Top Reasons to Sell Your Car in 2021-2022

COVID-19, and other emerging variants, is forcing the auto industry to adapt during these unprecedented times. Strategies are shifting and ideas are getting expedited to keep the lights on. This is solely from the corporate side, as consumers and individuals are still experiencing the residual affects of the first wave of the pandemic. This leads to saving money and being frugal as possible.

Many Americans – especially those who can work remotely or from home – are selling their cars in record numbers. This is from back in April to what media outlets call “The Great Resignation,” in which nearly 40% of Americans are looking for jobs that do not require them to be inside an office building. Workers are selling their cars at record numbers from not commuting to work, saving money on insurance, and a myriad of other reasons. The on-going pandemic is helping everyone realize the money they could be saving by selling their car. Here are a couple reasons as to why selling your car is ideal:

• Inflationary Gas Prices:

2021 is reminiscent of the late early 2010’s: gas prices are ridiculously high. This is the first reason at face value but there are long-term benefits too. EV (Electronic Vehicles) adoption is taking up a lot of share of voice in the auto department. Charging stations, alternative energy solutions, and greener cars will gradually dominate the market as environmental conservation is becoming a global priority.

• Expenses and Hassles:

Maintenance costs, insurance fees, title registrations, and monthly payments are only a few reasons to help reduce expenses. If there is no need to commute to the office or quarantine is your top priority, cutting these expenses will help put more money in your bank account. General financial advice for vehicle budgeting is 10% – 15% so shaving that off is a substantial amount of savings regardless of gross income.

• Downgrade or Upgrade:

Perhaps your goal is to be as frugal as possible. Perhaps your goal is to reward yourself from getting a pay raise or promotion. All of this will be contingent on your situation and justified for both scenarios. Downgrading will help you with having liquidity and saving as much money as possible. Upgrading will help you with having a more reliable vehicle and extra expenses on an older might be more costly. If you were to upgrade your vehicle, it is always important to denote that driving a car that is more than 25% of your salary is not recommended. Scalability is key when you are deciding to upgrade or downgrade your vehicle.

• Personal Satisfaction:

Driving a car for the pure purpose of going from A to B is a logical argument that is 100% justified and understandable. However, everybody is different. If you are a car hobbyist, having the car of your dreams is a feeling that is irreplaceable. It might symbolize a cherished childhood memory, personal success, or hobbyist enthusiasm. This is not the most “responsible” reason to sell your current car now to get the one you desire, but hobbies are important in a different way to happiness and fulfillment when compared to perceiving cars as just assets.

The list is endless. These reasons will be tailored towards you and other individuals based on situation but always good to keep in mind. There are multiple variations to sell your car and you should always have the best information possible in order to achieve any goals that correlate with your vehicle. Here is a good first step to know your car’s worth and appreciation value.