Is a car an investment? Find out now!
Buying a vehicle, in many cases, can be considered a way to have more comfort, practicality and agility. After all, being able to move anywhere without depending on anyone is wonderful. Have you ever thought about the idea of a car being considered an investment?
We can tell you right now that it is not. Many people believe that it is an investment because it is possible to sell it later and get some of the money back, but that is not how it works.
After all, what is investment?
Many people think that buying a car is a way to “invest” in their comfort. But that’s not the concept of investment.
An investment is something you invest money in, expecting to get some return. In other words, you invest a smaller amount of money than you will receive in the end. This profit can be obtained through interest from an investment or the sale of assets, for example.
In this context, the idea of a car as an investment is unfounded, since, in reality, owning a vehicle entails expenses, not financial returns. If the car is used for work, the person can make money with it. However, it is still not an investment, but rather an asset for your business.
It is also worth noting that a vehicle, as soon as it leaves the dealership, suffers a cost called depreciation in the market. This loss is around 15% to 20%. This means that a car that cost R$$60 thousand in the dealership is now worth around R$$50 thousand just because it is on the street.
Over the life of the vehicle, depreciation only increases, as the vehicle undergoes natural wear and tear. In other words, a vehicle purchased for R$1,400,000 can be sold for up to half the price a few years later, depending on the situation.
What are the costs of the car?
You've probably already realized that a car is not an investment because of the depreciation it suffers as soon as it leaves the dealership, right? But it doesn't stop there! In fact, the financial management of a vehicle requires rigorous planning, because even when kept parked in the garage, it implies ongoing expenses.
One of the most important factors is car insurance. Although it is possible to save money, there is no denying that insurance in Brazil tends to be quite expensive and the bad news is that insurance tends to increase as the car depreciates.
We can't forget about the price of gasoline, which has become increasingly expensive, as the Conta Corrente has already announced. Another expense is maintenance. The best way to save money is to adhere to preventive maintenance, but you can't ignore possible incidents.
Have we mentioned vehicle documentation? Every year, expenses such as licensing and DPVAT need to be on the driver's radar. Therefore, considering a car as an investment is not appropriate.
“So it’s not worth buying a car?” It really depends. The important thing is to plan all possible expenses and calculate whether you can save money by opting for Uber or public transportation. If a vehicle is essential, don’t forget to organize your finances to cover all expenses.
