Car Life Money

How to know when you should sell your car

February 27, 2017

A car is an enormous monthly expense. Between the petrol and the repayments you are probably forking out a lot of money just to keep your vehicle running. Many people trade in their current cars for cheaper options and this does incur some saving. Some even sell their cars and begin making use of public transport in order to save money. However, this is not usually the best option for working professionals who need reliable transport for their jobs.

When deciding whether to sell your car or trade it in, things can become hair raising if you don’t know anything about negotiating a good price for the vehicle. Private selling requires you having to do all the administration and paperwork with little or no help. You will also need to avail yourself to interested parties for after-hour meet ups and so on. Taking the car to secondhand dealerships alleviates these hassles but you may not get the price you really want. So how do you ascertain the true value of your car?

You can consult a car book value calculator which will tell you where your car’s shortcomings are. Inputting detailed information about your car’s current state will let it give you a fairly accurate pricing structure. Using a car book value calculator offered by a reputable business is an excellent idea. This way you know that they’re making use of an algorithm that is going to push out accurate information. Knowing when to sell your car or trade it in for another one is a bit of a science.

The minute you drive your car off the shop room floor it depreciates

After the first eighteen months the depreciation on your vehicle outweighs any profit you want to make on a trade in or a sale. At this point you are pretty much still paying off the interest on the vehicle. What you ideally want is to upgrade, or downgrade, your car when the settlement amount as indicated by the bank is similar to the trade in value of the car.

This means you will break even which is ideal considering the last thing you want to do is have to pay in money to get rid of the vehicle. Most cars that are financed, are done so over a 72 month period. While it’s a six year commitment, most people only arrive at break even point at around the 50 month mark.

To actually make a profit on the vehicle you need to wait until your payments on the car are finished

This is a long wait but stands in your favour as the profit made from the sale or trade in can be used as a deposit on the new vehicle you want to buy. And, if you are looking to trade in for a cheaper car then you are about to save a chunk of money by having a deposit to put down on a small and cost effective vehicle.

So, if you’re in the market to sell your car, whether via a trade in or privately, you should begin by getting it ready

This means you need to make sure it looks, feels and smells good and the drive is a good one. Set aside some budget for when you decide to sell your car. You need to spend some money on it. Whether you are sending it in for a paint job, a major service, new tyres or simply just a full valet; you could end up spending thousands of Rands. What’s more, even though you are giving your car a makeover, you need to be upfront about the imperfections.

Withholding information about possible problems with the car is not a good idea. If you trade your car in, then you can expect that they’ll do a full assessment of the vehicle, and probably discover whatever it is you’re trying to hide. It can also be very dangerous to sell your vehicle when there are issues with it to someone who you keep in the dark. You don’t want any unpleasant surprises coming back to bite you.

Having a car, selling a car, saving money on a car; it’s all tricky business for those of us who are car experts. Luckily, the internet abounds with information on the selling and purchasing of cars. Before you launch head first into the business of selling your car, start researching online and reputable dealerships have comprehensive and informative websites that will guide you.

You Might Also Like