3 Auto Stocks to Capitalize on Aging U.S. Vehicles (Revised)

Industry Insights - The average age of U.S. vehicles reached a record 12.6 years in 2024, marking a two-month increase from 2023 and the seventh consecutive year of rising vehicle age [1] - The aging vehicle population is driving increased demand for repairs and maintenance, creating opportunities for companies in the aftermarket and vehicle service industries [2] - Advancements in technology and the high cost of new vehicles, with an average selling price exceeding $45,000, are significant factors contributing to vehicle longevity [4][5] - The U.S. vehicle fleet reached 286 million vehicles in operation in January 2024, a 2 million increase from 2023, with a notable shift in age distribution due to supply chain disruptions [6][7] Company Highlights - Rush Enterprises (RUSHA): A leading provider in the commercial vehicle industry, Rush has seen healthy growth in aftermarket demand, particularly in the public sector and waste management. The company has increased its payout seven times in the last five years, with an average annualized growth rate of 30.4% [8][9] - Dorman Products (DORM): Dorman focuses on the motor vehicle aftermarket, consistently expanding its product line. The acquisition of Super ATV has enhanced its prospects, and the company maintains a manageable debt-to-capitalization ratio of 29% [10][11] - Genuine Parts (GPC): GPC has strengthened its position through the acquisition of Motor Parts & Equipment Corporation and has improved supply chain efficiency. The company has a dividend-aristocratic status, approving a $4 per share annual dividend for 2024, marking its 68th consecutive annual increase [12][13]