Always find that your car loses worth faster on a cold day than your phone battery runs? Everybody who has looked at a valuation tool knows the anguish involved. Timing the sell perfectly changes the payday from a “where did all the money go?” moment that would be pocketbook pleasant. Nobody gets it better than pros like used car buyers sydney, who live and breathe numbers, models, and market shifts.
Actually, cars usually start to lose value the moment you clip that key fob from the dealer’s lanyard. The average new automobile in Australia loses between 10 and 15% of value the instant the ink dries on your paperwork. Towards the end of the first year? Right now, you have a twenty percent total drop in view. Year two and three show minimal sympathy; usually additional 10 to 15 percent apiece. Like sliding down a hill, quickly at first until you finally find flat ground.
Why would this happen? Blame new car attractiveness, warranty coverage, updated models, slow dash kilometer grind. Every birthday and every extra K accrued reduces a small amount off the return, especially once the odometer crossed 100,000 km. At this time, buyers start to get nervous; lenders and insurers also start to get nervous. If you keep the K’s down and your car in good condition, you will reduce the impact; but, the slip is inevitable.
Part also under influence of market trends. As SUVs and utes have exploded, Hatchbacks and sedans have lost attractiveness, therefore lowering buyer bases for some models. Not to ignore macro changes either. Global supply issues drove used car prices higher in pandemic years. Any experienced hand will tell you, though, these leaps are rare and the usual direction is down rather than upward.
Where then is the smart action? If you want to walk away with the fattest payoff, try to sell before the fifth birthday of your car and most certainly before it needs major maintenance like gearbox repairs or timing belt adjustments. Your automobile still has modern conveniences, reliable performance, and a little warranty coverage even if most of the depreciation has happened about three years. That appeals far more to buyers especially looking for trade in partners or near new prices.
Aiming for “one last year,” when your automobile already boasts creaky suspension and greying side mirrors? Do the arithmetic. Thanks in part to another year of depreciation and that next significant repair under the bonnet, waiting sometimes removes any chance at a decent selling. At the curb, leave behind feelings. See your car sale as a business transaction; schedule it, and you will show up for your next ride with more money and less regret.