
Is a 20-year-old car too old to buy? Why age isn't as important as you might think
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Buying, selling a car online tips and tricks to know
Here are some easy ways to determine how much your car is worth.
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Vehicle degradation depends on mileage more than age.
One study proved that several vehicles can last for 250K miles.
Drivers can estimate their vehicle's lifespan by dividing the total miles before major repairs by annual driving range.
Buying older used car models can save drivers big bucks. The question is, how old is too old for a used vehicle? Is there a definitive age cutoff when it comes to buying a reliable used car model?
There are several factors that should be considered when searching for an older used model. Surprisingly, age isn't as important as mileage, make/model, and overall reliability when it comes to a car's lifespan.
Are 20-year-old used cars too old to buy?
Age can play a role in vehicle lifespan, but it isn't always the best metric to gauge the potential longevity of a vehicle. In fact, some older well-maintained vehicles could be nearly as reliable as newer model years based on design.
A 20-year-old car that has traveled for the average annual miles driven per year (14,489 miles according to Kelley Blue Book) is likely well past its prime. On the other hand, vehicles that have accumulated less miles per year than the annual average and are well-maintained could still last for years before major mechanical issues.
Debilitating rust or major mechanical failures are cited as signs a vehicle is "too old to drive", according to a piece regarding vehicle age by Capital One. That said, there isn't a specific vehicle age where any car becomes so antiquated that it's rendered useless.
Mileage: A true indicator of vehicle age and degradation
Age may not be the best indicator of where a vehicle currently is in its lifespan, but mileage (on original parts) can help car buyers understand how many miles and years a vehicle has left on average. A study by iSeeCars.com, an automotive research site, compiled a list of the 30 vehicles most likely to last for up to 250,000 miles. The study analyzed odometer reading data for over 402 million vehicles.
The average vehicle only has an 8.6% chance of reaching 250,000 miles or higher, according to iSeeCars. Thus, 250K miles is a fair mileage number to set as the end of a vehicle's lifespan (optimistically). Realistically, most vehicles will only last up to 200,000 miles (or less) before encountering major mechanical issues.
Several Toyota models topped iSeeCars' list of vehicles most likely to reach 250,000 miles or more. Vehicles like the Toyota Tundra pickup truck and Toyota Sequoia SUV have over a 36% chance of reaching the mileage milestone, which is a much higher percentage than that of the average vehicle (8.6%).
Models like the Toyota 4Runner SUV and Toyota Tacoma pickup truck have over a 26% chance of reaching 250K miles or more. Vehicle age has no correlation with mileage because the annual miles a driver accumulates can vary.
The average lifespan of a car based on mileage
Assuming that a car is driven for Kelley Blue Book's estimate of an average 14,489 miles a year and the average vehicle lasts for around 200,000 miles before major mechanical issues, a conservative estimate for a car's lifespan is 13-14 years. You can get a more specific estimate for your vehicle by dividing 200,000 total miles by your average annual mileage. Vehicles with above-average reliability such as the Toyota models that topped iSeeCars' list can have an above-average lifespan.
The numbers used to calculate a car's lifespan are based on miles driven, not years owned. So, a 20-year-old car that has accumulated under 200,000 miles could last for years, depending on its mileage and reliability. Based on the iSeeCars study, at least six different vehicles have over a 25% chance of reaching 250K miles or more, increasing their lifespan estimates significantly.
The five vehicles most likely to last for 250,000 miles according to iSeeCars
Toyota Sequoia
Toyota Tundra
Toyota 4Runner
Toyota Tacoma
Toyota Highlander Hybrid
No car is too old to buy, but a car's mileage can be too high to be reliable without significant repair costs. Parts such as engines and transmissions experience extreme wear and tear as cars accumulate 200K miles.
Luckily for drivers, some cars (like Toyota models) age better than others in terms of degradation. If a car has racked up so many miles that it needs a new engine or transmission, it may not be worth buying due to the cost of parts and repairs.
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USA Today
7 hours ago
- USA Today
Used cars under $20K have almost vanished from the market: Here's what's behind the surge
Before the COVID-19 pandemic, more than half the used cars for sale in the nation were 3-year-old vehicles priced for $20,000 or less. Today, those same type of vehicles comprise only 11% of used cars. In fact, most shoppers who are in the market for a used vehicle would be hard-pressed to find a 3-year-old model below even $30,000, forget finding one for $20,000. According to a new study from research website called: "The sub-$20,000 used car is almost gone," the average list price for a used 3-year-old vehicle is now $32,635, that's $9,476 more than it was six years ago. "There's very little negotiation going on for used cars because demand is so high," said Karl Brauer, executive analyst with which is based in Woburn, Massachusetts. "The price of used cars was dropping for the last two years, not dramatically, but going down a little bit every month. The last three months, it's gone up again.' In February, the average list price for a 1- to-5-year-old used car was $31,257, up 1% from the year-ago period. In June, it was up to $32,437, a 4.8% bump from a year ago June, Brauer said. Of course, that's still cheaper than buying a new car. According to the average manufacturer's suggested retail price in June was $50,523, but the average transaction price — which is what a customer pays for the car — was $48,261. 'Who knows what will happen in July. Maybe the trend will stop?' Brauer said of used car prices climbing. In case you missed it: Used car prices hit record highs in 2025: What buyers need to know What's no longer available for $20,000 Metro Detroit reflects what's happening nationally. Brauer said in 2019, 52.2% of 3-year-old used car inventory in the Motor City was priced $20,000 or less. Today, only 13% of the used car inventory in metro Detroit consists of 3-year-old cars priced for $20,000 or less. Brauer told the Detroit Free Press, part of the USA TODAY Network, that his company conducted the study in mid-June. It analyzed data on 2.6 million 3-year-old cars. They focused on 3-year-old cars because those are in the "heart of the age group in the used market," which are 1 to 5 years old, he said. The study showed that the bestselling 3-year-old used models that are virtually no longer available for under $20,000 include the Chevrolet Equinox, Honda Civic, Kia Sportage, Nissan Rogue, Toyota Camry and Toyota Corolla. For example, Brauer said in 2019, 97.6% of 3-year-old Honda Civic cars could be bought for $20,000. Today, 5.7% of 3-year-old Honda Civics are available at that price range at $20,000. 'That's 94.1% drop-off," Brauer said. "The Toyota Corolla, 99.9% were available to a $20,000 buyer in 2019 and now its 62.9% so they've lost about 37%. Chevy Equinox: 88.1% were available in 2019 for a $20,000 buyer and now 22.3% for a $20,000 buyer.' The study found that passenger cars saw the biggest price increase since 2019, up 48.7%. Prices for used pickups rose 28.8% and used SUVs prices are up 15.4%. Here's how that translates to dollars: How COVID drove up car prices The dramatic shift in used vehicle market pricing can be attributed to a few things, Brauer said. First there is inflation, which the nation saw rise after the COVID-19 pandemic. But a $9,500 average price boost can't all be due to inflation, Brauer said. He blames it more on the restricted new-vehicle production in the second half of 2020 as automakers idled assembly plants because of the pandemic. Even though they were back online in a matter of weeks, it takes time to get the suppliers and production back to full capacity. When they finally did, many automakers were then hit with the semiconductor shortage in 2021 that hindered new vehicle production again. "So you had a huge hit for new car production from mid-2020 to 2022," Brauer said. "We're now in 2025 and the cars that would be 3 years old would have been built around 2021 to 2022 and they are not there in terms of the volume the used market needs. It is because the supply of new cars in three-plus years ago are restricted." On top of that, prices have systematically been pushed higher by demand as a result of the pandemic, which saw people move from urban to suburban areas when they no longer had to come into an office. With no public transportation in surburban areas, those people now need to buy cars. "So right when you had new car production restrictions, you had new car demand go up ... and this is three or four years ago," Brauer said. "That pushed up prices of new cars and pushed people into the used market, which pushed up the prices of used cars." To add to the lack of available late-model used cars, he said, the people who leased cars three to five years ago, came off those leases and saw the prices of new and used cars and realized buying out their lease was the cheapest way to get another vehicle. So those leased vehicles are not going back into the used market, he said. 'So all these things, almost every variable that could or would affect used car pricing, has done so in a bad way," Brauer said. "That's made them more expensive.' Used car buying advice So where does this leave used-vehicle buyers? "They have to buy older cars with higher mileage," Brauer said. "When you look at what's selling, for $20,000, it used to be a 3-year-old car and it had like 32,000 miles on it. Now, $20,000 buys you a 6-year-old car with 71,000 miles on it.' The good news is cars are built better so the older used models with higher mileage will last longer, he said. "If you're forced to buy an older, higher mileage car, thankfully older cars are better than they used to be," Brauer said. "I used to consider 100,000 miles as: 'That's disposable.' That's not true anymore. You can get to 200,000 to 250,000 miles fairly easily.' Brauer offers the following tips for used-car buyers: If you have to take a bus or a flight it might not be a big savings, he said. But Brauer is a big believer in expanding your radius in where you're willing to get a car to save a few bucks. 'Sometimes a dealer will ship it and that can be the most economical," Brauer said. "It might cost you $800 to ship it, but if you're saving $2,400 on the price, then you're still getting a $1,600 savings.' Likely no retraction on prices Brauer said it is possible for prices to reverse, but unlikely unless there is a "substantial and unwelcomed turmoil" in the economy. The average used-vehicle prices had stabilized over the last year. But when President Donald Trump applied 25% tariffs to all imported vehicles and car parts this spring, buyers flooded the market to buy new and used cars out of fear that the tariffs would inflate prices. That sudden rush of demand with limited inventory actually caused prices to rise, Brauer said. "We've stabilized. But I think it's unlikely we'll see 1- to- 5-year-old vehicles available for around $20,000 like we did before the pandemic," Brauer said. "I don't think that's going to come back. We'll see ongoing stabilization, but no retraction in pricing." Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
Yahoo
a day ago
- Yahoo
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Yahoo
a day ago
- Yahoo
If You're Thinking About Buying an EV, Trump Made Now the Time To Do It
If you've been on the fence about switching to an electric vehicle (EV), now might be the perfect time to make the leap. Tax credits for buying an EV were supposed to last through 2032, per CNBC, but President Donald Trump's 'One Big Beautiful Bill' killed the tax breaks for new and used EVs. While the bill axed the credit, there's still time to take advantage before EVs become more costly. With the clean vehicle credit, qualified buyers can receive a $7,500 credit for new EV or a $4,000 credit for a used EV until Sept. 30 2025. The credit can reduce the cost of the vehicle by thousands; however, there are several restrictions to take note of. Read Next: Check Out: Here's what to know about the credit and why it might be the smartest time to buy. Clean Vehicle Credit Guidelines Not all buyers can cash in on the credit. According to the IRS, income ceilings stop at $150,000 for individual filers. That rises to $225,000 for heads of household and $300,000 for joint filers. According to Rob Dillan, automotive expert and founder of EVhype, there are price caps for vehicles, too — $55,000 for sedans and $80,000 for vans, SUVs and trucks. 'Fifty percent or more of a vehicle's battery must also be made with American parts, and the vehicle must be constructed with materials from the United States or countries the United States has trade agreements with,' he explained. 'These criteria will also rule out some EV models, so potential buyers will need to verify eligibility before purchasing.' In addition, the EV must weigh less than 14,000 pounds in gross vehicle weight, have a battery storage capacity of 7 kilowatt-hours or more, go through final production in North America, and be produced by a qualified manufacturer (excluding fuel-cell vehicles), per TurboTax. Learn More: Now Is the Time To Buy If you qualify, the credit could significantly lower the cost of buying an EV. 'The credit is going to make a big difference in cost, since the average transaction price of a new EV in 2025 is projected to be $56,910,' Dillan said. 'The federal tax credit is also likely to disappear in September based on timing alone, so now certainly seems to be the time for potential owners to move if they want to cash in on this financial bonus.' EV Considerations EV sales are up 11.4% year over year, according to Kelley Blue Book, with new models from Acura, Audi, Chevrolet, Honda and Porsche helping drive up sales. But before deciding whether an EV is the way to go, there are many things to consider. 'Depreciation is a big factor to take note of,' Dillan said. 'Some electric vehicle models hold only 49% of their value after two years, compared with 83% for gasoline-powered cars.' Reasons for the drop in value include battery life, limited charging stations, quickly evolving tech that becomes obsolete in older models and brand reputation, per Diminished Value of Georgia. With that in mind, it reported that the Tesla Model 3 and Hyundai Kona Electric are proving to have a higher resale value than previous EV models. Owning an EV will save you on gas, but Dillan said without the tax credit savings, 'the massive savings on maintenance and fuel bills are likely not enough to recoup the higher purchase price and possible depreciation hit of an electric vehicle.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on If You're Thinking About Buying an EV, Trump Made Now the Time To Do It Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data