Digital Auto Care Factbook & Lang Annual 2017 - LANG25

Section II - Executive Summary

Miles Driven. Reversing a trend of increasing annual miles per vehicle during the 1990s, average light vehicle mileage in the U.S. declined between 2005 and 2015. Cars and light trucks
in the U.S. averaged 10.72 thousand miles during 2005 with this figure climbing to 10.74
thousand miles in 2006. Thereafter, things changed. The average car and light truck was driven 10.29 thousand miles during 2008, approximately 430 fewer miles per vehicle than three
years earlier. The average light vehicle in the U.S. traveled 10.38 thousand miles during 2012
rising to 10.43 thousand miles in 2015. This reduction in average miles per vehicle between
2005 and 2015 is the result of the U.S. light vehicle population increasing at a faster pace than
total car and light truck mileage. As the average number of miles per light vehicle increased
from 1999 to 2005 and then began to decline, the average age of cars and light trucks on U.S.
roads continued to grow. Consequently, older vehicles are being driven more miles per year.
Vehicles in the U.S., especially those 12 years and older, have historically high odometer readings. This will help boost replacement parts usage among older vehicles across a wide range
of car and light truck products.
CHANGING PRICES AT THE PUMP
Average retail prices rose from $0.29 to $1.73 per gallon for regular grade gasoline between 1972
and 2016 (March 1). During this 44-year span, the pump price of regular gasoline climbed sharply
during twelve critical periods. The first oil crisis (1973-1974) sent the pump price of regular gasoline soaring from $0.29 to just over $0.50 per gallon. The second oil crisis (1979-1980) saw retail
gas prices escalate again, climbing from $0.89 per gallon in 1979 to $1.20 by 1980. Gas prices then
receded. The first Gulf War (1990-1991) drove the pump price to an average of $1.21 per gallon
in 1990. Gasoline prices climbed again at the end of 1999, with regular gas prices jumping from
$1.11 per gallon in December 1999 to $1.45 by December 2000. Pump prices continued to escalate, with gasoline reaching $1.72 per gallon early in 2004. Regular gasoline prices receded during
the fourth quarter of 2004, sinking to $1.10 per gallon in many regions. Retail gas prices soared a
fifth time during the first quarter of 2004, reaching $1.42 per gallon in April. Over the following
12 months, gasoline prices fell and then rose again, averaging $1.52 per gallon at the end of April,
2004. Prices at the pump rose a seventh time during 2004, in response to oil production shortfalls,
averaging $1.82 per gallon for the year.
During 2005, gasoline retail prices escalated an eighth time, reaching $2.21 per gallon by April,
2005, up over 20% from December, 2005. A bigger jump in pump prices occurred in September,
2005 with gas topping $3.00 per gallon in many areas. After some relief during the first quarter
of 2006, gas prices headed back up, cresting over $3.00 per gallon during September 2006 and
averaging $2.53 for the year. The tenth significant rise in gas prices occurred between late 2007
and mid-year 2008. After peaking at $4.10 per gallon on July 7, 2008, pump prices plunged 53%
to $1.93 by March 2009. Gas prices rose nearly 40% over the next 12 months. The latest run-up in
gas prices set a record year-average high at the pump during 2013, $3.63, with prices falling to a
$2.69 average for 2014 and $2.40 during 2015. Pump prices plunged in late 2015 and early 2016,
falling to $1.73 across the U.S. on March 1, 2016.

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Table of Contents for the Digital Edition of Digital Auto Care Factbook & Lang Annual 2017