Unlike houses, cars typically don’t increase in value over time. Instead, they tend to lose value. But is it possible for a car’s value to go up? With certain types of car, yes, it is! The following guide delves further into what makes cars appreciate in value and how to boost the value of a car.
Why do most cars depreciate in value?
Most cars depreciate in value because they become worn and outdated. New car models are constantly bringing in new features and older cars that don’t have these features become less attractive. Wear and tear meanwhile becomes inevitable the more you drive a car. Most vehicles have a maximum mileage of about 200,000 miles before the engine completely fails, which is often too expensive to repair. As a result, vehicles tend to lose value the higher their mileage is.
What types of cars do appreciate in value?
There are some cars that don’t depreciate – and instead appreciate in value. Such cars typically gain value because they are rare and highly sought after. As a result, buyers are willing to pay more for them. Examples of cars that appreciate in value include:
Classic cars
While most cars initially lose value, they can start to gain value again once they reach ‘classic’ status. This is when a car reaches 40 years old. Classic cars are more sought after because their age makes them rarer and because they are seen as a piece of history. To determine the age of a classic car, it is best to use a specialist car valuation service.
Limited edition models
Some models are limited edition and therefore only have a few copies. This makes them attractive to car collectors. Even relatively new limited edition cars can sometimes see their value increasing over the years.
Of course, such cars aren’t always cheap to buy to begin with. Many of them are luxury sports cars or models that are sold initially as collectors items, and so have a high upfront price tag; however, they are a worthy investment if you can get your hands on one.
Well-maintained cars
Some people are able to preserve the condition of their car, so much so that their car still looks like it’s come straight out of the showroom 15 years later. Such cars can increase in value because their immaculate condition makes them more attractive than other models of the same age.
How can I increase the chance of my car appreciating in value?
There are several ways in which you can increase the chance of your car appreciating in value. Clinging onto a vehicle for many years until it becomes a ‘classic’ is one option. Another is to carefully maintain your vehicle, including storing it somewhere where it won’t be exposed to the elements and taking measures to reduce wear to engine parts. Limiting modifications is also key to preserving value. That said, some uniquely customized vehicles can become valuable over time – providing you find the right buyer.
