Get Cash or Keep It? 4 Reasons You Should Sell Your Car for Extra Money
Do you have an old car you’re considering getting rid of? It’s natural to be on the fence about selling your current car, especially if it’s sitting in the driveway or rotting in the backyard. If you’re unsure whether to keep or sell it, check out these four reasons to offload it for some extra cash.
1. If the car is not worth repairing, sell it
If your car requires some extensive repairs, it could be wise to get rid of it altogether. This is especially true if the repairs it needs cost more than the car itself. For example, if your 2008 Honda Civic is only worth a few thousand dollars, but replacing its busted transmission and other small repairs total up to $4,000, it could be time to cut your losses.
However, if you need a car to get to work every day, your car could be worth repairing and driving for a little longer unless you don’t mind using Uber for a few rides.
2. Ownership costs make it not worth owning
Do you work from home or live close to your place of employment? If so, you may not need your car and should consider selling it. The ownership costs of that car sitting in your garage could make it not worth having around. Costs like insurance rates, car registration fees, parking, and fuel costs can add up over time. In that case, selling the car could be a huge weight off your shoulders.
3. If you can use the extra cash for other important things
If you have more important bills to pay, like rent, it could be a good idea to sell your car and cash out its equity. Additionally, if you don’t need the car and need to pay for other important bills like medical expenses or a wedding, selling it could be a good idea. However, if you need the car to get to your wedding, don’t sell it.
4. If you can’t afford the payments
That $800/month payment probably sounded affordable when you first bought the car, but what if you lost your job? In that case, selling your car can make sense if you can’t afford the payments. Another option is refinancing your auto loan, which can make the monthly payment more affordable.
Here are a few things to consider before selling your car
If you decide to sell your car, here are a few things to consider before going to a dealership or posting it on Facebook Marketplace.
- Plan on how you’ll get around: If your car is your only mode of transportation, it’s a good idea to plan how you will get around when you get rid of it. Check on the local bus routes, walking routes, or ride-share costs.
- Know how much your car is worth: Although sites like Kelley Blue Book and Edmunds are good guides when determining how much your car is worth, those sites don’t have the ultimate say. We recommend checking what other cars like yours are selling for in your area to get a good idea of what to sell it for. Also, take the car’s age, condition, and mileage into consideration when pricing it.
- Know your bottom line: After figuring out how much to sell your car for, it’s a good idea to set a bottom price in your mind and not accept any less. Doing so will ensure you get a fair price for the car without having any regrets.
Ultimately, selling your car could be a good idea if you don’t need it or have a backup plan when you offload it. If you do sell it, it could be one of the most freeing experiences – your driveway or backyard will thank you.