BUSINESS & AG LIFE
THURSDAY, MAY 26, 2022
THE OBSERVER & BAKER CITY HERALD — B3
Average U.S. vehicle now record 12.2 years old Improper notifi cation
to Social Security has
widow facing the
tough earnings test
BY BREANA NOBLE
The Detroit News
DETROIT — The
average age of light vehi-
cles in operation has hit
a record, increasing by
two months this year to
12.2 years, as a shortage
of vehicles is keeping
Americans in their cars
for longer, according to a
study released on Monday,
May 23.
It’s the fi fth consecu-
tive year of increase even
as the U.S. vehicle fl eet
recovered, growing by
3.5 million vehicles in the
past year, according to the
report from fi nancial infor-
mation fi rm S&P Global
Inc.’s mobility team. The
results are indicative of
pent-up demand that’s
likely to keep automakers,
their dealers and repair
shops happy for years
to come.
Prior to the pandemic,
researchers had expected
the average age of vehi-
cles to fl atten because
of declining sales from
their more than 17 mil-
lion annual peak. Inter-
rupted production from the
COVID-19 pandemic fol-
lowed by a global micro-
chip shortage and other
scarce parts, however,
has depleted dealership
lots and sent up the price
of vehicles.
“It is a little bit of a
unique situation driving
the growth trajectory,” said
Todd Campau, automotive
aftermarket practice lead
at S&P Global. “We expect
it to continue to grow for
a few years and then drop
off in the ’25, ’26 range,
depending on how the pan-
demic, pent-up demand
LIZ
WESTON
ASK LIZ
Tribune News Service, File
In the United States, the average age of a car on the road is 13.1 years, while trucks sit at 11.6 years,
according to a May 2022 report from fi nancial information fi rm S&P Global Inc.
and scrappage work out.”
The average age of a car
on the road is 13.1 years,
while trucks sit at 11.6
years, according to the
analysis.
Scrappage volume for
2021 was at more than 11
million vehicles, a rate of
4.2% of vehicles in oper-
ation. That was the lowest
annual rate in the past two
decades, a reverse from
2020 that saw the highest
volume in two decades at
more than 15 million vehi-
cles, the second highest
rate at 5.6%. A return to
work and other activi-
ties as well as increasing
demand for rental fl eets
contributed to the reversal
with drivers traveling
more than 12,300 miles on
average, a 10% increase
year-over-year. Unused
vehicles during lockdowns
may have once again been
registered, Campau said,
also contributing to the
increased number of vehi-
cles in operation.
“Finding a new vehicle
is extremely challenging,”
Campau said. “If you
can wait, the situation is
expected to get better in 18
months or so.”
That means more
drivers may be headed
to the repair shop due to
aging vehicles. S&P Global
was forecasting an 11%
increase in service and
repairs in 2021 from 2020.
It appears that it surpassed
that, Campau said.
Of course, increasing
age of American cars
likely means vehicles with
worse fuel economy stay
on the road, costing drivers
money in higher gas prices
and emitting more pollu-
tion than newer models.
Automakers have said
they are prioritizing vehi-
cles with better fuel
economy and higher profi t
margins.
A 40% increase in EVs
to 1.4 million vehicles in
operation decreased their
average age to 3.8 years
from 3.9 years last year.
“What you’re seeing
there,” Campau said, “is
just how fast their sales are
growing.”
Dear Liz: My dear
friend lost her husband a
few years ago. The hus-
band did something wrong
with working and col-
lecting Social Security, so
they are now withholding
her $2,000 monthly Social
Security check, which is
devastating to her. Can she
be punished for what he
did unbeknownst to her?
She is stuck and doesn’t
know what to do.
Answer: People who
start Social Security
before full retirement age
face the earnings test,
which reduces benefi ts
by $1 for every $2 earned
over a certain amount
(in 2022, the amount is
$19,560).
It sounds as though
the husband didn’t prop-
erly notify Social Secu-
rity about his earnings
and the overpayment
wasn’t discovered until
after his death. Whenever
Social Security is unable
to recover an overpay-
ment from someone, the
agency can collect from
anyone else receiving ben-
efi ts on that person’s earn-
ings record, said William
Meyer, founder of Social
Security Solutions, a ben-
efi ts claiming site.
The letter notifying
her about the overpay-
ment would have included
a section about her appeal
rights. If the earnings
information was incorrect,
for example, she would
have 60 days to appeal
and supply the correct
amount of his earnings.
She also can call the
agency’s toll-free number,
(800) 772-1213, and
request that less be taken
from each check. As long
as the total owed is paid
off within 36 months,
the agency will comply,
Meyer says. If she can’t
aff ord to have the over-
payment repaid within 36
months, she can request
longer but she’ll have
to provide proof of her
income, resources and
expenses, he said.
If she’s in dire straits
and can’t aff ord to pay
any of the money back
— in other words, if she
can’t meet her “ordi-
nary and necessary living
expenses” — she should
submit an SSA-632,
“Request for Waiver of
Overpayment Recovery”
form, Meyer said.
█
Liz Weston, Certified Financial
Planner, is a personal finance
columnist for NerdWallet.
Questions may be sent to her
at 3940 Laurel Canyon, No.
238, Studio City, CA 91604, or
by using the “Contact” form at
asklizweston.com.
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KNOW YOUR
BUSINESS
Even if you think they do,
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ing them about it.
No need to travel all over town to
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