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The best mileage to sell a car is between 30,000 – 60,000 miles. This is the period when the car’s depreciation has slowed down, but it is still considered to be in excellent condition, making it attractive for buyers.
Cars with a range of 30,000-60,000 miles have lost approximately 40% of their value but are still one of the most popular when it comes to used car sales. This is due to the fact that the depreciation rate has already dropped and slowed down to 15%-25%, and the vehicle still has a manufacturer’s warranty and is considered reliable and free of frequent repairs.
Understanding Car’s Value Depreciation
Depreciation is the rate at which a car loses its value over time. Depreciation value drop varies between car makes and models. The first significant depreciation of a brand-new car occurs right after its purchase. The moment you drive off from the lot, your car’s value drops by 9%-11%.
In the first year alone car’s value drops by 20%, and up to 15%-25% every year for 5 years. After 5 years car’s value, on average, will be about 60% less.
Causes of Car Depreciation:
Mileage
Fuel economy
Consumer preferences
Vehicle’s condition
Brand reputation
Mileage is one of the most critical factors of depreciation as it serves as a direct indicator of a vehicle’s age and its wear and tear. It is estimated that most of the cars on the market can last around 200,000 – 30,000 miles.
Car mileage depreciation is typically counted every 20,000 miles. Every time a car passes through a 20,000-mileage band, it loses around 20% of its current value.
So if you purchased a car for $30,000 and drove it for 40,000 miles, your car value would be around 40% less, based on fuel depreciation alone.
How Does Mileage Affect the Sale of a Car?
A car’s mileage plays a significant role in determining not only the optimal time to sell but also the best way to do it. Here’s a breakdown of various mileage ranges and how they can impact the decision to sell:
Up to 30,000 Miles
According to the Department of Transportation, the average American drives 13,476 miles per year, so a car with 30,000 miles is probably more than 2 years old.
Despite the significant depreciation that occurs in the first few years, it is relatively new and can command a higher resale value.
But selling such a car can be considered a financially unfavorable decision. Over a period of 2 years, your car’s value will be 60%-70% lower. So if you bought a new car for $30,000 and sold it after 2 years, you will lose approximately $11,000.
This means you will incur a loss of around $5,500 per year.
If you would sell the same car after 7 years, with approximately 100,000 miles, your yearly loos would be only about $2,600.
30,000 – 60,000 Miles
If your car is less than 3 years old or has not yet exceeded the 36,000 miles range, it probably still has the manufacturer’s general warranty, which usually allows you to get a higher sale price.
It is estimated that after a car exceeds 30,000 miles, major maintenance should be done, which includes replacing fuel filters, inspecting radiator coolant, belts and hoses, suspension components, testing the air conditioning system and so on.
This inspection will cost about $650-$900 but can have a positive impact on the resale value compared to if you selling a car with fewer miles but without the checkup.
Another positive thing about the 30,000 – 60,000 miles range is that car’s depreciation is only an average of 15% per year. This means that your yearly loss is much lower compared with the first few years of owning a car.
Let’s say you purchased a car for $30,000 and have reached 60,000 miles after owning it for 4 years. This means your car’s value dropped by 40% at least and is now worth $18,000.
Your yearly loss is $4,500, which is still lower compared to selling a car after 2 years when the loss is $5,500 per year.
Moreover, a car aged 2-5 years is unlikely to experience any significant malfunctions and need expensive repairs, which makes it attractive to potential buyers.
Best way to sell:
In this case, the best way is to sell the car privately, as it will guarantee you a better offer, especially if the car is well-maintained and hasn’t had any accidents.
Usually, private car sales take 4-8 weeks on average. It is advised to advertise the car on a few different platforms like Autotrader and eBay Motors to reach more potential buyers.
eBay Motors Summary
Sell 20+ types of vehicle and car partsLow listing fees starting from just $19List a car for sale in under 10 minutes2 selling options – fixed price or auction
To set the best price, you should browse private sale listings online and check prices of the same or similar cars. Additionally, you can use the Kelley Blue Book car value estimate calculator, add your car details, and you will see the average market price of your vehicle.
Make sure to have all the paperwork: Certificate of Title, valid car registration and emissions test or bill of sale if your state requires it.
60,000 – 100,000 Miles
Vehicles that have exceeded 60,000 miles usually require more maintenance, including replacing timing belts, brakes, tires, and other major service items. Repairs get more frequent, resulting in higher annual costs.
The depreciation rate slows downs and is about 8%-10% per year, and in the case of buying a car for $30,000, the annual loss drops to $4,125.
Considering the age of the car, which is 5-7 years at this point, visible wear-off is also likely to lower the car’s value. Moreover, during this period, it is expected that at least 2 new car models will come out, contributing to a possibly lower market value of the car.
Besides, there still is a psychological barrier in most of the buyer’s minds regarding the car that has nearly reached or exceeds 100,000 miles. Most potential buyers filter out such offers making it harder to sell the car privately.
Best way to sell:
If you decide to sell such a car privately, it can take anywhere from several weeks to months. Taking into account that you, as a car owner, start experiencing frequent car repair expenses investing additional time to sell a vehicle might not be a wise decision.
Selling privately, you will need to spend time on advertising the car, updating price offers, communicating with potential drivers and scheduling test drives.
One of the solutions to sell quickly is Peddle, which buys used cars of any age and condition. Peddle will send you an instant cash offer, which will be valid for 7 days. All you need to do is to fill online form and provide car details: make, model, year, mileage and describe the vehicle’s condition.
Peddle Summary
Sell used, damaged or junk car nationwideGet instant quote on (855) 925 4302Free towing within 48 hours after offerReceive payment upon car collection
After you accept the offer, Peddle will take care of all required paperwork and arrange a car tow within 48 hours. You will be paid the total price on the spot of the tow by Peddle’s representative by cash or check.
Usually, dealership offers are lower than selling privately, but taking into account that you save time and effort, it might be the best thing to do.
100,000+ Miles
Vehicles that have exceeded 100,000 miles are more likely to need frequent and costly repairs, making it a risky investment for potential buyers.
But if the car was well maintained, and you have service records to prove you still can sell your car. There is a market for older, cheaper vehicles that are in good condition.
A car with over 100,000 miles depreciation rate is similar to cars with over 60,000 miles, on average 5%-10% per year.
Best way to sell:
Selling the car to private buyers is the best choice in this case, even though it can take some time to find the buyer.
Setting a competitive price compared to the current market value, you can expect to sell such a car in 4-8 weeks.
Selling to the dealership or trading in a car with more than 90,000 miles is easy but financially disadvantageous. Dealers usually pay less for cars with high mileage, and after it exceeds 100,000 offer value might drop 10-20% compared to the private party sale value.
Best Time of Year to Sell a Car
Timing with favorable market conditions can help you maximize your car’s value. Used cars are generally in higher demand towards the end of the year and the first quarter of the new year. This is because many potential buyers are looking for new vehicles to prepare for the upcoming winter season or have additional funds after receiving a tax return.
A new model release, which usually happens in autumn, can also impact the value of your car. It is best to sell before the new model comes out. It is estimated that the value can drop by 5% to 10% depending on new model improvements and changes and overall market demand.
Best seasons to sell a car:
Autumn – Winter: SUVs, Crossovers, Trucks, All-Wheel-Drive cars, Minivans
Spring – Summer: Convertibles, Sports cars, Hybrids and Electric Vehicles, Compact Cars
Tips to Sell a Car
Navigating the process of selling a car can seem complicated at first, but with the right approach, you can secure a fair deal.
Find out your car’s market value
No matter if you decide to sell the car privately or to a dealership, it is advised to know your car’s market value to have the advantage in negotiations and get the best deal.
The best way to do research is by browsing online car-selling sites looking for the same or similar car listings. The most popular platforms are Autotrader and eBay Motors.
Follow listings for a few weeks to find out the price changes and to see how fast cars are sold.
Additionally, you can use Kelley Blue Book car’s value estimate calculator. This tool analyzes recent market data, including sales data, pricing trends, and supply and demand and estimate the value of your car.
You will need to provide the following:
Year
Make
Model
Mileage
Zip code
Style
Equipment
Color
Condition
Gather Required Paperwork
The list of required paperwork depends on the state you are selling your car, but in all cases, you will be required to provide a Certificate of Title and your ID or Driver’s license.
Some states, in addition to the title, require to provide the bill of sale, valid emissions test and car registration documents.
It is also recommended, especially when selling a car with higher mileage, to have a recent VIN check and service records. These documents will prove that vehicle was well maintained, has no major issues and is reliable, which will give you an advantage in setting the higher price.
Moreover, if you have an owner’s manual, it can also help you win the trust of potential buyers.
If you decide to sell the car to a local dealership or online service like Peddle, all you need to provide is a Certificate of title. Even if your state requires you to provide a valid emissions test or registration tag, Peddle will buy a car without those papers.
Moreover, they will take care of all the paperwork for you, which will save you time and money.
StatusDocument:Document:Document:Required in All StatesCertificate of TitleOdometer ReadingRelease Of LiabilityRequired in Some StatesBill of SaleRegistration TagEmissions TestOptional PaperworkVin CheckService RecordsOwner’s Manual
Choose Secure Payment Method
If you sell to the dealership, in most cases, you will be paid cash or via check. Those are considered safe payment methods.
If you are selling the car to a private buyer, make sure to agree on payment before signing any documents.
Tips to protect yourself during private sales:
Check the buyer’s identity & take a copy of the ID card
Do not share personal information not related to the vehicle sale
Choose a safe payment method
Sign Bill of Sale
Keep copies of signed paperwork
Avoid accepting personal or third-party checks, installment payments and out-of-country transactions as those are generally not safe payments with a high risk of scam.
Generally safe payment methods:
Cash
Cashier’s Check
Money Order
Escrow Service
Wire Transfer
FAQ
What mileage is too high for a used car?
There isn’t a one-size-fits-all answer to what mileage is considered too high for a used car, as it can vary based on several factors, including the make and model of the car, its maintenance history, and how it was used.
However, many buyers are wary of cars with over 100,000 miles as they often associate this milestone with the potential for more frequent and costly repairs.
Can you trade in a car with 200k miles?
A car with 200,000 miles is considered high mileage, and as a result, its trade-in value will be lower compared to a similar car with fewer miles. Dealerships often see high-mileage cars as riskier because they might need more repairs, and there may be less demand from buyers.
When it comes to high-mileage car sales, it is worth considering selling the car privately. Often, you can get a higher price through a private sale compared to a trade-in.
Do You Pay Taxes When You Sell A Car?
The only tax seller need to pay when selling a car is capital gain tax if the car was sold for more than it was initially purchased. This can happen if you buy an old or junk car and invest in repairing it, which raises the value of the car.
The buyer always pays sales tax. Usually, it is paid when the new owner registers the vehicle at the DMV.