The only person who can decide if you should sell your car is you. Every car is different and every circumstance is different, which means that there’s no point that you can definitively say that a car should be sold. However, there will be times when good arguments can be made for or against a sale, based on a number of factors. Finances will always be one of the biggest sale motivators and will underlie many other factors, but a desire to downgrade or upgrade your model could also encourage you to consider selling.
Considering The Cost
Cars are expensive to run, and the cost of keeping a vehicle maintained can add up quickly. If you’re tight on funds and not sure whether or not you can afford to maintain your car, there are a few different expenses to add up:
- Insurance (including any breakdown cover you might have).
- Vehicle tax
- The cost of fuel – estimate how much you spend over a year by working out how often you fill your car up per month and how much that costs.
- Services and MOTs – remember to factor in additional costs if your car regularly needs work done after an MOT or service
Once all these costs have been added up, the amount of money it takes to run a car for a year can easily number in the thousands of pounds. If you don’t have the budget to keep these expenditures up, it might be time to sell.
Selling your car at this point doesn’t mean that you have to make do without. You could replace your current vehicle with a different model that’s more fuel-efficient or cheaper to insure. The most important thing is that you don’t feel tied down to ongoing costs that you don’t have the money for.
Review The Condition
Whether or not you have the money to keep the car maintained, its current condition might be a reason to sell. There are no hard and fast rules to follow, but if you want to get a reasonable amount of money for your vehicle it will need to be in good nick. If you know your motor is ageing, you might want to consider selling it before it runs into serious reliability problems.
However, it’s also wise to avoid selling your car too soon, unless you have a really good reason to shift it quickly. New cars lose value the fastest in their first year, after which their depreciation slows until their 3rd year, then slows again. Selling a new car before it’s three years old generally means you’re not really going to get any value out of it. The sweet spot will often be around the fourth or fifth year when you’ve got a lot of use out of it but it’s still in great condition.
What Documents Are Necessary?
The most important document to have at the time of sales is a V5C. Anyone who’s buying your car, whether they’re a dealer, an online car buying website or a private buyer, should ask for this certificate to be transferred to their position. Depending on the arrangements made with the buyer, you may also need documentation of the car’s service history, mot and outstanding finance paperwork (if applicable).
Should I Need to Upgrade My Car?
While many people are looking to downgrade, many others will want to upgrade to newer models or different kinds of cars. This could be down to circumstances, like a growing family, or simply down to a desire to drive something newer. In this situation, deciding whether or not to sell your old car is likely to come down to whether or not you need to keep it around and whether or not you need the money from the sale.
One caveat to bear in mind is the depreciation we mentioned earlier. While it’s completely up to you whether or not you sell up to buy a new model, if you want to get the most out of your current car it’s best to wait until it’s at least three years old, otherwise, you stand to lose a pretty substantial amount of money. Ultimately, the choice is yours. If you have come to the point that you have decided to sell car then visit our page sell my car or request a free quote.
Frequently Asked Questions