Motor car investments: Risks and Benefits


Investment in motor cars is one of the trending businesses of the 21st century. Although it’s a good investment but there are some risks and benefits attached to such an investment. It is an investment which typically involves huge capital outlay and may demand being affiliated to an insurance company to reduce the risk attached to such business or investments. Such investments are attractable and mostly pursued by any motoring fan.

Generally, motor cars are tipped to be one of the worst assets one can invest in. This is unlike other physical assets such as properties, cars tend to depreciate in value the moment they are bought as cars lose between 50%-60% of their value in the first three years of ownership which means selling your motor cars less than the cost price. The costs that are attached to cars include tax payments, gas, car insurance, replacement parts and other car related cost.

The idea of making money from motor investment is a good thought but will only be sustainable and achievable with the right investment approach. Investment in four-wheel machines will require proper risk management and demand adequate technical know-how about such investments. What do we mean and what do you understand by making money from cars?

Motor car investments might not have to deal with buying and selling new or classic cars but may include the renting out of your cars for some hours, day or weekend as the case may be. It’s necessary that motor car used for investments should always be in good condition to avoid them from becoming a money pit consuming a huge chunk of your income. Before you think of extending your savings on motor car investment, you should think about the financial resources attached to such an investment.

Before investing in motor cars, you should be able to find out the cars that are right for you in term of financial costs, car condition and purpose of investing in such business. Always remember that not all your passion turns into profit. One thing that is certain about motor car investments is that most cars will simply never be an investment that will yield a profit if it’s not done in the right way and approach. When you make a profit in motor car investment, it will always be in its modest form.

The cost and value of a car depends on various factors which include the numbers of cars made, how many are currently in the market, the mileage condition and the condition. One of the car experts Adams Hay Nicholls suggests rare and used cars such as Ferraris. You can always drive the car you invest in but only for a little mile. Car driven most time can always maintain a good health in brakes and hydraulic systems. This can be achieved by warming up the engine at least once in a month.

Motor cars can only rise in its value if it’s exceptionally maintained well however the cost of maintaining and insuring motor cars can be very high and eye-watering which might reduce the potential increase in car value. You can always save the cost attached to motor car investing by setting up a regular maintenance and care costs which will help to prevent potentially costly problems attached to motor cars.

Some of the ways of maintaining motor cars as recommended by regular oil changes, greasing car ball joints, keeping the car clean, dry and waxed to prevent damaging car paint and corrosion, testing brakes regularly and flossing the cooling system. When you undertake repairs or changes, you should always try and keep the motor car as clean as possible. Always have your motor cars insured and keep the company updated about any changes or modifications made to the motor cars.

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