Trading in for a new car: when is the best time?

There are lots of different reasons for trading in your car for something new. It could be a new baby on the way, or you’ve landed a job that requires a ute. You might just want to update your new car for something newer, or even make a brand upgrade.

But what about if your car’s running like a dream, doesn’t have too many k’s on the clock and looks better than an icy cold frothy on a stinking hot day? Is it worth upgrading, or should you wait a while?

Why a vehicle upgrade is beneficial

There are quite a few solid reasons to consider trading in for a newer car.

Lower running costs

If you’re driving around in a car that takes petrol, swapping for a diesel car can reduce your fuel costs - in fact, diesel engines use around 30% less fuel than their petrol counterparts. Plus, chances are you won’t be spending nearly as much in maintenance costs in a 2020 model than, say, something manufactured back in 1990 (unless it’s a Fiat).

Upgraded tech

This writer remembers opening a NES on Christmas Day in ‘88 like it was yesterday. And when it came out, it amazed the world. Comparing those graphics to what we have today is like comparing what movie Sonic looked like before and after the internet tore it to shreds. What we’re trying to say is technology is a constantly-changing beast. And tech that was in last year’s model may well look dated by the time the MY20 model releases. Keep up with the latest and greatest technology has to offer by upgrading your car.

Your car now is losing its value

Everyone knows that as soon as it’s driven off the dealership floor, your car starts losing its value. It’s important to keep your eye on the car market and be up to date with what your make and model is worth with a similar amount of k’s on the clock. After all, you don’t want to be left with a car that has no significant market value and upgrading your car before it’s too late is the best way to avoid this.

You get to drive something new

Absolutely, the new car smell is amazing. And of course, it’s tops to drive something new and unfamiliar. Know what trumps both of those? Finally being able to daily-drive that car you’ve been in love with for ages. Bonus points: it comes with that new car smell and is new and unfamiliar!

… You’re thinking about that car now, aren’t you?

What’s the ideal time to swap your car for something newer?

There are a couple of things to take into consideration if you’re wondering when the best time to sell your car and upgrade to something new.

Warranty expiry

If you’re currently driving a car that has dealer warranty left on it, think about trading in for a new car when you have around a year left of said warranty. This can help with how much you get from trade-in, and if you’re selling privately it’s a legitimate incentive for buyers and can help increase its sale price.

Existing finance

If you’re part of the huge percentage of Aussies who are financing a car currently, you might be wondering whether it’s possible for you to upgrade your car while you still have time and money left to go on the finance.

While this can depend on your particular situation, it might be worth taking the following steps to see where you stand currently:

1. You need to do some research to determine your car’s current market value which can easily be done on RedBook. Write down this number.
2. Contact your current financier and ask them for total payout fees. This should include the residual payment plus early termination and any other fees. Write down this number.
3. Calculate your deposit for your new car, which is as easy as:

                                Current market value of your car - total payout fees = new car deposit

A sore point for many is that the total payout fees need to be paid prior to you selling your car. However, if you talk with your financier and explain that you’re thinking about swapping to a new car they should be able to provide advice that suits your situation.

Swap finance with absolute ease

If you’d like to get into a newer model of the car you’re currently in or you’d like a brand upgrade, we’re here to help. We’ll make swapping cars and finance an absolute breeze from start to finish. Give our friendly Stratton Finance team a call today to discuss your options on 1300 787 288 or send us an online message and we’ll be in touch soon.

Also contact our new car buying partner carconnect to take all the hassle out of price negotiations, they source the best price for you in the market.

You can also use our free online car finance tool to get a repayment estimate for your car swap in under 60 seconds!