Sell or Scrap? How to Get the Most Money Out of Your Old Car
As a car ages, they start to cause more problems than they are worth. You may begin to recognize that they need constant repairs and repairs far beyond their value to keep them on the road.
This is when you have to decide whether to scrap or sell your vehicle to get the most money for the least amount of work. Let’s consider four factors in answering this question below.
Collectability
It is very rare for vehicles to increase in value. However, there are a few collectible new vehicles and certain classic cars that have a following among collectors.
If your vehicle is collectible, it makes sense to fix it up and sell it for top dollar or to wait for the right buyer.
You may even want to highlight particular features of your vehicle that make it somewhat collectible.
Lapsed Maintenance
This can be a tough one for car owners to assess when deciding whether to scrap or sell their old auto.
At a certain point, it doesn’t make sense to invest more money into a vehicle to prep it for sale if it has too many problems to fix.
If you want to sell your car, you have to be realistic about how others will value it once you make it drivable.
There is a lot of competition out there for a share of the market. And because you can’t guarantee financing, like the dealerships, only a handful of people have the capital or interest to buy your vehicle, which drives the prices down hard.
New Parts
Though the car itself might not be worth much, if you’ve been doing repairs for your vehicle, several of the parts in it are probably in excellent condition.
If you sell your car to a scrapyard, highlight the new parts on a vehicle to get a better offer.
If you have receipts for any work done to prove that parts are relatively new, always highlight those in the negotiating process.
Reputation of the Model
If you have one of those vehicles that are known to reach 250,000 miles on the standard, you will want to flaunt that fact before potential buyers.
A reliable car with a proven track record that can go the distance after the sale is precisely what some used car buyers are looking for.
No matter what you decide, selling as soon as possible usually makes the most sense.
As newer and better vehicles come out every year, it gets harder and harder for the older models to compete. While there may be some exceptions, there are not many.
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Category: Family Finances
