Thinking of trading In your vehicle? Consider the following.
There are numerous factors to take into account when trying to decide on the best time to sell or trading in your car and making the correct decision can save you a large sum of money. There are a number of questions to ask before deciding on the right time to sell. These include :
• Is the car starting to cost you too much? • Does the car require a significant amount of money to repair it or does it keep breaking down? • Is the vehicle becoming too expensive to run or is it compromising your personal finance through installments, fuel costs, and rising insurance premiums? • Is the warranty about to run out?
If the warranty is about to run out, sell your car before it ends. This will allow you to hold on to the value of the vehicle. Once the warranty is finished the value will drop dramatically. The “Rule of the thumb’ when it comes to timing when to sell your type of car. Expensive cars are very costly to maintain once they age their value drops significantly. These models should definitely be sold before the warranty or motor plan expires.
If the vehicle is older (between three and seven years) and it is out of warranty and motor plan, try to sell within two years. Vehicles that are older than 10 years sell for about 50% less than their book value. This mainly because they are not granted bank finance. Mileage has a strong impact on the price of the vehicle. The value of the car drops drastically if the mileage is more than 250 000KM as well as the vehicle having more mileage than the expected average for the age and type of car.
The most desirable cars are always the ones that are still under warranty and/or motor plan. Second-hand cars tend to start having issues after 100 000KM so that would be a good time to trade it in or when your motor plan expires. If you have a vehicle that you would like to trade in don’t hesitate to call us on 011 509 7301 and we will evaluate your car.