Need to know when it’s finally time to sell your used car? A lot can go into making that decision, as there are many different things to consider. You should think about protecting yourself from unexpected value drops or from paying unnecessary bills.
Some of the most important factors you should consider are the car’s condition, the market conditions, and your personal circumstances. For those who depend on their car, you especially want to know when you should sell your car and get back your independence. We’ll break down what you should consider before you sell your car.
1. Consider the Season
Experts would agree that the best time to sell your car is during Spring and Summer. As the sun comes out, so do people looking for their next best car. Avoid winter holidays since family budgets usually fluctuate then, plus the gloomy weather keeps people at home.
You should also take a look at the kind of car you are selling. It could be hard to sell a convertible Mustang when there’s snow on the ground. While selling a four-wheel-drive SUV during that time could be a piece of cake!
On the contrary, the season to sell your car will heavily depend on the supply and demand. If too many people are trying to sell their used car in a particular month, the market becomes flooded and prices drop. If you’re seeing dozens of Honda Civics available online in your market, for example, it would be wise to wait a few more weeks.
2. Before The Car Market Tanks
After the Great Recession, auto sales went up, with almost a third of the sales resulting in leasing instead of purchasing new cars. In return, those off-lease cars get back onto the market and create a surplus. Overall, car sales have peaked but are also starting to decline.
There has been a huge shift in American car buyers’ preferences. Some people prefer compact and others prefer midsize sedans, but both need research about their individual markets. Know the history of the type of car you are selling before you consider putting it on the market.
3. When You Stop Enjoying Your Car
What you need from your car can change over time. Marriage, families, and children are all components of can alter your car choice. Maybe the Miata you owned while you were single no longer suits your lifestyle. This could be an important time to sell your car.
Keeping your car could be costing you more in depreciation than you would expect. The age of your vehicle will always affect its value. So if you’ve had your car for a long time, it could be time to reconsider how having your car still makes you feel.
4. When Your Mileage Is High
As your car’s mileage goes up, its value dips down. Once it hits that 100,000-mile mark than you will need to decrease the cost to own it. Which is important to decide before putting your car on the market.
Cars lose value once a warranty expires or when the car surpasses a 60,000-mile mark. Buyers are less likely to buy a car without warranty coverage or lower mileage. Typically, buyers want to avoid the need for expensive repairs, like replacing a timing belt or having an old engine.
5. When Everything ‘Seems Fine’
You know exactly when to sell your car if it’s in great working condition. It’s functional not to have to explain to a potential buyer what is going wrong with the car. This way, you can focus on the asking price and less on potential deductions from repairs the car will need.
On the other hand, if your car is giving you signs of potential problems, it’s time to sell. In the case that you’re wrong, the buyer would get a great deal. And if you’re right, then you will save a lot of money in auto repair bills.
6. Before Excessive Costs And Expenses Occur
As mentioned before, you want to sell your car before you face any major repair costs. In addition to your car giving you warning signs, you should research what parts of your car tend to fail.
For example, if you learn that your car’s transmission typically fails at 60,000 miles, you should sell your car when the car is at 55,000 miles. This preparation could save you tons of money on repairs and lessen the need for negotiations on the price. If you do find maintenance that should get done on your car, be sure to let potential buyers know and factor that into the final price.
7. Before Defaulting On Your Car Loan
If you are behind on your car loan payments or in danger of defaulting on your loan, it could be time to sell your car. It is better, in the long run, to sell your car and pay off your loan. You also want to maximize the money you earn once you sell.
When you are struggling to pay off your car loan, or you owe more than your car is worth, it’s easier to sell the car. In some cases, you may only need to pay the difference between the original sale price and your loan balance. The last thing you want is to experience your car getting repossessed by the bank for lack of payment.
8. When You Deserve A New Car
Perhaps you got promoted at work or you simply want a new, fresh reward for your hard work. Even if your used car carries memories you will always cherish, there comes a point where it’s time for a change.
New cars are great for new beginnings, whether that be a new relationship or a move to a new city. You will know when to sell your car when you are still daydreaming about your ideal set of wheels. And a new car means that you can begin cultivating new and better memories with your next one!
Sell Your Car Today
Have you already ticked off some of the things on this list? If the answer is yes, then it’s time to sell your car. This could be the smartest decision for your finances and your peace of mind.
Start the process to sell your car by booking a call with one of our specialists today!