Investment cars and making money with vehicles is never really an option the average man or woman considers when putting away money for themselves, their children or other investment solutions. This is purely because they cannot afford it.
When you think of investment vehicles, you would naturally migrate to any one of the following vehicle brands:
- Bentley;
- Ferrari;
- Lamborghini;
- Bugatti;
- Or really old vintage vehicles from the 1960’s or 1970’s.
While this is not an area for the average individual, those with a lot of spare cash, and a real interest in cars, can make a real go of it.
Investment vehicles are all about emotion and perception. What is valuable to one individual will be totally different for another. So it becomes a game of tapping into the psyche of potential buyers, or the opposite, making the seller doubt the perceived value of the vehicle.
Check out this video on some classic vehicles cruising the street at an American car exhibition:
But there are ways for individuals, not necessarily everyone, to cash in on investment vehicles.
There are many drivers out there who want to be the first to drive the latest versions of the hottest, accessible cars in the country. Often these cars are announced long before they arrive and buyers are put on a waiting list in order to be the first to get their hands on them.
The following cars would typically fit into this area of investing:
- VW Golf GTI
- Mercedes C63 AMG
- MercedesE63 AMG
- BMW M3
- MBW M5
And there will be quite a few more. But these cars are significantly more affordable than the list at the beginning of this article and so more people have access to them.
Each of these vehicles is upgraded my their maker on regular basis and it the release of the new model where these cars become investment cars and making money with these vehicles becomes a reality.
The following would be a typical chain of events in terms of making money from these types of vehicles:
- You place an order for the new model BMW M3 and you are at tor near the top of the list to receive one first, as it lands in the country;
- Because your place is booked, you can now start scouting the market for other potential buyers, who also want the latest model, even more than you do;
- What you want to do is locate a proper petrol-head, who is low down on the list, someone who wants the car and wants to be one of the first to get it;
- Once you have located this individual then you negotiate your price with him. If the car costs X, and he wants it really bad, you need to make sure that the buyer sees value in paying you X plus your mark-up. Otherwise there will be no deal.
- Once you tap into that perceived value you are likely to have a deal and then you can sell the car, sometimes without you ever having it. Essentially you are trading your place in the queue.
So there are 2 ways for you to be involved with investment cars and making money from vehicles. The one option is to be really wealthy and to have exotic vehicles. The other option is to be a smart trader.