How much value is behind Low KM's on a used car?

[Colin62]

please excuse crappy iPad photo but that's from one of the old books I have

Edit: this is from 2013 so add two years

So that's why I couldn't get a trade-in on my old Merc - 490 000km isn't even on that list of mileages, and neither is "poked" on the list of conditions

 

[ahoudet]

So that's why I couldn't get a trade-in on my old Merc - 490 000km isn't even on that list of mileages, and neither is "poked" on the list of conditions

Well you figure out that 25000km a year is average and go from there... Condition most probably was the issue . Recon would probably be more than the selling price...

 

[PostmanPot]

Remember that depreciation is calculated on mileage AND age - which ever is higher. Therefore if you are not in a rush you can hunt around for what is essential an under utilised car. It is old enough to be sold at half price, comes without maintenance plan, yet it has relatively little wear and tear.

For people that use a car over longer terms, say 7 ~ 10 years or more, wear and tear is a concern and low mileage is not a myth.

That's terrible advice, exactly why this obsession with low mileage is so bad. People think an old car with low mileage is good. That it is a sign of reliability and low maintenance.

Certainly not, at least not always. Any teething problems were not resolved by the motor plan, and there's a huge risk of extra maintenance opposed to something newer with 100,000km.

An old car with low mileage very likely means it was used for short stop-start trips, the worst use of cars.

Mechanical soundness of a low mileage, out of plan vehicle, borders on impossible to determine. A higher mileage car that has stood the test of more use on the road is easier to determine. One's able to dig much deeper into the service history if the maintenance plan was used for 5 years at the average mile increments vs servicing based on time.

By reaching 100,000km under plan, one has used the plan to its full advantage. This benefit is then passed on to the second hand buyer, who's purchasing at half the price, as the car has gone through most of its depreciation.

Lower mileage = fewer parts replaced under plan = fewer underlying issues and weaknesses spotted.

 

[Pitbull]

That's terrible advice, exactly why this obsession with low mileage is so bad. People think an old car with low mileage is good. That it is a sign of reliability and low maintenance.

Certainly not, at least not always. Any teething problems were not resolved by the motor plan, and there's a huge risk of extra maintenance opposed to something newer with 100,000km.

An old car with low mileage very likely means it was used for short stop-start trips, the worst use of cars.

Mechanical soundness of a low mileage, out of plan vehicle, borders on impossible to determine. A higher mileage car that has stood the test of more use on the road is easier to determine. One's able to dig much deeper into the service history if the maintenance plan was used for 5 years at the average mile increments vs servicing based on time.

By reaching 100,000km under plan, one has used the plan to its full advantage. This benefit is then passed on to the second hand buyer, who's purchasing at half the price, as the car has gone through most of its depreciation.

Lower mileage = fewer parts replaced under plan = fewer underlying issues and weaknesses spotted.

PP you have a point. However car mileages are cut it's called giving a car a hair cut. This is the main reason low km aged vehicles are something people try and avoid. Normal to high indicates it's with normal use. I myself am wary of low km vehicles purely because of this. In some vehicle's log book /service book you can actually see the dates being different and the 150k service was done before the 120k service...

Not saying you're wrong, but this is the reason people in general avoid low km cars.

 

[PostmanPot]

PP you have a point.

I like to see it as a fact, not just a point.

However car mileages are cut it's called giving a car a hair cut. This is the main reason low km aged vehicles are something people try and avoid. Normal to high indicates it's with normal use. I myself am wary of low km vehicles purely because of this. In some vehicle's log book /service book you can actually see the dates being different and the 150k service was done before the 120k service...

100%.

Not saying you're wrong, but this is the reason people in general avoid low km cars.

Sensible people, yes. The problem is when it comes to the general population, who uses mileage as the be-all and end-all determination.

Wrong.

Again, it's the low mileage myth used to sow doubt of reliability and high maintenance. IMO, in order to drive new car sales.

 

[Rouxenator]

Let me ask you this then, how long do you normally keep a car for and how long do you plan to keep your current car for?

I buy cars from dealerships and they are certified used cars. Not sure where you buy cars from if they have had a "hair cut" but suffice to say I think you should rather be worried about the source of the cars more than anything else.

 

[PostmanPot]

Let me ask you this then, how long do you normally keep a car for and how long do you plan to keep your current car for?

I buy cars from dealerships and they are certified used cars. Not sure where you buy cars from if they have had a "hair cut" but suffice to say I think you should rather be worried about the source of the cars more than anything else.

Why would I buy from a dealer at a 15% premium when everything I need to certify the car is on the full service history PDF linked to the VIN, incl. claims against the motor plan?

Why when I can run a trace on the VIN number and receive a full PDF on accident claims, ownership, finance payment?

When I can get 101 point checks and DEKRA inspections for extra peace of mind?

When I can find an excellent deal by meeting a private seller halfway between what they want for the car and the dealer's lowball trade-in offer, only to add on 15% for for a brief warranty and to tell me it's 'certified'?

Certified is just another marketing gimmick. The only peace of mind a dealer offers is a brief warranty period, it's simply not worth a 15% premium.

 

[Pitbull]

Let me ask you this then, how long do you normally keep a car for and how long do you plan to keep your current car for?

I buy cars from dealerships and they are certified used cars. Not sure where you buy cars from if they have had a "hair cut" but suffice to say I think you should rather be worried about the source of the cars more than anything else.

You get them from dealers too. Trade-ins on other new vehicles. Toyota won't verify the service history of a VW Polo traded in. These vehicles are serviced and moved to the used section. If you have time, go to a dealership and check the service books on some of the vehicles on their used floor. Look at the history. I can guarantee you will find at least 1 on the floor with the service dates being incorrect and not making sense.

I have seen this numerous times and the reason I actually check the service books now before I buy. Some of them you will have the whole book filled in with the same pen and hand writing also this clearly proves the book was completed in one sitting...

 

[Pitbull]

Just as a reference.

Read this article:
http://autoadvice.co.za/auto/odometers-how-can-i-if-tell-if-the-mileage-is-accurate

 

[Lupus]

In my case the service book was lost had an accident the car was towed to the panel beater was there for three bloody months due to Xmas season and part delays sigh, eventually getting the car back I didn't check that everything was in it when I drove it home.
When I realised the book was gone and drove back a week later let's just say they had apparently chucked it . Though the rest of the article is right if I'd known those tips before buying my first car I'd have realised it was turned back by 30k

 

[HapticSimian]

...

Toyota won't verify the service history of a VW Polo traded in...

They would, as far as is necessary and practically possible; any reasonably recent car traded in at a franchise dealer will have its history checked. Most manufacturers keep digital records and verifying the history of any car still under, or recently out of, plan or warranty isn't a big chore.

With the prevalence of digital record keeping, many people (and dealers) neglect keeping service books up to date. People often request that books be stamped for past services, which we happily do once the information has been cross-checked.

 

[APoc184]

Interesting discussion and a problem I am currently stuck with.

I am interested in 2 x Honda CRVs. Both in very good overall condition. Both with only one previous owner.

The one has just under 90'000km on the odo.
The other has 122'000km.

The one with lower mileage was confirmed to be used by the typical stay at home mom who drops the kids at school and fetches them in the afternoon again. Weekend trips and holidays the vehicle was also used instead of the husband's smaller hatch.

The one with the higher mileage was confirmed to be used on a daily commute between Queensburgh to Durban and back. And also used for weekend and holiday trips.

Without knowing any of the above the easy option here is the one with the low mileage. But after knowing how the car was used I would tend to lean towards the one with the higher mileage.

I am pre-approved on both of the vehicles and both came in at roughly the same monthly installment.

So what would you do?

 

[Pitbull]

Interesting discussion and a problem I am currently stuck with.

I am interested in 2 x Honda CRVs. Both in very good overall condition. Both with only one previous owner.

The one has just under 90'000km on the odo.
The other has 122'000km.

The one with lower mileage was confirmed to be used by the typical stay at home mom who drops the kids at school and fetches them in the afternoon again. Weekend trips and holidays the vehicle was also used instead of the husband's smaller hatch.

The one with the higher mileage was confirmed to be used on a daily commute between Queensburgh to Durban and back. And also used for weekend and holiday trips.

Without knowing any of the above the easy option here is the one with the low mileage. But after knowing how the car was used I would tend to lean towards the one with the higher mileage.

I am pre-approved on both of the vehicles and both came in at roughly the same monthly installment.

So what would you do?

I'd go for the 122k if the cambelt was already replaced. Just the idea of the next service on the 90k would put me off as well as the price difference on the 2. They are practically the same vehicle but one is priced way more than the other for 30k difference in km's

 

[Mr.Jax]

I'd go for the 122k if the cambelt was already replaced. Just the idea of the next service on the 90k would put me off as well as the price difference on the 2. They are practically the same vehicle but one is priced way more than the other for 30k difference in km's

Yeah, I'd have a look at the upcoming services and the costs involved, just to make sure that whatever choice I made did not cost me more money in the near future.

Also, what about any remaining warranties ?

 

[APoc184]

as well as the price difference on the 2. They are practically the same vehicle but one is priced way more than the other for 30k difference in km's

Well not really. The higher km one is R10'000 cheaper than the other but included in the deal is also a 2 year Mechanical Failure Warranty which I can opt out of. That will probably bring the monthly installment down a bit. And I did get a better interest rate from the one with the lower km. F&I there tried a bit harder than at the other dealership.

 

[Colin62]

The one has just under 90'000km on the odo.
The other has 122'000km.

The difference is insignificant, base your decision on the condition of the car and other factors. Having read the intervening posts, I'd almost certainly go for the higher mileage one.

 

[Rouxenator]

Why would I buy from a dealer ....

:erm: because they save you a lot of time and effort when buying as well as in future.
How long do you keep your vehicles for anyway?

 

[PostmanPot]

:erm: because they save you a lot of time and effort when buying as well as in future.
How long do you keep your vehicles for anyway?

They charge a 15%+ premium for their efforts, which I can do all myself. In fact, I do more than what they would offer their clients. I get more peace of mind than what they offer.

Trust me, people buy lemons from dealers too.

I won't keep longer than 150,000km so I can maximise what I get out of the car when selling by taking advantage of the 'lower mileage' myth. I'll get much more, and be in for a much quicker sale, than if I sold at 200,000km.

On a more personal note, my car is extremely rare and desirable. Once I've sold it, I'd have only lost about 5 - 10% from when I bought it several years prior.

If we're working with figures, someone who buys a car new for R300,000 will lose around half of that at 100,000km/once plan has expired. I would then buy at R150,000 (or less), and only stand to lose around 10 - 15% by the time I sell again at around 150,000km.

 

[FiestaST]

They charge a 15%+ premium for their efforts, which I can do all myself. In fact, I do more than what they would offer their clients. I get more peace of mind than what they offer.

Trust me, people buy lemons from dealers too.

I won't keep longer than 150,000km so I can maximise what I get out of the car when selling by taking advantage of the 'lower mileage' myth. I'll get much more, and be in for a much quicker sale, than if I sold at 200,000km.

On a more personal note, my car is extremely rare and desirable. Once I've sold it, I'd have only lost about 5 - 10% from when I bought it several years prior.

If we're working with figures, someone who buys a car new for R300,000 will lose around half of that at 100,000km/once plan has expired. I would then buy at R150,000 (or less), and only stand to lose around 10 - 15% by the time I sell again at around 150,000km.

IIRC you have the B7 A4 DTM man; is that correct?

 

[APoc184]

The difference is insignificant, base your decision on the condition of the car and other factors. Having read the intervening posts, I'd almost certainly go for the higher mileage one.

The one with the higher mileage is indeed slightly better looked after. Especially the interior. But that can be expected because there were no children involved like with the lower km one.

It really is a tough choice for me. Both seem to have their pros & cons.