When you shop for a used car, the sticker price is only part of the story. Three other numbers usually matter more: the vehicle’s mileage, its age, and how much it has already depreciated. Understanding how these three work together is the difference between an okay purchase and a genuinely smart one. At Tillema Auto, we’ve been helping Byron Center drivers work through these tradeoffs for close to 30 years. So we thought we’d share what we look for, and what we think you should look for too. Here’s how to find the best value used car for your situation.

How used car depreciation actually works

Depreciation is the amount a car loses in value over time. It’s the biggest cost of owning any vehicle, and it hits hardest in the early years. A brand new car typically loses around 15 to 25
percent of its value in the first year. By year three, it has often lost roughly 40 to 50 percent.
By year five, the loss is usually closer to 50 to 60 percent.

That flattening is exactly why used cars can be such a good deal. Somebody else has already absorbed the steepest part of the drop. So you get most of the car for a lot less money.

What “high mileage” really means today

There was a time when 100,000 miles felt like the finish line for a car. That number stuck around in a lot of people’s heads. But modern vehicles are built to last much longer than they used to. It’s common to see reliable models cross 200,000 miles with regular maintenance and no major issues.

The average American driver puts around 12,000 to 15,000 miles on a car each year. So a five-year-old vehicle with roughly 60,000 to 75,000 miles is right on pace. That’s normal, not scary. What matters more than the raw number is how those miles were driven. Highway miles are gentler on a car than short, stop-and-go trips.

Age versus mileage: which one matters more?

The short answer is that both matter, but they matter for different reasons.

A low-mileage older car might sound great on paper. However, cars that sit for long periods have their own problems. Rubber seals dry out. Batteries and belts age even when nobody is driving. So a ten-year-old car with only 40,000 miles isn’t automatically a bargain.

A higher-mileage newer car has the opposite tradeoff. It has been driven regularly, which usually keeps parts lubricated and healthy. But some wear items, like brakes, tires, and suspension components, may be closer to the end of their lifespan.

The best strategy is to look at both numbers together, and then think about the kind of driving your family actually does.

How to find the value sweet spot

Many buyers find that the value sweet spot tends to fall in the three-to-six-year range. By that point, the vehicle has absorbed most of its depreciation, but it still has plenty of useful life left. Mileage in that range is usually somewhere between 36,000 and 90,000 miles.

That’s a general guideline, not a hard rule. A well-maintained six-year-old vehicle with 100,000 gentle highway miles could easily be a better buy than a three-year-old with 45,000 stop-and-go city miles.

Here are three questions worth asking about any used vehicle you’re considering:

• Do you have service records that show consistent maintenance?
• Was this car driven mostly on highways or in city traffic?
• Where was the car before it got here? A vehicle with a Michigan history has a different story than one from a warmer state.

What we look for when we stock our lot

We can’t speak for every used car lot, but we can share what matters to us. When we bring a vehicle into our inventory, we focus on reliable, high-quality vehicles that can handle everything Michigan roads throw at them, from spring construction to summer gravel to winter salt and snow.

We also believe in matching people to vehicles, not just moving inventory. If a car isn’t right for your family, we’d rather help you find one that is.

Ready to find your best value used car?

If you’re weighing mileage, age, and depreciation, and you’re not sure where to start, we’d love to talk it through with you. Every family and every budget is a little different. So the right used car for you may not be the right one for your neighbor.

Contact us

Got a question, or ready to schedule a time to look at inventory? Reach out through our website any time. We’d love to hear from you!