When is it time to sell your old car and opt for a new one? It is quite difficult to state the exact time, but one of the easiest ways to determine it is when it starts to become too costly to run it. Another key reason for you to sell your car at the right time would be if your personal circumstances change and the old car is no longer suitable for you. This could happen, for example, if all your children have moved out and you longer need a big car. But the best time to sell a car is if you are no longer enjoying your car, and already have an eye for a new one.

A car is a financial investment and its depreciation starts from the first day of your car purchase. There are some points that you can keep in mind. It’s unlikely to be financially viable for you to sell it just after the first or second year of the purchase. Make sure your car is maintained properly so you can slow down depreciation until you decide it’s time sell it, buy a new car.

These may also be the reasons for you to sell your car:

  • To buy a newer, more stylish model

  • Change your car according to the utilities that match your lifestyle

  • Budget factor

  • To avoid the hassle of maintenance

  • Shift to another category i.e., Sedan to SUV or vice versa

  • The most important reason is the new rule set by the government on banishing the cars that are 20 years or older. So if you drive a car that is 20 years old, it is definitely time to sell it.

Mr. Sudeep Thapa of ANS says,

“You know it is time to sell your car if feel you want a new experience with a different and a new model. But rather than the experience, the factor that point out that it really is the time to sell your car is when your expenses on maintenance start to mount. As the car gets old, different parts start to get rusty and there is always this stress on the back of your head about the maintenance and the parts that need to be changed.”