Vehicles With More Than 100,000 Miles Command Record High Prices in June, According to Edmunds

Car owners with older, higher-mileage vehicles sitting in their driveway might be a bit shocked to see how much their vehicle is worth right now.

According to the car shopping experts at Edmunds, the average transaction price (ATP) for all vehicles sold at dealerships with mileage between 100,000-109,999 miles climbed to $16,489 in June 2021, compared to $12,626 last year, which is a 31% year-over-year increase and the highest ATP that Edmunds has on record for those vehicles.

Edmunds data also reveals that higher-mileage vehicles are selling much quicker off the lot: All vehicles sold with 100,00-109,999 miles had an average of 30.5 days to turn (DTT) in June 2021, compared to 37.7 days in June of last year.

“It’s been a long-held belief among many car buyers and sellers that a vehicle’s value begins to decline dramatically once it crosses the 100,000-mile mark, but that’s proven to be wrong as vehicle technology and durability have greatly improved over the years,” said Ivan Drury, Edmunds’ senior manager of insights. “The soaring demand we’re seeing in the used vehicle market right now only further debunks this myth: We’re seeing 7- to 8-year-old vehicles with more than 100,000 miles commanding prices today that are more like the cost of 5-year-old vehicles with 60,000-80,000 miles a year ago.”

“Consumers with an old truck sitting in their driveway are in the best position to take advantage of this wild market”

Edmunds analysts took a look at the top 10 used vehicles that dealers sold with mileage between 100,000-109,999 miles in June 2021 and identified their average age, transaction price and DTT:

Trucks topped the list of the greatest year-over-year increase in average transaction prices: The Chevy Silverado 1500 hit an ATP of $26,914 in June 2021, which was a 49% year-over-year increase; the Ford F-150 climbed to $25,924, which was a 43% increase; and the Ram 1500 commanded an ATP of $24,657, which reflected a 42% increase.

Vehicles that sold faster year over year were more of a mixed bag. The Jeep Wrangler topped that list with an average DTT of 29.7 days, a 37% year-over-year decrease, followed by the Ram 1500, which had a 28% year-over-year decrease in DTT to 27.4 days. And the Honda Civic came in third with a 25% year-over-year decrease in DTT to 28.3 days.

Edmunds experts advise that car owners take a moment to see how much their vehicle is worth right now by quickly appraising their vehicle on third-party sites like Edmunds.

“Consumers with an old truck sitting in their driveway are in the best position to take advantage of this wild market,” said Drury. “But even if you own an SUV or passenger vehicle that’s a bit long in the tooth, you shouldn’t be too quick to assume its value is dead. Chances are it’s worth a bit more — if not a lot more — than you think, which you could use to offset the cost of your next car purchase, or you could simply pocket the extra cash.” 

See www.edmunds.com

Copyright Today’s Credit Unions