Recent months have been unusual in the world of cars. With the UK automotive industry grinding to a halt due to a global semiconductor shortage, you might be surprised to find out that, now, there is a large proportion of used cars that are worth more than brand new ones. Yet, you should never rush into selling your car. There are a few factors that you should consider in order to figure out when you can get good value for your vehicle. In this guide on is it a good time to sell your car, we`ll take a look at what they are.
Depreciation
Your car starts depreciating the moment that its tyres hit the tarmac. This means that the price that you sell it for will almost certainly be lower than the price that you bought it for.
But new cars depreciate at an even faster rate. This means that if your car is relatively new – say, less than three years old – you stand to lose more value by selling it now. For this reason, holding on to your used car is a more economical choice. Get your money`s worth out of it before you sell it on.
Supply shortages
Whenever there`s a manufacturing supply shortage, there`s a decent chance that you`ll be able to get more money for your car than usual. That`s because fewer people can afford to buy a brand-new car when the car companies hike up their prices.
As a result, buyers turn to used cars instead. With more buyers in the market, the value of used cars in general rises. Stay informed on current events and try to understand how these are affecting the used car market. You may be able to sell your car for a better price by doing so.
Time of year
Consider how the time of year affects the value of your vehicle: the number of used car sales tends to fluctuate throughout the year. For example, in 2021 used car sales exceeded 2 million during Q2 and Q3, whereas Q1 and Q4 saw closer to three-quarters of this amount.
You want to sell your car at a time when there are fewer used cars available in the market. With fewer options available, buyers will have no choice but to pay a higher price for the vehicle models that they want. Do your research and try to take advantage of this effect.
In conclusion…
The best time to sell your car differs on a case-by-case basis. Other factors that can affect your car`s value include the model, your location, and the condition of your car.
That being said, with the supply chain shortages seen earlier this year, there could be an opportunity to get more value than usual, especially during the summer months.