Should I Sell My Car? What To Consider

If you’re thinking about selling your car, you’re not alone. Every day, people sell vehicles for any number of reasons. Some people want to eliminate the costs of owning a car, while others are thinking about getting a different car or have another incentive for selling their vehicle.

Let’s take a close look at why you might consider selling your vehicle. After that, we’ll discuss some options that might be able to help you sell it. 

Reasons I Should Sell My Car

Two of the most common reasons that people sell a car are to save money and to buy a new car.

More than a third of Americans say they would consider going car-free by 2030, according to a Zipcar survey. Also, the Your Driving Costs study by AAA found that the cost of owning and operating a new vehicle in 2023 is $12,182. That’s up from $10,728 in 2022. The AAA figure includes fuel, insurance, documentation, taxes, maintenance and fuel/electricity. You can save money by going car-free or having one less car in your possession. But the circumstances need to make sense for you.

Next, we’ll examine a few indicators that you might be able to live without a car.

You Work Remotely

Working remotely is far more common in America now than it was just a few years ago. Business Insider estimates that despite the number of remote workers being at its lowest level since the pandemic, around 26% of households still have at least one remote worker. 

If you’re among them, selling your car may be an attractive financial option since you don’t need wheels to get to work. 

You Have Transit Options

Some American cities offer mass transit in the form of buses, subways and light rail. Ride shares are another option if you’re tired of being a car owner. If the amount you’d spend on mass transit or ride shares is lower than your car ownership costs, you might be ready to go car-free.

You Don’t Have To Chauffeur The Kids

Many parents know the challenge of getting kids to school, sports practice, playdates, day care and other activities. If your kids are older and have moved out of the house, though, it might be time to consider whether your household could benefit from owning one less car.

You’re Retired

Some retirees may not need the on-demand mobility of car ownership. Ditching car ownership can also be a great way for older Americans to supplement their retirement accounts and Social Security benefits.

Your Car Needs A Lot Of Maintenance

Cars are complicated. For example, they require maintenance at regular intervals, from changing the oil to replacing timing belts. Unexpected repairs can also hurt your budget and add stress to your life. 

Compare the cost of operating your current vehicle – maintenance, fuel and loan payments – to the cost of a new car. But also consider the peace of mind you’ll have if your next vehicle is under warranty.

Downsizing Makes Sense

If you’ve had a loss of income or a job loss, you might need to downsize your vehicle. A lower monthly payment can help you avoid financial anxiety, and switching from a full-size truck to a sedan or even a crossover can save you money on fuel and car insurance.

How Do I Sell My Car?

If you decide that selling your car is the right move, you’ll have some options. Each one has advantages and disadvantages.

Car-Selling Websites

If you value convenience above all, selling your car online is the way to go. Car buying websites often provide an instant cash offer, and you might even get paid the same day. You can start by entering your vehicle identification number (VIN) or license plate number and answering a few questions.

Just be aware, though, that you’ll often have to sell at a lower price in exchange for the convenience of selling online.

Private-Party Sale

Selling your vehicle all by yourself isn’t easy. You’ll have to gather your maintenance records, take photos for an online ad, post the ad, sift through potential buyers, and haggle. Completing the sale might also involve getting an inspection and paying for a notary.

If your current auto loan isn’t paid off, you’ll also have to handle paying off the loan, getting the title and juggling other paperwork.

But there’s an upside to the extra work you’ll put in: Experts tend to agree that this is the best way to get the most money for your vehicle. 

Car Dealerships

In some cases, a car dealership might buy your used vehicle outright rather than requiring a trade-in. If you still owe money on your current car loan, the dealership might also handle the paperwork, which can be convenient for you.

You’re not likely to get top dollar for your car by selling to a dealership, though. While a dealership will make an offer based on recent sale prices for similar vehicles nearby, they ultimately want to make sure they don’t take a loss.

How Much Can I Sell My Car For?

Kelley Blue Book is a valuable resource for checking the market value of your car. It’s also a good idea to check online ads for similar vehicles, especially listings in your area. A vehicle that’s both in good condition and a high-demand type – such as an SUV – might sell for the best price.

When Should I Sell My Car?

According to USA Today, you might get the best price for a used car by selling it just after Labor Day. Used car prices right after the Labor Day holiday are about 3.2% higher than in a typical week, based on data from online car sellers.

The used car CPI has fallen each month since May 2023, but it’s still higher than it was in 2018. This can mean a better selling price for your used car.

The Bottom Line

Going car-free can save you a lot of money, but your situation has to be nearly perfect to make it work. You’ll need an alternative way to get around – and a way that doesn’t cost more than the total cost of owning a car – for this option to make practical and financial sense.

Selling your car to free up the funds to buy a newer one can be a worthwhile endeavor if you’ve kept up with your payments, own the car outright or your current car isn’t reliable. When it’s time to sell, you can prioritize getting the best price or minimizing hassle depending on which one you value more.

Making on-time car payments is good for your credit score and preventing financial anxiety. Download the Rocket Money℠ app to track all of your debts and pay them on time.