For some, purchasing the most mileage-driven car, particularly one with more than 100k miles, could be risky. However, if you’re saving up cash to buy your next vehicle, there are many other choices. The question is whether buying a car with 100k miles is an unwise choice?
There are many advantages when you purchase a car with high mileage. For example, vehicles with 100K miles will cost less to buy, register and insure while depreciating faster than vehicles with low mileage. Most of the time, purchasing a car with 100K miles isn’t an ideal choice.
In the remaining portion of this article, we’ll explore the five primary reasons you should think about purchasing a vehicle with 100,000 miles or more significant.
Let’s begin.
1. Lower Purchase Price
Based on Kelley Blue Book, the average price of a brand new vehicle as of January 2019 was $37,149? (source)
Let’s face it, the cost of a brand new automobile has reached a point that is causing consumers like Americans to borrow to buy the car. Also, if you plan to save money to purchase a brand-new vehicle with cash, it will take a long time. Too long.
That’s why a car with 100K miles is so attractive; they’re more affordable. You might not have the most advanced technology available in new vehicles but are you really in need of that. Wouldn’t it be more beneficial if the car could get you from point A to point B without breaking the bank or even putting you into debt?
Because cars with 100K or more great miles are priced much less, it’s logical to save and then pay cash for them in full. So, you don’t have any debts, you won’t need to pay any interest, and you’ll enjoy the peace of mind of debt-free cash flow.
The less expensive purchase price of an automobile with high mileage is an excellent choice for your finances; it is straightforward.
2. Minimal Depreciation
Have you ever heard that the worth of a brand new automobile will drop by 20 percent up to 30% in the first year? (source)
This means that when you buy a car for $40,000and then twelve years later, it may be worth only $28,000. I do not know about you; however, in personal finance (and common sensible), making a purchase that will lose 1,000 dollars each month is a poor choice.
It isn’t wise to invest in an investment fund losing 30 percent each year. Why should you buy a car that has this problem?
The other benefit of purchasing an automobile with more than 100K miles is that the depreciation rate is much slower than the cost of a brand new vehicle. For instance, if you purchase a ten-year-old car with 100K miles for $8,000, you will see it decline by one thousand dollars per year or maybe less.
Truthfully, once an automobile reaches the limit of mileage, it is dependent on what someone would be willing to pay instead of the current price.
For instance, My wife and I bought a used car with 104,000 miles about a year ago for $6,600. (We bought it with cash, which means we could negotiate quite a good bargain.) For a test, I decided to find the current price of the same car that has the exact miles. They are selling for just $7,000. What do you think?
Since we chose to buy a vehicle with more than 100K miles and we now own a car that didn’t even depreciate. We might be able to sell it at a small profit.
It’s probably another reason to get an automobile with high mileage.
3. Cheaper Insurance
Before, when my spouse and I were able to live within a budget that was debt-free and within our budgets, We each owned a car with prices we could not pay for. With their high price of acquisition and the additional cost of increased insurance costs.
It’s just logical. A more modern, well-priced automobile is a higher risk for insurance companies. So, they must set a monthly cost that reflects the risk.
As difficult as it may be to admit it, my wife and me were paying more than $500 a month for insurance for our cars. Ouch.
Yeah, baby! My wife and I have to pay $160 in car insurance since we own a truck with over 50,000 miles and a car with more than 100K miles. This means we’ve reduced the cost of car insurance for our year to more than $4000.
Important note When you’re looking for car insurance on Be The Budget, we recommend getting an estimate at Liberty Mutual. Based on our experience, their rates are incredibly competitive. At the most, you’ll be able to have a base that you can use to compare rates and coverage offered by other insurance companies. Click here for an insurance quote for your car by Liberty Mutual.
4. Lower Registration Costs
I am aware that car registration fees vary between states; however, older, higher-mileage automobiles have a lower cost for registration in Colorado.
AS an example, the price to register a brand-new vehicle valued at $30k in Colorado will be about $600. Compare that with a car valued at $8,000, and the cost is less than $100.
The savings are just beginning to accumulate. With the lower cost of purchase and the less expensive insurance, minimal depreciation, and the cost of registration, I’m having a tough time deciding if there is a reason to purchase a car that has more than 100K miles.
5. Reliability
One of the main motives to buy a vehicle with 100K miles or more is that cars have become increasingly robust. The reliability has reached the point that it’s normal to see vehicles running over 200,000 miles.
A vehicle with 100,000 miles will last for longer than six years if you travel 15,000 miles a year.
In the present, it’s pretty evident that some vehicles are more stable than others. It’s one of the major selling points of certain cars today.
I’m talking about how often you have heard the words of a commercial for a car, such as “the long-lasting S.U.V. that is available “?
While I’m not an expert on the durability of each car in the market, when I think of reliable vehicles, I envision the following: a Toyota Camry, a Honda Civic, an Nissan Altima, a Subaru Legacy a myriad of others.
Nowadays, the safety of cars should relieve many of your concerns when you are looking to purchase an automobile with 100K miles.
Last Thoughts
If you’d like to buy a car for cash, don’t think twice about looking at vehicles greater than 100K kilometers. Although you may not be able to get the fresh car smell, you’ll benefit from a myriad of other advantages.
- Cars with high mileage are available at a lower price, which allows you to save money, pay cash and avoid credit card debt.
- Older vehicles with higher mileage appreciate at a less rapid rate. In contrast, new cars will lose over half of their value over five years.
- Insurance for vehicles with high mileage tends to be less costly. If you’re looking to safeguard your cash flow and maximize the value of your earnings, A car that has 100K miles could be ideal for you.
- Based on the state in which you reside, the registration cost for cars with 100K or more miles is significantly lower than the cost for a vehicle with low mileage.
- The reliability of vehicles today is increasing with every passing year. This means that high mileage vehicles are more likely to last longer.
