How Much Does Mileage Impact Car Values?
Many things can cause a change in your car’s value but one of the major factors is mileage. Maybe you’re planning to sell your car, and that’s why you want to find out if mileage impacts the value of your vehicle? 🤔 You are probably wondering about the selling price you can ask from an interested buyer. Let’s dive in and learn more about mileage and its effects on a car’s value.
Is Mileage Important?
Mileage is the total number of miles that you and any previous owners have driven your vehicle from new. It can indicate how much you’ve used your car since you drove it home from the dealership. The higher the mileage of the car, the more it has been used, and the greater the wear and tear on parts. High mileage also means that the car needs to be serviced more often to check for any issues.
Low-mileage vehicles can be sold at a higher price compared to high-mileage cars even if they’re identical in age, make, and model. However, mileage is not the only factor that affects the value of a vehicle. The overall condition of a car, for example, plays a crucial part as well. So even if a car has low mileage but hadn’t been maintained well, then there’s a good chance that it can’t be sold at the higher guide price.
Mileage and Wear and Tear of Car Parts
From the perspective of the buyer, mileage can also help in setting expectations. High mileage means there’s reasonable wear and tear on the car parts. If the vehicle has lower mileage, then the buyer can expect that the brake pads haven’t been worn out as much.
Tyres are also among the parts that can show how much the car has been used. If you’re selling your car, it might be a good idea to consider changing tyres first to be able to command a better price.
Changing tyres and car fluids, along with minor repairs can add to the value of the car so you might want to consider taking these steps to get a bit more for your old vehicle.
What is a Good Mileage?
On average, UK car drivers reach a total of about 6,000 to 10,000 miles per year. For cars that are two years old, their mileage could reach up to 20,000 miles. Five-year-old cars might reach 50,000 miles and vehicles that are eight years old could have a mileage of 80,000.
Diesel cars are known to have higher mileage because they are more fuel-efficient than petrol vehicles. Drivers who have frequent long trips by car tend to choose diesel cars because of this reason.
How Much Does Mileage Impact Car Values?
It’s impossible to give an exact number without fully knowing all the details of the vehicle. However, you can get an idea by assessing other factors apart from mileage.
For example, factors such as cosmetic wear, market demand, wear and tear, and plate changes can contribute to the changes in your car’s value. Also, you might want to know more about new laws such as the ULEZ because that also affects the value of your vehicle.
When it comes to depreciation, brand new cars depreciate faster than secondhand vehicles. For a new car, it can lose up to 50% of its value just within its first year. In the following years, it will continue to lose 10% of its value.
The rate of depreciation could be higher if it has high mileage and if the car wasn’t maintained well. A general rule is that for every 20,000 miles that’s been added up to the total mileage, you can expect that about 20% of the car’s value has been lost.
What’s the Maximum Mileage of a Car?
A car that has been properly cared for can last a good decade before big, expensive problems start to emerge. If you have a car that has reached 150,000 miles but is well-maintained, you might still be able to sell it for a reasonable price.
As long as you take care of your vehicle, you can expect to use it up to 300,000 miles. Of course, you need to be ready for major repairs as well as the replacement of car parts along the way. And at that point, you may want to think about whether it’s worthwhile spending on those repairs rather than simply buying a new car.
Signs You Need a New Car
Major Repairs Have Become Regular
Repairs are to be expected but if you find that your car is breaking down every week, then that’s not a good sign. It’s costing you money as well as time and energy and it’s not worth it sticking to a car that’s causing you a lot of inconvenience.
Higher Insurance Premiums
Insurance companies assess your vehicle so they can calculate the premiums you need to pay either monthly or annually. If the insurer finds that your car has become risky to insure because it tends to break down a lot, then expect to pay higher premiums.
MOTs are important because it's a test to check whether your vehicle is still safe to drive and roadworthy. If your car has been failing its MOTs, then there are undeniable issues with it. You may try to get it fixed but weigh up the pros and cons of getting your car repaired versus using the money as a down-payment for a new car.
A car’s mileage tells a lot about how much the car has been used. But keep in mind that mileage is not the only factor that impacts a car’s value. There are a lot of other things that can affect the value of a vehicle.
If you’re thinking about selling your old car so you can buy a new one, consider its mileage, other factors, and whether you can get minor issues fixed so you can prepare the vehicle for selling and get a good price out of it. 😊