5 cars that could make you money over time
Can you enjoy your real estate investment with the roof down on a hot summer’s day? No? We didn’t think so.
All jokes aside, buying a car as an investment can be one of life’s greatest joys, if done right. We’re going to introduce some cars to you that we believe can be good investments in the long run. Not only do they have a good chance of appreciating in value but they’re also able to be enjoyed in ways that other investments can’t be. Investment cars are more than just an investment. They’re trips out with the family, classic car shows, conversation starters, things of beauty to be cherished and to be proud of.
If you’re enthusiastic about cars, are good at not crashing them and don’t mind driving one that doesn’t have the latest in infotainment and 360° parking camera technology, then owning an investment car could be for you.
So, what cars should you look at?
A good rule of thumb when buying an investment car is to buy one that is scarce and one that fills a niche. The Panther Kallista is not a particularly good sports car as it’s not exactly fast and it doesn’t even handle as well as its competitors. That being said, the Kallista has a variety of other things going for it.
Firstly, it’s a Panther. Panther is a largely unknown automaker to the everyday person, but to those who know, Panther is attributed to Cruella de Vil from the film 101 Dalmations as she drove the famous Panther De Ville.
Secondly, it looks unique and fills a niche for those looking for a car with classic British styling that isn’t actually as old as it looks.
Not only was the Kallista made in 1982, making it a lot younger than it looks, it also sports an aluminium which means you don’t have to worry about rust. On top of that, you’ve got a rugged chassis, reliable Ford components and a very attractive price tag of around £12,000.
Furthermore, buy a ‘royal-looking’ car like this and you could even earn an income from it by putting it up for hire for special events such as weddings and proms.
JDM classics such as the Honda S2000
If you’re not really into classics that look like they’re from the 1950s, you could try doing some research into some Japanese modern classics. Cars such as the Honda S2000, Mazda MX-5 and Toyota MR2 are all on the rise, mostly because they look quirky and are from a Japanese manufacturer.
Cars such as the Nissan Skyline, Toyota Supra and Mazda RX-7 have already shot up in value to ridiculous levels. A clean, stock example of a Supra can now cost well over £30,000 and that’s mainly because the car was in a Fast and Furious film.
Other cars such as the mentioned S2000 are still pretty affordable and can be bought for under £10,000. Buy one of these now and if the current trend continues, you could see it gain a good couple of thousand in value in a matter of two or three years. They’re praised for their excellent handling, simplicity and reliability, as you will find with most Japanese sports car that are considered modern classics.
As time goes on, demand for these little examples of simple and pure fun remains strong and buyers continue to be willing to pay more and more for low mileage, clean, unmolested examples.
Time and time again, we see an old BMW M3 turn into an ‘icon’ of its time. The E46 M3 is now worth a small fortune thanks to it being hailed as the definition of old school cool, and to be fair, we can’t really argue with it.
If you’re willing to wait, you could buy an E92 M3 (2007-13 3 Series Coupe M3) and just sit on it. Keep it clean, carry out the required maintenance and don’t put many miles on it and come 10 years that thing will be worth a small fortune.
It’s written in the stars. The first M3 (1982-94) has understandably shot up in value and the same can be said about the next two M3s that came out as well. They’re cool, they’re powerful and most importantly, the BMW M brand has a lot of passionate enthusiasts that are always willing to pay above the odds to get their hands on a nice, old M3.
So, what makes a good investment car
If you want to take the chance and place your bets on a car that you think should go up in value in the coming years, what should you look out for?
Rarity is often a safe bet. If only 500 of them were made, no matter how ugly or unreliable or poorly reviewed they were, chances are that car will rise in value eventually. The only problem with that is that they will cost a lot to buy to begin with.
Does the car fill a niche or is it unique in any way? Take the Honda NSX for example. That car was mass-produced, didn’t star in any famous movies and was actually known for being slightly underpowered. That didn’t stop it from rising in value. That being said, it had two great things going for it. One: it looked special and still looks special today. Two: Senna himself was involved in fine-tuning the car’s performance and handling. These two things have propelled the car into cult classic stardom and propelled the selling price just the same.
Unfortunately, there are many factors to consider and buying an investment car is always a risk, not only because you can’t be entirely sure if prices will rise, but also because you can’t be entirely sure whether you’ll crash it or not! Repairs, reliability, rust, costs of ownership all need to be considered but once you’ve made it through all the obstacles, you’ll have a classic to love and enjoy until the day you sell. Beats buying sovereign coins, right?
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