Whether you should sell or keep your car is entirely up to you. Everyone is different, and there are many personal and not so personal reasons why one should sell a car or keep it. The most obvious motivator to either sell or buy a car is the money because most cars are depreciating assets.
However, after a few years or so, we get used to our cars which can be both a good thing or a bad thing. If you are not all that enthusiastic about cars, and you see a car as a modern-day interpretation of a horse, then selling or buying a new car is entirely down to ration and finance.
On the other hand, if you are rather enthusiastic about cars, you might want to switch it up from time to time. You can upgrade or even downgrade from your current car, but whatever happens, it should be entirely up to you and the ones closest to you.
Different cars have different values, sometimes the market itself might suggest that now is a great time to sell a particular model or vice versa. If you don’t require a car, or you simply don’t use it all that often, it’s best to sell because the car depreciates anyway.
Upgrading a car – Do it smart
As car enthusiasts, we can all agree that buying a new car is an extremely exciting experience for many different reasons. This process usually takes a long time as an average car enthusiast tends to investigate as many options as possible. After all, scouting for a new car is half the fun of the entire new car process.
However, sometimes it’s logical to upgrade, and sometimes it’s best to wait for a while in order to do a sound financial decision. For example, if you want to upgrade from an old model to a new one, it’s best to wait for a while before the prices start dropping to avoid initial depreciation or market adjustment prices.
Of course, this might depend on the purchasing method, so if you are leasing or financing, you can do it right away if the price is right. While selling your car, don’t rush it, take your time and try to set a logical price for both yourself and your potential customer.
Downgrading a car – Do it reasonably
On the other side of the spectrum, downgrading from a car is not something you’d ever want to do. However, sometimes it makes all the sense in the world to reallocate your funds into a new venture in order to earn more money that can later be spent on an even better car.
We are all in charge of our finances, and we should take extreme precautions not to overspend, no matter how much we love a certain car. Sometimes a person also believes that spending $50k more on a car should in theory give you an upgrade worthy of $50k, but that’s not always the case.
If you are not satisfied with your car, and you believe that it’s too expensive or rather unnecessary, downgrading saves you money in the long run and also enables you to do something else with the money. Be that as it may, make sure you think it all through beforehand and don’t rush it.
The used car market – The primary indicator of whether you should sell or keep your car
If you primarily care about the financial aspect of car ownership, then it’s rather logical that you should sell your car at the right time. There are a couple of instances where you might earn more by selling your car if you can recognize them on time.
The primary one is an incoming new model of your car. For example, when the new BMW 3-series came out, the last-gen BMW 3-series prices have decreased quite substantially to later rationalize the 2nd hand market value of the brand-new model. This means that it’s always a good idea to sell your older model before the new model goes on sale.
The used car market is fairly stable, however, sometimes some models can go up in value, and others can go down. Be sure to recognize these if you want the best deals possible. Finally, if someone offers you an offer you can’t refuse, don’t refuse it.
How long do people keep their cars in general?
The average age of cars on US roads today is around 12 years. This number keeps going up because modern-day cars are so advanced that it sometimes seems like there is no reason to upgrade as often as before.
That being said, most people tend to keep their cars for around 6 years at a time. Some people love changing cars every few months or so, while others tend to keep a car for a lifetime. There truly is no reason to replace a car all that often, but if you love to do so, do it smart and don’t lose your money irresponsibly.
Do I even need a car in 2021?
The answer to this question depends highly on the type of life you live on a daily basis. If you are someone who mostly commutes within your block, then there is no need for a car as cars tend to be expensive either way you look at it.
Pretty much every relatively well-developed community has some form of reliable public transportation, but this is rather questionable in today’s day and age because of the pandemic. Be sure to calculate how much car maintenance costs, and is it worth it for you and your family.
What is the best alternative to a car?
As the world keeps on developing, there are more and more alternatives to a car that are mostly designed to work in an urban environment. If you want to skip public transportation, it’s always a good idea to consider buying a bicycle of some sort as these are the most popular alternatives to a car in first-world countries.
Besides bicycles, an electric scooter is also a great alternative for a car in urban environments. Ride-sharing, taxing, Uber, Carpooling, mobility services are also fairly popular alternatives you can consider if you believe you are not using your car all that often, or you simply don’t want to.