Though car prices have eased from their pandemic highs, getting a new set of wheels still doesn’t come cheap: As of September, 2024, the average price of a new car was $48,397, while the average used car was listed for $25,361. One way to get around these high costs is to purchase a high-mileage vehicle — those with 100,000 miles or more on them. But is this a wise idea?
Conventional wisdom once held that 100,000 miles was a critical turning point in a vehicle’s value and reliability. In other words, the advice was to proceed with extreme caution. But today, a well-cared-for high-mileage vehicle can still be a smart purchase — if you know what to look for when buying a high-mileage car.
Key Points
• Set a budget and stick to it, considering how much you have in savings and/or car loan options.
• Research reliable makes and models, using resources like Consumer Reports and Kelley Blue Book.
• Test-drive the car and get a mechanic’s inspection to identify issues.
• Obtain a vehicle history report to check for past ownership and accidents.
• Consider paying with cash and maintain an emergency fund for repairs.
Is It Wise to Buy a High-Mileage Car?
Buying a high-mileage car can be an easy way to save money. In fact, if the price is right, you may be able to buy a used car with cash, meaning you won’t have to worry about monthly car payments and high interest rates.
However, cars with higher mileage are understandably more prone to mechanical issues. When buying high-mileage cars, it’s important to consider models with a clear history of routine maintenance. It’s also wise to look at automotive manufacturers that are well-known for building longer-lasting cars; Consumer Reports singles out Honda and Toyota specifically, though some people are loyal to other makes, too.
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Buying a High-Mileage Car: Pros and Cons
So what are the pros and cons of buying a high-mileage car? Let’s break it down:
| Pros of High-Mileage Cars | Cons of High-Mileage Cars |
|---|---|
| Affordability: Used cars are generally cheaper than new cars; the more miles on the odometer, the more affordable it typically is. And expect continued savings: For the most part, used cars are cheaper to insure than new ones. | Maintenance costs: A high-mileage automobile is more likely to need repair work. Eventually, a necessary repair may cost more than the car’s value, at which point you may want to consider buying a different car. |
| Depreciation: A new car typically loses 20% of its value in the first year; then 60% by the 5-year mark. By buying an older, high-mileage car, you don’t have to worry about such large depreciation hits. | Safety: A car with high mileage is likely at least several years old, so it may not have the industry’s latest safety technologies. |
| Ease of purchase: You can likely drive a high-mileage car off the lot as soon as you sign. Getting a new car, on the other hand, may involve a wait time. In addition, you may be able to purchase a high-mileage car with cash, meaning you can skip the credit check and financing discussions./td> | Financing challenges: While paying with cash is an option for a higher-mileage car, the price may still be too steep for your bank account. Because of the increased chances for mechanical issues, lenders might be hesitant to offer financing for cars with more than 100,000 miles on them. |
11 Practical Tips for Buying a High-Mileage Car
If buying a high-mileage car is right for your budget, the following tips for buying a used car could be helpful:
1. Having a Budget
Before researching used cars, it’s smart to have an idea of what you are willing to spend. This might involve analyzing your savings or discussing your car loan options with a lender.
Once you have settled on a budget that you can afford, respect that limit. Even if you see a must-have car that’s slightly over your budget, remember that you set a max number for a reason: It’s what you are comfortable paying.
2. Researching Makes and Models with Good High-Mileage Ratings
While many cars can make it to 200,000 miles and beyond when taken care of, not all cars are created equal. Research makes and models that are well-known for lasting beyond 200,000 miles; Consumer Reports is one solid, objective resource for this.
You can also use resources like Kelley Blue Book, Edmunds, and Cars.com to understand fair prices for the specific make and model you have chosen, given its mileage and condition.
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3. Researching Reviews on the Car Model
Next up when thinking about what to look for when buying a high-mileage car: What do the experts have to say?
Once you have selected your preferred car model, read independent reviews from popular car sites (like Edmunds, Consumer Reports, and Car and Driver) and actual drivers on car forums. Doing so may help you get a feel for how this model performs, particularly once it has 100,000 or more miles on it.
While it might not cover the specific year, make, and model of the car you are considering, J.D. Power’s annual Vehicle Dependability Study can give you a good idea of automakers that excel at designing long-lasting vehicles.
If it appears that the vehicle you have chosen may not be as dependable as you thought, you may want to start your research over, focusing on a different model.
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4. Researching Risks and Costs
No matter which high-mileage car you are considering, there will be inherent risks as far as reliability goes. It’s wise to familiarize yourself with the potential problems associated with a higher-mileage car. This may provide you with a better understanding of what could go wrong.
Knowing the common issues that high-mileage cars encounter can help you calculate how much to save for car maintenance.
5. Researching Car Insurance
Before you drive home in your used car, it’s a good idea to have car insurance figured out. In fact, every state but Virginia and New Hampshire legally requires you to carry car insurance if you own a vehicle.
Check out minimum car insurance requirements for your state as you research. Often, the minimum level of coverage is an adequate amount for a high-mileage vehicle.
That said, determining the right amount of car insurance coverage is entirely up to your discretion. Think about what will make you feel safe and well protected.
6. Not Being Impatient
Patience is important when shopping for a used car (as it is for many big purchases). This is especially true if there is a specific model you have in mind. It might be tempting to buy the first high-mileage car that meets your basic criteria, but it is a good idea to take your time, view multiple options, and compare them before making a decision.
If your current vehicle is nearing the end of its life, you might want to start car shopping before it is totally out of commission. That way, you are less likely to be rushed into a decision.
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7. Test-Driving the Car
Test-driving a car is a good idea whether you’re buying new or used. When buying new, it allows you to determine if the vehicle is right for you. Are the seats comfy? Are the controls intuitive? Can you work around its blind spots?
Checking these things for a high-mileage car is also important. On top of that, a test drive in a used car allows you to monitor for potential problems. You can visually inspect the car, but you can also feel how it drives, listen for weird sounds, and even smell for things like water damage.
8. Getting a Vehicle Inspection
Though paying a mechanic to inspect a car you don’t own might sound like a waste of money, it can be a good idea when considering a used vehicle. Private sellers and dealerships might not disclose (or even know about) every small issue. An independent mechanic inspecting a high-mileage car, however, will be able to point out potential problems and estimate your costs for repairing them.
If a dealer or private seller is unwilling to let you take the vehicle to a mechanic during your test drive, consider insisting upon this — and even offer to follow the private seller to your mechanic. If the seller is still unwilling, it is probably wise to pass on the vehicle. There might be major issues lurking under the hood.
If your mechanic uncovers problems and they are expensive to fix, you may also want to skip the purchase and continue your search.
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9. Getting a Vehicle History Report
Whenever you are purchasing a used car, whether it’s high- or low-mileage, it is a good idea to get a vehicle history report. Some dealerships and private sellers may have already ordered a vehicle history report for you to review. Even if they haven’t, consider proceeding. The cost is often negligible, typically between $25 and $40.
Why get a vehicle history report? These reports contain information about the number of previous owners, any major accidents, mileage accuracy, potential flood damage, and more helpful info for determining if the vehicle is worth the cost and what issues it may have faced in the past.
10. Paying Cash If You Can
When buying high-mileage cars, you may be able to use cash to negotiate a better car deal. Paying with cash also means you can set aside any money you would have used for a monthly car payment to use for car repairs, as needed.
Cash is also a good way to keep within your means — and the original budget you set for yourself.
11. Having an Emergency Fund for Your Car
A high-mileage car is more likely to encounter regular problems requiring potentially costly repairs. It can therefore be a good idea to have an emergency savings fund held as a savings account, ideally earmarked to include any car-related issues. Repair costs can rise significantly at the 100,000-mile mark.
The Takeaway
Buying a high-mileage car can feel like a risk, since more mileage means more wear and tear. But today’s cars typically perform well, even when the odometer reading goes well past 100,000 miles. And there is usually significant savings to be had, since mileage is a key factor in pricing. A lower price tag may mean you can pay cash and avoid the cost of financing for added savings.
Saving up to buy a used car with cash and setting aside money for care and any potential repairs means you’ll need a high-yield bank account with good savings features.
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FAQ
What is the most reliable high-mileage car?
In general, Honda and Toyota manufacture some of the most reliable high-mileage cars. Other automakers that rate well on reliability include Lexus, Mini, Acura, Subaru, and Mazda. Cars models that often get ranked as longest-lasting by credible automotive sites include: Honda Civic, Lexus LS 400, and Toyota 4Runner.
What is the highest mileage you should buy for a used car?
While mileage limits can vary depending on the vehicle’s maintenance records and the brand, it can be wise to make 200,000 miles your max limit when shopping for a high-mileage car.
Is mileage more important than age?
It is important to consider both mileage and age when shopping for a used vehicle. In general, the more miles a car has, the more likely it is to need repairs. However, a newer car with the same high mileage as an older car is more likely to have newer safety systems and better fuel economy.
Photo credit: iStock/HABesen
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