No car lasts forever. The time will come when you need to consider selling or trading it in exchange for a model with less wear and tear, even if you love your car. Finding the right time to sell your car so that you can end up in the best financial situation possible may result in the transaction taking place sooner or later than you anticipated. If you are thinking about parting ways with your vehicle in the near future, keep the following factors in mind before deciding on a sell date.
Track Your Odometer
According to Edmunds, the mileage of your car is important to note when you are wondering if the time is right to sell. If your vehicle is getting close to the point where a major service visit is imminent, such as around 36,000 miles, then you are likely to save money by selling before you need to pay for costly maintenance and repairs. Ideally, you should not keep your car past the 95,000 mile mark if finances are a concern as vehicles decrease greatly in value at this point.
Decide if Repairs Are Cost Effective
Repair costs are a common occurrence with used cars, but you should strive to not reach the point where you are paying more for issues than the car is worth. Asking a reputable mechanic for an estimate of current and future repair and maintenance costs can aid you in deciding whether it is best to purchase a new car rather than keep investing in your old one.
Evaluate Demand for the Make and Model
Depending on your vehicle type, make, model and year, you can put yourself at a financial advantage by selling during a time of high demand. Though dealerships occasionally reach out to prior customers with incentives for selling a particular car, you can also do your own research to see if you can find a great deal through other sources. Check auto classifieds, online marketplaces and “we buy cars” websites regularly – some buyers are interested in a broad range of models while others seek specific used cars and are willing to pay well for them.
Calculate Potential Costs of a New Car
Take a thorough look at your financial situation in general before selling your used car and buying a new one. Issues to keep in mind include whether your current car is still in decent condition, how much money you can potentially receive from the sale and how much room your budget has for a new car payment. You do not want to lose money on selling your car if possible, and if waiting a bit longer to purchase a new car is advantageous, then hold on to your present vehicle for the time being.
You may opt to wait on selling your car after carefully considering all of these factors. If this is the case, you can still benefit from formulating a sale general timeline.
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