row of cars in a perking lot

When Is the Best Time to Sell Your Vehicle?

When Is the Best Time to Sell Your Vehicle?

If you’re a car owner, at some point, you’ll think about selling the vehicle. The question is when. The basic answer is it can be anytime, but if you’re looking for the best reasons, the following guidelines can help.

1. When It Turns Five Years Old

Most car owners let go of their vehicles once they reach five years old. One of the reasons is depreciation. Some assets lose their value over time due to factors such as wear and tear. For cars, their value could depreciate as much as 11% the moment they leave the lot. By the time they reach the first year, only 75% of their value remains.

Interestingly, the depreciation rate tends to taper down or stabilize in the following four years. During this time, you’ve somehow maximized the vehicle’s features and traveled for miles. If you decide to sell it, you should be able to receive a decent amount and release your car with fewer regrets.

2. When It’s Already Severely Damaged

Usually, when cars experience damage, the next course of action is to repair it. Your insurance policy can take care of that. There might be some situations, however, where the damage is already beyond repair. It’s also possible that the costs of repair will be higher than the insurance coverage. In these situations, it can be good to learn how to sell a damaged car.

3. When Your Needs Have Changed

People buy vehicles for a lot of reasons, and sometimes these reasons can disappear later on. Take, for example, a single man who decides to have a family. A hatchback might not be enough when he has two kids.

There’s no use in keeping vehicles that no longer serve their purpose. You might be wasting money by spending on their maintenance and repair. Rather than letting them sit in the garage, where they accumulate dust and depreciate, you should sell them on the market.

4. When It’s a Lemon Car

cars parked in a sidewalk

In the United States, a lemon refers to a vehicle that has several manufacturing defects. It doesn’t mean you cannot use it, but that driving it can compromise your safety.

Depending on the state you’re in, the law can allow you to sell your vehicle back to the manufacturer. This is especially true if the vehicle’s warranty covers the defects, and you and the manufacturer exerted all efforts to fix the problem to no avail. Sometimes the manufacturer won’t get the car, but it can issue a refund. It can also choose to take the vehicle and replace it.

Another option is to look for a private buyer, who should know the full condition of the vehicle before the purchase. Cars in the United States can already last for 11 years, but as they say, there’s a time for everything. You might have to let go of it sooner than that. Whatever your decision, weigh your disposal options. Stick to the one that gives you the best return, profit or otherwise.

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