From an economic point of view, a car is a wasteful investment. It is quite expensive and many expenses are attached to it: fuel, maintenance, repairs, insurance, ITV, taxes… However, for many people, it is essential, most of the time for work reasons. If you are part of that group of people “forced” to own a vehicle and you are thinking of renewing it soon, below we will explain what are the most important variables to take into account to know when is the best time to change your car.
The three determining factors to changing cars
-
Antiquity.
A car depreciates very quickly. By the time you register and walk out the dealer's door, it's already lost about 20% of its value. In the following six years the depreciation is 10% per year. From there it is buffered up to 5%.
This means that after ten years a vehicle in Spain is worth an average of 87% less than when it was purchased. I mean, nothing.
You may also be interested in value my trade in
If you want to change your car and not lose too much money, you only have two options: either you sell it before the first four years when you can still “earn” something with it; or after ten years, when it is already more than amortized.
-
Mileage.
The mileage of the car is the second most important variable to take into account if we want to sell it. When faced with two identical vehicles (same brand, same model, same engine, same age…), the number of kilometers will determine the price difference.
In general, diesel vehicles lower their price a lot when they exceed 150,000 kilometers. However, with gasoline cars, this loss of value occurs at 120,000. If the vehicle exceeds 300,000 kilometers and fifteen years, it is considered out of its zone of use and it will be very difficult to sell it.
-
General state of health of the car.
The first signs of wear on a car are detected after the fifth year or 70,000 kilometers. From there, the costs of repairs are much higher, so many owners turn a blind eye and leave them aside.
The sale price of your vehicle may be higher if the maintenance throughout its life has been adequate. Many buyers will appreciate that the repairs have been done at the official dealer and that the seller has invoices to provide them.
In short, if maintenance costs suddenly start to become commonplace, that's a sell signal. These expenses will increase over the years and it may pay you to renew the car to avoid them.
0
0
