March 25, 2020
This question crosses every motorist's mind when it comes to trading in their car for a new car. Most people want to get the best trade-in deal as possible, but when is that? Just like car insurance, most of us are always looking for the best deal possible.
There are many factors one needs to take into account when trading in your car. Perhaps you have to consider a few factors before you trade-in your vehicle.
Is your current car becoming a bottomless pit when it comes to expenditure on repairs? Are you always needing to fix something one after the other on your current car? This might be a good time to look at trading in your vehicle for a new one and rather spend less money on a new car with a service and maintenance plan included.
Sometimes certain, unexpected things happen in our lives that can affect our financial well-being, and we cannot afford certain things anymore, e.g. Car premiums, insurance premiums, etc. This can also be a good time to trade in your vehicle if it costs you less on instalments, and possibly also bring your insurance premium down. This could also make it more affordable every month and less of a burden.
In most cases, motorists buy cars new with motor and warranty plans as it takes financial pressure off them when it comes to services or any other repairs on the vehicle. Usually, these policies are only for a certain number of years or kilometres. This might also be an excellent time to trade in your car, as one can’t always afford the extra expense once these policies are depleted.
More popular branded cars and models retain better market value. When it comes to trading in your vehicle, consider these brands as you will usually get more for your money in the long run.
Most new cars lose from 20% of their value as soon as they drive off the showroom floor. So always consider this when buying a new car. The best time to trade in a car is when it is not older than three years and still has a motor and warranty plan. Also, please take into account the number of kilometres you have accumulated at that time, this will also affect how much you will get when you trade it in.
Cars that are older than ten years will not get good book value as the banks or finance companies will not be able to refinance them as they are too old when traded-in. This information may prepare you more when it comes to trading your car in or not.
Whether you trade-in your car or not, have you thought of signing up for affordable car insurance? Perhaps consider getting affordable car insurance with PMD?