Which cars are good investments?

By Roger Houghton

There are two ways of looking at this question.

Firstly, buying a car which retains its value and is in high demand is a form of investment. It also helps if it is a model that does not undergo many specification changes before it its replaced by an all-new range. Examples here are cars such as the Kia Picanto, Toyota Etios, Volkswagen Vivo, Polo, or Golf, as well as the Ford Ranger and Toyota Hilux bakkies, Toyota Fortuner and Ford EcoSport.

Another factor to be considered when buying a new car as an investment is the dealer representation of that particular franchise. Buyers are generally reluctant to purchase a new car which has few dealers in South Africa as it could make it harder to sell for a good price or to get a good trade-in price.

Being able to sell or trade in a car or bakkie which has lost less of its original price than other, similar category vehicles, gives one the opportunity to buy a new model without having to lay out as much money as those getting less for their cars or to use the extra trade in amount to buy a higher specification new car.

The second option for investment is to buy a collectable, which is usually a high-end car from a luxury or sports car range. These are usually expensive, and one must often keep them for quite a long time to make them a worthwhile investment.

You must also know what make and model to bet on and have deep pockets, as these cars are usually expensive. A collectable will probably be certain models from makers such as Porsche, Mercedes-Benz, BMW, Aston Martin, Jaguar, and Bentley. You could also be faced with the cost of shipping the car overseas to obtain the best price as the collectable market in South Africa is limited for both buyers and sellers.