Is there a hard and fast rule for the ultimate age to sell your car? Do you wait till you get bored out of driving your old car? Or do you wait for the cost to depreciate? Well, we all know that the value of a new car drops like a rock the moment you drive it off the showroom. In fact, most lose upwards of 20% within the first year of purchase. Having said that here is a list of reasons cited to give you an idea of what is the best time to sell off your unwanted car for cash.
The big depreciation hits at the beginning of a new car’s life. This can mean great cost-savings for someone looking to purchase a gently used car. At times it is wise to sell your car in the first few years of owning it in order to keep most of the money you shelled in buying that car. Depreciation is a result of a number of factors that range from a drop in the mileage of the car to general wear and tear of the car. So do watch out for the number of miles you have clocked in versus how old is your car.
When it’s of no use to you
A key factor in selling your car at the right time would be if your personal circumstances change and the car is no longer suitable as per your needs. If you aren’t enjoying your car anymore and you have an eye for a new one, then that might be the best time to sell it to car dismantlers. Unwanted cars give you cash that could be utilized in more worthwhile things in your life.
As cars age, their fuel efficiency and performance significantly decreases. If you experience a sudden drop in mileage with your car then it’s probably the best time to get rid of it and get a new one. It’s eventually going to save you a lot of fuel cost and also since rising fuel prices are going to impact you severely in the long run. In fact, as technology progresses, more fuel-efficient cars are being introduced onto the market. It’s worth to go for a new one in this case.
The last you visited your service center and the guy gave you a hefty bill citing increased maintenance then it’s time you look for a new vehicle as a new vehicle would have a lot less maintenance in comparison to the old one. In the long run, you would save up on a lot of money that you could use elsewhere for more productive purposes.
Spare parts availability
This is undoubtedly one of the most crucial factors to look for when selling off your old vehicle. If the manufacturer has considered pulling out your car model in the local market, chances are there will be fewer spare parts available, unless they are going to introduce a new car model under the same platform. If the car model is at the end of its cycle, better sell your car as its value will significantly drop.
Out of Warranty
If your car is out of the warranty period, your manufacturer is not obliged to fix your car, even if it’s in a very good condition. So it’s completely your decision to keep the car with you after the warranty ends. Do keep in mind that the resale value will eventually drop progressively after the end of your warranty period.
So do make the decision at the right time after a thorough cost-benefit analysis. At last the best time to sell your vehicle is when you can get more by selling it rather than keeping it.