Do you own an old Mazda 3, BMW 3 Series or another reliable yet aged vehicle?

There are 2019 versions of these vehicles are now available in Australia, with the latest technologies in safety, navigation, and entertainment.

Is it time to sell your car?

With a massive range of new 2018/19 models now available from different brands and manufacturers, this may finally be the time to sell your car and upgrade.

It’s not an easy decision to make, but these factors will tell you if you’re making a sound judgement.

Costly Repair and Maintenance

Car at mechanics getting repaired

Your car may be very reliable, boasts excellent specifications, and carries a distinct swagger when you bought it. However, in time the natural wear and tear will catch up and start to hurt your wallet.

Problems arise and without warning, the cost of repair and maintenance of the vehicle will far outweigh the benefits of owning it.

If this is the current state of your car, then it’s time to sell it and get yourself a new one. No matter how much you like your ride, parting ways with your old car and buying a new one makes much more sense financially.

Low Market Value

Speedometer on zero

Another indication that it’s time to buy a new car is if your old one is losing value. That means when you decide to sell your car, you will not get much in return. If you wait for another year or two, you’ll be glad to even get a couple of dollars out of it.

How do you know if your car has low market value?

Check the odometer reading. A new car will remain at its good condition for up to 100,000 kilometres of travel. The nearer the odometer reading is to this number, the lower market value it has left. Better not stretch it out or you’ll be getting nothing.

Ideal Time To Sell

The ideal time to sell your car is after it hits 50,000 kilometres. By this time, you’ve fully utilized the car at its peak performance but has enough juice on it to attract potential buyers and for you to ask a decent price.

Value Drops Even More After Warranty Expires

You’ll also know that your car is losing value when the warranty is about to expire. Warranty periods are usually for three or five years and once this period expires, your car will have lost a large chunk of its market value.

Don’t let that happen. It’s time to sell your car while it has time left on it’s warranty coverage.

Lifestyle Upgrade

Big car four wheel driving in the mud

A change in lifestyle is another good reason for you part ways with your old car.

Growing Family

If you’ve been married since your last car purchase, then you may require an upgrade. Perhaps, you need an SUV like Subaru XV for your growing family or the new Honda CR-V whose safety features are best for your protection.

More Practical Vehicle

Another lifestyle change that might require you to sell your car includes more frequently outdoor activities like camping. In which case, you’ll need a 4WD or an off-roader.

You want to start road-tripping with a caravan? You may require a larger vehicle for towing.

Go Green

If you’ve become concerned with the environment, buying an electric car should suit you.

Whatever your  lifestyle or your hobbies, it might make perfect sense to sell your car and buy a new one that is more appropriate.

Completion of Car Finance

hands swapping money for a car
If you are nearing the completion of your car loan, then it’s also a good time to sell your car.

This is the time when your car is losing market value. More importantly, you are about to make a residual payment at the end of the loan term, which will impact your bank account.

But why even touch your savings when you can cover that cost by selling your old car? It’s a no brainer.

Estimate Your Vehicles Market Value

Visit Redbook to get an estimate of your car’s market value based on the same cars on the listings. Make sure to check out the vehicles of the same age as yours.

Afterwards, compute for the sum of your unpaid car loan, the residual amount, and the early termination fee, now you can evaluate if it’s time to sell your old car.

Make An Informed Decision

If your vehicle’s market value is greater than the total remaining balance of the car finance, then you should definitely consider selling your car.

If there’s enough money left to make a down payment for a new car, then don’t hesitate because it’s definitely the right time to sell your car.

Professional Advice from CarFinance

But if you’re still unsure of what to do, you can seek advice from finance professionals here at CarFinance.

Our team of experts will help determine the best strategy to make the most of your old vehicle while assisting you in getting a new car.

Call us today on 1300 880 078 or apply now to get pre-approved.