When to trade in/sell old car?

[Serban]

Hello,

I've got a curiosity and I think people from here like to discuss these kind of topics, but I'm also happy for this post to be removed if it's not suitable or appropriate.

Basically my question is: when is it the best time to sell an old car(that's been driven for some years for another new er one or trade in?

I don't remember where I've seen this before, but apparently the sweet spot for buying a car is 2 yrs old to 5yrs old taking many variables in mind.

So now I wonder, where's the sweet spot for selling it? 

Hypothetically speaking, if a yaris Hybrid 10 yrs old, 100k miles can be sold for 10k£, and buy or trade in for 20k newer car, that's me paying 10k, right? Is this a better option than driving the Yaris another 20-25 yrs(or until wheels fall off as many say) and buy a new-ish AFTER that and obviously you'd have to put 17k-20k down for a new car.

What do you guys think?

[FROSTYBALLS]

Moved to General Discussions.

[AndyN01]

I'm of the view that once a car is fully paid for and most of the depreciation has "happened" then keep it as long as you like - the longer the better as it's costing you peanuts to own.

I like to own my cars (and everything else, too) so if nasty stuff happens I'm not left without a car etc. etc. after it's been repossessed or I'm dragged into massive debt to keep up payments.

There's all sorts of talk about fuel costs, tyres, servicing etc but IMHO that pails into insignificance (unless you're running something like a Dodge Charger 😀 and doing 20K miles a year) compared to depreciation and the cost of repayments on the loan etc.

For me the time to change is when it's starting to cost significant £££'s to maintain and repair. Then accept that it's worth very little and use the funds that you've been putting away for however many years to help buy the next one.

For your hypothetical Yaris, I'd been keeping it. Put whatever the PCP/loan etc. amount away every month and enjoy cheap motoring for however many years you keep her.

When it's time to change you've a nice chunk of cash to use and by doing some research on depreciation etc can look for that sweet spot in age/mileage to buy the next one

Each to their own.

Andy.

 

[Bper]

Hi Serban,

In my opinion with your hypothetical Yaris I would trade it in and buy a newer car. Obviously if you were to buy another Toyota then you have the benefit of another warranty plus a newer car with less potential of ongoing costs which are associated with older cars especially if it was to be kept for 20-25years. You would also benefit from receiving a higher trade in then if you kept the car longer.

This of course is all dependent on your budget and other financial circumstances at the time.😀

[Haliotis]

Wanting to change your car can have many reasons.  But, basically, as the years go by, your existing car gets worth less, and new (or newer) cars increase in price.  So, the longer you wait, the more you will pay out in cash difference.

[flash22]

A hybrid at 10 years old, for argument’s sake has a value of £10K RETAIL, Trade value is 50-70% of that number, either way you end up spending money, i have just been playing the waiting game and assessing the market

 

But in the last 5 years the market has gone mad and values are all over the place, major interest and economic changes (inflation and cost of living) means you get less for your money my excel when new in 2016 would have been £19K the equivalent car now is nearer £24-26K, a 3-year-old yaris is now in the £17-20K range what is still very strong

 

As you have a 2-year-old car, the difference for you will be a fairly small payment as you are downsizing, Finance and PCP deals are rarely 0% now days. So that's another thing to be aware of

[Rhymes with Paris]

I do like having my old car,it has done all the depreciation that it's going to.

Aside from any major repairs coming up,or rust becomes an issue(which seems to vary according to each new MOT) to make it worth just scrap.

Of course I am not doing the mileage now as when I was working, so realise others needs may differ.

 

 

[Mojo1010]

As all above it depends on many factors. 5 years ago got my first hybrid, a MK3 yaris 2016 icon for 9500. After a few years was looking to upgrade due to the car not really having enough power for me, as well as handling is poor around country roads (type of road I go through a lot each year) + really noisy on rapid acceleration - a bigger boot would help too.

Wasn't looking for new, so rule out the MK4 Yaris. An auris excel was perfect, but due to cat theft issue, didn't get one. Held on to the Yaris until this year as it was a good moment to buy a new MK4 Yaris. Have enough finance as well got 9100 after 5 years for the MK3. Intention wasn't to buy new Yaris, but 1 year old cost the same as new, so it would be rude to not buy new when one can afford it. A lot of new and better tech was also a factor of upgrading. 

[Cyker]

Traditionally people would keep the car until it needed MOT'ing or the warranty ran out before trading up. It's trickier with the hybrids as they seem to hold their value far better than any other type of car.

At the moment it's a seller's market, and while you get more for selling the car you also have to pay more for a replacement. One member on here was quite canny and sold both of their hybrids, downsizing to a pair of Up's, which I'm sure got them a good chunk of money!

 

 

[Mojo1010]

10 hours ago, Cyker said:

At the moment it's a seller's market, and while you get more for selling the car you also have to pay more for a replacement. One member on here was quite canny and sold both of their hybrids, downsizing to a pair of Up's, which I'm sure got them a good chunk of money!

 

 

He was a Toyota catlover, that was also another reason for cat theft on Toyotas 🙂

[Hybrid21]

Some people change their car when the warranty runs out and the mot's begin, around three years.

Also the finance, PCP's etc tends to dictate when to change these days.

With modern technology in vehicles, especially hybrids, specialist knowledge and tools are required to maintain them and a warranty is good to have, so keeping a car for say 10 years is not easy these days.

I have tended to keep mine for 5 or 6 years as I've found that this is the time when things start to need replaced and any older and dealers are not interested in taking as a trade in for a new vehicle.

 

[Mojo1010]

Correct on many points above. Toyota dealer was fine to take in my 7 year old Yaris hybrid (hybrids are in demand), though they offered £8000, got £9100 from an indy. Had 5 years trouble free motoring on the 2016 Yaris, just usual maintenance. 

[ToyotaFanDriver]

The right time all depends on the numbers... My wife had a new Yaris in 2019, and then in early 22 got an excellent p/x on it where the car was covering about 4k deposit on the next. At that point 2nd hand car prices were a little crazy but a good way for her to get a 2 year newer and a brand new model of Yaris for exactly the same monthly payment! £0 cost to change.

[AndyN01]

A bit of a hijack.

Thanks for the views, some rather different from mine which has given me food for thought.

Appreciated, Cheers.

Andy.

[Serban]

Thanks everyone, sounds like it rly depends on many variables that can be constant or change with time. At the moment sounds like what I can afford and wanting to be as financially responsible as I can for the near future, the hypothetical car would be driven for the next 10 years(aiming for at least 20yrs before scrapping or selling for pennies) with extra TLC to minimise expenses.

[Gren]

On 11/2/2023 at 8:50 AM, Hybrid21 said:

Some people change their car when the warranty runs out and the mot's begin, around three years.

 

They used to say about company cars that it was time to change when the ashtray got full !

Best advice I was given is that when your loan payments are complete keep putting the same amount into a savings account and keep the car for longer.  That way when you do replace it you need to borrow less.

[STANLEY82]

Whilst cars have lots of variables. In general I think we should all be encouraged to use any product till the end of its natural life. Our rampant consumerism with products inbuilt obsolescence have huge environmental consequences. I find it very depressing Govts have litte to no  legislation against inbuilt obsolescences.  And have policies such as ULEZ which incentivise folk to scrap perfectly good cars.

[Haliotis]

Difficult to say when a car reaches they end of its “natural” life.  Loss of reliability as it ages may not be too important for a casual owner, but critical for an owner such as a taxi driver.  Change of circumstances can also be factor - e.g., physical imparement necessitate moving from manual to automatic gearbox.  Just two of many possibilities.