I know we have some car gurus here, asking for advice please:
I am probably about to buy a used car and am requesting perspective on how much the resale value will likely change in the next 5 years. I will probably drive the car for the next 5-6 years and then upgrade to something else.
Long story short, I built out an in depth automated screening system to troll the used car market and identified some persistent inefficiencies in particular models in particular geographies (can’t stop a market junky!!). I am cheap and wanted a deal but mostly this was a fun project.
Car is selling for $12K. It is a 2005 and has a rebuilt title which is part of the reason it is selling for such a low price, although the frame is not bent and there is zero mechanical damage (already checked out). Cosmetically, the car is perfect. Blue book is over 2x that much but this one is off the beaten path in a particularly illiquid geography and has a motivated seller for specific reasons unrelated to the car itself. I know the car is a good deal.
The car is something along the lines of a Boxster, Corvette, Mustang, etc. - a desirable car that people would want to drive. It is a convertible.
If I add another 30-40K miles to the car based on my estimated driving over the next several years, what impact will that have on the resale value? If I sell the car in 2019, it will be ~15 years old with maybe 70,000 miles and a rebuilt title.
If it’s a sweet car with relatively low miles but is 15 years old, how negative is that on the resale value?
There are lots of these cars in the Western half of the U.S. (i.e., the market) selling for $10-15K with salvage / rebuilt titles (many of which could have problems) and over 100,000 miles. The best deal I have seen to date other than this one is a direct comp at $9,900 with 82,000 miles on it (also salvage, did not check that one out as it sold immediately).
So really, in 5 years, how far down does the low end of the market shift for the same car?