Most new cars purchased right off the lot depreciate in value quickly. Just driving a new car around the block a few times can instantly reduce its resale value. However, a new trend in South Africa is to purchase used cars as investment pieces, which when resold a few years later, can net the owner a hefty profit. A key item to search for in an investment car is to find a vehicle that can overcome changes in trends or tastes. Older classic cars tend to fit this model perfectly, and if you find a good purchase price on one, your profit in a few years could be substantial. Below are 10 used cars to consider as an investment to get the best value for your money.
Aston Martin DBS V12
The Aston Martin DBS V12, famous for its multiple appearances in James Bond movies, can be a real investment value for the serious used car seeker. According to Financial Mail, models currently run about R1 700 000; however, the price is expected to skyrocket within a few years. If you can get your hands on an Aston Martin, chances are you will see a substantial payoff in the future.
Mercedes Benz 280 SL
Produced from 1967-1971, the Mercedes Benz 280 SL is a beauty of a car. Even better, the 280 SL's value has increased over 220 per cent over the past decade, jumping from R250 000 in 2002 to R800 000 in 2012. Forecasts predict this car's value will only keep increasing. If the Mercedes Benz 280 SL is out of your reach, consider any other older Mercedes from the 1960s or 70s as investment cars, as their value is also predicted to rise.
Another luxury car, the Porsche 356 may prove a solid investment. According to Finweek, the Porsche 356 retailed for R250 000 in 2002 and now can fetch over twice that amount. If you have the money, the Porsche 356 may be a good place to invest your money.
Alfa Romeo Alfasud
On the cheaper side of investment cars, check out the Alfa Romeo Alfasud. Manufactured in Italy in the 1970s and 1980s, the Alfasud was named the best car of the 1970s by British television show Top Gear. It's possible that you can find an Alfasud for R25 000 to R60 000. Few Alfasuds remain on the road, so if you can get your hands on one of these, chances are that its price will soar in the upcoming years.
BMW E30 3 Series
The BMW E30 3 Series was produced from 1982-1993, offering rear-wheel drive with some extra horsepower punch. You may be able to score one of these for up to R100 000. Even rarer is the South African BMW 333i. With only a little over 200 ever produced, buying one of these BMWs used could score you some serious cash in the future.
Ford Cortinas are cute, little gems of a car, popular from the 1960s to the 1980s. Made in five different versions, the Cortina MK1 packs the biggest punch these days at car sales. However, any of the Cortinas could be a wise investment, with purchase prices as low as R25 000. Hold on to a Cortina for a few years, and you could see your investment grow exponentially.
With steady production of the Jaguar XJ cars in South Africa through the early 1980s, it could be easy to score a Jaguar XJ at a bargain. A classy, sleek vehicle, you might just be able to find one for around R20 000. Maintain it well, and as other Jaguar XJs fall off the road, you could find yourself sitting on a pile of cash.
Rolls-Royce Silver Cloud
Nothing says elegance like a Rolls-Royce, and the Silver Cloud became a Rolls-Royce staple in the 1950s and 60s. Stars like Elvis Presley and Frank Sinatra agreed, each owning a Silver Cloud during their celebrity years. Don't let the initial sticker price scare you, though. In just 4 years, the Silver Cloud's resale value grew 55 per cent, and it keeps going up. If you can get one now, hold onto it for a while and watch your investment grow.
A South African favourite, the Datsun SSS has seen its value increase by more than 20 times since the 1970s. The Datsun SSS is simple to maintain and has a classic feel to it. Originally sold for around R2 500, the Datsun SSS can now rake in upward of R35 000. Find one today and you can see if its value grows even further in the upcoming years.
If you have the funds to purchase an old Ferrari, you could find yourself swimming in cash. At a recent auction, a Dino Ferrari sold for R3 000 000. If you can land a good deal on this Italian luxury car, you can likely resell it at a hefty profit. If the Dino Ferrari is out of reach, any other classic Ferrari will do. Just take good care of it, and you will have a beautiful luxury car for years to come.
Whether or not you have a lot of money to put into a used car, if you can find a good deal, your investment may pay out great dividends. Look for a popular, classic car that has been well-maintained. Make sure it is easy to drive and keep the outside clean and the inside running smoothly. With the trend in purchasing classic cars rising in South Africa, your investment in a used car may be well worth it down the road.