3 Signs It’s Time to Sell Your Car

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Owning a car isn’t for everyone. Read on for signs that it’s time to unload yours. 

If you own a vehicle, you’re in pretty good company. In 2021, almost 92% of U.S. households owned at least one car, according to Forbes.

But there may come a point when it no longer makes sense to hang onto your vehicle. Here are a few signs that it’s time to unload your car.

1. You don’t drive very often these days

Some people rely on their cars to get to work on a daily basis. But if you now do your job from home 100% of the time, you may not need a car to hold down a job. And if you live in a relatively walkable neighborhood with access to stores and amenities, you may not even need a car for regular errands.

Even if you do need a car for things like larger grocery hauls, it could make more sense to hail a rideshare a few times a month than pay to have a car of your own. So think about the frequency of your driving, because if your car spends the bulk of the month parked in your garage, it may not be worth keeping.

2. You’re moving to an area where parking is difficult

It’s more than possible to own a car while living in a city — plenty of people do it. But in some cities, parking can be extremely hard to come by. And you may reach a point where parking becomes such a source of stress that it’s not worth having a car in the first place.

Many city dwellers who keep a car pay for a spot in a parking garage so they don’t have to deal with street parking. But if that’s something that’s just not in your budget, you may be better off giving up your car — especially if you technically don’t need it due to having solid public transportation options.

3. You can’t keep up with the costs

AAA says that the average annual cost to own a car is $10,728, or $894 per month. That number accounts for expenses like auto insurance and maintenance, along with a car payment.

The amount you spend to own your car may be more or less than that. But either way, if it’s a number you really can’t afford any longer, then you may want to give up your car if it’s reasonable to function without it.

Even if your vehicle is paid off and you’re no longer grappling with monthly auto loan payments, the cost of insurance and upkeep alone may be beyond your budget. So if there’s a more cost-effective option to get around, like taking the bus to work, it could pay to sell your car and slash your expenses. If you don’t, you might easily end up with credit card debt that upends your finances in many ways.

Owning a car can be a nice convenience. But in some cases, hanging onto a vehicle just doesn’t pay. And if these signs apply to you, you may be better off unloading that car than bearing the cost of keeping it.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Citigroup. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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