There are many reasons why someone might decide to sell their car whether this is because they want an upgrade, their lifestyle has changed, they need some extra money or they simply want a change. When you do decide to sell a car, you will want to get the maximum value for it and it is important to be aware of depreciation when you make this decision.
Automobiles are constantly decreasing in value, but if you are intelligent when you sell your car then you can avoid taking a large financial hit and get the most possible money for the automobile. So, when is the right time to sell a used car to get the most for it?
Every car depreciates at a different rate but there are certain mileage milestones to be aware of which can impact the value. This means that it is always a good idea to keep an idea on the odometer and to sell before hitting the next milestone.
- 30,000 – 40,000 miles: This is considered the first milestone as most warranties expire at either 36,000 miles (or three years), plus a car’s first major service visit is usually in this range.
- 60,000 – 70,000 miles: The second major servicing usually falls within this range and is usually more expensive than the first, so many motorists will decide to trade up at this point.
- 100,000 miles: Despite the fact that modern engineering means that cars with 100,000+ miles are still more than capable, there is a big drop off in value when a vehicle hits this landmark and it may also be harder to sell with many shoppers setting mileage limits below this figure.
It is important to be aware of these mileage milestones and to keep them in mind when it comes to selling. Of course, you also need to make sure that you keep the car in good condition and perform regular maintenance in order to retain as much value as possible. It is also intelligent for motorists to take out a GAP insurance policy, which means that in the event of a write off you would receive the difference between the insurance payout (the current market value) and the amount originally paid. Without this protection in place, you could be out of pocket by thousands of pounds if the car is written off or stolen.
Time of another important aspect to factor in. Keep in mind that new cars have the biggest drop in value within their first year of ownership and the rate of depreciation levels off gradually after three years. Ultimately, the best time to sell your car is a difficult question to answer because it will depend on the individual, the reliability of the car and how important it is to save money. If your priority is saving money, you should keep hold of the car until the repairs start to cost a lot when you should then look to trade up.
It is important to consider mileage and age when it comes to selling a car as it may allow you to choose the right time to sell and avoid taking a bigger depreciation hit.