findings from its Q4 2010 Vehicles in Operation (VIO)
market analysis. Findings from the report showed that the rate of
vehicles removed from operation significantly increased in Q4 2010 when
compared to Q3 2010 for both cars and light trucks.
“The past quarter saw the biggest jump in vehicle scrappage rates since
‘Cash for Clunkers’ in 2009,” said Marty Miller, senior product manager
for Experian Automotive. “With the high number of vehicles coming out of
operation and the overall number of VIO going down, it is more
important than ever for automotive aftermarket organizations to ensure
they have the most up-to-date market data available to help them make
better inventory decisions, manage the supply chain and drive
profitability.”
Experian’s U.S. and Canadian Vehicles in Operation (VIO) data, which is
coded to Automotive Aftermarket Industry Association (AAIA) standards,
includes more than 25 detailed vehicle attributes for 1967 and newer
vehicles and includes quarterly deliveries for both Canada and the U.S.
The quarterly report showed the scrappage rate in Q4 2010 for cars
increased by 28.3 percent, compared with Q3 2010, while the rate for
light trucks in Q4 2010 more than doubled, rising by 58.2 percent over
the previous quarter. For all of 2010, the annual scrappage rate was 5.3
percent for cars and 3.5 percent for light trucks.
In addition to findings from the quarterly report, Experian Automotive
also conducted a market trend analysis, highlighting changes that have
taken place in the number and types of vehicles on the road during the
six month period ranging from July 1 to Dec. 31, 2010.
Results of this analysis show significant changes within VIO, according to Experian.
Additional Q4 data insights and further results of the six-month market
analysis will be presented in Experian Automotive’s quarterly webinar
slated for mid-April. For more information, click here.