It's true that when you buy a car it will continue to decrease in value and that, the more time goes on, the less it will be worth. Yet, some cars have been around for so long now that the opposite is true. They are going up in value and will continue to do so if they are kept in good condition.
Choose a car carefully
So how can you turn a car into an investment? It's certainly a start to pick a car that you think will help you turn a profit and classic cars are really the way to go. Often a classic car comes with a hefty price tag but after a few years you might be able to sell it on for more than you paid initially.
You need to think carefully about which car you want to purchase for your investment. There's the type of brand to consider and whether the car you are looking at comes with original documentation. Think about other little quirks too, for instance, is the car you're looking at famous for appearing in a film or television show. If you can get hold of an Aston Martin DB5, which rose to fame because of James Bond, then there's a good chance that you will turn a profit.
The best brands to go to for cars that work out as an investment are the high end ones, such as Aston Martin, Bentley and Jaguar. That said, vehicles like the old Ford Escort of the 1970s have also seen their values rise.
Another thing that could work to your advantage is the number of these classic cars that there are on the road. If you get a car that had a limited production run then it could be worth a lot. Alternatively, if your car is old enough that numbers are beginning to dwindle, particularly those that are in mint condition, then this might also pay off for you.
However, one aspect that can either maximise the level of profit you get off your car or mean that you don't make a lot is the time that you buy it. This is a tricky one to calculate and some of it is just down to luck but do your research and think carefully before investing.
Bear added costs in mind
The next thing to consider is the added costs that come with the car that you are thinking about buying. As well as buying the vehicle, you will also need to pay to insure it, store it and have it restored. While the insurance costs are not something you can avoid, the latter two are possible to take care of yourself if you have a big enough garage and the know-how to fix your car of choice. Of course, the restoration needs to be spot on, so you really ought to go to a specialist if you have any doubt in your mind about what you are doing.
If you want to take your investment car out on the road then you should also be aware that running costs may be higher than a more modern vehicle. Also, bear in mind that any damage your car takes from the road, be it a scratch from a careless driver or a wheel knocked slightly out of alignment from going over a pothole, is something that you will need to repair later. These are just considerations though, if you want your car to be a hobby as well as an investment then still go ahead.
You could still find that you need to take your car for a big repair job and this could set you back considerably. However, without the complicated electronics of modern day cars, there will be less to go wrong. Parts can be a troublesome area, yet some will still be fairly easy to source. Check sites like Gumtree and eBay for car parts as you could potentially find ones that are a little bit cheaper than at the garage. Also, shop around for the best place to get your car fixed as labour will cost more at some garages than others.