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Selling one's car can be a difficult and strenuous task. Buyers will always want to believe that they are getting a great deal and thus worth the investment. The indisputable fact of the matter is that no matter what car is purchased, depreciation sets in as soon as the new owner drives the car off the lot. As soon as one becomes the first official owner of a brand new car, the car will hold a ‘used car’ status. Depreciation is inevitable. The average rate at which cars depreciate in value is also alarming. Even after only a year, a car may only be 72% of what it was originally worth and the potential sale price will keep on plummeting after that. The pending question, "When is the best time to sell my car?" now becomes even more crucial.
Private Selling vs. Trade-In
One of the first things to consider before selling a car is deciding whether selling privately to a prospective buyer or trading in to the dealership such as The Car Buyers is the best option. Here are a few of the pros and cons of doing either one.
For those wishing to sell their car without a lot of grief and hassle, trading in to a car dealer is an easy, convenient alternative to selling on one's own. The whole concept of 'cash for cars' in Melbourne has surged in popularity over the years. If all other factors are equal and optimal, all a seller has to do is come to an agreement on pricing with a dealer, and the rest is history. The catch is, more often than not, sellers will not receive as much money as they would if they sold it on their own terms. Dealers will make their specified profit by reselling the car at an inflated price, but from an opportunity cost perspective, you are relieved from the stress associated with selling your car and you are walking away with cash in your hand.
Getting the Best Deal
As sellers, many people fall victim to this myth - by selling your car after a couple of years, you are actually saving money that you would have otherwise lost, had you kept the car for a much longer period of time. This is far from the truth.
The fact of the matter is that, while cars depreciate in value regardless of when it was purchased, the rate at which it depreciates differs with time. For example, for the first five years that a car is owned, the depreciation value plummets dramatically. By the time a person reaches five years, their car has already depreciated in value by an average of 78%. However, a person who waits at least 10 years to sell their car is actually getting a better deal because, while they will not get nearly as much as they would've after five years, the depreciation rate eventually levels out and does not drop as rapidly. The real savings is in minimising the depreciation cost as much as possible, which is only possible after holding onto a car for that amount of time.
Making Sure the Car is in Selling Condition
As is with any purchase, people don't want to buy a shabby car, so it is best to ensure that the car is in working order, usually accomplished by keeping up with services and the necessary repairs. If the car requires major repairs, it is best to consider dropping the asking price and calculating the costs of those repairs beforehand, so that the buyer knows he/she is getting a good deal.
There are many other factors to consider, but these are just the first few steps to making the selling and/or buying experience as stress-free as possible.