Are you planning to sell your used car? Having knowledge of the best time to sell your car can help you save a lot of money. We all know that the value of a car drops by 20-30% in its first year of use itself. When the depreciation value of a used car is so high, you need to consider a few important parameters before you decide upon selling your old car.
What Causes Depreciation?
One of the main reasons for depreciation in the used car value is the mileage. A 30,000 to 40,000 miles mark is when the car needs its first major service. If you plan on selling, your car before you hit this mileage mark, you might get a higher price for the vehicle. Once you hit this mark, the value of the vehicle depreciates further, and you will also have to pay for the major service cost of the vehicle.
It is advisable to use a car for at least over 3 years before resale as the depreciation value of a new car is quite high (20% first year and 50% over the next 3 years). Maintain your car to reduce the depreciation value further.
Best time to Sell your Used Car:
The Right Season:
The best time to sell your used car is spring and summer as people love to travel this time of the year. You need to avoid winters as it is the holiday time and most people spend their budget on buying gifts and making arrangements for their holidays.
Before You Hit the Mileage Mark
The car’s mileage plays an important factor in deciding its resale value. As soon as a car reaches a mark of 60,000 to 70,000, your warranty expires, and buyers will not be willing to pay a high price for cars which has no warranty coverage as they might have to spend extra money on repairing the car.
When the Car is in a Good-Condition:
Selling a well-maintained car at a good price is much easier than a car which needs repair. Any buyer would be interested in a car which has been looked after rather than a car which has functional issues. The cost of fixing your used car by the buyer will cause depreciation in the value of the car drastically.
When Your Car No Longer Meets Your Needs
Your vehicle requirement can change over time as per your lifestyle. With time you may get married and have kids which will require you to get a family sized car and then later in life with your kids away in college, you may wish to downsize the car you own. If you are sure you need to sell a car, you should not delay the process even by a day as the value of the car depreciates every day.
Different Vehicles have Different Values
If you plan on reselling a car after using it for a few years, buy vehicles such as pickup trucks or SUV’s which are popular and give you a good resale value. Sedan, hatchback and sports car are likely to take a bigger depreciation hit hence the resale value of these are low.
Selling a car can be a daunting process. Keeping these key factors in your mind can help you sell your junk car for cash giving you a satisfactory value for it.