Facebook Twitter Instagram
    • Jaguar
    • Audi
    • BMW
    • Chevrolet
    • Dodge
    • Ford
    • Ferrari
    Facebook Twitter Pinterest
    Autos ModelAutos Model
    Subscribe
    • Home
    • Top 10
    • Latest Cars
    • Auto Reviews
    • Auto Guide
    • Auto news
    • Contact Us
    Autos ModelAutos Model
    Home ยป How Can Your Car Be An Investment?
    Auto Insurance

    How Can Your Car Be An Investment?

    FaisalBy FaisalOctober 1, 2018Updated:October 1, 2018No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    car loan
    Share
    Facebook Twitter LinkedIn Pinterest Email

    If you have a car, you have an asset that could help generate revenue for as long as you own it. This could be true regardless of how old your vehicle is or how many miles are on it. Let’s take a look at the specific ways that a vehicle could be a money maker.

    car loanImage Source: Flickr

    Use It to Secure a Loan

    A vehicle title loan uses the car’s title as collateral for loans that are worth a significant percentage of the its market value. For example, if you have a vehicle worth $10,000, you could get a loan for up to that amount minus lender fees. Typically, lenders will provide you with anywhere from 50 to 80 percent of your vehicle’s value. This means a $10,000 car could be used to secure a loan of up to $8,000.

    Cars Can Appreciate in Value

    Typically, vehicles depreciate in value, and they can lose up to a quarter of their worth as soon as they are driven off a dealer’s lot. However, there are some vehicles that will actually become more valuable the older that they get. This can happen if a car or truck is considered to be vintage or is desired by collectors. In many cases, collectors desire vehicles that were popular in their childhood or were popular when their parents or grandparents were children.

    Save Money By Eliminating Your Car Payment

    Usually, you will spend five or six years paying off a car loan. If the car lasts for longer than your loan period, you now have hundreds of dollars per month that can be put into a bank or brokerage account. Generally speaking, this money will grow at a rate faster than inflation, which means that you are truly growing your wealth over time.

    Use Your Car for Ridesharing or Similar Purposes

    Your vehicle could be used to work for a ridesharing company to help you make money in your spare time. It could also be used to deliver food for a local restaurant or pizza shop. Depending on where you live, it may also be possible to rent your vehicle to those who need it for an hour or two to run errands or attend a business meeting. If you are going to use your vehicle for business, make sure that your insurance company knows this. It may also be worthwhile to increase your coverage limits and reduce your deductible to be better prepared in case of an accident.

    While conventional wisdom says that vehicles are not good investments, this is not always the case. It depends on how the car is used as well as the type of car that is purchased. Furthermore, cars that have not been in accidents or experienced any water damage are likely to hang onto their resale value or appreciate over time. Those who are looking to purchase a car as an investment should also know that car values depend on both local and national used or vintage car market conditions.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Faisal
    • Twitter

    Full time and dedicated blogger who loves to read and write everything about newest cars, exploring and hence, love to ride old classic cars!

    Related Posts

    What Is Liability Only Auto Insurance and Who Needs It?

    November 2, 2022

    How to Win Your Lemon Law Case: Key Tips

    October 6, 2022

    Tips for Choosing an Insurance-Friendly Vehicle

    August 26, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Recent Posts
    • 5 Important Tips When Purchasing a New Car
    • The Role of MacBook in the Future of Auto Design
    • Electric vs. Hydraulic Power Steering: Understand the Basics
    • Helpful Defensive Driving Tips To Be A Safe Driver
    • 5 Things to Do Before Buying Your First Car
    Categories
    Autos Model
    Facebook Twitter Pinterest
    © 2023 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.