Can cars ever be a good investment

Can cars ever be a good investment

When you buy a new car, you need to be aware that it will decrease in value as soon as you drive out of the showroom. In fact, your car is worth 20% less as soon as you leave the dealership. It is highly unlikely that you will get back the same sum of money for the purchased new or second-hand car, when you come to sell it. It may not be your intention to make money out of your purchase either, but is it possible to make money out of your purchased car? Well, in one word: yes. Let’s have a look at how to do it! 

Potentially, cars can be an investment. The value of some cars grows and therefore greater returns are generated. Keep in mind that these are rare occasions, though. For instance, one cannot expect to double the value of a Mitsubishi Colt with 150,000 miles on the clock, after five years of driving in it. Unfortunately, that’s just not how things work. When you want to make money out of purchased car, you need to look at different sections than the mainstream family car. You need to buy either a classic or a restoration car.


Some people are very skilled at restoring cars, some even make a career out of it. The story is simple: buy a cheap rundown car, spruce it up and then sell it with a profit. You can make considerable sums money out from it, if the investment was very low or if the car is a collectable. In other words: it’s a decent investment if you are willing to put some hard work in – or pay someone else for the hard work.


When you’re not skilled in restoration jobs and have a good feel for the classics, you can also simply invest in a car. You purchase a classic that is ready to drive and expect that it will increase in value. Again, these are rare occasions but there are definitely some collectables out there that make big returns.

If you want to buy a classic, it can be very costly. Of course, this puts them out of reach for most investors. Let’s have a look at the sum of money that can be spent on a classic. The most expensive car in history was sold in June 2012. It’s the 1962 Ferrari 250 GTO, that was sold for a staggering £56 million! Only 39 types of this car were produced during the 1960’s. If you would’ve purchased this car before that time, you could have made yourself a huge profit. 

Català: Ferrari 250 GTO R exposat al festival ...

Català: Ferrari 250 GTO R exposat al festival Martini Legends (commemoració del 75 aniversari del Circuit de Montjuïc) Español: Ferrari 250 GTO R expuesto en el festival Martini Legends (conmemoración del 75 aniversario del Circuito de Montjuïc) (Photo credit: Wikipedia)

Spotting the classics

If you knew everything beforehand life would be easy. We would all buy a winning lottery ticket, but unfortunately things don’t work that way. We hunt today, hoping to generate profits in the future. In general, when nostalgia kicks in and production stops, value will increase tremendously. The value of the car is determined by demand, desirability and rarity. The position of the seller is greatly improved when an investor is eager to buy a model of which there are no others on the market. To sum things up, cars can be a good investment when you buy the right model and make your purchase at the right time. There is always an element of risk when you buy a classic or a restoration project. But then again, there are not many investments that will certainly provide you with a profit, are there?

Author bio:

Rens van der Windt is a car enthusiast and works for a used car dealer in Shopshire.

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