When Do You Get Rid of a High Mileage Car?
Ask Bob Question
I am a home health nurse and do a lot of driving. Before starting this job in January, I bought a 2016 ford fusion car and have since put 23k miles on it. My question is because its’ a new car how do I maintain it with all the driving that im doing and how long should i keep this car before trading in due to the amount of mileage I am putting on it before the value is so depreciated?
Here are a few things to consider:
First, religiously stick to the owner’s manual when it comes to maintenance. A well maintained car will last you a good 200,000 plus miles with today’s technology.
Second, when it comes to value it depends on the car. So, you have to do some research. High mileage cars are seen more as a negative when it comes value. However, a well maintained high mileage car with records can be a little higher in value. You can use a site like www.autotrader.com and compare similar Ford Fusions in the area and all over the country with high mileage and see what type of reduction they are experiencing off of the original retail price (which you can look up that information online as well). For example, take a Fusion purchased in 2013. Find the original car price and then check for a 2014 model with say 30,000 miles on it. How much depreciation are you seeing in similar situations? Then go to 2015 and repeat the process. By going through this process you can start to see a trend. Plus there is a point where the percentage of depreciation all of the sudden widens from year to year. If your car model has been around for a long-time, you can test out earlier models and get an idea if the trend repeats itself.
Since you might be buying cars more frequently, I would always buy one that is a year old with 3 or 4,000 miles on it. Ideally, purchase a dealership loan car or car that just hasn’t sold where the warranty hasn’t started yet. This way you won’t have to experience the automatic depreciation.
There are situations that will increase and decrease the value of a car. Make sure you are not pricing that into your research. Obviously, certain features and packages effects the prices. Condition of the tires could effect the value. Also make sure your comparison example is not a car that has been in a wreck. Finally, it makes a difference whether the comparison car has an extended warranty or not. That does add value to the car.