There are numerous factors to take into account when trying to decide on the best time to sell your car. Making the correct decision can save you a large sum of money.
Here at Sell My Car, we buy used vehicles, and we believe there are a number of questions to ask before deciding on the right time to sell:
- Is your car starting to cost you too much?
- Does the car require a significant amount of money to repair it, or perhaps it keeps breaking down?
- Is your vehicle becoming too expensive to run, compromising your personal finance through instalments, fuel costs, or rising insurance premiums?
- Is the warranty about to run out?
Not selling at the right time, can lead to a drastic decrease in value…
Sell your car before your warranty runs out. This will allow you to hold on to the value of the vehicle. Once the warranty is finished, the value will drop dramatically,” the online auto-dealership said.
Similarly, if your motor plan is about to run out, rather sell your car before it ends.
The ‘rule of thumb’ when it comes to timing when to sell your type of car:
- Expensive cars are very costly to maintain – once they age their value drops significantly.
- Popular models generally hold their value much longer.
- If the vehicle is brand new (0 km) when you buy it, try to sell within three years, as the plans will still hold value.
- If the vehicle is older than three to five years and it is out of warranty or motor plan, try to sell within two years.
- Vehicles that are older than 10 years sell for about 50% less than their book value. This mainly because they are not granted bank finance.
- Mileage has a strong impact on the price of the vehicle. The value of the car drops drastically if the mileage is higher than the expected average for the age and type of car.
Based on averages, if you do 16,000 kms a year, the average car will have lost around 60% of its value by the end of its third year!
It is widely reported that most cars depreciate at a rate of 15% – 20% per year, and by year five, your vehicle will generally be worth half what you originally paid for it.
Don’t Lose Out!
Now that you have a guideline and estimates on when the right time is to sell your car, make sure you don’t find yourself in a predicament where your car becomes a liability and costing you money.
At Sell My Car we give you instant cash making your vehicle sale as smooth as possible. We are renowned for our fast and easy process, making selling your car a breeze!
Click HERE to read more about how you can sell your car fast and without hassle.
Get in Contact Today!