Is It Time to Sell Your Vehicle?

There are six factors that you should consider when you make this decision: Consider the type of business that you're in. Whether or not you can get by with an older, and even shabby looking, vehicle largely depends on whether or not that would tarnish your customers' image of the business, and whether or not vehicle reliability is critical in your business. If you are in a time-sensitive business, such as delivering human organs for transplant or handling express mail messages, having a reliable vehicle that will start on the first try, every time, is imperative. On the other hand, in some businesses you may use a vehicle only to make occasional deliveries to customers who can wait an extra day or two to get them. In these cases, using an older vehicle will probably save lots of money and we recommended using an older one if you can. Consider the type and amount of driving that you do. If you put relatively few miles on your vehicle and don't travel far from home, you can generally get by with a much less reliable vehicle. As a general rule, if you drive 20 miles or less per day and do not travel much more than a 10-mile radius from your business, you can afford to drive a less reliable vehicle. If you do experience a breakdown under these conditions, the vehicle will probably not have to be towed a significant distance to your favorite mechanic. Of course, this assumes that you are not engaged in a business — like delivering organs for transplant — that would have disastrous consequences if you experienced a breakdown.   If you do a significant amount of driving or must travel far from home, it becomes more important to drive a newer more reliable vehicle. An unreliable vehicle could leave you stranded on the highway even walking several miles for assistance unless a cellular phone happens to save you. Consider any unique features of your vehicle. In some cases, particularly those involving trucks and trailers, an older vehicle may have unique features that cannot be easily replaced if you get another vehicle. Some older pickup trucks have higher weight and towing capacities than what is available on the market today. In many states, older vehicles are excused from strict — and potentially costly — emissions or safety standards. Be sure that you can find a replacement that meets your particular needs before you dispose of a vehicle that already does.   One of our experts owns a 1957 army surplus truck that he uses to plow driveways and tow cars during harsh New England winters. One of the reasons that he has never replaced his truck is that the army outfitted it with special equipment enabling it to drive submerged in deep water without stalling. This feature, which has come in handy on many occasions, would be difficult to find in a brand new truck. Get the opinion of a mechanic you trust. There is no substitute for having a vehicle that you are thinking of discarding reviewed by a mechanic you trust. Ask the mechanic to review the vehicle and tell you exactly what he or she believes is likely to need repair in the next 12 months . Next, ask for the estimated cost of each repair, and the amount of time the vehicle would be out of service while the repair is performed. Once you have this 12-month estimate, decide whether you can afford the probable repairs and the time you are likely to go without a vehicle while those repairs are made. Consider our rules of thumb on used vehicles. Some government agencies use a maximum allowable expense method for determining when it is time to dispose of a vehicle. For them, if a vehicle has cost more than $XXX to repair in its lifetime, it is immediately sold at auction and replaced. You don't have the luxury of replacing part of your "fleet" every time a vehicle starts costing you money. But you can benefit from observing some basic rules of thumb, offered by our auto experts, when you decide whether to keep or dispose of a vehicle.   Work Smart As you review these "rules," please remember that they are not absolute and should not be used as a substitute for getting the opinion of a mechanic whom you trust: If a vehicle has, or will, require two major repairs within a six-month period, it is probably a good time to consider disposing of it. Our experts define "major repairs" as those that cost $500 or more. Miles mean less on a vehicle that has been driven predominantly on the highway. (A vehicle with 80,000 "highway miles" may not, for example, need brakes replaced. A vehicle with 40,000 miles of stop and go traffic could need new brakes.) If you drive in a state that gets little or no snow each year, your car is generally worth holding onto for a longer time. This is because body rot — which can render even a car with a sturdy engine useless — is a less significant problem in such states. Generally, the ease of selling and trading a car or light passenger truck diminishes sharply as the vehicle approaches the 100,000 mile mark. If you are above this mark and the car is performing reasonably well, keeping it may be more valuable to you than selling. Consider how much future repairs will cost versus the costs of obtaining another vehicle. Once you have estimated the cost of repairs that you are likely to encounter, we suggest that you use these estimates as a factor in figuring the costs of owning your present vehicle and weigh these against the costs of obtaining another vehicle. Is It Time to Sell Your Vehicle? Back to Business Resource >>