Knowing When It's Time To Sell Your Car

It’s tough to know when it’s time to trade or sell your vehicle – especially if it’s served you well. A whole range of reasons can go into your decision to make a change, but generally, there are two crucial factors that can help you think it through.

If maintenance costs and repairs start adding up, it’s probably a good time to sell

In some cases, fixing an issue with your vehicle can run the same amount as a monthly payment. Even if all your car troubles are inexpensive, balance the time and inconvenience of running to the repair shop – or being towed there – against what you save by driving an older car. Can you afford to lose those hours in an afternoon? For most people, the simple answer is, "No."

Your car’s current value should also be a big consideration

In the first three years of ownership, a car loses almost half of its value through depreciation. So after the three-year mark, you'll actually lose more by trading it in than you'll save by switching to a more fuel-efficient car. Depending on the vehicle you drive, hanging onto it for about five years will likely get you the best bargain on your overall driving costs, including gas and depreciation from the original purchase price. Keeping tabs on the Kelley Blue Book value of your vehicle can help you with the decision.