When is the Best Time to Sell a Car to a Dealership?

If you’ve been considering selling your car to a dealership, you’ve probably wondered when the best time to do so is.

Timing can play a significant role in how much you get for your vehicle, and it’s not just about how old or well-maintained your car is.

Everything from seasonal trends to new model releases can influence the price dealerships are willing to offer.

In this guide, we’ll dive into the different factors that can help you determine the best time to sell your car to a dealership.

Whether you’re looking to trade in for a new model or simply get cash for an old vehicle, knowing when to act can make a big difference.

1. Seasonal Trends: Timing is Everything

When it comes to selling a car, seasons matter.

Just like many other industries, the car market goes through cycles of demand.

If you want to maximise the offer you get from a dealership, consider selling during a peak season.

Spring and Summer: Peak Selling Seasons

Spring and summer tend to be the best times to sell your car.

Why? It’s simple – more people are in the market to buy cars during these months.

The warmer weather makes car shopping a more pleasant experience, and many buyers are eager to make a purchase before the summer holidays.

For some, a new car is part of their travel plans.

Dealerships know this, and they’re often more willing to pay a premium to ensure they have enough stock to meet the seasonal demand.

Winter: A Quieter Time for Sales

On the flip side, selling in winter can be more challenging.

The cold weather, combined with the financial strain of the festive season, means fewer people are looking to make big purchases.

This can lead to lower offers from dealerships, as they know they might not be able to turn your car over quickly.

If possible, avoid selling during December or January unless absolutely necessary.

2. Supply and Demand: Understanding the Market

The balance between supply and demand is another crucial factor in determining when to sell.

The basic principle is that when demand is high and supply is low, you’re likely to get a better offer.

High Demand for Certain Vehicles

Certain types of vehicles are in higher demand at specific times of the year.

For example, SUVs and 4x4s are particularly desirable in the colder months, when people are looking for safer, more reliable cars to handle slippery roads.

Meanwhile, convertibles and sports cars tend to sell better in the spring and summer when the weather is more conducive to open-top driving.

If you own a car that fits a seasonal trend, timing your sale around that demand can help you secure a better price.

Dealing with Oversupply

Sometimes, dealerships are oversupplied with certain types of vehicles.

For example, if a dealership has a lot of sedans in stock, they might not be as eager to buy another one.

Oversupply can lead to lower trade-in offers because the dealership knows they’ll have a harder time reselling the car quickly.

If you can, avoid selling when your car’s type is in oversupply.

To learn more about how dealerships handle oversupply and negotiations, check out our page on how much will a dealership come down on price on a new car in the UK.

3. Your Car’s Condition and Mileage: A Key Factor

It goes without saying that your car’s condition and mileage play a huge role in how much a dealership is willing to offer.

However, the timing of when you sell can influence how these factors are perceived.

Sell Before Major Mileage Milestones

Mileage is one of the first things a dealership will check.

As a rule of thumb, the higher the mileage, the lower the offer.

This is because high-mileage cars are more prone to wear and tear, and dealerships know they’ll have to invest more in repairs before reselling.

To get the best price, consider selling before your car hits major mileage milestones, such as 60,000 or 100,000 miles.

At these points, vehicles tend to experience more significant depreciation, and dealerships will factor that into their offer.

Avoid Selling After Major Repairs

If your car is due for significant repairs or maintenance – such as a timing belt replacement or new tyres – it’s often better to sell before you invest in these.

While these repairs can make your car more appealing to a private buyer, dealerships typically base their offer on the vehicle’s overall market value, regardless of recent work.

By selling before the need for major repairs, you can avoid sinking money into a car you’re planning to part with.

For more information on car servicing and how it affects value, check out our page on how long it takes to service a car at a dealership.

4. New Model Releases: Timing Around Depreciation

One of the biggest threats to your car’s resale value is the release of a newer model.

When a new version of your car hits the market, the older models immediately lose value.

This is especially true if the new model comes with major upgrades or redesigns.

Sell Before the New Model Arrives

To maximise your return, aim to sell your car before the next model is released.

Dealerships know that once the new version is on their lot, the older models become less desirable, which will likely lead to a lower offer.

Keeping an eye on when new models are typically announced or released can help you stay ahead of the depreciation curve.

Understanding the Depreciation Curve

It’s important to understand that cars lose value most quickly in their first few years.

The average vehicle can lose up to 20% of its value in the first year alone, and another 15% to 25% in the next few years.

If you’ve owned your car for a few years, it’s often best to sell before the value drops too far down the curve.

5. Economic Factors: How the Market Affects Car Sales

Beyond seasonal trends and new model releases, broader economic factors can also play a role in when you should sell your car.

Interest Rates and Car Financing

When interest rates are high, fewer people are likely to take out loans to buy cars, which can lead to lower demand at dealerships.

If the economy is facing a downturn or interest rates are rising, you might want to hold off on selling until conditions improve.

Conversely, when interest rates are low, dealerships are often more aggressive with their trade-in offers to meet the increased demand from buyers.

Gas Prices and Vehicle Popularity

Another factor to consider is fuel prices.

When petrol prices are high, demand for fuel-efficient vehicles – such as hybrids and small cars – tends to rise.

If you own a gas-guzzler, you might want to wait until petrol prices drop, when larger vehicles become more desirable.

Paying attention to fuel price trends can give you a good indication of when your car might be more or less in demand.

For instance, if you’re selling a Toyota Yaris Hybrid, it’s worth considering how fuel prices affect its popularity. Check out our page on what insurance group a Toyota Yaris Hybrid belongs to to understand more about the value of hybrid vehicles.

6. Dealer Incentives and Promotional Events: A Golden Opportunity

Dealerships often run promotional events or offer incentives to attract customers.

These can range from “End of Year Clearance” sales to special trade-in bonuses.

Take Advantage of Dealership Events

During these events, dealerships are usually more willing to offer competitive prices to meet their sales targets.

If you know a big promotion is coming up, consider timing your sale to coincide with it.

These events can often lead to better trade-in offers or added perks, such as discounts on your next vehicle.

End of Quarter or Fiscal Year Pushes

Dealerships often have sales quotas to meet, both at the end of each quarter and at the end of the fiscal year.

During these times, they might be more motivated to offer higher trade-in values in order to hit their targets.

Selling your car during these periods can sometimes lead to a better deal.

7. Personal Financial Considerations: Timing That Suits You

Finally, it’s essential to consider your personal financial situation when deciding when to sell your car.

While external factors like the car market and dealership trends are important, your financial needs may outweigh these.

When You Need to Sell for Financial Reasons

If you’re facing a situation where selling your car would relieve financial pressure – such as paying off debt or covering a significant expense – it might be best to sell as soon as possible, even if the timing isn’t perfect from a market perspective.

Sometimes, the best time to sell is when it suits your personal situation the most.

Calculating the Break-Even Point

Before you sell, especially if you still owe money on the car, it’s crucial to calculate the break-even point.

This is when the car’s value equals or exceeds the remaining balance on your loan.

Selling before you reach this point could leave you with negative equity, meaning you’ll owe more than the car is worth.

Conclusion

When it comes to selling your car to a dealership, timing is key.

Whether you’re looking to take advantage of seasonal trends, new model releases, or dealership incentives, knowing when to sell can help you get the best deal possible.

Keep an eye on market factors, consider your personal circumstances, and always remember that preparation is everything.

With the right timing, you can maximise your car’s value and drive away with a great deal.

Are you looking to buy a new used car? Contact us today and we can help you!