The Best Cars to Invest In

by JT McGee

From a purely financial standpoint, many cars are not great long-term investments. Unlike real estate, they depreciate in value over time. New cars may depreciate in value as much as 60% over the first three years of ownership alone.

Yet with a consistently high demand for quality automobiles, it’s possible to choose models with a collector’s eye for investment purposes. If you love cars, you can choose from a wide range of classic and sporty options that will retain their value or even improve with time and care.

Vintage Cars

One of the best ways to invest in cars is to purchase classic or vintage models. Classics like the Porsche 944 and Volvo P1800 are often available at low prices due to their age and condition. If you have the mechanical knowhow to fix up a classic car that has fallen into disrepair, you may have a money maker on your hands. Surprisingly, some classic cars can save you money on your car insurance as well if they are from a steady, reliable brand. Reading car reviews with motoring or similar car websites can point you in the right direction towards classic models that may appreciate in value.

Prestige Cars

Prestige or luxury cars are another type of investment option. Many of them are rare, produced in limited numbers which helps ensure their future demand. This helps to guard against the depreciation that other mass-produced automobiles may suffer from. Sports cars tend to retain over 50% of their initial value after three years, with the more exotic models retaining as much as 95% of their original value. Yet you can expect to pay more in maintenance over time for exotic cars from Jaguar, Ferrari, or Aston Martin. They require a higher level of security and may have parts that are harder to replace. If you have the money to purchase and maintain exotic sports cars, they may be a sound investment due to their ability to retain value over time.

Eco-Friendly Cars

Although they may not retain their value over time the way rare and vintage cars do, today’s crop of eco-friendly cars make good investments due to their high level of efficiency. With excellent mileage you’ll pay less at the pump, which allows you to save more cash over the long run. Environmentally friendly cars may also be a good investment for the future, if current sales trends continue. Auto manufacturers and world leaders have had more pressure put on them to reduce emissions, improving the standards of existing models. As a result, the hybrid vehicles of today could become the most in-demand classic cars of the future.

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