By financen | June 11, 2019 - 5:36 pm - Posted in Car

No one goes to buy a car with the mindset of reselling it. However, after a few years of use, the question of ‘how long should I keep my car?’ starts popping in your head.

A new car loses up to 20% of its value when you buy it and drive it off the lot. There’s no specific length of time to sell your car; however, there are indications that signify the ideal time to get that car into the market. Here are some clues that let you know when to sell your car.

When It No Longer Meet Your Needs

Several life situations alter your vehicle needs. It could be marriage, kids, or even a change of environment. While a convertible would be suitable for you when single, it may not meet your needs as a parent. Likewise, the car you use when in the city may not suit life in the countryside. That is a cue that it is time to sell the vehicle. Sell it and buy another car that will suit your needs.

When It Is No Longer in Use 

Lots of people make the mistake of keeping their cars covered in the garage when it’s not in use. Stop wasting money on insurance and registration. Unless you intend to keep the car as a collection, it’s time you sell it or find out how much you can get for a title loan. Cars depreciate quickly when not in use, so instead of parking the vehicle, you can at least lease it out to keep the engine running,

Consider the Season

The demand for cars increases during the spring and summer, making it the best time to cash in on your vehicle. Families’ go on holidays, picnics and other activities and need a car to move around effectively. People are less inclined to buy cars in the winter, as they spend more time indoors.

While it is not essential to selling your car during the winter or summer, it is also necessary to consider demand and supply. When too many sellers list their car for sale during this period, there will be a surplus, and the prices may drop.

When It Start Incurring Excessive Repair Expenses

As you continue to use a car, the repair frequency, and costs increases. If you are faced with significant repairs and excessive parts replacement, then that is just the sign to sell. If your car can’t go a few weeks without requiring a major repair, then it’s time to put it on the market. Repair bills accumulate slowly, and you may not realize how much you spend. Selling off the car and investing the money into a new one may be the ideal thing to do.

Before It Loses Value Due to High Mileage

Every mile you drive costs you money in terms of the value of your car. Buyers always check the mileage on a vehicle before purchasing it. Some buyers make a big deal about it and may reduce the amount they are willing to pay for the vehicle.

The value of the car drops as the mileage increases. This makes it essential to sell your car before it clocks a high mileage point. Probably when it reaches the 40,000 to the 50,000-mile mark. 

When Everything Is Still Working

It is easier to convince buyers to pay good money for your car when everything is still working. If you notice things are falling off your car, then you should consider selling. A buyer will access the level of damage to a vehicle before making a bid. Having a broken mirror or headlight can even turn off a potential buyer.

Allowing the car to depreciate further may cost you money as the buyer will likely deduct the cost of fixing those items. The more parts that need replacement, the lower the amount you will receive for the car.

When It No Longer Meets Your Status

While several people may disagree, the car a person drives should suit their level in society. In this modern day, you aren’t just treated based on how you dress, but also what you drive. If you get a promotion or get a new job where most of the people use high-tech cars, then you need an upgrade. Also, as an entrepreneur, you should change your vehicle if your current one doesn’t suit your position. While it is essential not to be extravagant, you need a car that matches your status.

Before the Market Value Drops Remarkably

The truth about cars is that its value drops quickly. As newer car models are introduced into the market, the previous models become cheaper and less appealing.

Market forces of demand and supply determine the value of a car, and with more buyers opting for new cars, the demand and prices of used vehicles diminish. If you have a 2015 model, then probably about three new models would have emerged after yours.

The value will continue to decline each passing year, and if you intend to get top money for it, then you should make the sale now.

Overall Condition

It’s best to sell your car when the interior and exterior are still in shape. Not when the car door is already faulty or when you have huge holes under the car. The surface of the car is a significant determinant of the amount you will receive for the vehicle. The condition can be improved upon before selling to ensure you get optimum value.

We all use different car brands and drive on different roads, so there is no universal formula in determining how long to keep a car before selling. However, paying attention to the vehicle and the local market can give you all the cues you need to know when to sell.

This entry was posted on Tuesday, June 11th, 2019 at 5:36 pm and is filed under Car. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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