When financial freedom is one of your life goals, you have to give a lot of consideration to the appropriate investments. While there are many ways for you to make investments in real estate, a lot of people will think about a car being an appropriate investment, especially those of an upmarket range. But are cars actually sustainable investments?
Is It More Of An Asset Than An Investment?
Due to the depreciation value of a car, you could find that it’s not necessarily an investment. And when you look at buying a car for the purposes of selling it on to make a profit, because a car depreciates over time, this makes it an asset. Over a few years, you can lose half of the value by depreciation alone. And this is why you’ve got to think about the reason you’re buying a specific car in the first place. If you want it to be an investment, then it’s important to go for a more prestige model, or something that’s deemed a “classic.” But if you don’t have the finances to get one of these higher-end models, what do you do?
Finding The Right Payment Option
So many people rent cars, or have them on a long-term lease until they’ve paid it off. Hire Purchase, Personal Contract Purchase, as well as Personal Contract Hire, are three different options that many people go for now. And whether you’re looking for a Mercedes and smart car range, or if you are trying to find a sustainable investment that you can realistically pay off, finding the right payment option for your budget is essential. If you’re trying to achieve financial freedom in a short space of time, the great thing about leasing a car is that it can give you the opportunity to buy the type of vehicle you want, but also have the freedom to get rid of it if you don’t want it anymore. With these payment options, they take into account your credit score, but at the very least, you’ve got a realistic repayment plan based on your earnings and budget.
Stopping The Depreciation Of A Vehicle
It’s difficult to stop it depreciating because they naturally depreciate anyway. But if you’re looking to buy a specific car as an investment, or you want it to be an asset that you can sell on later, it’s about balancing the maintenance with the actual value of the car when you’re ready to get rid of it. You can spend a lot of money investing in keeping the car up to code but it can be a lot more money out of your pocket that you won’t recoup later.
Can you make your car an investment? There are certain models that won’t depreciate as much, but if you’re buying a car purely so you can sell it on later, it’s about getting the higher end brands because it’s these things that will stand the test of time and have a more classic feel. The temptation is always to go for modern trends, but you need to think about if these modern trends will be popular five years from now.
Disclaimer: This is a collaborative post.