Many vehicles depreciate in value as soon as they are bought making them an investment loss from the get go. This does not always have to be the case however. Vehicles can be investments both as equipment and an asset in one’s life. There are many ways to maximize a vehicles investment quality, a few of which are illustrated here.
Vehicle Asset Value:
Several types of cars are recognized globally as having high resale value and low depreciation. For this reason the brand and model of car is an important aspect of maximizing a vehicle investment. For example, several brands of Mercedes Benz automobiles have been known to hold over 65% of their value over 3 years according to Wayne J. Guglielmo, a writer for ‘Medical Economics’.
Since not all cars hold their value the same way, and have differing market values, financial institutions recognize this and will often consider some automobiles as collateral for loans. These loans in turn can be used for financial leveraging to help start a small business, consolidate credit card loans at a lower rate and/or improve one’s financial credibility.
Vehicle Operating Expense:
Many people consider vehicles a necessity of life and depending on where one lives, alternate means of transportation such as walking, biking, mass transit etc. may not be an option. For these reasons, vehicles also have an operating expense. The trick here is to minimize the operating expense through buying cars with strong gas mileage and low maintenance costs and high mileage potential. To decrease operating expenses maximizes the vehicle’s investment worth because expenses subtracted from value lower net value.
Vehicle Identification Plates:
In some countries, customized license plates are a commodity. For example, In the United Kingdom, certain license plates with customized phrases, word and letter combination are in high demand and can actually yield a profit according to www.r4v.co.uk. In the United States, license plate registrations are canceled with the sale of the car and are non-transferable to new owners.
Classic, Antique and Collector Vehicles:
Certain automobiles actually appreciate in value and/or maintain their value fairly well. These cars, whether they be collector vehicles, classics or long lasting well made vehicles, can help keep an owner’s personal balance sheet in good shape. Classic models that have been restored for a low cost, may resell for a value that goes above the cost of restoration. Certain models of classic Volkswagen Beetles and Porsche vehicles are examples of cars that may appreciate in value. Limited edition classics can also be a factor in the investment value over time.
Maximizing Resale Value:
Since both private and corporate venues exist for reselling cars, the ‘blue book’ value of the car is not necessarily the only value at which a car will sell. Some may sell lower than this due to poorer condition despite being premium automobiles. In light of this good maintenance, care and upkeep of the vehicles interior and exterior appearance will improve the chances of a higher resale value. Other ways to help increase resale value are to have celebrities sign the car with a paint pen, have your vehicle featured in a movie or otherwise give the vehicle a celebrity status all its own.
All vehicles are assets, but some vehicles are better assets than others for the above reasons. The more of an asset a vehicle is, and the lower the operating expenses, the greater the chance an automobile will prove a reasonable investment and not a heavily depreciated piece of equipment. Whether one is owning a car for transportation or for the exclusive purpose of collecting and trading, a vehicles investment worth can be maximized. This is the reason why a lot of investors are investing in Haus Kaufen Krefeld instead of vehicles. House or any real estate properties always appreciate in value. Investing your money is not a joke. Hence, make sure to choose the right instrument or platform.