I’m Selling My New Car Before Moving to NYC – Here’s How I Plan to Handle It

In a number of my prior pieces, I highlighted the real costs of vehicle ownership and how many may be at risk of underestimating the true costs (think the phantom costs that go well beyond the purchase price of a new car) and overestimating how much they really need to own that flashy new ride. Indeed, ride-hailing is getting faster, more efficient, and perhaps soon it’ll also be more affordable, especially when you consider the full extent of the opportunity costs between owning and hailing.

In any case, I ran into a specific case involving an individual on Reddit who landed a new job based in New York City and is willing to let go of their Honda Accord (a fairly pricey sedan), which they bought just last year. Indeed, choosing not to drive in NYC, I think, is always a wise decision. However, even a new car is going to carry a considerable amount of depreciation. As such, anyone looking to sell their new car must accept the fact that they’ll probably get 85% of what they paid.

Carvana doesn’t have the best offer. But it’s still worth taking for the time savings

Indeed, a Carvana offer, which would give them close to 84% of their original purchase, isn’t all too ideal, especially given the limited mileage and what I’d imagine would be a good amount of demand for a nearly new model that would probably sell for a higher price in the private market.

Of course, Carvana has to make some money out of the transaction, too. And by taking the offer, our individual would have to forego some amount in return for the convenience of using the platform. Though I do view the Carvana offer, which shaves off 16% what they paid, as pretty fair, given it tends to be a big hassle to go about selling one’s car on one’s own.

Of course, the offer is going to be a few grand less than one would have gotten if they shopped the car around for a while. But who has time for such? Time is money. And if the time saved amounts to more than a few grand, perhaps going down the Carvana route makes sense.

Selling privately can be stressful, especially for someone who has to move and start a new job

It’s stressful to have to deal with a five-figure transaction, not to mention the time spent showing off a car. And, of course, there are some trust issues that come with letting a stranger take your car for a test drive around town! What happens if they don’t come back with the keys or if they total your car? That’s a risk you’ll take with a private sale and one that not many folks are comfortable with, especially when it comes to a car that has a high resale value.

Personally, I think foregoing some thousands may be worth the while for someone in our individual’s shoes.

Why? They’re busy, with a new job in New York underway. And they’ve got that to stress over. Given that New York-based jobs tend to pay the bills quite well, I’d argue that it’s a far better investment in one’s time to ready up for the big move and let Carvana take care of the rest.

Ideally, it’d be nice to get closer to $30,000 for one’s new-ish vehicle. However, it’ll take time to find a buyer, and let’s not get started about the complexities and pains involved with going about a private sale.

The bottom line

In short, going with Carvana isn’t a terrible idea. Is it optimal to leave some cash on the table? Probably not. However, for this individual, there’s already a new job and a move to worry about. And the last thing anyone wants to do is get burnt out before their first days of training at a new job!

So, unless there’s a trusted friend or loved one who’s in the market for a new Accord, I’d feel no shame in going down the Carvana route, even if the price is at the lower end of the range one would expect to get.

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