It’s a question that every car owner asks themselves: ‘When is it time to sell my car?’ Whether it’s your first vehicle or you’ve owned many makes and models, it can sometimes be hard to part ways with your ride. So, how do you know when it’s time to put up the FOR SALE sign? There are a bunch of different factors to consider when making this decision. We’ve got all the information you need to make selling your car an easy, smooth process.
Should you sell your car?
There are many reasons one may be interested in selling a car. To start, maybe the car is simply on its last legs. Or, you might need an upgrade to better suit a lifestyle change. On the other hand, we are programmed to want to upgrade many aspects of our life. From smartphones to televisions, having the newest model of anything is something people gravitate towards, cars being no exception.
Generally, most people are going to tell you that you should keep your car in your possession for as long as possible. Most people believe that it is in your best interest to run your car into the ground, so to speak. This will result in you hanging on to your hard-earned money for a little bit longer. However, there are a bunch of financial situations where selling your car might be your best bet. To figure this out, it is important to ask yourself these four key questions:
1. Do I still need my car?
To start, you must first consider the usage of your car. Do you find it sits in the garage or driveway, collecting dust for most of the year? Do you or your partner have another vehicle that you use more often? If you find your car tends to remain parked most of the time, it might be time to part ways. Let’s face it, even if the vehicle is old and not worth much, more money in your pocket is always a plus. Additionally, you won’t need to worry about those extra insurance payments!
2. Am I losing money by keeping my car?
Between putting gas in the tank and keeping your car insured, everyone knows how pricey a car can be to maintain. If owning a vehicle is beyond your means, selling it to start saving money is most likely a good idea. No matter the scenario, a car is never going to be worth going into serious debt. At the end of the day, a car should be something that makes your life easier, it should not be a burden! Selling your car for something more in your price range or because you’ll be taking public transportation is a great way of living within a stricter budget.
3. Are there cheaper methods of transportation?
If you’re in a situation where you want to better your financial situation, it may be a good idea to find better ways of commuting. Switching to public transportation is an incredible method of saving yourself some money. Ask yourself, can you walk bike, or take public transit to work every day? If so, the amount you will save on gas, insurance, and maintenance is astronomical. If you live in a big city such as Toronto, you may be better off taking public transportation anyway! Due to excessive traffic, a lot of people in Toronto tend to ditch their cars and rely on streetcars and the subway to get to their destinations quicker.
4. Do certain repairs exceed the value of the vehicle?
In many scenarios, it may be a better financial situation to sell it for a new vehicle. This is predominantly the case when it comes to older vehicles. If you find yourself in a situation where the cost of keeping your car on the road is more than the value of the car itself, it might be time to sell. Even if you only sell it for specific parts, you will be salvaging a bit of cash that can be put towards a new car or another big purchase.
If you find yourself answering “no” to all of the questions above, it is likely a good idea to hang on to your vehicle. Sure, it might not be the most alluring vehicle, but if it gets you from point A to point B without hassle, it is a good financial decision to hold onto it.
When is the best time to sell your car?
If you’ve decided that selling your car is the best option, it’s important to know when exactly you should put your car on the market. Doing so at the right time can make a huge difference in the speed at which you sell it, and how much you can get for it. Here are some other factors to consider:
- Time of the year: Typically, the ideal time to sell or trade-in your car is during the first half of the year. Used cars will usually hold onto their value better during the first two quarters than they do over the last two quarters.
- Car brand and/or model: Different cars will depreciate at different rates. Determining how much your car has/will depreciate is crucial when it comes to figuring out when to let go. Generally, mid-class vehicles will lose their value at a slower rate than premium cars.
- State of the vehicle: As you may have guessed, the state your vehicle is in is going to play a big role in how much money you get for it. It is important to take into consideration the technical aspects of the car, and not just the physical. A car that runs perfectly can still get you a good chunk of change, even if it has a bit of rust.
- Car mileage: A good rule of thumb when selling your car is to make sure it is between 60,000 and 100,000 miles. With that being said, if it is over by a bit, it will not be the end of the deal. However, it will be a bit tougher compared to a vehicle with only 60,000 miles.
How can you get the most money when selling your car?
So, you’ve figured out when you plan on selling your car, now what? Making your car stand out from the competition can be difficult, but we’ve got tips to help you sell your car in no time:
- Get your car detailed and serviced. Even if you feel like your car is aesthetically unappealing, you’ll be amazed what a good detailing can do! So much so that you may be able to get an even better price for the vehicle. Furthermore, getting your car serviced is a great way of making sure it is in good selling condition. The last thing you want is for the check engine light to blink when a potential buyer is test-driving.
- Make sure you take good photographs. Poor or missing photos can have people skip over your ad quicker than ever. Make sure your photos are taken on a day with good lighting, properly displaying the state of the vehicle.
- Do your research! Knowing and researching the make of your car, as well as the model and year, is great when it comes to how much you can get for your vehicle.
- Take your time writing your ads. Making sure you are honest and upfront with your ads is crucial. Nothing is more frustrating than showing up to view a vehicle, only to find out it is standard instead of automatic, or the photos didn’t represent the vehicle accurately. Though previous issues may lower the car’s price, your honesty will raise your value as an overall seller.
Selling your car: A conclusion
At the end of the day, knowing when and why to sell your vehicle comes down to your situation. Luckily, the internet is a perfect tool when it comes to selling your car. This article from Finder.com is a perfect place to start when it comes to finding that perfect app to help assist you. On top of this, check out our guide on how to sell your car privately in Ontario.
Remember, whether your car is new or old, having proper insurance is a must. Contact us or request an auto insurance quote today!
