In a lot of instances, cars make terrible investments. The key to a good investment is buying something that will appreciate in value. With the majority of cars, the opposite is true. They will depreciate in value the moment you buy them, but this doesn’t mean there aren’t options out there that can make decent investments.
Today, we go through a few ideas to help you understand what cars are the best investments:
Cars from decades ago are, ironically, worth a lot more than modern cars. There are a couple of reasons for this, the first of which is that classic cars are no longer being manufactured. So, they’ve got a limited edition aspect to them, driving up the demand and increasing their value. Secondly, many classic cars are iconic and famous for one reason or another. For example, one classic car that often goes up in value is the Mini Cooper from the Italian Job film. People know this iconic vehicle, they love it, and the value of it can go up as collectors are interested in it.
Range Rover Evoque
While the other two points on this list refer to a general grouping of cars, we have to single one out as it is one of the lowest depreciating cars on the market. The Range Rover Evoque has long been seen as a smart investment by car enthusiasts. Head to your nearest Range Rover Evoque configurator, and it’s easy to see why this is the case. There are so many ways you can alter this vehicle, meaning there are plenty of ways to add value to it. Not to mention it is a long-lasting car, so it’s relatively easy to sell on in the future. Plus, referring back to the previous section, Evoques are popular classic cars. So, it stands to reason that investing in one now could pay off a few decades down the line.
Sporty hatchbacks/superminis (VW Golf, Ford Fiesta, Ford Focus, etc…)
Next, you have this category of car. Hatchbacks and superminis are both relatively small cars that are useful in everyday scenarios. They can be family cars, single household cars, and they can also be sports cars. There are plenty of sports versions of these vehicles, and they make incredible investments. Why? Because it is so easy to go out there and make even more changes to this car, turning it into a performance vehicle. Cars like this are super popular, so they can sell for a lot of money. Most car investor experts look at sporty hatchbacks and superminis as the prime vehicles for car flipping. This is similar to property flipping in that you buy the asset for cheap, make improvements, and sell for a profit.
There are a couple of key points to take from this post. Firstly, not all cars are bad investments; you can definitely buy vehicles that will appreciate in value and generate profit. Secondly, you need to find the right cars if you want to get a good ROI – the ones mentioned above are great starting points for you.