At What Mileage Does Your Car Begin to Lose Value?

When you decide to sell your car, one of the things you’re likely to consider is the mileage. As a vehicle gains miles, the value of that vehicle typically decreases. Still, there is no set rule in how many miles is too many. At what point does the increase in mileage dictate a drop in value? 

This is a good question and one we’re going to explore in depth. We want you to understand the nuances of vehicle depreciation so car owners can make an informed decision about when to trade, sell, or hold onto that car. In this blog, we’ll take a closer look at what point in mileage increases does a vehicle begin to lose its value.

Depreciation Curve

Vehicles experience depreciation just like many other consumer goods, which means the value decreases over time. Cars differ from other items because their depreciation isn’t linear. The drop in value is often steep in just a few years after it’s purchased. Studies say a new car loses about twenty percent of its value in the first year. After that, the rate of value reduction slows down, but mileage is a significant factor. 

How Does Mileage Impact the Value of a Vehicle?

In truth, there’s no specific number of miles that indicates a specific time when your car’s value begins to drop. Many experts agree that the depreciation line lands somewhere between 60,000 and 70,000 miles. This is the point when prospective buyers consider the potential maintenance and possibility of repairs. 

While it’s essential that you understand how mileage affects the value of your car, it isn’t the only thing potential buyers take into consideration. 

What Other Factors Influence Vehicle Depreciation?

• Make and Model: Some cars depreciate faster than others. Luxury cars typically depreciate faster than mainstream brands because luxury cars have higher initial costs and the perception of expensive maintenance. 

• Condition: Vehicles that are properly cared for can retain their value better than a car that hasn’t been maintained well. Buyers are attracted to previously owned vehicles that have a clean interior and an exterior with minimal damage. A car with a cracked windshield is worth less than one that has intact glass.

• Service History: A great way to show buyers the value of your vehicle is by keeping a detailed service record. This will show buyers that you took care of that car and the value will increase. 

• Market Demand: The market fluctuates, which can affect a vehicle’s value. When gas prices are high, fuel-efficient cars are more valuable as opposed to the gas guzzler. 

Your Vehicle Depreciates Further at 100K Miles

When your vehicle goes over 100,000 miles it’s exciting because it’s an accomplishment. When you’re shopping for a used car, 100,000 miles means something completely different. Crossing this threshold is significant and an indication to potential buyers that major repairs might be needed soon. Passing the 100,000 milestone can lead to a steep decline in value. 

This doesn't mean you won’t be able to sell that vehicle if the mileage reaches over the hundred-thousand-mile marker. There may still be interested parties. But you may have to lower your expectations. 

How To Slow Your Vehicle’s Depreciation

There are ways you can mitigate the depreciation of your vehicle despite the mileage. 

• Regular Maintenance: Get the oil changed, change the tires, replace those brake pads when needed, and more. Keeping up with the maintenance on things like your windshield will contrast the high mileage. 

• Limit Mileage: Limit your driving and don’t put a lot of miles on your vehicle. 

• Time the Sale: Keep your eye out for the 60,000 mile or 100,000 mile marker and plan to sell the vehicle before it depreciates.

• Highlight Features and Maintenance: When you’re ready to sell your vehicle, highlight the maintenance and condition. Point out any upgrades or features, like a sunroof, that might appeal to potential buyers. 

Do You Want to Sell Your Car in the Chicago, IL Area?

Looking to sell your car in Chicago, Blue Island, Dalton, Cicero, or nearby Chicagoland areas? Cash For Cars makes it easy! As a licensed and insured junk car buyer, we offer same-day cash for vehicles in any condition. Contact our team today for an instant offer!