5 questions to ask before you sell your car
If you’re asking yourself, “Should I sell my car?” you’re not alone. For every car owner, there’s going to be a point in time where you start to wonder whether your car is worth keeping. Whether you’re thinking of selling for financial reasons, because it’s time for an upgrade, or simply because you’re not using it enough, ask yourself these five questions before you make a decision.
1. Is my car still reliable?
Some cars motor along for years and years, without a hint of trouble. While others will become unreliable as they age. Cars, just like people and appliances, have a design life, and the older your car gets, the more likely it is to have problems – especially if you’ve not taken good care of it.
If you’re finding yourself wondering whether your car will be able to get you from A to B, then you’re probably right to think it’s time to sell my car and upgrade to something newer.
2. Do I really need a car?
According to the Australian Bureau of Statistics, Australians have access to 1.8 cars per household, which has us begging the question – do we really need the cars that we own?
If it’s not a case of having more than one car in your household but more about whether you need a car at all, then it’s probably a good idea to first look at your lifestyle. If you live in a remote location, then yes, you probably need a car. On the other hand, if you live in the middle of Sydney, Melbourne, Brisbane or any other bustling Australian city, then you could probably get by without owning a car at all.
If you find that you’re hardly using your car, relying more on public transport or bemoaning the fact that you don’t have dedicated private parking, then you could be right to think it’s time to sell my car and just renting a car when you need one. Or you could rent out your car when you’re not using it with DriveMyCar.
3. Are my car repair bills gradually increasing?
If you’re finding yourself getting more and more acquainted with your mechanic and spending a small fortune on repairs, then you’ll want to start weighing up the pros and cons of keeping your car versus upgrading it.
If your car bills exceed the cost of trading in and upgrading to something a little newer, then consider this your cue to trade your vehicle in or list it for sale.
4. Can I make money from my car?
Absolutely, yes you can. If you’re looking to sell your car simply because you’re not using it enough and you’re paying hundreds of dollars each week to pay off a car loan, then why not rent out your car through DriveMyCar when you’re not using it? You could easily earn over $10,000 per year by renting your car out to verified renters in your area. And don’t worry, while your car is being rented it’s covered by DriveMyCar’s Motor Fleet Policy, providing comprehensive coverage for accidents and theft.
5. Are you a business owner and claiming tax on your car?
If you use your car (whether bought new or as a used car) as a business vehicle, then you’d know that you can claim your car as a depreciation tax write-off.
As a general rule of thumb, the more your car depreciates in a year, the more you can claim back in tax. And as many car owners know, your car is likely to lose most of its value in its first year.
As time goes on, your car will continue to lose value, but at a much slower rate. By the four or five-year mark, your accountant has probably exhausted the amount that they can claim back, so in essence, you lose your tax benefit. If you run a business and you’re at that four or five-year mark, it pays to chat to your accountant to work out if it makes more sense for you to upgrade to a newer car.