Are you wondering if there is any particular time works best for selling your car to get best value out of it?
You would imagine there are some hard and fast rules for the ultimate age at which to sell a car. Do you wait until the warranty runs out? Or sell it just before? Or do you keep it until things start failing?
There isn’t a particular age where the depreciation and value curves combine at their most beneficial.
Cars do most of their depreciating in the first nine months. But if you’re looking to sell a car to trade up, you want to sell it when it’s relatively new because the younger a car is, the more it’s worth.
But a more influential factor is the market, something we have no control over. “If, say, you’re looking to sell a Volkswagen and it sold a lot of cars to the daily rental business last July, those cars will come on to the market next month and the price of VWs will drop!
So, if there isn’t a perfect age for selling in depreciation and price terms, when do cars start to go wrong?
It is suggested that when cars reach five years old their failure rate is higher than at any time in their life, and start to go wrong more from about 60,000 miles.
So sell too early and you’ll be bitten by depreciation, but leave it too late and reliability could be a factor. Then there’s the fluctuating market to consider. Being informed has never been more important.