Home Money When your car reaches THIS mileage it suffers the most significant drop in value in its lifetime…

When your car reaches THIS mileage it suffers the most significant drop in value in its lifetime…

by Elijah
0 comment
Once a car reaches 60,000 miles, it can lose up to 27 percent of its value, according to a new Carwow study
  • Cars lose up to 27% of their value when they reach this mileage, according to Carwow
  • There are three main mileage markets that impact depreciation the most.

Do you want to know when is the best time to sell your car? Before reaching 60,000 kilometers, according to experts.

A new Carwow study has found that, on average, cars lose around 27 percent of their value when the odometer reaches 60 kilometers.

The sharp drop is likely related to the industry-standard auto warranty that lasts three years, or until the car reaches 60,000 miles.

Once a car reaches 60,000 miles, it can lose up to 27 percent of its value, according to a new Carwow study

The Carwow study says the first major drop in a car’s value occurs when it reaches 30,000 miles.

However, it is the cars that exceed 60,000 miles that suffer the greatest declines.

Most of the price is lost when cars exceed 60,000 miles, dropping on average 27 percent compared to their value at 50,000 miles.

The data shows that cars that have broken six figures will suffer a further 24 per cent drop – an average loss of £945 over 110,000 miles.

Owners of heavily used models showing between 100,000 and 150,000 miles on the clock are sold for an average of £3,259, however owners risk achieving a significantly lower price if they let the odometer read more than 150,001.

“The loss in value per mileage bracket shows that a timely sale could save car owners from a significant drop in valuation prices, demonstrating the importance of keeping a close eye on mileage,” the company said.

Paul Barker, editor-in-chief of the car buying and selling website, added: “Our data highlights how crucial it is for car owners to act quickly.

‘Waiting to sell could result in a substantial drop in the valuation price, and owners selling at the right time becomes key to getting the best valuation for their car.

‘Of course, there are many factors that can affect the value of a car, such as the model and any modifications that have been made.

“However, mileage is one of the key factors affecting the value of a car and understanding how much will help car owners in their decision making.”

Over 30,000 miles is another depreciation point car owners should pay attention to, along with the 110,000 mile mark.

Over 30,000 miles is another depreciation point car owners should pay attention to, along with the 110,000 mile mark.

Firstly, there were 308,017 used Ford Fiesta transactions in the UK in 2023.

The Vauxhall Corsa changed hands 237,705 times last year, putting the model in second position.

This comes after figures released by the Society of Motor Manufacturers and Traders (SMMT) show the UK used car market is thriving, with growth of 5.1 per cent. percent in 2023, thanks to price leveling and the revitalization of supply, as well as a record year for the sale of electric vehicles.

The most popular used car models of 2023 were also revealed, with the Ford Fiesta, Vauxhall Corsa and Volkswagen Golf completing the top three models that changed hands most frequently last year.

A recent analysis by HonkHonk revealed that private sellers should not wait for the best offer when selling a used car and should instead accept the first offer they receive.

Rising costs due to overhead and setup expenses are eating into dealers’ profits to the point where they are happy to break even on a secondhand sale.

And motorists selling their cars are taking the hit, rejecting the first offer they receive as “too low” only to find that a better offer does not materialize and their car has lost even more value.

With this in mind, Carwow reiterates to owners to weigh their options and consider making the most of the current used car market “before further depreciation takes its toll.”

You may also like