10 Signs You Should Sell a Car

Deciding whether to sell your car or not can be difficult and with lots of factors to consider. When deciding whether to sell your car, it’s important to weigh up the financial aspects and potential lifestyle changes that may come into play. You need to consider factors such as the cost of upkeep, your transportation needs, and any upcoming life changes that could impact your decision.

In this guide, we’ll be taking a look at some of the key signs which suggest it might be time to sell your car to help you make a well-informed choice.

It’s regularly breaking down

Any car you have will likely require you to carry out repairs over its lifetime. However, if you notice that your car is requiring more repairs more frequently then it could be time to consider selling your car.

You should assess the financial feasibility of continuing to invest in repairs versus selling the car as the money you save at the garage could be used towards purchasing a new or used car. As a guideline, if the cost of repairs outweighs the value of your car, it may be time to consider your options.

It’s costly to run

As cars age, they can become more costly to run and maintain. Older cars will have experienced more wear and tear over time and consequently will likely require more repairs over time. Additionally, the process of repairing the car may become more complex and sourcing the parts may be more difficult, particularly if it is a much older model.

In terms of other running costs, you may also find that fuel efficiency decreases. However, this would have more to do with how many miles you have driven and the condition of the engine components rather than the age of the car itself. Linking to the previous point, if you find yourself having to pay for costly repairs to improve the performance and efficiency of your car, then selling your car or trading it in for a newer one might be more cost-effective.

It no longer meets your needs

You may find that your current car isn’t meeting your needs as it once was. As our lives and circumstances change, choosing a car which matches your lifestyle is crucial. For example, if your family is growing, then a three-door hatchback is not likely to be suitable nor is having a large family car if all your children have flown the nest.

Similarly, if you have just moved house then having a car which suits your environment is something you should consider. For example, if you are moving from the countryside to the city, having a car which is not ULEZ-compliant and exempt from the congestion charge could end up costing you a lot in running costs. Instead, switching to an electric car or choosing a more eco-friendly model could be a more sensible option.

You’re concerned about safety

If you have safety concerns about your current car then this is slightly more serious and selling it might be the safest option. This is particularly true if your car is prone to breaking down or if other safety issues have been flagged during an MOT or service.

Newer cars on the market often come with a whole host of safety features such as Anti-lock Brakes (ABS), Electronic Stability Control (ESC) and Adaptive Cruise Control (ACC). These features not only make a car safer to drive but also make for a much more pleasurable driving experience. If your current car lacks these features, then upgrading could be a good choice.

It’s not environmentally friendly

As technology has evolved and improved, newer cars are generally rated better than older cars in terms of Euro emissions standards. This means that they emit less harmful toxins and pollutants such as nitrogen oxide (NOx), carbon monoxide (CO) and hydrocarbons (HC). If your car tax is particularly high, then this is a good indicator that the car you drive is not as environmentally friendly as it could be.

If you are looking to save money and switch to a more environmentally friendly alternative, then a used hybrid or full electric car could be a good option for you. Road tax for hybrid and electric cars is a lot cheaper and free if you drive a full electric car.

Rising household income

If you have recently had a change in financial circumstances, then you may be considering upgrading your car. Upgrading your vehicle can not only provide you with improved safety features and technology but also enhance your overall driving experience.

Before making a decision, you should carefully evaluate your budget and research different options to find a car that suits your needs and preferences. Used cars are substantially cheaper to buy compared to new cars and you may find a lot more choice within your price range. Alternatively, getting a car on finance can be a good way to spread the cost of a new or used vehicle as it gives you flexibility. You can read more about getting a used car on finance in our handy guide.

The mileage is high

When considering a car’s reliability and efficiency, both age and mileage play crucial roles. High-mileage cars can often be prone to more frequent breakdowns and maintenance needs. However, the way a car has been maintained over time can be just as important as its mileage and properly maintained cars can still be efficient despite high mileage.

If your current car has both high mileage and has not been well maintained over the years, it may be time to consider selling it before facing expensive repair bills. Understanding the balance between age vs. mileage can help you make more informed decisions before choosing to sell or keep your car.

You have concerns about depreciation

Car depreciation is the difference between what you paid for the car compared to what it is worth when it comes to selling it and for some people this is a factor when it comes to choosing to sell their car.

Depreciation is influenced by a lot of things including brand and model, mileage and overall condition. On average, in the first three years, you can expect a new car to lose up to 60% of its value and after that, it will depreciate at a slower rate. Therefore, if your car is new, it might not be the most financially viable option to sell it within the first few years of owning it.

However, car depreciation shouldn’t be the only factor that you take into consideration. Ultimately you need to weigh other aspects such as maintenance costs and insurance premiums. If the car is slightly older and you find it is costing you a lot to run, then selling it could be a viable option.

Your insurance is too high

The costs of owning a car are more than just the car itself. There are lots of other cost factors to consider including fuel, servicing and maintenance, MOTs, car tax and of course, car insurance. The cost of your car insurance premium is reliant on a lot of factors and can change depending on your circumstances. For example, changing addresses may cause your insurance premiums to increase.

If your car insurance premiums have increased to an unmanageable amount, it may be time to sell your car or trade it in for a cheaper car that is more affordable to run and one that sits in a different car insurance group.

You can’t afford the payments

If you have purchased a car on finance and your financial circumstances change, you may find that you are unable to pay the monthly repayments. In the first instance, you should speak with your lender to see if they can offer you any solutions. In some circumstances, they may be able to request a deferral or refinance your car loan for a more affordable option. Alternatively, you may be able to part-exchange it for a cheaper car.

If this is not possible and you have tried all other options, it may be time to consider returning the car through what is known as a voluntary termination. This can be done if you have paid 50% of the outstanding balance. Alternatively, you may have to return your car through a voluntary surrender which means returning the car whilst you still have an outstanding balance. However, this will have a negative effect on your credit score.

When is the best time to sell a car?

When it comes to the best time to sell your car, this question has many answers and will depend on several factors. Some industry experts suggest that the best time to sell a car is in the spring or summer, whereas others suggest the first half of the year is more ideal.

Some other considerations to keep in mind include the age and condition of the car, current market demand, and your own financial situation. That is why it’s important to thoroughly research, compare prices and consider any upcoming expenses or potential maintenance issues.

How much should I sell my car for?

When deciding on how much to sell your car for, you should start by getting a car valuation. A car valuation will give you an estimation of the car’s current market value based on several factors including make, model, year and mileage. Having this figure is a good tool for negotiation when it comes to selling your car privately, through a car-buying service or when part-exchanging at a dealership.

For more information on how to sell your car, you can read our comprehensive guide to selling your car.