A few weeks ago, we published a blog post that talked about whether all cars would become classics.
With our view being that if a sufficient amount of time passes, then yes, all cars are likely to become classics at some point (although it could take several decades!), today we want to ask a similar question and discuss whether all cars make for great investments.
If we had to give a straight answer, it would be that all cars do make for great investments. Just like the discussion about whether all cars will become classics, if a car is kept for long enough, it’s highly likely you’re going to make money on it.
However, there’s a big ‘but’ here – which is that all cars can make for great investments, but you need to do your utmost to keep the car in the best condition you possibly can.
When people buy cars as investments, a lot of it is of course down to the vehicle you choose, but the most successful investors are the ones who take the time to do just as much work after they’ve found the car than when they were trying to source it in the first place.
The best way to go about the whole process is by not thinking of the vehicle as just that, but as an investment and as such, you need to treat it as one.
Imagine you inherited a piece of jewellery that you knew was either worth a considerable amount of money or would be in X number of years.
Now, would you wear it everyday, showing it off to your friends and family and getting some instant, personal benefit from it, but also risking damaging it or would you store it away until the time came when you could sell it for a substantial sum?
The answer to this depends on you as an individual and your views towards investments – a person looking to truly invest in a vehicle would do the latter, but it’s so tempting to do the former. If you do, however, you reduce the likelihood of having a car that makes for a great investment.
The reality is, in our eyes, you can make money on all cars based on two assumptions – you’re willing to keep them long enough and they’re in the condition that people are going to want to buy them in, which is generally being as close to a brand new-state as you can possibly get.