1) Historically High Resale Values
If you have not looked at the value of used vehicles recently, you need to investigate. Take a look at one of the many auto value websites like Kelly Blue Book or NADA and enter your details. What you find may shock you.
Thousands of families are realizing that the car they have had for years is suddenly worth as much or even more than they originally paid for it. This is especially true with high demand vehicles like trucks and gas sipping hybrids. While this is increased auto value is great, it will not last forever. In fact, it is expected that used car values will start to decrease over the next few years as the supply of new vehicles catches up with consumer demand.
What that means for you is that now might be the best time ever to sell that unneeded second car. If you or your partner is not commuting to work every day, that automobile is likely just sitting in the garage collecting dust. Think about moving it to take advantage of the increased value.
2) Cut Your Auto Insurance Bill
Paying insurance on a car that is not being used is a waste of money, pure and simple. By reducing your family car total to one, you could greatly reduce one of your biggest monthly bills. Will it cut your bills in half, no, but the savings can still be very noticeable.
Insurance savings from downsizing to one vehicle are usually around 25 to 30 percent. It will not be cut in half because you will still be insuring two drivers with liability insurance. This can still add up to around five hundred dollars a year or more. Sell that car and stop wasting money to insure something that you simply do not use or need.
3) You Will Save On Maintenance
Even if that car or truck is not driving anywhere, you still have to maintain it. You have to wash it and you still have to change the oil and fluids. Even if you are not driving much, you still will need to keep changing the oil every six months. And guess what, tires and other rubber parts, they have an expiration date. So while you might not be wearing down the rubber, that sidewall will start to dry rot and those belts will still crack.
4) Regain Some Storage Space
If you are not driving that car much, it is just taking up space and that may be space you can put to a better use. A full car width spot in a garage can store quite a bit of household carry over and if you are like most families, you have more than enough stuff to fill it. Get rid of the car and find the ability to de-clutter your home.
Another way to use that space is to rent it. Believe it or not, there are now numerous apps that allow you to rent your garage space to make a little additional income. How much will vary depending on where you live, but one to two hundred dollars a month is not out of question,.
5) Improve Your Debt To Income Ratio
Do you have a big financial transaction coming up? If you are making a big move like purchasing a home, selling your car could improve your debt to income ratio if you have a lien on your car or truck.
Improving your debt to income ratio could qualify you for a better rate on your new purchase. With interest rates higher than ever, this is extremely important, so on top of your other savings, you could benefit from selling your car for years, especially if you take on a 30 year home note.
6) Increase Your Savings Account Balance
If the last few years has taught us nothing it is the importance of an emergency savings account. A well stocked emergency savings can help you deal with the unexpected and as you know, the unexpected can happen.
Sell your car and boost that emergency savings to the level it needs to be or higher.
7) Decrease Credit Card Debt
Does it make sense to pay 20 percent on debt when you are sitting on an asset worth ten or twenty thousand dollars? Not at all, so sell that used car and pay down that credit card debt.