There are a lot of subjective factors at play when selling your car. However, its current mileage, also known as its “odometer reading” is a crucial bargaining chip that is fully transparent to both the buyer and seller. For many potential buyers, the mileage factor is the first filter they are likely to tweak in an online search for a quality used car.
We’ve all heard the disclosure that a brand new car can lose as much as 15% of its resale value as soon as it drives out of the showroom floor. In this blog, we briefly explore the devil of depreciation in the valuation of your vehicle and which important mileage benchmarks you should pay attention to when selling your car.
The price inevitably drops as the miles rack up
Depreciation in the value of your used car is a constant clicker once you’ve started building up the miles or kilometres. But what you may not be aware of, is that a car depreciates most in its first year of ownership, sometimes by up to 25%, depending on the demand for your vehicle.
If you factor in daily driving and racking up hundreds of kilometres per week, its valuation when selling your car may decrease even further. This is due to the potential cost of maintenance and repairs required to keep the vehicle in tip-top driving condition.
The ideal mileage number to sell your car for the best price
To put it bluntly, there is no perfect number as sellers will always have different motivations for trading in their used vehicles in order to upgrade. However, we recommend keeping the following mileage thresholds in mind, and striking when the (odometer) clock hits the ideal medium:
25,000 – 50,000 Kilometers
Initial depreciation aside, a vehicle with under 50k’s on the clock is still generally viewed as a “nearly-new” car. Should you also be covered by manufacturer warranty and service plans, it is likely that you have an immaculate logbook and no major faults to report.
Selling your car in this mileage range is likely to allow you to quickly find a willing buyer and regain a lump sum for your next vehicle. Repeating this cycle is certainly not the best investment advice, but it does allow you to keep driving the latest models.
50,000 – 100,000 Kilometers
For many car enthusiasts, that dreaded six-figure mileage is an instant “swipe-left” rejection. This is why we’ve placed the 50-100k category as a marker to consider as an ideal when selling your car.
If we take it as an estimated 3-5 years of ownership and usage, you are hopefully enjoying the swansong of your warranty plan, and only starting to show gradual signs of wear and tear. With your first (and second) major service honoured, this would be a timely opportunity to sell your used car before you run into any expensive repairs.
100,000 + Kilometers
Not everyone has the luxury of being able to snap up the latest model. And it is not uncommon for many drivers to keep the same car for well over 10 years. Of course, depreciation will continue to rear its ugly head and you will have likely encountered a few major repairs at this stage.
Ultimately, a car with 100k’s plus on the clock is less desirable to buyers. However, if you’ve been faithful to servicing and repairing any faults, you can still expect to receive a fair price from a willing buyer when your make, model and condition fall sweetly into their price bracket.
Get ‘miles’ more than you hoped for when selling your car
While mileage is an important indicator, there are many other factors that will determine the offers you receive when selling your car. It also pays to keep a constant watch on your fuel consumption, to determine if it is really worth holding onto your current vehicle.
Whatever miles/kilometres you’ve clocked up, you are likely to find the widest audience of buyers by listing it on a reputable online marketplace where you are likely to get the best deal.
Is it time to reset your clock?
