Educate me on the impact of mileage on a car's value!

[Smooth-Op]

Hello you sexy people! :poosie:

When it comes to PC hardware, the residual life concept doesn't really apply. The fact that my CPU's been working for 2 years doesn't necessarily means that it has a shorter life expectancy than a brand new one.... it's either working or not. :dunno:

I'm not a car guy but I know it's not the same when looking a car and its mileage.

Now I'd like to know, how do you devaluate the price of a car based on its mileage. Is there a rule of thumb like reducing 5% of its value for every 10k miles or something?

I.e. How do you know what's the better deal between a 14k$ car with 30k miles and a 10k$ one with 100k miles. Do you do any computation or something? :nut:

I'm currently looking for a car and I often see similar car with different mileage and I'm having a hard time evaluating which is the better deal... can you please help me with that? :thumbsup:

[buh_buh]

there's no equation or anything, but it really depends on the car I think.
But in your example, I'd take the car with lower mileage for the extra $4k.

[Wehbeast]

Average mileage is 24 000/year

[yue]

Originally posted by Wehbeast
Average mileage is 24 000/year
thought it was 20,000km/year.
then again i'm old and remember the days when gas was 35.9c/L

[Smooth-Op]

nul

[Kloubek]

For me, it's just another factor in a long list of factors which decide if I will buy a car or not. And it's importance varies from car to car. A Toyota with 200k is very possibly still going to continue to run properly for another 100k. But say, a Sunfire with 200k is probably doesn't have much more in it before you have to replace everything - engine included.

You also need to consider the expense of replacement parts. If I was looking at a 1992 BMW, for example, I would pay a big premium to get one of low mileage as opposed to one with higher mileage, but a seemingly "good buy". Parts are so expensive, you're going to likely pay less in the end for one with low mileage - especially if you keep it for an extended period of time.

Or, say I had two cars to choose from. One is in mint condition in every way. Obviously well maintained. It has 100k, and costs 10 grand. The other has sludgy oil, unmatched tires, a crack in both bumpers, and stains in the seats. But it only has 50k and ALSO costs 10 grand. Well, I go with the former.

Also consider how many of the k's on the car are documented, and there are records for. A properly maintained car with records to prove it can end up being a much better investment than one slightly cheaper, but you don't know if it's had an oil change in 50,000 kilometers.

How many of these k's are highway, and how many are in town? Keep in mind that highway k's produce less strain on the drivetrain.

So in the end, it's not quite as simple as asking how much people weigh mileage. There's so many other factors involved that it really depends on the car.

[NickGT]

Generally speaking lower mileage cars are a safe bet and worth more. BUT if you find a high mileage car with very detailed maintenance records showing its been well taken care of. You could find yourself with a better car in the end for less money.

I don't think there's any "rule" out there for used cars. They are worth whatever you are willing to pay and what the seller is willing to part with them for.

I sold my 89 Mustang (just a 4banger) with 230K on it for 4 grand. That car probably was worth 500 bucks. But since I had extremely detailed records, and a few nice upgrades (wheels, tires, stereo, alarm) the buyer didnt haggle at all. In fact he didnt even test drive.

[yue]

Originally posted by Kloubek
Also consider how many of the k's on the car are documented, and there are records for. A properly maintained car with records to prove it can end up being a much better investment than one slightly cheaper, but you don't know if it's had an oil change in 50,000 kilometers.
i was at my mechanic's place a couple of months ago and he was installing a new engine on a rather new (2-3 years) infinity suv. asked him what happened and he said the previous owner never changed the oil! odometer was around 55,000km! the guy who brought it in just bought it 2 weeks prior.

not trying to scare you but i know first hand that horror stories like this are true.

[rc2002]

Mileage is super important if you don't know anything else about the car. I would buy an older car with low mileage before a newer with higher mileage.

Mileage = wear and tear. It's not just motor, but it carries over to all the other parts like hinges and seat belts and pedal covers and things you would never even think of.

I've owned a couple of high mileage cars. Enough to know that model year doesn't mean anything next to mileage.

[Smooth-Op]

Thanks a lot guys.

If I could +rep you I would.

Here, have kisses instead

-XXXX-

[ragu]

AND if the mileage is too low for the year, make sure you check if the odometer is not rolled back.

A friend of mine bought 94 Civic with almost a 10/10 body and didn't bother getting it checked from a mechanic since it all looked so good. The odometer said it has 44,000 km on it but the seller insisted he swapped the cluster only a month ago and the car actually had 160,000km. Few weeks later he got carfax and car had 220,000km in 2001!

[realazy]

I totall agree with richardchan2002 about wear and tear on the rest of the parts. Although it will be different if it was all highway kms, but that's what everyone says and is hard to proove.

It's all about how long you want to keep the car and how much you are willing to pay.

Maintenance records are always key, especially the major services like timing belts and water pumps.

A slightly high milage car now sold to a low milage user will turn into a average milage car down the road.

I'm always weary about fairly new cars with crazy milage though. Like 2005's with 200k.

[tom_9109]

If i were to do a calculation on the value I'd allow 3.25 cents per kilometer (Max 40% of the value) in whichever direction (higher/lower) so I'd expect 70,000 km to make a difference of $2,275 given that everything else was equal and there were not required repairs at that time.

[jibber]

I'd be wary of cars with either too high or too low mileage.

Too high, and I'd just stay way at any price.

Too low, and the vehicle may have been sitting stationary for a few years or more, as was the case with my Maxima

The guy who bought it new was my Aunt's neighbour's husband. He died shortly after taking it home, and she never got out much. So my Dad bought it as a 4-year-old car with 14000 kms on it. He had to replace a few odds and ends due to age.

A few years ago my Dad bought a Pilot to tow his boat around, and the Maxima was relocated to Victoria so they wouldn't need a rental car when they went out there to work on the renos on their condo, so it sat for a few more years unitl they retired and sold their house in Woodbine and permanently relocated to Victoria. Problem was, my Dad has the Pilot, my Mom has an RSX, so the Maxima would have to be sold. So I got it from my Dad for cheap because there were now a few codes in the computer and the transmission was shifting rough. The trans fluid had never been changed... the fluid was 11 years old! It only has 134000 kms on it. The suspension, interior, and body was in great shape due to the mileage, but there were other problems becuase the car was 11 years old.

Cars like to run, not sit, so I'd look for a car with between 20 - 30 k / year in good condition for any used car... trying to stay below 200k kms on the clock.

EDIT : for spelling

[Moe Man]

Originally posted by richardchan2002
Mileage is super important if you don't know anything else about the car. I would buy an older car with low mileage before a newer with higher mileage.

Mileage = wear and tear. It's not just motor, but it carries over to all the other parts like hinges and seat belts and pedal covers and things you would never even think of.

I've owned a couple of high mileage cars. Enough to know that model year doesn't mean anything next to mileage.

the other way around buddy, get a newer car with high miles, because its the only time you know that it was highway km. it is impossible to have a car look this good, when they put this many km in two years. you would have door dings, curbed wheels warn out seats.

this is a prime example of a high mile/ new vehicle

http://www.canadatrader.com/result/detailinfo.aspx?ID=524443&pgno=1&srt=1

in this case you are going to have to pay 11 grand for 60 km less. figure out the ratio and you will understand quickly that it isnt worth it. :thumbsup:

[ragu]

^^right on
its always a safe bet to buy a 2002 cavalier with 100,000km on it for 4k rather than 1992 civic with 250,000...:thumbsup:

[jonnycat]

Originally posted by tom_9109
If i were to do a calculation on the value I'd allow 3.25 cents per kilometer (Max 40% of the value) in whichever direction (higher/lower) so I'd expect 70,000 km to make a difference of $2,275 given that everything else was equal and there were not required repairs at that time.

The value of the km's is around $0.08-0.12 / km wholesale, over and above yearly averages.

Using 25,000kms/year as an average, a 3 year old car with 100,000kms would be worth roughly $2000 less, wholesale, than the same car with average kms. (using $0.10 per km)

While not law by any means, it is a way to value a used car trade in, off of wholesale prices.

[tom_9109]

Originally posted by jonnycat


The value of the km's is around $0.08-0.12 / km wholesale, over and above yearly averages.

Using 25,000kms/year as an average, a 3 year old car with 100,000kms would be worth roughly $2000 less, wholesale, than the same car with average kms. (using $0.10 per km)

While not law by any means, it is a way to value a used car trade in, off of wholesale prices.

The 3.25 cents per KM is the calculation that is used in an audatex Autosource valuation. Pretty much the industry leader in vehicle valuations and is accepted by almost all insurance companies. Some companies use 10% of the value per 24,000km to a max of 50 percent. Dealers with use a number such as 8-12 cents however the usages are different. Anyway you cut it I think its best to take the car for what it is and look at the whole picture.

[FLARE]

I would value a newer car with high kms a better purchase only if the signs of the vehicle show that it was taken care of.

ex. last year I bought a 2003 G35 with 142,xxx kms on it, however, the guy lived in chestemere, worked in calgary and the car was fairly imaculate (no door dings, no rust, no dents, no cracked windshield, interior was in great shape and good maintenance records). The car was about 6-7k less then other G35's with about 40-60k kms less on them. So to me, paying 7k less for a car with say 50k more kms, but knowing it was in great shape was a good choice.

Really you just have to make sure all the angles are checked and double checked. Now my 2003 G35 has 183,xxx kms and nothing has gone awal, and according to the maintenance records i've only had to do a tranny flush and front brakes. So I am very happy with my purchase. If I had purchased the car to flip in a couple years, then I would be sad with the depreciation that i've put on it, however that wasn't my plan; it was to go long term with this car.

[Preslow]

Originally posted by FLARE
I would value a newer car with high kms a better purchase only if the signs of the vehicle show that it was taken care of.

ex. last year I bought a 2003 G35 with 142,xxx kms on it, however, the guy lived in chestemere, worked in calgary and the car was fairly imaculate (no door dings, no rust, no dents, no cracked windshield, interior was in great shape and good maintenance records). The car was about 6-7k less then other G35's with about 40-60k kms less on them. So to me, paying 7k less for a car with say 50k more kms, but knowing it was in great shape was a good choice.

Really you just have to make sure all the angles are checked and double checked. Now my 2003 G35 has 183,xxx kms and nothing has gone awal, and according to the maintenance records i've only had to do a tranny flush and front brakes. So I am very happy with my purchase. If I had purchased the car to flip in a couple years, then I would be sad with the depreciation that i've put on it, however that wasn't my plan; it was to go long term with this car.

I hope you're loving the car man :D