Are cars a good investment

obi_waynne

obi_waynne

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Do you think that any cars are a good investment at the moment?

What would your buy and how long would you keep it and how much profit do you think you'd make on it?

I think if you can buy a car cheaply and sell it 3 years later for the same money many would consider that a good deal!

Have you ever turned a profit on a car? I've got a friend who buys minor accident damaged cars, drives them for a year and then sells them on for a profit after doing them up! It works for him.
 
Porsche 944 turbo. Bought for£3000. Restored body and upgraded mechanics and power to 330hp, 380lbft torque. That cost around £6000. Kept for 3 years then sold for £12000

Skyline GTR. Bought for £5000. Light body restoration and get engine working properly then couple small upgrades. That cost about £5000. Kept for 3 years then sold at classic auction for £11500

Can you see a pattern

My Golf tdi GT 170 on the other hand cost £22000 with options back in 2006 and is now worth about £5000 now I reckon so I think we will be keeping that forever. It's only up to 40000 miles anyway so not run it in yet :)
 
Never bought a car with a view to making money on them. Most have been the opposite. I tend not to look at the expenditure as it can be too scary for the old ticker! Pretty sure I am not alone here.
 
No you are not alone.
I have never made a penny on any car I have ever owned nor did I ever expect to.
 
stamford said:
I tend not to look at the expenditure as it can be too scary for the old ticker! Pretty sure I am not alone here.
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You are not alone Mick! :oops:.....:)

It must be nice to have a classic car or a much sought after modern car and find out it is worth much more than your original purchase price should you sell it on ;)
 
T9 man said:
You are not alone Mick! :oops:.....:)

It must be nice to have a classic car or a much sought after modern car and find out it is worth much more than your original purchase price should you sell it on ;)
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Ah! now this sounds like the hindsight scenario! If only I had kept the HSX Chevette I would be sitting on a nice profit. Come to think of it there have a been a few cars over the years that were worth sod all at that time and today worth a lot more. :rolleyes:
 
^^ Indeed, I have owned quite a few cars in my time but nothing that would be classed as a desirable piece of motoring history.
 
T9 man said:
^^ Indeed, I have owned quite a few cars in my time but nothing that would be classed as a desirable piece of motoring history.
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You may be surprised what mundane cars back in the day fetch good money today. It's all about reliving your youth and that of your parents. Even old base model cars are going for prices way beyond what they cost new purely because they are so rare now that you have to pay the money for fear of missing out.
 
Yes I have owned mk 3 4 and 5 Cortinas a mk 2 Escort and a mk 1 Fiesta along the way.
Looking at what these fetch now I can fully see where you are coming from.
Back then I saw them as disposable.
 
The problem would be where to store them all? Storage and maintenance costs would usually outweigh any appreciation in value.
 
Anything that appreciates in value is a good investment provided you can afford it and if you borrow in order to afford it that the borrowing interest accrues more slowly than your investment appreciates.

Anything that depreciates is not an investment.

Also, you need to consider its real value at sale time. Something that should have gained value but no-one wants to buy from you is worthless in its entirety.

Treat vehicles as tools, drive them properly, service them properly and try to minimise the obvious losses due to depreciation is the best we can all do really.
 
What other items do we buy 'as an investment'? Property, maybe, but even that doesn't come with a profit guarantee. We don't buy a washing machine, PC or TV hoping to make a profit, so why cars?
 
Because if you buy the right car it will go up far more than it costs to keep
You do need a decent garage of course

My 32 gtr is a good example . I keep it because I have the space and it is appreciating by more than i spend on it each year to keep it on the road.
So its better than investing the money and i get to drive a classic car when i want.
 
I buy the odd repariable cat D car. A few panels or a new door and some paint and you can more than make your money back! I just wish I had time to do this more often.
 
If only we could turn back the clock, my dad had BSA and Morgan three wheelers, my mum had Mk2 AH Sprite I had Midgets four cooper S (970, 1071, and 1275) all sold at a loss can I have them back please.
 
garaging a car can work in the right case .
My 911 cost £5500 30 years ago .Stopped driving it because it started to rust a bit as the early ones do. Twenty years later Its going to cost £20K to make it mint but thats still a hell of a profit.
 
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