You’ve had your car for a while now, and you’re starting to think of upgrading it. There are some things that you should think about first.
- When are you going to sell it?
- Where are you going to sell the car?
- Are you going to part-exchange?
- How much are you going to try and sell it for?
Luckily, we have written this article helping you to answer all the questions I’ve just listed above.
We advise people on upgrading their cars every single day. So we know exactly what things you are going to have to consider before you decide to upgrade.
How often should I upgrade my car?
Interestingly, the average time people have their cars for has changed considerably in the past few years. Not long ago, the average time someone would keep their car for was four years. However, it’s risen since then to around six years. Companies, however, keep for three.
A study by Time has also noted that consumers are now planning on keeping cars for ten years or more. They also found that the average age of a car on the road is eleven years old.
So, the average time in which people keep their cars has changed a fair bit in recent years. In our experience, many of our customers choose to upgrade every two to three years.
However, you should upgrade your car when your car starts costing you a lot of money in maintenance. For example; if you are frequently spending hundreds of pounds ensuring that your car is still road-worthy, then it’s probably time to look at upgrading.
You also may want to think about upgrading your car if your circumstances change. For example; if you’re planning to start a family but drive a sports car, you might want to upgrade to something more family friendly. Or, you may be moving further away from your work so you might want to upgrade to a diesel engine.
Basically you should upgrade any time your car is regularly costing you a lot of money or is not going to be suitable for your situation.
What time of the year is it best to sell my car?
You may be thinking, when is it best to sell my current car?
To be honest, you can sell your car at pretty much any time of the year. However, there are some cars that will sell better during certain times. For example; your sporty convertible will sell for a higher premium, and receive a wider audience, if you choose to sell it at the beginning of the summer.
If you have a four wheel drive, however, that will sell best when the weather is getting that little bit worse. So, it all depends on what you drive really. But ultimately, it doesn’t matter too much.
What affects the resale price of a car?
When you are determining the resale price of your car, you will have to consider depreciation.
Cars depreciate as soon as you drive your car out of the forecourt. They depreciate their quickest in the first year to eighteen months. After that, it steadies out.
So, what actually affects the depreciation
If you are doing high mileage, this will depreciate the car much quicker. If you haven’t kept your car in top condition, that could also affect depreciation. And, the age of your car will also have an effect on depreciation, and therefore the resale value.
Ultimately, however, your car will depreciate. Regardless of how old, or young, it is and what sort of condition it’s in. This does, of course, affect the resale price.
Selling privately vs. part-exchange; which is best?
When it comes to reselling your car you have two options;
You can either sell it privately, or you can part-exchange it. If you sell it outright, the money you make is yours to keep. If you part-exchange it, you use the money from your old car to help fund your new one.
It’s up to you which one you decide to do. However, you’re going to have to think about how you’re going to sell it.
Selling through a broker vs. a dealership vs. online; which is best?
You can either sell your car online yourself, online through a website such as webuyanycar, or through a broker or dealership.
But, which is best?
I would recommend getting your car valued at webuyanycar before you do anything. Webuyanycar is one of the easiest guides on how much your car is worth. We have seen examples of customers who have been paid way too much. We’ve also seen examples where the bid has been way under however. But, it’s a good place to start.
However, you aren’t necessarily going to get the best deal by going through similar websites. If you want to sell your car online, I would suggest selling it privately. You could get your car for more money if you go through a website such as Gumtree. It should be noted that this is better for those who are selling their cars for less than £10K.
There are advantages and disadvantages to selling your car online. If you sell your car on a website such as webuyanycar, the whole thing can be done in 24 hours with the money in your bank straight away. However, if you sell on a website such as Autotrader, it can take weeks. This is the same with the likes of Gumtree. So, it depends on where you choose to sell your car.
What about a dealership?
Say you want £5K for your car. But, it’s only worth £3K. A dealership will give you £5K for it, but they will make up the difference (£2K) by taking it out of the discount of your next car.
However, If you go through an independent trader then you will be able to keep the top discounts without compromising on the price.
It’s also better to part-exchange with a vehicle broker. This is because dealers only have access to one or two traders. A broker, on the other hand, has access to several more. Therefore, you can get the best part-exchange value. Not all brokers will offer this, by the way. Only established, reputable brokers tend to do part-exchanges. For more information on what to look for in a vehicle broker read our article.
To summarise, you should start looking to upgrade your car if you are spending a lot of money frequently to keep it running. How you sell it, however, is up to you. It’s your choice whether you sell it privately or part-exchange it through a vehicle broker. I would recommend doing a comparison to see which one will get you the best deal.
- Benefits of business car leasing - 13th April 2021
- Things businesses should consider before hiring a Fleet Manager - 12th April 2021
- Tax benefits and implications of business car leasing - 8th April 2021