Should I sell my car before prices crash?

Thinking of selling your car? The auto industry sees car values fluctuate rapidly, so whether you’re planning to upgrade to a newer model or simply looking to offload your current car, timing plays a crucial role in maximising return on investment. One key strategy when it comes to the timing of selling your car is doing so before prices start to tumble downwards.

In this blog post, we’ll delve into the reasons why selling your car before prices crash can be a smart move. We’ll understand:

• When used car prices will drop
• Is it the right time to sell my car?
• Factors to consider when selling your car
• At what point is it best to sell a car?
• Are car prices likely to go down?
• Are car prices going up or down in the UK?

When will used car prices drop?

Historically, used car prices experience periods of increase and decrease at different times, but the timing and magnitude of these fluctuations are often difficult to predict accurately. Look at the recent Covid pandemic, during which used car prices skyrocketed, witnessing an impressive 32% surge from 2021 to 2022, as reported by certain sellers.

However, the recent data reveals a modest 0.3% variation in 2023 compared to 2022 for the top 20 popular models.

Taking into account other external factors such as market conditions, seasonal trends, and supply, it becomes increasingly difficult to understand when used car prices will drop, though if the recent 2023 data is anything to go by, things could be looking up.

Is it the right time to sell my car?

So, does that mean it’s the right time to sell my car?

Throughout 2022 and 2023, there has been a significant surge in demand for pre-owned vehicles. With a relatively limited supply available, asking prices have risen, leading to a unique opportunity where you could potentially profit from your used car.

It’s important to note that not all cars experience the same increase in value. However, if you’re so inclined, it’s worth exploring your options.

May we suggest getting your own free valuation with Big Wants Your Car? We offer quick, simple, and fair quotes on all cars, and we don’t think you’ll find a less hassle-free way to sell your car than with us. Get your quote right here.

Before deciding whether to sell your car now or not, consider various factors that can influence wider demand. As you may know, market preferences can shift, with certain times affecting people’s decisions to buy used cars or not, and even certain types of cars like SUVs. Additionally, factors such as the car’s condition and mileage can impact its selling price.

View our post – How to transfer car ownership

Important factors to consider if you want to sell your car:

1. Depreciation

Cars naturally lose value over time as you use them, with the most significant depreciation happening within the first year. New cars depreciate faster than used ones, so it may be more profitable to hold onto a new car for a few years before selling.

2. Overall condition

Selling your car in good condition will help fetch a higher price. Consider minor repairs, but be cautious of spending more on repairs than the value it adds to your car. Instant offers or part-exchange options are available if repairs are not viable.

3. Mileage

Higher mileage typically lowers the trade-in value of a car. Selling when the car has between 40,000 to 70,000 miles is often considered ideal, as the value tends to decrease further after reaching six digits.

4. Plate changes

March and September are popular months for buying new cars due to the release of new registration plates. The focus is usually on new cars during these times, so it may be worth not selling during these periods.

5. Seasonality

Different types of cars have varying demand depending on the season. Convertibles, classic cars, and sports cars are popular in spring and summer, while SUVs and 4x4s see increased demand in autumn and winter.

6. Finance clearance

Ensure any existing finance on the car has been paid off before selling. Unless you sell your car with the finance taken into account – whilst making your lender and buyer aware of the finance – it is illegal to do so.

7. Lifestyle changes

Consider selling your car if your lifestyle has changed, such as growing your family or moving house. Switching to an electric car or simply no longer enjoying driving are valid reasons to sell, too.

No matter the time of year, depreciation of your car, or the mileage of your car, we can guarantee one thing. You won’t find a more hassle-free way to sell your car than with Big Wants Your Car. With 7-day guaranteed quotes, free delivery and collection, and a valuation process that you won’t even have to leave the couch for, we’ve simplified what it means to sell your car online.

At what point is it best to sell a car?

Reports show that cars experience a notable depreciation drop in the first 2-3 years and another drop around the four-year mark and then again at eight years. To get the best value, consider selling your car between these timeframes.

Are car prices likely to go down?

The market has seen a significant improvement compared to 2020-2021, with prices and inventory gradually getting better. However, as always, it’s important to be aware of the usual external market factors including:

• Vehicle supply
• Seasonal trends
• Market demand
• Economic conditions

Are car prices going up or down in the UK?

According to This Is Money, UK car prices increased for the first time in 10 months in March 2023 by around 2.3 percent, thanks to a combination of high demand and low stock of used vehicles. This brought the average price of a used car to around £17,700.