Every day you use your car is a step closer to the maintenance bills and the next big repair. At some point, it may even be much costlier to keep your old car than to buy a new one. But how do you know if you’re supposed to sell your old car and apply for a new mortgage?
If your car gets into an accident and gets totaled, this is a sure sign that you need to sell your car. But the question is: Can you sell a salvage car? Would your car still be worth a dime? If your insurance company has given up on the car, there’s no need to convince you to let go of it—no matter how much it means to you—because you will have to pay for all the repairs, and that is not practical.
Has the Odometer Reached 40,000 Miles?
Cars are sturdier right now. This means that they can go as far as 80,000 miles without any major problem. But if you plan to sell it eventually, you need to aim for the optimum price. That means that you need to start putting it on the market once it reaches 40,000 miles. You need to sell your car when it still has plenty of services left.
Has It Reached the End of Its Warranty?
Some car manufacturers such as Kia and Hyundai have a five-year warranty. These car manufacturers are obliged to fix the cars as long as they are still less than five years old. In general, cars have a warranty of three years. If you need to maximize the years that the car is still under warranty, you might want to consider selling the car once the warranty is over.
Do You Need a Down Payment for the New Car?
Instead of withdrawing from your own savings account, you can just sell your old car and use the money to make a down payment on your new vehicle. If you’re nearing the end of your mortgage, you can consider selling the car and using the money to pay off the outstanding balance. Then you can use the rest as the down payment for a new car.
Are You Spending More on Gas?
As the years go by, your car’s fuel efficiency and performance will decrease. You might notice that your car is consuming more gas than usual. While most people blame rising gas prices, this is not always the case. Try to compute how much you’re spending on the fuel of your old car. If you’re paying for too much, this might be a signal that it’s time to sell your old car and buy a new one. Remember that new technologies today allowed for better fuel efficiency and performance.
Selling your old car is a big decision that you should not get into lightly. Ask yourself these important questions before you put your car on the market. At the end of the day, your goal should be to maximize the value of your car—whether it’s to use it for more years or to use the money from its sale for a new car.