LA City Cars can facilitate a seamless transaction where you trade in your used car for a thoroughly inspected, reliable, and roadworthy vehicle. If you're considering selling your current car or pondering the cost-effectiveness of repairs, it's crucial to understand its current market value. You can use online resources such as Edmunds or Kelly Blue Book to estimate your car’s worth.
The first few years after purchase typically see the highest rate of depreciation—up to 65% by the fifth year. However, from then on, the loss in value slows down but remains significant, amounting to about 25% over the next five years. Therefore, holding onto a new car for more than five years is generally recommended to minimize this depreciation hit.
Modern vehicles are built to last longer than their predecessors. The average age of cars has risen from around five and a half years in the 1970s to over nine years today, with engines commonly reaching 250,000 miles before needing major work. Regular maintenance inspections not only ensure safety but also help anticipate upcoming repairs. While repair costs tend to rise with the car's age, investing in minor to moderate repairs (a few hundred dollars) is usually advisable rather than immediately trading up.
The key decision point when considering repairs versus selling is if the repair costs exceed half of the car's residual value. In that case, it may be wiser to sell rather than invest further. However, if you don't mind shouldering higher repair expenses, keeping your car until it reaches its end-of-life stage can be beneficial.
For older vehicles, having them inspected by a dealership like LA City Cars significantly boosts buyer confidence, as it verifies that the car is free from any noticeable defects and safe to drive. Even if an older car has low residual value, investing in a general inspection can make it more appealing to potential buyers. Cosmetic fixes might not add much to the resale price, but ensuring the car is meticulously cleaned inside and out will create a favorable first impression and increase its appeal to buyers.