Can Buying a Used Car Genuinely Represent an Investment?
Despite almost consistent growth during 2013, there are signs that sales in the used car market are beginning to slump. This is causing confidence to dwindle among dealerships, while consumers are also beginning to think twice before buying a second-hand vehicle.
On the flip-side, however, this may cause a depreciation in the cost of used cars nationwide, which opens up the concept of purchasing second-hand models as a potential investment vehicle. The question that remains is whether this is ever a viable strategy, however, even as the bottom line purchase price of used cars begins to fall.
Can a Used Car Ever be considered as an Investment?
In general terms, you would not class the purchase of any car as an investment. The reason for this is that these products generally depreciate considerably in value over time, particularly when you consider new cars that are marketed with a high initial sales price. While the depreciation associated with used vehicles is less pronounced, however, this is primarily because the initial price is lower when consumers make their purchase. Either way, anyone looking to make a short or long-term return by investing in auto mobiles is likely to end up both frustrated and significantly worse off.
This is not to say that you cannot optimise the resale value of a used car, however, as ensuring that your vehicle is well maintained and regularly serviced can certainly help to minimise long-term damage. In addition to this, you can also adopt a proactive approach towards preventing the need for unscheduled maintenance, simply by completing simple tasks such as regularly changing the oil in your car and keeping it clean. These small considerations go a long way when the time comes to put your vehicle on the market, so it is definitely something worth bearing in mind.
The Last Word: Classic Cars as an Investment Opportunity
On a final note, it is also worth highlighting the fact that classic cars do represent a good investment opportunity. Although these cars are not as readily accessible through popular online resources such as Exchange and Mart, they can be purchased for relatively affordable prices and have an excellent reputation for delivering steady growth in terms of value and resale potential. You must have a keen knowledge of the classic car market if you are optimise your potential returns, however, as it is important to time you sale well and ensure that the vehicle is kept in pristine condition.