- Cars lose up to 27% of their value when they hit this mileage, Carwow finds
- There are three major miles markets that impact depreciation most
Want to know when is the sweet spot to sell your car? Before it reaches 60,000 miles, according to experts.
A new study by Carwow has found that cars on average lose around 27 per cent of their value when the odometer reaches 60k.
The sharp decline is likely linked to the industry standard car warranty that lasts for three years, or until the car reaches 60,000 miles.
Once a car hits 60,000 miles it can lose up to 27 per cent in value a new study by Carwow
Carwow’s study says the first major drop in the value of a car occurs when it reaches the 30,000-mile marker.
However, it is cars that go beyond 60,000 miles that see the biggest declines.
The biggest chunk of price is lost when cars surpass 60,000 miles, dropping by an average of 27 per cent compared to their value at 50,000 miles.
The data shows that cars that have clocked over six figures will then see a further drop of 24 per cent – an average loss of £945 when hitting 110,000 miles.
Owners of well-used models showing between 100,000 and 150,000 miles on the clock are sold for an average of £3,259, yet owners run the risk of achieving a significantly lower price if they let the odometer tick over 150,001.
‘The loss in value per mileage bracket shows that a timely sale could save car owners from a sizable drop in valuation prices, showing the importance of keeping a close eye on mileage,’ the company said.
Paul Barker, managing editor at the car buying and selling website, added: ‘Our data highlights just how crucial it is for car owners to act quickly.
‘Waiting around to sell could result in a substantial drop in valuation price, and owners selling at the right time becomes key to get 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 that affect a car’s value and understanding just how much will help car owners in their decision making.’
30,000 plus miles is another depreciation point for car owners to watch out for, along with the 110k mark
Coming out on top, there were 308,017 used Ford Fiesta transactions in the UK in 2023
The Vauxhall Corsa changes hands 237,705 times last year putting the model in runner’s up position
This comes after figures released by the Society of Motor Manufacturers and Trade (SMMT) show the UK’s used car market is thriving, growing by 5.1 per cent in 2023, thanks to levelling prices and re-energised supply, as well as a record year for electric vehicle sales.
The most popular used car models of 2023 were also unveiled, with the Ford Fiesta, Vauxhall Corsa and Volkswagen Golf rounding out the top three models that changed hands the most last year.
Recent analysis by HonkHonk revealed private sellers shouldn’t hold out for the best offer when selling a used car and instead are wise to accept the first offer they get.
Rising costs due to overheads and preparation expenses are eating into dealer profits to a point where they are happy just to break even on a second hand sale.
And motorists selling their cars are taking the hit, rejecting the first offer they get as ‘too low’ only to find a better offer doesn’t materialise, and their car’s 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’.
