When is the Best Time to Sell Your Car?

There’s no doubt that 2021 has proved to be an unprecedented year for the used car market, as prices have soared amid rising demand and supply chain issues that have impeded the manufacturing and delivery of new vehicles.

In September alone, used car prices increased by around 5.9% compared to August, with this trend set to continue for the foreseeable future at least.

But why do people sell their used cars, and could now be the best time to offload your existing vehicle? Let’s find out!

Why Do People Sell Their Cars?

In many ways, selling is just a natural part of your vehicle’s lifecycle, whether you need to upgrade to a larger vehicle or you want to cash in on an existing car while it still retains some resale value.

Fundamentally, people also look to shift their existing cars as part-exchange or in order to fund a new vehicle purchase, so the timing of their transaction is often determined by other circumstances or the need to create a sudden source of cash.

In the modern age, we’re also seeing a drive to invest in more reliable and fuel-efficient cars, while eschewing and attempting to resell those with a high mileage.

On a similar note, individual customers are increasingly inclined to switch to eco-friendly or hybrid cars in 2021, and this may be another reason to sell or exchange older vehicles.

When is the Best Time to Sell?

As we touched on earlier, choosing when to sell your car is a decision that may be impacted by numerous factors, but there’s no doubt that rising factors suggest that now may be the ideal time to consider completing a transaction.

In addition to increased demand, prices are also being inflated disruptions to the so-called “just-in-time” supply chain, which has created a scenario where new car stock is down by 20% in volume when compared to last year according to Fords of Winsford.

This has created a perfect storm from a pricing perspective, so long as the other circumstances enable you to sell while simultaneously realising optimal profitability.

In more general terms, you can also optimsie your returns by selling a vehicle before it’s three years old.

The reason for this is simple; as cars commonly see their value depreciate the most during this period, so selling it within this time-frame enables you to minimise your total losses.

Similarly, you may also want to consider selling your car before its mileage peaks above 80k. Once it reaches and extends beyond this mark, the car may be considered to be less reliable and more costly to maintain over time.

This is an important consideration to keep in mind, as vehicles that have a higher mileage are also likely to be much older and boast considerably more wear and tear.