By Giles Milner, November 27, 2018
A new car loses in value the moment you drive it off the lot and will continue to depreciate drastically in the following two to three years. But what happens to a car you’ve been driving for a while? Well, as it turns out, the depreciation never stops, and the more you own it, the more you lose in value when you finally decide to sell it. However, this doesn’t mean you should start printing ‘For Sale’ signs.
The art of selling a used vehicle and making a nice profit has a lot to do with timing, so let’s have a look at the factors that should align in order to be the right time for your beloved jalopy to go. You are on a First Name Basis with your Mechanic As a vehicle gets older, the maintenance bills start to pile up and the repair estimates look bigger and bigger. If you’re already at the point where you know the mechanic a little too well, it’s time to whip out the calculator and do a rough estimate on yearly expenses involving the car. If the estimated costs for the following years are enough to get you an upgrade, it’s time to cut the losses and let the vehicle go. Of course, this doesn’t mean you should sell the car with hidden problems, but you should try to get some seed money for a new vehicle.Depreciation vs. Age
There is a fine line between depreciation and a car’s age. For instance, a vehicle does most of its depreciation in the first nine months of being used. However, there is no statistical data to pinpoint to an ideal age for selling; the only thing specialists can advise is that, if you’re looking to trade up, it’s best to put the vehicle on the market while it’s still considered new (the first three years). If you go past this age, there is another milestone that can tell you the time is right. We’re talking about the 5-years milestone or the 60,000 miles. This is when the maker’s guarantee expires and most of the pieces may need replacing. So, if you’re not keen to invest a major amount in the 5-years stepping stone, it’s best to put the car on the market before that using a tool like Autovolo.Market Fluctuations
The market plays a major role in the price you can ask for a used vehicle, so it’s best to do a bit of research before making any decisions. First, the progress of your car’s producer is important. Basically, with every new model a maker releases, the price for older models drops (just like with smartphones). Second, you should have a look at the type of vehicles popular in your area. For instance, if you want to sell a Volkswagen and everyone is driving a similar model, you may not have too much of a chance to up the price. On the other hand, people are used to this type of vehicle, so you have a better chance to sell your car faster. Overall, the market will fluctuate from one trimester to another, so it’s best to stay up to date if you’re thinking about selling.
