Everyone has to sell their car sooner or later, whether it’s to fund a new ride, pay off some debt, or get a clunker off their hands. Before you trade your vehicle in or sell it to a dealer, however, you should think carefully about whether selling is worth it.
Should I Sell my Car?
There are many things you must know about your car, like how much it’s worth. There are a few valuation sites such as Kelly Blue Book and Edmunds that can find the right value of your car. Comparing that value to the cost of your car that you paid when bought it will tell you the right information about it. You should also consider the vehicle’s license & registration fees along with fuel, insurance fees and interest rate on any outstanding auto loans you may have. Once you have the idea how much you’re spending on your car every month, the below 5 signs will help you know whether it is the right time to sell your car or not.
1. The Car Doesn’t Feel Safe
Safety is one of the prime considerations for any car. If you are not feeling safe while driving and travelling in your car, it’s probably time to get rid of the vehicle. If you are feeling that there are unresponsive brakes, lack of airbags, engine noise are top indicators to change your vehicle. It might also be possible that you’re no longer happy with how the car maneuvers on icy roads or how the steering wheel handles, or perhaps you feel the seats aren’t as stable as they once were.
2. You’re Going to Default on your Car Loan
It’s another reason to sell your car if you’re close to defaulting on your car loan, which also puts you at a critical ding to your credit score. If you are not able to make the payment on time then the bank may even repossess your vehicle. So it would be best for you to sell your vehicle to pay all the payments.
You can also trade in your car to a dealership. This will allow the dealer to pay off the old car’s loan and tack its value onto the loan for your new vehicle. But this move is not always a good idea as the new loan is harder to pay off as you have to pay more interest in the long run.
3. The Car No Longer Meets Your Needs
The best time to swap your car or sell your car when it is of no use to you. Many people’s lifestyle changes from time to time and their car doesn’t fulfill their needs. For instance, people with family prefer to have a car with more room, in which all of their members can travel with all the equipment. And if you live very far away from your workplace then a fuel-efficient ride can help you cut down the transportation cost. If your kids have left home then something smaller will be a better choice for you to spoil yourself.
4. You Haven’t Hit 100,000 Miles Yet
Mostly the value of the used car depends on the miles it has already travelled. Once a car hits 100,000 miles, its value tends to decrease like water. So, if you have not hit this mark then it would be perfect time to sell the car at its right worth. As soon as you buy the car, it loses its worth from 10 percent, and another 10 percent in next few months and 15 to 25 percent every year after that, depending on how well it’s maintained.
5. The Car Still Feels Like New
One of the best times to sell a car is when you least feel the need to sell it when it still drives like a charm. That’s when you’re most likely to get the best deal from a car dealership or private party. Selling the car before it needs any significant repairs is always a good idea as it gives the right value of your car. It’s also better to sell a car when the market is ripe rather than at a moment’s notice.
If you want your vehicle off your hands then you can either sell it or trade it. Understand your needs and take decisions accordingly. However, you should also wait for the right deal for your once you find the right value of your car.