High mileage models are now selling for a lot of money
There’s a decades-long television commercial in Chicago that begins with the slogan, “This old car is worth the money.” While this ad is for a local car graveyard, so is the larger used vehicle market, where even models that may have already been written off as “drummers” are commanding huge sums of money these days. -this.
According to valuation experts Edmunds.com, the average used vehicle on the lot of a dealership that has accumulated between 100,000 and 109,999 miles has increased by 31% in value over the past year, from $ 12,626 in June 2020 to $ 16,489 last month. It’s true, they actually increases in price of almost a third. It seems that everything we thought we knew about used car prices is now wrong. Notions that a vehicle is virtually guaranteed to depreciate over time, losing at least half of its original value after five years, and that models with over 100,000 miles on the clock are hard to sell to anyone except for the most cash-strapped motorists. apply.
With production of many new vehicle lines slowed or halted by the current shortage of microchips, a lack of supply has sent more American consumers (even rental companies) into the used car market. In turn, the surge in demand along with a limited supply of products to sell (fewer new models sold means less trade on used vehicle lots) has caused prices to literally skyrocket in all markets. areas. In fact, as we documented in a recent article, some used models are now priced higher than their factory-fresh counterparts. A “gently used” Kia Telluride SUV costs on average more than $ 3,500 more than a new one, according to the Car Research website. iSeeCars.com.
“Many car buyers and sellers have long believed that the value of a vehicle begins to drop dramatically once it crosses the 100,000 mile mark, but this has been proven wrong because of technology and durability. vehicles have improved dramatically over the years. Explains Ivan Drury, Senior Director of Ideas at Edmunds. “Today we are seeing seven- to eight-year-old vehicles with over 100,000 miles fetch prices that are more like the cost of five-year-old vehicles with 60,000 to 80,000 miles a year ago.”
Not surprisingly, used vehicle costs accounted for more than a third of the 5.4% gain in the Consumer Price Index over the past year. It should also come as no surprise, given the genre’s overwhelming popularity, that used trucks have seen the highest year-over-year increases. According to Edmunds.com, used Chevrolet Silverado 1500s are now selling an average 49% more than last summer, with used Ford F-150 models selling 43% more and the Ram 1500 with an average increase. by 42%.
Obviously, this offers a rare opportunity to sell an older car, truck, or SUV that can take up garage space for a significant sum, or to trade in your current vehicle and apply the extra money. to a down payment on a new model. . You might even want to sell the old vehicle and lease a new one at a bargain rate (Toyota Camrys are advertised for as low as $ 239 per month) to overcome current market conditions and pocket the profit. “Even if you own an SUV or passenger car that’s a bit long in the tooth, you shouldn’t be too quick to assume its value is dead,” Drury advises. “Chances are it’s worth a little more – if not a lot more – than you think.”
You should definitely consider winnowing the family fleet if you own one of Edmunds’ Top 10 Top-Rated Pre-Owned Vehicles with 100,000-109,999 miles:
- Chevrolet Silverado 1500: $ 26,914; average age 6.6 years
- Ford Escape: $ 11,359; average age 7.1 years
- Ford F-150: $ 25,924; average age 7.2 years
- Honda Accord: $ 12,633; average age 8.4 years
- Honda Civic: $ 10,907; mean age 8.0 years
- Honda CR-V: $ 13,829; average age 8.5 years
- Jeep Grand Cherokee: $ 17,700; average age 7.3 years
- Jeep Wrangler: $ 23,084; average age 8.6 years
- Ram 1500: $ 24,657; average age 6.5 years
- Toyota Camry: $ 12,057; mean age 8.0 years