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Hi Dave, how ya been?
I’ve been looking into older cars with low miles(around 25k-50k miles) to buy and resell for a little bit of profit as a way to make some money on the side. Don’t know if I should get into it or not because my time would be better spent as a researcher.
But my question is, what do you think about buying low mileage(around 25k miles) older year cars(say 2008)? Are the engines still good despite the age? Is there anything you can think of to watch out for when purchasing low mileage 10-15 year old car?
I would recommend against buying older cars with low mileage because age and the seasons are tough on cars in ways that can’t readily be repaired. For example:
– All of the plastic and rubber bits age due to the effects of sun and ozone
– Many of the fasteners corrode and will break when being disassembled; a real headache!
-this applies to engine seals and gaskets
– Every winter a car goes through accelerates corrosion throughout the car
– The older the car is, the harder it will be to find replacement parts
– a low-mileage engine has spent a lot of time unused or driven many short trips. This is generally bad for engine wear.On top of this, low-mileage cars tend to be over-valued in the used car marketplace. The only exceptions to this rule will be enthusiast and high performance models that collectors seek; but don’t expect to find bargains readily.
I usually recommend that you look for the opposite of a low-mileage older car. Find the newest car in your price category and don’t worry about miles. Even an ordinary modern car engine and powertrain should be very reliable for at least 200,000 miles if maintained properly. Cars that are driven more than 30,000 miles per year tend to be well-maintained.
Dave
Wait, just how serious is this though? What if I bought like a 2010 Lexus ES with 30k miles that has been well cared for? I mean how likely is it to break down due to gaskets and rubber parts wearing out? What is your cut off year? What would be the cutoff mileage for the newer year model but with high mileage?
My basic argument is that for the price of a 2010 Lexus ES with 30K miles you could probably get a 2014 model with 100K miles and the newer car will be more reliable and drive better and probably look better and be easier to work on. I am assuming that you would be paying a fair market price for either car. The newer car has gone through fewer winters and sat in the sun and weather for 4 fewer years. Remember that sun and Ozone continually degrade the paint, rubber, and plastic. For a well-maintained modern car, 100K miles is roughly the half-life of the transmission and 1/3 the life of the engine. It all comes down to what you think you could pay and resell the car for, but aside from the profit aspect, I would rather own and drive the newer car.
Dave
But I found a 2010 Lexus ES with 30k miles that has been well cared for(or so it seems) The reason why I am purchasing this year model is because this was before the exterior and interior update. Many people do not like the new Lexus styling. And so this model year sells very well, despite the age. Every single ES that I was interested in were sold the next day. So in a way, these cars are kinda collectibles and finding a low mileage is important since the interior is isn’t fully abused.
I understand what you are saying about the time and ozone aspect, but what I don’t get is how concerning one should be on a 10 year old car that’s been cared for. Plus, if something does break down due to rubber/gasket degradation, what are the chances of that and the cost to replace it shouldn’t be too bad, considering the cost of savings due to it being an older car.
2010 Lexus ES with 35k miles thats being sold for 12k. Paint exterior is in perfect condition. Interior is good. Engine covers look dirty. Elderly owned/handicapped and they can’t drive anymore. My hope is to sell it for 16-18k, lol. I would rather keep it to drive but that,s the value of the car on the market.
I understand your points. You first have to determine if you really could make a profit on the sale of the car. There are a number of good websites where you can assess the purchase price and the eventual selling price. Start with Kelly bluebook.
If the car was garage kept, that is a big plus. If you have access to the maintenance records that is also a big plus. Pay particular attention to items that have to be serviced on time intervals regardless of mileage. The anti-freeze is good for 10 years, regardless of miles. The brake system should be flushed at least every 4 years because brake fluid continually absorbs moisture from the air and when the moisture content gets high, it starts corroding all of the brake system internal steel surfaces. The accessory drive belts should be replaced if they are 10 years old. Get a copy of the owner’s manual maintenance section and see all of the items that need some attention based on age.
At the 10 year point, I would think that the rubber hoses should have up to 5 years of safe life left in them. If kept out of the sun, the rubber door and window seals could be good for 20 years. Also note that 10 year old tires are not safe, even if they have good tread left.
Thank you Dave. I will do all of those maintenance items or I might just make the buyer do it. I will let the potential buyer know all of this. I hope to sell it for 18k, even though I got it for 12k, lol. I do believe people will buy it since this model year is in high demand with the older demographic. Again, every ES I looked at were sold the next day.
This car is important because my hope is to use it as an example for the development of future cars if I plan to work for a car manufacturer.
Also Dave, are you a one man band or do you have a brick and mortar building for your business?
Hi Dave, I thought I would revisit this thread. Its been four months now. The Lexus ES I bought was sold. I didn’t make a profit but I did break even, after sitting on it for 3 months.
I want to thank you for being patience with me. Rereading your points, you are right. Old cars simply have way too many parts that are wearing out. I thought about buying all the tools needed to fix up older cars for resale but going on your advice, it doesn’t seem like its worth it to invest the time and money into a beater.
I do have a question though. What do you think about the used car pricing? Do you think most people are pricing their used cars correctly?
For example, a guy is selling his 2010 Lexus with 140k miles on it for 9K. How would you personally price that car?
In general, nearly every private seller lists a car for at least 10% more than they are willing to sell it for, and every dealership lists a car for much more than that. It is difficult to generalize. You also have to consider that most used car dealers include some form of warranty. The best way to price any car is go to all of the websites that specialize in doing this: Kelly Bluebook, Cars.com, Edmunds.com and Autotrader.com. On these sites you can see the difference between the private sale price and dealer price for different vehicle conditions. Compare them all and make a judgement.
Dave
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