For most people a car provides them with little more than a way of getting from A to B. However, for the savvy few, a good quality motor can make an exceptional investment.
With interest rates low, keeping savings in the bank does not bring much of a return any more so spending the cash on a car that will stand the test of time and only increase in value can be a very good move.
Buy a classic
If you want to make money on a car, you really need to look at the classics. Modern cars may increase in value if they are incredibly rare, but let’s be honest, most depreciate rapidly.
It is more than possible for a classic Aston Martin or Ferrari to be bought for around £65,000 and its value to claim to around £80,000 within five years.
It’s not just about sports cars
Go to any classic car show and you will see a glittering array of sports and supercars from yesteryear. These make for great investments but they are not the be all and end all.
In fact, you can make a very sound investment by buying something that is more modest such as a Morris Minor. Manufactured between 1948 and 1970, these were common sights on British roads but are becoming increasingly rare and collectable.
They can be picked up for between £3,000 and £8,000 so a purchase will not break the bank and their value is likely to rise steadily in the next few years. Another car to consider is the original Austin Mini Clubman.
What to look for
Buying a car as an investment is all about carrying out as much research as you possibly can. Before handing over your hard earned money, you need to be confident about what you are getting.
There are many things that can affect a car’s value so be sure that any you look at has a solid service history, is free from rust, has genuine mileage, and is the model the current owner claims it to be as there are some fakes and kit cars out there masquerading as classics.