Which Vehicles Are the Best Investment

Determining which vehicles are the best investment can involve combining reliability with gas mileage, resale value, model type, depreciation rates and insurability features. Not only can such cars last longer for less cost, but they may even regain their value in the long run in effect making the transportation one gains over the years as close to free as one might get.

Good cars are good use of liquid capital which can make them more of an investment than an expense. Additionally there are enough varieties of vehicle on the market that makes the chances good one can find all the above features in a model and style one likes. This article will discuss which vehicles that may be more likely to be a better investment in terms of five categories of analysis.

Classics and antiques

Depending on where on lives the definition of classic and antique vehicles may vary. Generally, vehicles older than 20 years fit at least one of these descriptions. Antique vehicles are older than classics and include the earliest models of automobile in existence. Choosing a classic or antique involves knowing their appraised values and collector appreciation for such vehicles. A few popular classics that may also not be antiques include the following:

• Ford Mustangs from the 1960'-1970's
• Chrysler Corvettes from the 1950's-1960's
• Dodge Chargers and Challengers from the 1970's
• Model T Fords from the early 1900's

Conventional vehicles

There are many conventional vehicles that can benefit an owner in terms of durability, longevity, insurability and value. Conventional cars that meet reliability, resale and safety standards can be considered good investments. The following section deals with three major areas of performance in conventional vehicles including resale value, reliability and safety ratings.

Vehicles with top resale values

Among the top vehicles in terms of resale values studied by forbesauto.com, are the following three vehicles.

• Toyota Tundra: According to Forbes this vehicle actually appreciates in value by $170 over three years.

• Mini-Cooper: The research by Forbes put the annual depreciation of this car at 3.5% per year for the first three years.

• Honda Accord: While markedly higher in depreciation i.e. 8.9% per year according to Forbes, these vehicles are currently ranked among the best.

All three of the above vehicles are considered reliable, and have new 'base' i.e. without features, prices between $16-18.5 K making them reasonably affordable from the outset as well.

Vehicles with top reliability ratings

• Toyota Tundra: The Tundra also meets very high reliability standards according to a separate study by msn.com, making it top class in two areas.

• Ford Mustang: It's surprising to see mustangs on this list but the msn reliability study puts this vehicle at the top for reliability among sporty models. What's more, if this car is well maintained and cared for over time it could qualify as a classic 20 years down the road

• Honda Civic: The civic has long been revered as a reliable vehicle among compacts. Thus, it comes as no surprise this car makes the grade.

Vehicles with top safety ratings

The U.S. National Highway Traffic and Safety Administration performs significant research in this area of vehicle performance. According to the NHTSA's 5 star safety rating the system the following cars perform very well in front and sideways collisions in addition to rollovers.

• 2008 Acura RL: This vehicle's 4 wheel drive model got a full 5 star rating across the board.

•2008 Ford Crown Victoria: The 2 wheel drive models of this vehicle also received top rank in all three safety categories.

• 2008 Chevrolet Silverado: Of the trucks, the Chevy Silverado receives 5 stars in front and side ratings and 4 star ratings in rollover testing which is among the highest of the truck reviews.

There are several vehicles in each class i.e. compact, sedan, truck etc. that meet high standards in reliability, safety and resale value. Choosing such vehicles for a fair price can be a good investment in terms of saved repair work, insurance premiums and resale value all of which add up. Other things to look for include the features below:

• Good gas mileage Ex. Toyota Prius (also has strong safety ratings)

•Additional safety features such as side air bags, anti-lock brakes, and alarm system Ex (Toyota Corolla)

• Strong track record, historical performance, consumer confidence and/or reputation Ex-Mercedes Benz CL class.

Many people have to get to and from somewhere whether it be errands, work, taking kids places etc. Since vehicles are a common means of transportation and also a significant portion of a household budget, thinking about how vehicles can be "investments" can be a wise decision.

For example, While most vehicles don't appreciate in value, a few do, and for those that do not appreciate, some have lower operating costs than others in addition to holding value well. These vehicles indirectly allow their owners to save more on a lower transportation expense. These savings can translate into a larger budget and redirected cash flow making one's vehicle choice an investment decision.

Source(s):
1. http://antiques.lovetoknow.com/Antique_Cars
2. http://www.forbesautos.com/advice/toptens/resale/02-mini_cooper.html?partner=aol
3. http://autos.aol.com/article/cpo/v2/_a/resale-value-winners/20060404145209990001 4. http://en.wikipedia.org/wiki/Classic_Car_Club_of_America
5. http://editorial.autos.msn.com/article.aspx?cp-documentid=435214
6. http://www.safercar.gov/

How to maximize your vehicle investment

Many vehicles depreciate in value as soon as they are bought making the investment a huge 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 and value, 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 including used cars 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.