You’re browsing your favourite online used car marketplace and come across the model you’re looking for. It’s a five-year-old vehicle with 120,000 km on it. Your car nerd friend tells you that’s higher than average. Should you automatically dismiss it?
Two listings later, your car buying leads you to the same make and model year of vehicle, but this one only has 60,000 km on it. That automatically makes it a much better option, right?
Neither of these scenarios is necessarily that simple. As a general rule, a vehicle with more kilometres than average on the odometer is less desirable, and one with fewer than average is more so. But additional factors can come into play that might make the lower-mileage vehicle less appealing than it looks or that could make the higher-mileage vehicle worth considering.
Here, we take a look at what to consider a typical level of mileage for a used vehicle and what factors to consider when examining a vehicle with an odometer reading outside of those averages.
Aim for 20,000 km Per Year
Generally speaking, a used car can be expected to show an average mileage of 20,000 km per year.
This means that a two-year-old used car would ideally show an odometer reading of no more than 40,000 km, a three-year-old car would show 60,000 km, and a five-year-old car would show a maximum of 100,000 km. A 10-year-old car would be expected to be closer to 200,000 km. These average distances relative to a car’s age are also the measure used by manufacturers to determine how long any warranties will apply.
Of course, circumstances are rarely ideal. If a car has fewer kilometres on it than average, that doesn’t automatically mean it’s in better shape. And a car with a higher kilometre count than average might be a good find: if most of those kilometres were driven on the highway and the car has been well-maintained, you might save some money on the purchase price and end up with a solid vehicle. On the other hand, if you plan to resell the car at some point rather than driving it until it dies, starting at a lower mileage may be more important to you as it will help you pull a better resale price down the road.
What to Look for if a Car has High Mileage (averages more than 20,000 km per year)
Try to learn more about the nature of the kilometres driven. If the car in question has only had one previous owner who has racked up most of the clicks on long highway cruises at speed, that car might not show as much wear and tear in a test drive as one owned by a city driver with a long commute in stop-and-go traffic. To the extent possible, see what you can learn about how the car has been driven and weigh that into your assessment of how risky the higher mileage is likely to be.
Know that if the car is relatively new, you may run out of warranty sooner than you expect. A three-year-old car with 100,000 km on it might go for a great price, but it’s important to remember that vehicle warranties are tied to both age and distance driven. Check whether an extended warranty was purchased, and if not, expect to be on the hook for repairs at an earlier timeframe than if the car had a lower mileage.
Know which brands have a reputation for longevity. The vast majority of high-mileage cars last longer these days than they used to. Some brands and vehicle nameplates have an especially strong reputation for longevity. It’s a good idea to look into vehicle dependability surveys to see whether there’s any research to suggest whether that specific vehicle or brand has a reputation of being built to last. For example, J.D. Power’s vehicle dependability survey applies to three-year-old vehicles, so the 2018 survey would be a good reference for vehicles from model year 2015.
What to Look for if a Car has Low Mileage (averages less than 20,000 km per year)
Make sure the odometer reading is accurate. Some unscrupulous sellers will roll back a car’s odometer knowing that a lower reading will net a higher price. If you suspect that a car’s odometer reading might be too good to be true, be sure to order a vehicle history report and review the mileage trends carefully. This will give you an idea of whether the current reading is reasonable based on how much the car has been driven earlier in its life.
If there have been multiple owners, maintenance may not have been consistent. A five-year-old car with 70,000 km on it looks like a great deal on its face. But if a car has had four owners over those five years and some or all of the service records are missing, it’s a safer bet to assume that the car wasn’t properly maintained for at least a portion of its life. That could make more of a difference to the car’s overall longevity than outright mileage.
If mileage is very low on an older car, it may not have been driven enough. A car that sits idle for a very long time may develop problems such as dried-out seals, aging fluids, or a weak battery. Having any used car inspected by a dealership or a licensed mechanic before purchase is the law in many places and is always recommended, and that’s especially the case here where there’s a higher-than-normal chance of parts failure.
Case study: 2017 Honda Civic
To examine how mileage affects used car prices, we’ve looked through CarGurus listings for some examples of Canada’s best-selling car, the Honda Civic, from the 2017 model year. Based on the averages outlined above, a 2017 Honda Civic should have approximately 80,000 km on the odometer on average.
A group of three listings for Honda Civic LX sedans with mileage in the 60,000 km range showed an average price of $13,875. For five similar cars in the expected range of 80,000 km, the average price was $13,101. For another group of five cars with roughly 100,000 km on the odometer, the average price dropped to $12,940. From the highest to the lowest price, that’s a spread of just $935. Depending on the factors discussed above, this extra cost could be well worth it for the additional vehicle life you might gain.
Case study: 2017 Toyota Highlander
Applying this same format to a popular vehicle with a higher base price, we looked at the 2017 Toyota Highlander Limited with all-wheel drive.
For vehicles in the 60,000 km range, the average across three examples comes to $36,955. For the expected 80,000 km range, that comes down to $34,941. For the higher-than-average 100,000 km range, the price drops to $32,075. For a difference of $4,880, this is an example where a well-researched higher-mileage model might be a good deal: Toyota vehicles have a reputation for reliability, and that much of a price difference could make or break a family’s ability to accommodate the Highlander in the budget.
Case study: 2017 Nissan Leaf
And how well are battery electric vehicles holding up in the used vehicle market, where maintenance costs are lower and there are fewer parts to wear prematurely?
There are fewer examples to go by, and EV drivers tend to drive shorter distances due to range limitations. A Nissan Leaf S with 40,000 km on the odometer is shown priced at $18,988. Another with roughly 60,000 km is priced at $14,888. In this case, the higher mileage is likely less of a concern than the overall condition and maintenance of the vehicle.