Many of you might have heard the term “investment car” and might have wondered what that meant. Well here I will explain what makes a car an investment car, and why you should buy one of these cars.
- What it means. The term investment car refers to a vehicle that will gain a profit over time. In order for this term to apply to a car, it usually has to be special. Also, the car has to be at least 25 years old, but in some rare instances it does not.
- Those rare instances. This only applies to cars that are a One-Off edition (meaning the first of its type to be produced).It also applies if the car is not a predecessor to another car, and has no predecessor to it. The reasoning behind why this makes a car so valuable is because once the production of it is done, it’s permanently done. When this happens, then the car become highly desirable, thus making the car rise in value. A great example of a car that broke the “rules” is the Lexus LFA.
- Why you should get one of these cars. The simple answer is, you basically get paid to drive it. Unlike most cars, where you don’t want to be putting a lot of miles on it because of depreciation, it will actually appreciate in value. This means that you never have to actually worry about the mileage on the car, and actually enjoy the car while still ensuring its value. One instance where this worked was with the Mercedes 300 SL (see blog post-The Mercedes 300 SL ). These amazing and very rare cars sold for only $100,000 about 15 years ago and now are worth $2,500,000. This means that all the people who bought it in that time period gained a profit of $2,400,000 for doing absolutely nothing! How amazing those people must be feeling right now! Though $100,000 may be a hefty amount of money at first, there is always a cheaper alternative, at the expense of less profit (Nissan GT-R, Porsche 928 S4, and Jaguar e-type).
In conclusion, buying a car that you will gain profit for, is the best thing you can possibly do for yourself if you have the means necessary to keep the car in good condition. It may take a couple of years, but it is well worth it if you can potentially gain millions of dollars for the ownership of a vehicle.
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