What's the Best Time to Sell a Car?

Selling a car is a significant financial decision, especially considering that vehicles are depreciating assets. This means the value of your car is usually at its peak today and will likely decrease over time. Understanding the best time to sell your car can help you maximize your return on this depreciating asset. Let's dive into the factors that influence the best time to sell a car and how you can navigate these to your advantage.

The Seasonal Sweet Spot: Spring Months  

Historically, the value of used cars depreciates at a much slower rate during the spring months, from March to June. Sometimes, depending on supply and demand, values could even increase. This phenomenon can be attributed to a variety of factors, including the end of winter, when more people are looking to buy cars, and tax refund season, when potential buyers have extra cash in hand. The warmer weather encourages more people to shop for cars, making it an opportune time to sell.  

Financing and Leases: No Need to Wait  

A common misconception among those with financed or leased vehicles is the belief that they must pay off their loan entirely to receive the title before they can sell the vehicle. However, this is not necessary and could actually work against you, as the value of your vehicle may depreciate during the waiting period. Companies like ALGO offer a solution by paying your financial institution directly and cutting you a check for any positive equity you may have in the vehicle. This process allows you to sell your vehicle today, with an active loan, bypassing the wait to receive your title and mitigating the risk of your vehicle losing value.  

Navigating Post-Covid Market Volatility  

The "post-covid" used car market has been extremely volatile, with fluctuations in used car values that have kept sellers and buyers on their toes. As we close February 2024, the market appears to be stabilizing, with values trending upwards as we approach the spring market. This predictable upswing presents a strategic window for those looking to sell their vehicles.  

Conclusion  

In summary, the best time to sell a car often aligns with the spring months, when the market traditionally sees an uptick in demand. Use our instant offer form to find the value of your vehicle. For those with financed or leased vehicles, it's important to know that you don't need to wait to pay off your loan entirely before selling. Utilizing services that facilitate the sale of vehicles with active loans can save time and protect against depreciation. As we navigate the remnants of post-covid market volatility, keeping an eye on market trends and acting strategically can help maximize your vehicle's selling price. Remember, the goal is to make the most of your depreciating asset and timing your sale correctly can significantly impact the return you receive.