When to Sell?

[anthony8464]

I'm curious what the consensus is of optimum times to sell a car - XC70 specifically.  30K, 50, 80, 100+, or drive it until it's no longer reliable or getting too expensive to maintain?

Assume - 15-20K/yr miles, bought new in 2001, no reliability issues to report, car maintained well and good condition for age.

I would guess, it probably makes most sense to drive as long as possible and get trade in after 150K+ miles.... -- agree?  if not when are the best points if you want something different earlier.

Thanks

[MGC]

You have asked an interesting question that I think all of us have struggled with at one time or another.

Our companies general rule of thumb is to trade vehicles when the mileage is around 80,000 miles say 78 to 79,000. This mileage point seems to be where we get the best return / trade-in value on the car. If we go over 90,000 miles on a car then it is kept for as long as it is useable.

One reason the cars are changed at this mileage is the avoidance of major repairs issues that might happen as a car ages. It keeps everyone in a current vehicle which is hopefully more reliable than an older high mileage car.

I'm driving an XC70 for a company car and plan to trade or sell it to a friend at around 75,000 miles.  This seems to be the point for the easiest sale and $$ return.

My wife will drive a car for 10, 12 or more years before it is traded but then she only drives about 10,000 miles per year.

MCG

[littlewaywelt]

Considering that your car has been running well, I would personally keep it until it was dead. You'll get the lowest dollar per mile that way.
My rough calcs are:
A $40k car driven for 9 years (108 months) and 135k miles(15k/year):
$370 a month + interest. (less)
.29c/mile
+ maintenance

compare this to what it will cost you to purchase a new XC every 3 years

$120k (3 $40k cars) for 9 years and 135k miles - $72,000 (trade in on 3 3year old xcs w/45k miles at $24000 per car) = $48,000 spent to cover the same time.
$444 a month + interest (more)
.35c/mile
+0 maintenance (warranty)

Even if the awd goes, I don’t think I’ll spend $8k on repairs in that time.

<EDIT> I think there was a substantial error in that the value of the single xc should be taken off the top after 9years and 135k in the first example. ...or only two trade ins should be used in the 2nd example. ...it's early and I haven't filled my coffee quota yet. http://xc70.com/iB_html/non-cgi/emoticons/biggrin.gif  either would only increase the gap.

[TractorPilot]

Two points to add:

One: The cheapest car to own is the one you're already driving. Don't be afraid of the miles. Sure, repair and maintainance costs are going to increase, but if you're proactive about it, total repair and depreciation cost as your car ages will certainly be less than depreciation on a new car. And these cars will go a long way. In fact, I've always had better luck buying high-mile used cars that were exceptionally well cared for than buying new. (I'm seriously considering buying my second XC right now, an MY'01 with 100K+ miles)

Two: If you're trading to a new car with the same body style, what is the benifit to you other than low miles? I would guess that the car you're driving now is almost identical to new one. I would tend to keep a car until it is outdated by a new generation body style. Given that the S60/V70 probably won't be redesigned until at least 2007, I would suggest that you could keep the one you've got until then and still be in-style, regardless of the miles.

Just my 2 cents. It a decision we all struggle with, but a decision that we must decide for ourselves though. Best of Luck!

[nicwood]

I always wonder about the 'merits' of owning a vehicle such as the XC70 when it has no dealer support warranty and more computers than the 'one man band' local mechanic (ie non Volvo franchised garage) can handle.

In the past, I have always tried to keep cars until the end of their warranty (or extended warranty period). 'Modern' garages just dont seem to attract the engineers any more and the mechanics I see [at Volvo franchised garages] all seem to be under 25! The mentality has changed from fixing to replacing and unless Volvo is picking up the tab, I suggest it would be a costly business.

Now - if the XC was trouble free in the electronics department, then I would probably change my views, I estmiate than mine has probably had the best part of GBP 3,000 spent on it during the last 50k miles at Volvo's expense, and is about to have at least another GBP 1,000 getting the sunroof and transmission sorted....

Dont get me wrong, I LOVE the XC, and cannot sing its praises enough, but owning such a beast and taking it in to a franchised dealer without warranty scares my wallet!

There maybe something I'm missing and would welcome the debate as to whether to change or not to change as its that time for me again.....