A recent study by Carwow has unveiled the significant impact of mileage on the value of used cars. Surprisingly, the study found that car valuations can plummet by a whopping 27% once they surpass the 60,000-mile mark. Consequently, owners are now being advised to sell their vehicles before reaching this mileage milestone to maximize their potential earnings.
Carwow’s research also indicates that 42% of car owners are eager to sell their vehicles as quickly as possible once they decide to make a change. However, delaying the sale could lead to significant financial losses, especially as the vehicle’s mileage increases.
The chart below demonstrates the estimated value loss per 10,000 miles:
The graph highlights significant points where the value lost increases notably, specifically at 30,000, 60,000, and 110,000 miles.
Notably, the sharpest decline in value occurs when cars surpass 60,000 miles, with an average 27% drop compared to their value at 50,000 miles. Additionally, cars with over 100,000 miles see a further loss of 24%, amounting to an average £945 reduction when they hit 110,000 miles.
Carwow’s data also suggests that cars with mileage between 100,000 and 150,000 could fetch an average valuation of £3,259. However, owners may face much lower valuations if their vehicles exceed 150,000 miles.
The decline in value per mileage bracket underscores the significance of timely sales to prevent a substantial drop in valuation prices. This emphasizes the importance of monitoring mileage closely.
Paul Barker, Managing Editor at Carwow, commented, “Our data highlights the critical importance of prompt action for car owners. Delaying the sale could lead to a substantial decline in valuation price, making it crucial for owners to sell at the right time to secure the best valuation for their car.”
He added, “While various factors can impact a car’s value, such as the model and modifications, mileage stands out as a key influencer. Understanding its impact will aid car owners in their decision-making process.”
“With a significant portion of sellers eager to part ways with their cars quickly and a noticeable decline in valuations, it’s essential for owners to weigh their options and consider taking advantage of the current used car market before further depreciation sets in,” Barker concluded.
For more information, visit Carwow’s website.