From an economic point of view, a car is a ruinous investment . It is quite expensive and you have many expenses: 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 this group of people “forced” to own a vehicle and are thinking of renewing it soon, we will explain below what are the most important variables to consider in order to know what is the best time to change cars.
The three determining factors for changing car
A car depreciates very fast. As you enroll and exit through the door of the dealer has already lost about 20% of its value. In the following six years, the depreciation is 10% per year. From there it is damped 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.
If you want to change your car and not lose too much money you only have two options left: either you sell it before the first four years , when you can still “win” something with it; or after ten years, when it is already more than amortized.
The mileage of the car is the second most important variable to take into account if we want to sell it. Before 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 much when they exceed 150,000 kilometers. However, with petrol cars this loss of value occurs at 120,000. If the vehicle exceeds 300,000 kilometers and fifteen years, it is considered outside its area of use and it will be very difficult to sell it.
General health status of the car.
The first signs of car wear 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 maintenance throughout its life has been adequate. Many buyers will value with a plus that repairs have been made at the official dealer and that the seller has invoices to prove it.
In short, if all of a sudden the maintenance costs start to become habitual, there you have a sales signal. These expenses will increase with the passage of time and maybe you will be compensated to renew the car to avoid them.