The best time to trade in or sell your car
Should you trade in your car? Or do you just sell completely and take public transport? But more importantly, when should you sell or trade in? You’ve spent a lot of money on it, and you still want to get the most out of it. And like any investment, timing is crucial. Here are 4 tips to help you decide when it is the right time to sell your car.
Find out your car’s inflection point
All cars depreciate and unfortunately, it starts the moment you drive off the lot. And that depreciation can go up to a staggering 10%! This depreciation will continue at a rate of 15-25% every year, chipping away at your car’s value. So what you want to do is ensure the value of your car is at its highest before it reaches its inflection point.
So what is an inflection point? It is a big drop in depreciation, after which depreciation slows. For example, a Mercedes Benz C-class depreciates steadily after the first year of ownership but experiences another drop in the fifth year. Depreciation then speeds up until the eighth year, when another big drop in value occurs. So with the Mercedes Benz C-class , arguably the best time to sell is before this drop, which is when the car is 4 and 7 years old.
The key is to know how much your car is worth and the market value of the car. As these are volatile, you can visit the nearest inspection centre to get your car valuated.
Warranty period
The best time to sell your car is immediately after the car warranty expires – Carro Inspector Hamziatul
Obviously, you are responsible for maintaining your car. Lucky for you, every car – new or old – has a warranty. However, warranties for used cars may vary. Some may only cover a year or 2, or even up to 3-5 years. Some warranties also only cover just the engine and gearbox. And when this warranty expires, however, you’re responsible for replacing any part that is damaged or broken. To cut a long story short, if you sell your car when the warranty expires, you are essentially saving on any potential maintenance and repair costs.
Clear your (not so) outstanding loans
If you have an outstanding loan on your car, you will have to pay it off before your car is sold. Ideally, you sell your car at a price higher than your outstanding loan so you can have extra pocket money or even use it to finance your next car purchase.
If you find yourself potentially defaulting on your loan or are unable to keep up with payments, then selling off your car to pay off most of it is still advisable, even if it is at a minor loss. Defaulting can have serious long-term effects on your financial options in the future, such as taking out a loan for a house or another car.
To ensure you get the best value out of your car, sell your car or trade-in with Carro. You can get a free inspection and get a no-nonsense offer within 24 hours! You will also enjoy instant payment when the car is handed over.
Find out when new models come out
Out with the old, in with the new. Sad to say, that’s the same for cars. Cars get updated quite often. When this happens, demand for the older model decreases as buyers buy the brand-new models with the latest gadgets and safety features. As demand drops, so does price. So to get the most out of your car’s value, you should try to sell your car before a new model is available. The table below shows the years the latest 3 models of popular cars are launched.
| Car brand and model | Earlier Generation | Previous Generation | Newest Generation | Average number of years between launches |
|---|---|---|---|---|
| Perodua Myvi | 2011 | 2017 | 2021 | 5 |
| Toyota Camry | 2006 | 2011 | 2017 | 5.5 |
| Honda City | 2008 | 2014 | 2019 | 5.5 |
As you can see, there are about 5 to 6 years between every model’s launch, be it a Perodua Myvi, Toyota Camry, or Honda City. As most car warranties only last 5 years, you can sell your car just before the warranty expires. If you buy the car the year it launches, you can use your car for as long as the warranty lasts before a new model is launched!
So when one or more of the above is true you can consider selling your car. But how can you find out your car’s value so you know you get your car’s worth? Just get a free inspection for your car with Carro! That way you know exactly how much your car is worth and you can get better value when you sell with Carro.
