Last Updated – 17 July 2026
Most new cars lose somewhere between 15% and 30% of their value in the first year alone — a figure widely cited across Australian car-valuation guides and finance sites. It sounds steep, but it lines up with how fast auto markets move: demand shifts between models, new versions arrive, and every kilometre driven adds wear that the next buyer has to account for.
That depreciation curve doesn’t run forever, though. Once a car gets old enough, its value stops sliding and settles near a floor — because a running vehicle is always worth more than a non-runner, and even a car that’s otherwise worthless still has value in its metal. Where your car sits on that curve, and how far it’s fallen, comes down to a handful of specific factors. Here’s what actually moves the number, and how Cash for Cars can still get you a fair price even at the bottom of that curve.
01. Condition
Condition overrides almost everything else. A car from an expensive, sought-after brand can be worth next to nothing after a serious accident, while a modest daily driver in solid shape holds real value regardless of age.
If your car is a non-runner with significant rust or bodywork damage, its value is essentially the metal it’s made of — it’s a scrap-metal sale, not a used-car sale. On the other end, an old car that’s been well looked after can be worth more than owners expect, especially if it’s approaching classic or collectible status.
02. Car Age
Once a car stops depreciating on the standard 15–30%-a-year curve, age itself matters less than condition, mileage, service history, and demand. Plenty of well-kept older models sell for more than some brand-new base-model cars.
Newer vehicles are the ones still losing value fast every year. The point where a car “levels out” — where age stops being the main driver of price — is usually somewhere past the ten-year mark, which is also around where most of the cars we buy sit.
03. Service History
A logbook full of regular services is one of the first things any buyer checks, because it’s the clearest signal of how the car has actually been treated. A neglected service history usually means hidden problems are closer to the surface — worn belts, low fluid levels, deferred maintenance that eventually turns into a breakdown.
If your car’s services have lapsed, expect that to be reflected in the offer. It’s one of the few factors sellers can sometimes still influence before getting a quote, if there are recent receipts or records worth digging out.
04. Paperwork and Registration
Buyers are cautious about cars without clear paperwork or current registration. In Victoria, that mainly comes down to two things: proof of ownership (or a valid VicRoads transfer form) and, for a private sale, a Roadworthy Certificate (RWC) issued within 30 days of transfer if the buyer needs to register the car themselves.
Missing paperwork raises the same red flags everywhere — it can suggest a stolen or written-off vehicle, or simply a car that’s been neglected long enough to fall out of registration. Getting a lapsed registration reinstated can also be more expensive and time-consuming than owners expect, which is part of why unregistered cars typically fetch a lower price. Selling to a licensed scrap or wrecking buyer sidesteps this — a roadworthy certificate generally isn’t required when the car is being sold for wrecking or scrap rather than re-registered by the buyer.
05. Distance on the Clock
Kilometres on the odometer are a direct proxy for wear. A higher reading generally means more strain on the engine, transmission, and suspension, and a shorter runway before major components need replacing — so buyers price high-kilometre cars lower, even if everything currently runs fine.
06. Market Demand
A car only has value if someone wants it. Certain models and body styles — utes and SUVs in particular, which have made up the majority of new car sales in Australia over recent years — tend to hold demand longer, including in the used and parts market. A car with limited demand, whether because it’s an unpopular model or because parts for it are scarce, will sell for less regardless of its condition.
Find Out What Your Old Car Is Worth
If you want to know what your car is actually worth, get in touch with Cash for Junk Cars Melbourne. Tell us about the vehicle or send a few photos, and we’ll give you an immediate quote. Use that number as a benchmark even if you’re still deciding — or accept it on the spot and we’ll arrange free pickup.
We buy any used or old car, regardless of condition — running or not, registered or not, accident-damaged or simply worn out. Get in touch and find out what your old ride is worth.
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