Drivers have been issued a major warning as many are missing out on thousands of pounds by making a common mistake. Research has found that around a third of drivers do not put much planning into selling their car and end up doing so in a panic in order to avoid high costs.
In addition to the cost of maintaining and repairing a car continuing to rise, more and more owners are being forced to make quick selling decisions, leading them to earn less than their vehicle is worth.
Car depreciation is another reason why owners quickly sell. According to Carwow data, 17% of the more than 1,000 drivers surveyed said their panic selling was driven by a desire to avoid further depreciation.
However, the experts noted that a car’s age is not the only factor in its value; the number of miles driven also plays a significant role.
For example, it found that the average valuation of a BMW 3 Series sold on Carwow with less than 20,000 miles on the clock is £28,443, but for one with between 20,000 and 50,000 miles, that average valuation drops almost £10,000 – 34% – to £18,795 and a further 38% after 50,000 miles.
Siobhan Doyle, consumer writer at Carwow, said: “Cars like a Ford Fiesta and a Volkswagen Golf often see their first sharp depreciation around 20,000 miles, while the biggest drop typically hits around 60,000 miles, these often coincide with the end of manufacturer warranties. Even premium models such as the BMW 3 Series experience significant losses after these key milestones.”
Despite the huge impact mileage has on car values, more than 20% of drivers say they pay ‘very little’ or ‘no attention at all’ to mileage thresholds when selling a car, even though it can cause the value to drop by hundreds or even thousands of pounds.
Ms Doyle added: “Mileage significantly affects a car’s value, and around 10% of drivers in our survey said that March and September’s number plate changes are a key trigger for selling. Listing your car just before a plate change can help maximise value, while waiting too long risks further depreciation as buyers gravitate towards newer registrations.
“By planning ahead, watching key mileage and seasonal triggers, and keeping an eye on your car’s value, drivers can reduce stress and maximise the return when it’s time to sell.”
To get the most out of selling your car, the expert recommends knowing your car’s worth, selling on your own schedule, keeping seasonal factors in mind (such as number plate changes), starting the process early, and shopping around by comparing multiple offers to ensure you get the best one.