Used Car Depreciation: The Importance Of Mileage Versus Age
Depreciation refers to cars losing value over time, and this process will start the time the new car is driven off the forecourt. Does mileage matter more for the depreciation or passing of time the largest factor? Age is considered the primary influence in depreciation, however, it is partly because it is assumed that the older a car is, the more miles are driven. Generally, the average car stops depreciating after 8 to 10 years.
Why is this essential in the car age versus mileage debate? It helps you decide whether old age or high mileage is a well-priced and worthy deal. Used cars can be worthy when buying, considering the mileage versus age, before deciding on purchasing one.
How to know if a used car is highly maintained?
In the mileage and car age debate, a highly maintained vehicle is massively essential. A well-maintained car has fewer problems and faults. Owners how carefully maintain the cars are fixed in any issues and when it arises, before becoming the major problems. When you plan to buy a used vehicle, always look for signs and check the service history has been well cared for.
Crucial maintenance checks for buyers and owners include:
- Inspect fluid levels
- Ensure the oil is changed regularly
- Inspection of belts and hoses, such as timing belt
- Read over prior MOT notes
- Check the exteriors (dents, scratches, or scrapes)
- Check the interior (wear and tear)
If you are a used car buyer, you should gather more info on the used cars in sacramento you are interested in by doing a background or history check of the vehicle.
Calculate time-based depreciation used car
The formula to calculate used cars’ time-based depreciation value is simple. You may take the sale price and subtract the current value of the vehicle. Divide the figure by the car age, which equals the depreciation rate every year, and how much dropped in value yearly. You may use this formula to get a good idea of how much the used car is worth and whether it is a good deal.
Calculate mileage-based depreciation used car
Knowing how to calculate the mileage-based depreciation on the used car is equally simple if taking the formula at face value. You may take the depreciation rate yearly and divide that by the annual mileage of the car. You can times that by 100, then equally the cost every mile. But, there is one problem with the calculation.
It can make the cost of the mileage dependent on the rate of the car’s age depreciation. In most situations, it would not be a burden. However, those instances where the car mileage and age are greatly different. For example, a four-year-old Ford Fiesta has 100,000 miles, but it would not give accurate results.
However, it is a useful calculation that works out the mileage-based depreciation for the average car. Furthermore, use this info to check whether the used car is accurately priced and a good deal. Check out the car depreciation on the subject. It goes into many additional details, even providing a top 10 list of best and worst depreciating cars.