How does mileage affect my car's value?
So you're thinking of selling your beloved set of wheels, but one question keeps nagging you: how much will those kilometres on the clock knock off the asking price? In this article we take a look at how the kilometre reading impacts the selling price of your car.
We all know mileage is a major factor in a car's value, but understanding its precise impact can be tricky. Let's break down the mileage mystery and equip you to estimate your car's worth accurately!
Should you buy a car with high mileage? Find out here.
Why does mileage matter so much?
Mileage is essentially a measure of wear and tear. The more kilometres your car clocks, the more likely certain components might need replacing sooner rather than later. This translates to potential repair costs for the new owner, which naturally affects how much they're willing to pay.
How much mileage is too high for a used car?
South African mileage benchmarks
Here's a helpful rule of thumb: South African cars typically depreciate faster than their European counterparts due to various factors, including import duties and a less robust used car market.
Here's a rough idea of average yearly mileage for different car ages in SA, based on data from Naamsa (National Association of Automobile Manufacturers of South Africa):
- New Cars (0-3 years): Under 15,000 km/year
- Slightly Used Cars (4-7 years): 15,000 - 20,000 km/year
- Mid-Life Cars (8-12 years): 20,000 - 25,000 km/year
- Older Cars (13+ years): Above 25,000 km/year
Bear in mind that these are just averages, and actual mileage can vary depending on factors like car type, usage patterns, and service history.
A documented service history shows that the car has been regularly serviced according to the manufacturer's recommendations. This suggests the previous owner took care of the car, potentially preventing future problems and reducing the risk of major repairs down the line.
The mileage impact on value
Mileage significantly impacts a car's resale value. Here's a breakdown of how it generally affects different car segments:
- Luxury Cars: Luxury car buyers are often more sensitive to mileage. Expect a steeper drop in value with higher mileage on luxury marques like Mercedes-Benz, BMW, or Audi, especially performance models like the Mercedes-AMG A-Class
- Family SUVs & sedans: Mileage plays a crucial role, but other factors like features and overall condition also weigh heavily. Here, a well-maintained SUV with slightly higher mileage might still fetch a decent price.
- Budget Hatchbacks & Compact Cars: Mileage is a significant factor, but these cars tend to hold their value relatively well due to affordability and high demand. A regularly serviced hatchback with higher mileage might still find a buyer quickly.
What factors should I consider when determining the selling price of my car?
Beyond the odometer: Other factors that affect value
Mileage is just one piece of the puzzle. Here are other crucial factors that influence a car's value:
- Car's Make & Model: Certain brands and models are known to retain their value better than others. Toyota generally holds its value well, while some performance or niche cars might depreciate faster.
- Service History: A complete and documented service history with a reputable dealership or service centre builds trust and reassures potential buyers, potentially increasing your asking price.
- Car's Condition: The overall condition of the car, both inside and out, matters a lot. A well-maintained car with a clean interior and a dent-free exterior will command a higher price compared to a car with visible wear and tear.
- Year of Manufacture: As cars age, their value naturally depreciates. (Here are the 5 cheapest cars to service and maintain: City and entry-level cars)
Which cars in SA depreciate the fastest?
How to sell a used car in South Africa
Getting an accurate valuation
There are several ways to estimate your car's value:
- Online Car Valuation Tools: AutoTrader offers a free online valuation tool according to live market data to ensure the valuation is as accurate as possible. Sell your car now with our INSTANT OFFER tool!
- Trade-in Offers: Dealerships often provide trade-in quotes when purchasing a new car. While their offer might be lower than a private sale, it can be a convenient option.
- Professional Car Valuation Services: For a more detailed and accurate valuation, you can consider using a professional car valuation service too.
How much will a dealership reduce their price on a used car in SA?
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