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.
I) 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
II) 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.
III) 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.
IV) 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.
V) 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.