Should I sell my car to save money? 5 questions to ask
To sell or not to sell your car to save money, this is a question that you might have asked yourself. Perhaps you have thought about it more than two or three times. You might be having a huge debt that you want to settle with the money from the car.
For example, you might be servicing an expensive loan and you feel like having the car is a liability. Or you just want to get money to settle something real quick.
Selling your car may sound like the only option. But it is not just as easy as it sounds when someone talks about it.
The most important thing to note is, will sell the car to solve the problem? Is it going to give you the financial solutions you are looking for?
To understand better, ask yourself the following five questions.
1. Do you want to sell the car? Why?
The answer to these questions should help you figure out any other option that does not involve selling it. You want to ensure that you have a valid reason for selling the car.
For example, some people will get bored of their car within a year or so once they have bought it. When they see a friend with a new car, the need to sell the vehicle is suddenly triggered by lust for a new one. You may also want a new car because your old wheel is not giving you the services you need and it is using too much gasoline.
Now, if it is just that you are bored by the looks of your car, you can choose to ignore that feeling. That is something that can pass as long as the car is serving you well. However, if the car is demanding for repairs from time to time, that could be a valid reason to want another one.
If you keep putting money into an older car, you might find it difficult determining its true worth. It can become too costly that even what you sell it for does not cover the costs.
Or you don’t really want to sell the car, but you have to because of a financial constraint. This is another good reason to get the car on sale. But then, chances are selling the car might not solve the problem you are looking at. In this case, there might be other means to come up with a solution.
The goal is to determine if it is worth selling the car. The reason for your decision should be something you have thought about carefully. You don’t want to sell the car just because you can sell it; it should be rather because you are looking for a better solution.
Cars are very important. Once you get used to one, you never feel like letting it go. Therefore, you better have a good reason for letting it go.
2. Do you know the value of your car?
One of the biggest mistakes you can make when selling your car is to selling without knowing its true worth. This may seem like a straightforward thing, but it is not. Perhaps you remember how much you bought it for and still think it has the same value. While most people will go slow and establish the true value of their car, some don’t just have the time.
When establishing the value, think of the importance of not relying on public transport. Think of how you will feel when you don’t have to pay for the car. And think of how much you love the car.
Is public transport cheaper than using your own car?
The metrics you use to know how much the car means to you will help you set the value. For example, if you have another ride and you simply want to dispose of one, the decision can be made easier. But if you rely on the car for many activities – you might face quite some battles.
3. How do you sell the car?
It is not easy to go through the process of selling the car. Think of how much paperwork you will have to collect and include the repair and maintenance history. You will then have to clean the car and refurbish it to make it look more adorable. You will have to set aside time to meet buyers, go through negotiations and much more.
In other words, do you want to sell it yourself or go through a dealership? As much as selling it yourself is stressful, selling at the dealership gives you the worst price. You need to establish how much it will cost and how much you will get from the two options.
Read case Study [How to Get More for Your Trade at a Dealership]
4. Will selling the car meet your needs?
For example, you might be having some expectations for the new car. But are they reasonable? People often describe their dream cars in different ways and in most cases, such vehicles never exist. Therefore, make sure what you are expecting can be really achievable.
If it is to settle some financial issues, ensure that what you are selling the car for is enough to settle the debt. You might realize it wasn’t worth anything selling the car after all.
Sometimes you might just decide not to sell it anymore. Especially when you realize nothing much will change in your current situation.
5. What next?
This is a question that people often assume. You need to look beyond selling the car and establish what you will do once you have sold it. How are you going carry out the activities your car has been helping you with?
This is like making a plan for the future. If your car is bigger and is enough for your family, will the next car be like so? And if you are not planning to buy another one, what is the contingency plan?
The five questions above are necessary when you want to sell a car. It is not just about getting the car sold but selling it for the right reason and the right price. Hopefully, they will help you make a better decision.