Used-car buyers OK with higher mileage

A vehicle with 100,000 miles is looking better than ever these days, based on resale values and the evolving tastes of consumers.

Edmunds.com has a new report showing little difference in how long it takes to sell a vehicle with 90,000 to 100,000 miles compared with one with 10,000 to 20,000.

Also, the report shows that the rates of depreciation change little after the 40,000-mile mark. In other words, resale prices do

not drop off a cliff around 100,000 miles.

“That threshold and mental barrier has been pushed,” said Ivan Drury, an Edmunds analyst.

The barrier is now much higher. Depending on the brand, it might range from 170,000 to 200,000 miles, he said.

Drury cited two main factors that changed the market: First, vehicles are more durable. Second, many consumers became accustomed to driving high-mileage vehicles during the major recession of a decade ago.

“We saw fewer trade-ins” during the recession, Drury said. “People were essentially forced into holding a car longer than they would have wanted to.”

This is not news to Jeff Kiehle, business manager for Roush Budget Car Outlet on the North Side.

“The higher-mileage vehicles are holding their value because the vehicles are well-made and lasting longer,” he said.

Kiehle has seen 200,000 become the level at which consumers are leery of buying a vehicle.

Another factor, according to Drury, is the rising popularity of trucks and SUVs. Those types of vehicles have tended to hold their value at high-mileage levels better than sedans do.

This is bad for bargain hunters. It used to be that consumers could find good deals on vehicles at, or near, 100,000 miles. Now that is much less common.

“It’s unfortunate because if you’re looking for just basic transportation ... it’s just hard to find,” Drury said.