Often, checking the mileage of your car determines its lifespan. However, this is not the only factor that indicates the age of your car. Here are some essential tips in ascertaining which the best age to sell a car is.
After how long should I sell my car?
Most car owners sell their cars after attaining a particular mileage or age. Whether or not it is past its sell-by date does not matter. At this specific mileage and age, these car owners perceive they have spent the maximum amount of money on their vehicle, and it still has plenty more to give.
Most vehicles are 3-5 years and 40,000 – 60,000 miles when sold. However, a car is considered scrapped when it is 15 years of age, and modern cars are designed to go at least 150,000 miles before any significant repairs and maintenance.
Approximately, a premium car loses 30% of its total value within the first year, 40% after two years, and 50% after two years. A more modern and stylish vehicle loses its value at a higher rate. As your car becomes older, the more it loses its value. As a result, it is pretty much worthless once it attains its 10-12th year.
However, a well-maintained eight-year-old car could be a better investment option rather than buying an unkempt and younger car. It is up to you gauge which age is best to sell your car.
One to two years
According to Edmunds, buying a vehicle between one to two years old and driving it for three years before reselling it is a good option for drivers who enjoy being up-to-date with the attest gadgets. As long as they do not have an issue with paying maintenance costs, these drivers can sell the vehicle before the next big price slump.
Two to three years
According to a report, most two to three-year-old cars have already taken their biggest depreciation hit. However, you still get to enjoy modern amenities and continued ownership expenses, like taxes and insurance.
Up to 10 years
According to the U.S. News &World Report, upon considering factors like depreciation and cost of repairs, it was found that a 10-year-old car costs more in depreciation than in their repair costs. As such, sometimes the age of your car does not matter.
After how many kilometers should I sell my car?
Most drivers attain 12,000 miles annually. If the used car you intend on purchasing has more average miles/year, then begin questioning your dealer or owner. Where and how was the vehicle driven? Was the vehicle properly maintained as it increased its mileage?
For a one to a two-year-old car, its typical mileage is between 12,000 – 24,000 miles. A three to a four-year-old car should have a mileage of between 36,000 – 48,000 miles while five to six-year-old vehicles have a mileage of 60,000-72,000 miles.
Other factors that indicate your vehicle has come to age
Depreciation begins immediately you begin driving your vehicle. There are different depreciation rates each year; hence, it may be difficult to ascertain how much your vehicle will cost in five years. However, always remember that a new car depreciates faster than a used car. It is more convenient to keep a new car for as long as you can.
Used cars have already hit the biggest depreciation rate, and you will be competing with other used cars. Make sure your car is well maintained to slow down the depreciation rate until you decide it is time for a new car.
When the service and maintenance bill is close to the cost of a new car
There comes a time when your car frequently visits the repair shop, and your quotation from the mechanic begins getting bigger and bigger. At such moments, you have to consider whether it is worth it to upgrade or repair your vehicle.
Sometimes you may find out that the cost of repairing your car could be more than that of buying a new car or an upgrade. Similarly, some car issues are a sign of a future chain of events, not favorable to your bank account.
Does it still serve its purpose?
A critical factor that contributes to deciding whether it is time to sell is when your vehicle does not serve your needs. Some people may be starting a family and upgrading to a family-friendly vehicle may be an appropriate replacement for your current vehicle.
Some drivers do care to drive the flashiest and newest car on the street. Once they are not enjoying their current car or when they eye a new car, it is time to buy another car.
Similarly, these drivers may also put into consideration the different events, holidays, and seasons when deciding to sell a car. During the months of summer and spring, convertibles go for a much higher price than in other seasons. SUVs, 4*4s and off-roaders are more on high demand during the months of winter and autumn.
If saving money is an essential factor for selling your car, it is best to wait until the cost of repairs is high. The best age to sell your car is when you can get more by selling it than fixing it. If you are not bothered about saving money, sell your car at whatever age you deem fit.
If your vehicle checks out most of the pointers provided above, it is probably best to sell your car. It may not be easy to part with it, maybe because of some sentimentality, but it is a good financial move.