At what age do cars lose value?
Asked by: Prof. Maymie DuBuque DVM | Last update: November 21, 2025Score: 4.3/5 (30 votes)
At what age do cars lose the most value?
The first year faces the most significant depreciation hit to the car's market value, with most vehicles losing about 20% or more of their original value. The loss continues to decline from there. Cars often shed about 60% of their original purchase price within the first five years.
What is the best age to sell a used car?
Best time to sell cars are usually around 7 to 10 year mark. Cars are depreciating asset. The longer you can keep them without any monthly loan payments, the better you will be financially.
At what mileage does a car lose the most value?
The most value is lost when cars surpass 60,000 miles, dropping by an average of 27% compared to their value at 50,000 miles. [1] This could be because the industry standard car warranty lasts for three years, or until a car reaches 60,000 miles, whichever is sooner.
How old should a car be to get the best value?
To maximize savings on a used car, it is advisable to seek a vehicle that has already weathered its most significant depreciation hit, which generally translates to a car that is at least 2 years old, preferably falling within the 3 to 4-year-old range.
Why do cars lose value when they leave the lot?
Is a 7 year old car too old?
Vehicles 2-3 years old have newer safety features and fewer age-related repairs but have higher prices. Used cars 5-7 years old typically have lower prices while still having modern features that impact your daily driving experience. They might need repairs every couple of years.
What is the best age and mileage to sell a car?
60,000-70,000 miles: Most manufacturers' powertrain warranties expire in that range, and the second major maintenance is scheduled to occur. Selling before reaching those benchmarks will get you a better price for your car than selling afterward.
At what mileage is a car not worth fixing?
Based on this figure, a 10-year-old car would have approximately 135,000 miles on the odometer. At this mileage, major components like the engine, transmission, and suspension system may be nearing the end of their lifespan, increasing the risk of costly repairs.
Should I sell my car before it hits $100,000?
60,000 to 100,000 Miles
If you want to squeeze the most value out of your vehicle, this mileage bracket is probably the best time to sell. While your car may need a couple of expensive repairs to run properly, it shouldn't entirely give up on you if it has been well-maintained.
At what mileage is it best to trade in a car?
The best mileage range to trade in a car is often between 30-40,000 miles or between two and three years old, before your new car warranties expire. You're more likely to receive a higher trade-in appraisal when it has fewer miles on it and more of its warranty left .
Is it worth buying a 11 year old car?
When buying a car that's 10 years old or older, your primary concerns are purchase price and reliability. Don't pay more than the fair market value for that decade-old car. Additionally, pick a vehicle with a solid reputation for dependability. No car is really too old if you follow those rules.
How long should you keep a car?
How long you should keep a car is up to you. Some estimates suggest the average length of ownership of a new vehicle in the U.S. is more than 8 years. “Average” is the operative word here. Some people trade automobiles like baseball cards, while others drive a car until the wheels fall off.
How old should your car be before you trade it in?
Trade in your car when it has positive equity, market conditions are favorable, and before major warranties expire. Ideally, aim for when the car is two to three years old with 30,000 to 40,000 miles. Timing these factors can maximize your trade-in value.
At what mileage do cars start having problems?
Average Lifespan of Modern Vehicles
Now, they can last about 100,000 miles before needing replacement. You can also see this in how much carmakers have extended warranties in recent years. Across the industry, 100,000-mile powertrain warranties are fairly standard.
How much value does a car lose per 1000 miles?
Vehicle depreciation rates average $0.11/mile (0.5% per 1,000 miles) for ICE vehicles and $0.27/mile (0.75% per 1,000 miles) for EVs, suggesting that EVs do depreciate faster.
Is it worth keeping a car for 10 years?
Reliability of Established Models: Many well-known car models are designed to last well beyond a decade. If the vehicle has been consistently maintained and has a reputation for reliability, a 10-year-old car can still offer dependable transportation.
At what mileage should you get rid of your car?
A conventional car can last for 200,000 miles. Some well-maintained car models will reach 300,000 or more miles total. The average passenger car age is currently around 12 years in the United States. Choosing a well-built make and model can help extend your car's longevity.
What is the 20 rule for buying a car?
20% down — be able to pay 20% or more of the total purchase price up front. 4-year loan — be able to pay off the balance in 48 months or fewer. 10% of your income — your total monthly auto costs (including insurance, gas, maintenance, and car payments) should be 10% or less of your monthly income.
Is it better to sell your car or keep it?
If your car is paid off or close to being paid off, you'd probably be much better off financially by selling the car and putting the funds into an interest-bearing savings account of some kind.
Is it worth repairing a 20 year old car?
For most drivers, the costs tend to mount as cars age past 20 years and investing further becomes difficult to justify. But well-maintained examples with lower miles can warrant repairs to extend their life a bit longer.
Is it worth keeping a car with 200k miles?
Yes, it can be a fair idea to buy a car with 200,000 miles, provided that the vehicle has been well-maintained. While high mileage might be a concern for some buyers, a car's condition and the care it's received throughout its life are far more important indicators of its potential longevity.
Is buying a car with 150k miles bad?
Yes, there can be benefits to buying a car with 150k miles. It may be significantly cheaper than a newer car, and if well-maintained, it can still provide reliable transportation. It may also have lower insurance rates, and you may be able to negotiate a better price with the seller.
Which is more important age or mileage?
But remember that a vehicle with high mileage is more likely to need repairs, so you'll need to factor that into the cost. Age may be more important than mileage if you have a larger budget. A newer car is less likely to need repairs and will likely have features that are not available on older models.
What month is best to sell a car?
The Optimal Seasons for Selling
Spring is traditionally one of the best times to sell a car.
What is the highest mileage used car you should buy?
There's no rule to how many miles on a used car is too much, but by attempting to stick to the 12,000 miles per year rule is a great place to start. Find out how old the car is, multiple the number of years by 12,000, and if the number on the odometer is significantly higher than that, some concern might be warranted.