Before you decide to buy a used car, you should be aware of its used car price per mile. Used cars are less expensive than new ones because the previous owner's use of the vehicle may have resulted in problems that lower the car's quality of condition, such as a lower number of miles per gallon, scratches on the exterior or problems with the internal machinery of the vehicle. Because of this, used car pricing is at least partially based on how many miles the car has been driven, and as the number of miles on the car increases, the price of the car decreases. This relation between how far a used car has been driven and the price it can be sold for leads to the question of how much the price of a used car should drop after it has gone a given number of miles.
Price Drop in Used Cars Per Mile
Since the value of a car drops much faster in a short time after you buy it (about $3,000 dollars right after you drive it off the lot!) and much slower as time goes on, the actual price drop for a used car after each mile it has been driven is not constant. For the first three thousand miles or so, cars usually drop about $5,000-$10,000, so it averages out to around $1.50 to $3 per mile. After that, the price drop is lower, and can go from around $.25 to $.5 per mile. These are only estimates, and the actual price drop also depends on the model of car you are looking at and where you are buying it.
FAQs
For the first three thousand miles or so, cars usually drop about $5,000-$10,000, so it averages out to around $1.50 to $3 per mile. After that, the price drop is lower, and can go from around $. 25 to $. 5 per mile.
How do you value mileage on a used car? ›
The average car gets in 10,000 to 12,000 miles per year, so used cars with an annual average lower than that can be considered as having good mileage. Simply divide the odometer number by the car's age in years to determine it's annual average.
What is a good cost per mile for a car? ›
On average, it costs $0.72 per mile to operate and maintain a new vehicle in 2022, assuming the owner drives it 15,000 miles per year. The per-mile cost of owning an automobile has remained the same since 2020 – at $0.44 per mile.
What is a reasonable amount of miles on a used car? ›
As a general rule, you should assume that the average car owner puts 12,000 miles on a car each year. To determine whether a car has reasonable mileage, you can simply multiply 12,000 by its age. That means good mileage for a car that's 5 years old is 60,000.
At what mileage should a car be replaced? ›
How many miles does a car last? A conventional car can last for 200,000 miles. Some well-maintained car models will reach 300,000 or more miles total.
What is the rule of thumb for mileage on a used car? ›
A good rule of thumb is to aim for less than 10,000 miles per year. But 12,000 miles a year is an acceptable range, too.
How do you calculate mileage value? ›
To figure out cents per mile, all you need to do is divide the cost of the ticket in cash by the cost in miles and then multiply by 100. For example, if you're purchasing a $500 ticket using 25,000 airline miles, you would be getting 2 cents per mile in value.
What is a fair price to pay for mileage? ›
The standard mileage rate is now $0.655 cents per mile, an increase of $0.03 cents from the last increase in June 2022.
How do you price per mile? ›
To calculate your cost per mile, divide your total expenses for the month by the total number of miles you drove that month. For example, if your expenses totaled $3,000 and you drove 10,000 miles, your cost per mile would be $0.30.
What is the standard cost per mile? ›
Beginning on Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 67 cents per mile driven for business use, up 1.5 cents from 2023.
The optimal time to purchase a used car is typically between 2 to 5 years old. Within this age range, the vehicle has already experienced the most significant depreciation, yet remains relatively new and in good condition.
How much is high mileage for a used car? ›
Mechanics usually agree on the figure as 'average' car use. More than that is considered high mileage, so a three-year-old car with 40,000 miles, for example, would be in the high mileage range. Still, mechanics typically use the phrase 'high mileage' when a car has 100,000 miles or more on the odometer.
What is considered an old car? ›
Classic vs Antique vs Vintage Cars
A vintage car is one that was manufactured between 1919 and 1930. An antique car is any car manufactured in 1975 or earlier (older than 45 years old). The classic car is a vehicle manufactured in the 1990s or earlier (at least 20 years old).
At what mileage is a car not worth fixing? ›
Depending on the car's value, repairing it might be worth the money to keep it going for a few more years. However, most modern gasoline-powered vehicles will start to struggle after the 200,000-mile mark. Electric cars can usually make it up to 300,000 miles before they're considered well used.
At what mileage does a car start to have problems? ›
How Many Miles On A Car Is Too Many? How many miles on a car is bad? As a general rule, most vehicles begin to seriously degrade at around 150,000 miles. It is considered rare, and therefore outstanding longevity, if a car reaches 200,000 miles on the road.
What is the best mileage to get rid of a car? ›
30,000 to 60,000 Miles
It's a good idea to sell your car before it hits 60,000 miles if you don't want to spend a lot of money on repairs and replacement parts. During this mileage bracket, your car should be about five years old, meaning it'll still command a substantial amount.
How much does a used car depreciate per mile? ›
After that fast initial drop the depreciation progresses a bit more slowly – often by about 10 or 15 percent per year. According to some experts, mileage depreciation is about $0.08 a mile, but depreciation is more commonly measured in years than miles.
How much is mileage on a car worth? ›
Price Drop in Used Cars Per Mile
For the first three thousand miles or so, cars usually drop about $5,000-$10,000, so it averages out to around $1.50 to $3 per mile. After that, the price drop is lower, and can go from around $. 25 to $. 5 per mile.
How do you calculate mileage on a car? ›
An easy way to calculate gas mileage is to remember the odometer reading or to reset the mileage counter when filling up a gas tank. When doing so next time, obtain the mileage accrued between the two gas fill-ups. Then divide the mileage figure by the amount of gas filled the second time to obtain the gas mileage.
How much do 1000 miles devalue a car? ›
Here is the short answer: about 1% of the cars value when new for every 1000 miles. It's a rough estimate, but for the first 5–7 years, cars generally depreciate about 10% per year, at the rate of about 12k miles per year.
