What Makes a Car a Good Investment?
We’ve all been through it.
We bought that 2005 Honda Accord new for $22K. We kept it meticulously maintained, garaged it every night, and never sat in the back seat. The car looks brand new. We might get $5K today if we sold it outright.
Meanwhile, we’ve all seen the shows where someone finds a car under a tarp in their grandma’s garage and finds an old, dusty Chevy Impala with dry rotted tires and ancient fluids gumming up the engine. Even though it has seen better days and Grandma only paid $2800 for it new, the car is immediately sold for $50K.
What is it that makes that one vehicle a good investment and another a constantly depreciating asset?
What Gives Vehicles Their Value?
Generally, cars depreciate in value the minute we drive them off the lot and continue that trend the more they are used. However, this is not the case with all cars. Some have characteristics that help them maintain value or build over time. These cars make good investments.
By CJ DUB - Own work, CC BY-SA 2.0 ca
Rarity
Cars that have a limited initial production number or that are one-of-a-kind special builds hold value.
One of the most collectible and valuable cars of all time is the 1969-1970 Boss Mustang 429. Even though Ford has built over 10 Million Mustangs over the past 6 decades, they only built 1360 of the Boss 429s.
If you bought one new in 1969, you paid a premium over other models at $4798. If you have one now, it could be worth more than $300,000!
In the right market, one-of-a-kind custom vehicles bring top dollar. These might be classic cars that are improved upon by the addition of modern technology and interior comforts. This value goes up further if the work was done by a car builder with a reputation for great work.
Performance
Cars that deliver over-the-top performance or an upgrade to a company’s normal performance grade generally keep their value. These cars can be assets.
For instance, Lexus is known for its comfy luxury sedans and SUVs. But in 2010, it broke away from its standard models and launched itself into the exotic car market with the LFA.
This 2 seat, rear-engine, V10 was built to compete with the performance and technology of the Ferrari Enzo but at a lower price tag. Only 500 of the Lexus LFA were built during their 2010-2012 run at a price tag of $350,000.
Because of the rarity and performance, Hagerty says an LFA in good condition is worth $558,000-$582,000 today and climbing. An immaculate and even more rare 2012 Lexus LFA with the Nürburgring Package sold in August of 2021 for an whooping $1.6M!!
No Lexus sedan can say that.
Historical Significance
Sometimes a car changes the entire market.
In 1991, Acura introduced its entrance into the supercar market with the NSX. The NSX was packed with new technology, was fun to drive, and came at a much lower price tag than its competition.
Its sleek styling and technology captured the attention of Gordon Murray who bought one for himself and used it as inspiration to design one of the greatest supercars of all time, the McLaren F1.
In 1991, the Acura NSX retailed at $40K. Now, the value of a good condition NSX will bring over $100K.
Previous Ownership
If someone famous owned a car at one point in time, this can dramatically increase the value of the car. This is the case with the late actor Paul Walker’s 1995 BMW M3 E36.
The MSRP for the BMW M3 in 1995 was $47,4700. Walker’s ride brought $385,000 at a Barrett-Jackson's event.
Accurate Vehicle Documentation
None of the above characteristics are worth anything if their accuracy is not proven, This brings us to the importance of documentation.
Keeping track of vehicle specs, maintenance, modifications, ownership history, and even car shows the car might have been in and awards won is important to prospective buyers. They want to know exactly what they are buying and why it is worth a premium.
Having this information readily available on a platform such as AUTIX helps you maintain and even build value. This information solidifies that your car is an asset.
How AUTIX Protects Your Investment
If you own a car with any of these special features, your car can be an excellent investment for you. Maintaining your investment relies on 3 things.
Maintaining your vehicle. Common sense tells us that the better the quality of the vehicle, the higher the value no matter what unique features it has.
Maintaining documentation. The AUTIX platform gives you a place to document important information about your vehicle that can be shared with other car enthusiasts and prospective buyers.
Your AUTIX profile can contain photos of your vehicle, specs, maintenance records,, modifications, ownership history, and more. Plus, this record can be transferred to the new owner at the point of sale so that they have proof of what they have purchased.
These records are vital to protecting your investment.
In the future this documentation will be used to find the Xstimate of your vehicle. Xstimate is a proprietary software AUTIX is developing that will give a true value of your specialty vehicle. Think of it as a Kelly Blue Book for custom and investment grade cars.
Maintaining connection with a buyers market. AUTIX provides custom and investment grade car owners a community where they can browse vehicles, view vehicle details, and connect with other enthusiasts right on the platform.
This gives owners unprecedented access to like-minded car enthusiasts and a captive market in which to engage with prospective buyers. The value of a vehicle means nothing without buyers.
Do you have an investment vehicle? Tell us about it. If not, what vehicle would you want?
