So when's the right time to sell what you have?

Hurrache

So I have a diesel car approaching 10 years, low enough mileage and good condition but that doesn't make a huge difference when the age is taken into account. I'd get around €3,500 at most on a trade in based on calls I've made. Hard to gauge privately but there isn't a huge discrepancy.

So I'm at the point in which I don't know if I should exchange it while it's worth a bit of money and go on to the next car for another 7 or 8 years, or run what I have until it's worthless.

Car is not giving hassle at the moment and I don't do a huge amount of distance in it, but not sure I want to be left with a car worth nothing in a year or two so would have to get a decent deposit for a new one or fully finance one. Negative to all this is I'll go from not having any monthly payments to having to start car finance all over again.

What do people do in such situations, is there point in the economies of scale and law of diminishing returns at which it's economical to move on?

bazz26

If your existing car is not getting much use or costing you money to keep on the road and is in good condition then I'd tend to keep it. The car you currently have has most likely suffered most of it's heavy depreciation at this stage so future depreciation will slow down compared to a newer car that you will end up in the same position in a few years time too. Spending to stay ahead of the depreciation curve rarely makes financial sense. I'd also argue that your better off with the devil you know. You know your existing car, you know it's history and you know it's in good mechanical condition. I'd only part with it if it starts giving problems and repair bills start getting expensive.

Hurrache

Yeah, I'm tormented as one moment I'm thinking exactly as you say, then come back from a cuppa and thinking I should exchange it now. I'd be going for a 2017/2018 so the original owners will have taken the worse of the depreciation hit for me.

It's due a service which I think I'll need new pads all around and I'm even at the silly point of thinking as that being a months payment on a new car. If there's any teeth sucking being done by the mechanic I may factor that in, but as it is I'll probably stay.

Once the win changes direction I'm sure I'll be about to ring a dealer again in order to reserve a car I've been looking at.

The second, and primary, car in the house is a year younger but had the potential to become a deeper money pit so I think that will eventually take priority in being replaced and I'll be left with mine even long!

bazz26

If you just fancy a change then all financial logic tends to go out the window and you buy with your heart rather than your head.

Stallingrad

Everyones position is different on this due to some many variables, people priorities, value, age, mileage, your income, what kind of model it is, keeping up with the Jonses, etc.

Your car is worth so little you face a significant one off cost, or monthly payments to come up in years, some people try to protect themselves from this by changing every few years. You've played a longer game and now you have cash in your pocket (no payments) and a working car.

Assuming you like the car, the sensible thing is to hold on to what you have if it is a good example and not giving any grief. Do you really want to pay €20k plus (or whatever) to protect yourself from potential problems?

My current car is a 2015 and I intend to keep it for as long as possible, as I enjoy not having anything to finance.

Atlantic Dawn

The way I would look at it is your own in 3 years should be worth at least €1k, if you spend €20k on another car it will be worth about €10k in 3 years time, that's a nice chunk of money to be in your pocket holding on to your own. At the end of the day unless you are looking for a specialist vehicle you should be able to source a replacement car in days to take the place of your own should it suffer castrophic failure and be uneconomical to replace, no rush to change from the car you know if you ask me.

KFed

Hurrache wrote: »

Car is not giving hassle at the moment and I don't do a huge amount of distance in it, but not sure I want to be left with a car worth nothing in a year or two so would have to get a decent deposit for a new one or fully finance one. Negative to all this is I'll go from not having any monthly payments to having to start car finance all over again.

Would you consider saving a set amount each month now into a dedicated car repair/replaceemt bank account? If you buy a newer car you say you'll need a deposit or full finance. Maybe start saving now to build a fund for when you need repairs or have to change?

I have an 11year old diesel, do little miles, in good condition, 70k miles on the clock, owned by me for last 7 years. I've decided to keep mine as I've no loan, it's not worth much to sell/trade and not giving trouble. Going to save to build a fund so when eventually it's uneconomical to repair it'll soften the blow.

Quite enjoying having no car loan at the moment tho!

Hurrache

Indeed the last payment of a previous car loan was a good day alright.

A lot of sense posted here, which I tend to be in agreement with. Looks like old faithful will be staying in the family for foreseeable future and the heavy use one getting the heave before hand instead.

Putting by a bit whenever I can for either unforseen costs or future deposit is a good idea.

fjon

Interesting read. I've been thinking something similar but I'm in a worse position that OP. My car is 11 years old, has 240k on the clock and is probably worth very little. Little things are going wrong with it that aren't worth fixing, so I think given what people have said here it's just a case of driving it until something breaks that's too expensive to fix.
Another part of me just wants to buy something newer and nicer, but I enjoy not having to pay instalments (and haven't for over 5 years).