What if a used car has had multiple owners? It’s a risk

Obviously, the situation is complicated: there are many different factors that affect how much money you can ask for a used car. Sometimes the expected value of a car drops dramatically and the vehicle itself becomes an expensive trap. Among the factors influencing this is the number of previous owners of a used car. Carfax has researched how dangerous cars are that have had two or more previous owners.

Smaller and more expensive

Cars in excellent condition, with one owner - a kind of unicorn in the Polish used car market. A small number of cars that have entered the market are really popular and prices are high. Great situation for sellers, a real challenge for buyers.

General distribution (Polish market) of cars with…

• …with one owner - 15 percent.

• …2-4 owners - 75 percent.

• … 5+ owners - 10 percent.

Poland is a classic used car market, with the vast majority of over 23 million vehicles owned by two or more owners, with 85% changing hands multiple times. And from the very first change of ownership, the share of cars at risk has been rapidly increasing, as evidenced by the distribution of risk by owner groups.

According to research, the percentage of cars at risk that:

• … had one owner - 38 percent.

• … had two owners - 84 percent.

• … had three or more owners - 84 percent.

The fact that a car has had two owners instead of one increases the risk of owning a dangerous car by more than 120%. These include serious situations such as accidents, previous damage and mileage discrepancies, as well as imported vehicles with an uncertain history taken off the market and alternatively used as taxis or other commercial vehicles.

The extreme differences between cars with one owner and vehicles with two or more owners can be very well illustrated by the risk of accidents and damage. In any age group, the risk of catching a car with previous damage is many times higher than in the case of cars that have only had one owner so far. Here is how much the risk increases depending on the age group:

0-5 years

• 1 owner vs. 2-4 owners - +68 percent

• 1 owner vs. 5+ owners - +97%

5-10 years

• 1 owner vs. 2-4 owners - +53%

• 1 owner vs. 5+-owner - +63%

10-15 years old

• 1 owner vs. 2-4 owners - +67 percent

• 1 owner vs. 5+-owner - +65%

15-20 years old

• 1 owner vs. 2-4 owners - +163 percent.

• 1 owner vs. 5+-owner - +193%

20-25 years old

• 1 owner vs. 2-4 owners - +281 percent.

• 1 owner vs. 5+ owners - +300%

As the author of the study writes, special care should be taken with cars with one owner in the age groups of 5-10 and 10-15 years. Here, about every second car has already had an accident or other breakdown.

However, these numbers clearly show that a vehicle that has had only one owner so far will carry significantly less risk than comparable vehicles with multiple previous owners. On the other hand, it may also be of interest to bargain hunters. A professionally refurbished car with a documented repair can be purchased at a price lower than the market average. And if you’re not buying a used car to resell it for a profit, it could be a good deal.