How Long Should You Keep a Car to Get the Most for Your Money?

There's no one-size-fits-all answer here, but I've been through this a few times -- and I can tell you, it really depends on your situation.

I used to drive a Prius and kept that thing for about eight years. My wife had a Kia Soul for about seven years which we sold during the COVID-19 pandemic when used car prices were skyrocketing. These days I'm rocking a Toyota Sienna (yep, full soccer-dad mode), and I'm hoping it lasts long enough to pass down to my son when he starts driving in 10 years. Fingers crossed.

So yeah, there's no magical mileage or exact year when it's "best" to sell your car. It really comes down to what makes the most financial sense for your family and your lifestyle. But if you're trying to get the most bang for your buck, there are some smart windows to consider.

Cars lose value fast… then kind of level out

Cars drop in value like a rock when they're brand new. On average, they lose around 30% in the first couple years. After that, it's a slower drip -- about 8% to 12% per year, according to Kelley Blue Book.

That's why most experts say to keep a brand new car for at least three years. By that point, you've gotten through the worst of the depreciation, but your car is still fairly new, probably under 60,000 miles, and still attractive to buyers.

Here's something a lot of people forget: once a car crosses 60,000 miles, the value can take another hit because a lot of warranties expire. Buyers know this. So if you're looking to sell, it can be smart to do it before you pass that milestone.

Oh -- and while you're thinking about switching cars, it's a good time to check your car insurance. Rates change as your car's value drops, and you might be overpaying for stuff you don't need anymore.

Repairs are where it gets real

At some point, every car starts needing more TLC. Like new brakes, tires, suspension stuff, or even bigger engine fixes.

Those bills can be massive. And you don't want to dump $2,000 into repairs or maintenance right before selling -- you probably won't get that money back.

So a good time to consider selling is between year three and year six. Your car still has value, and you're probably not dealing with major repairs yet. That's the sweet spot.

Of course, if your car's still running great, you've paid it off, and it doesn't cost much to maintain, there's no rush.

You might be better off holding onto it and avoiding a new car payment altogether. Just keep an eye out -- once the repair costs start creeping up, it's time to reevaluate.

Market timing can help (a little)

Spring and early summer are usually the best times to sell a used car. Demand goes up, and prices follow.

Fall, on the other hand, can be slower since dealerships are clearing space for the next year's models.

If you're trading in your car, doing it near the end of the month (or quarter) can work in your favor. Dealerships are trying to hit sales goals and might give you a better offer just to close the deal.

Selling it yourself vs. trading it in

You'll probably get more cash by selling your car privately. But it does take more effort -- like cleaning and making online ads, dealing with tire-kickers, and handling the paperwork.

Trading it in is easier. Especially if you're already buying another car from the same place. It might mean getting a little less money, but sometimes the convenience is worth it.

Either way, clean it up before you sell, fix the small stuff, and pull together your maintenance records. Those little things can actually bump up your resale value more than you'd think.

So… when's the "best" time?

If you want to get the most for your money, the ideal time to part ways with your car is usually after the biggest depreciation hit has passed (say, three to four years in), but before expensive repairs start showing up.

That usually means selling somewhere between 50,000 and 70,000 miles -- depending on how your car's holding up.

But again, there's no perfect formula. With my cars, I've made the decision based on what works best for us at the time. That Prius got me through a ton of life phases. My Sienna matches my lifestyle now with a growing family.

From a strict financial perspective, the longer you keep your car the more value you can squeeze out.

But at the end of the day, it's not about timing every move perfectly or always driving something shiny and new. It's about making smart choices that fit your life, your budget, and your priorities.

And while you're thinking about your car, it's also a great time to check your insurance. Rates can change as your car ages, and you might be overpaying without realizing it.

Check out today's top car insurance companies to compare the best rates.