Buying a Car is an Investment – Here’s How

buying a car - lease a car

Many people believe that buying a car is a surefire way to lose money. The accepted opinion is that when you buy a new car, its value decreases significantly as soon as you drive it out of the showroom. Whilst this is true for new cars, there are still some ways to make money from buying cars.

Investing in cars to make a profit takes a lot of knowledge and careful planning, but if you make the right investment, there are some really good returns that can be made. In this article, we will look at some of the best car investment opportunities and how to maximize your return potential.

1. Invest in Rare Models and Limited Editions

One area where there is still a lot of money to be made in cars is in the rare and luxury car market. Unlike normal everyday cars, luxury car manufacturers often make limited numbers of each model and there are some that are very rare indeed. These cars not only hold their value but can often dramatically increase in value as they become collector’s items. There are both new cars and classic cars which can be a really great investment if you do the requisite homework.

Bugatti Veyrons for example, are made in such limited numbers that they do not really depreciate in value at all. Whilst they are very expensive to buy, you may be able to get one at auction for lower than the normal price which you will then be able to sell for a big profit. Classic supercars which are no longer in production can also provide a great return on your investment if they are in really excellent condition. Classic Jaguars and Aston Martins sell for as much as $20-30 million dollars for highly sought after models and so if you are able to buy one for less and then sell it on to a collector, you can make some serious money.

Related: How to Make Money Online with Cars

2. Invest in Cars That Need Restoring

Another great way to make money from investing in cars is by buying cars that need a lot of work done to them and then selling them on after you have restored them. It is possible to make significant returns like this with both old and new cars as long as you are careful with your budget and know exactly what needs to be done. Especially if you are knowledgeable about engines and other car parts and are able to do the work yourself, you will be able to restore a broken old car around for relatively cheap which you will then be able to sell on at a profit.

Look out for popular models of cars that always sell well on the used car market but that most people would dismiss as being unfixable. You can pick them up for next to nothing at scrap yards or salvage businesses. Cars like Chevrolets, Fords, or any other popular family car are perfect for restoring and selling on for a sizable return.

Related: 8 Smart Hacks to Ensure Your Car Safety During Winter

Chevrolets for example, are really easy to sell and you can pick up all the Chevy parts online that you need for a full restoration. Making returns on motor investments is all about finding a great source of broken down or damaged cars at a great price. Start building good relationships with your local salvage yards and scrap dealers and you will find that there are some real bargains to be had.

buying cars - restoring

3. Custom Tune-Ups

There is a huge market for custom designed and tuned cars and if you have a real talent for mechanics, this is a great way to make money. So many people are fans of high-performance vehicles, but aren’t able to afford a Lamborghini or a Ferrari and so love kitting out more reasonably priced cars with top of the range parts. There are so many different tune-up options that the options are really endless.

Purchase some basic models of cars that have the potential for big profits after you have worked on them. Japanese cars are really great for custom tune-ups because they are cheap and reliable but can look fantastic after some high-end bodywork. They are also so well built, that they lend themselves perfectly to engine rebuilds and technical overhauls. With a little imagination and a lot of careful research, there are some great investments that you can make in cars that will give you a great return. Buying cars to make a profit is all about identifying value and then maximizing it when it comes to resale. Any way that you can take a regular car and transform it into something a little special, is always going to make you money.