Investment in a good car is a necessity.After keeping a few years ( varying from 2-5),people change care and go for newer and better models.The investment on cars thus continue for a long time and go on increasing as time goes on.Due to this, we have to think ways and means of increasing the returns of our investment on our vehicles.

Excellent condition of a car fetches it a better re-sale value than the average market value.The re-sale value obtained can be used as a measure of the returns on the investment.After deducting the depreciation in value (which is a function of the age and condition of the vehicle).The re-sale value obtained can be considered as plus points of the initial amount invested.To maximize the re-sale value,we need to maintain the car in excellent condition.

Regular maintenance of the car,timely oil changes along with the oil and air filters,brushes,break pads and bushings,spark plugs etc are compulsory.Schedule the service regularly every 3000 miles or so( often specified by the car maker and there is a need to comply with it) and preferably with the same service centre.This helps the car to run and look well,can fetch a good re-sale value.

While in use,the services offered by the car are tangible benefits on your investment.The mileage given by the car is a good measure.Better mileages can be obtained from cars which are well maintained.The amount of money spent on fuel,oil,tyre changes can be made an optimum.This is another way to maximize the investment on your vehicle.

Insurance benefits. The premiums to be paid for insurance can be reduced on cars which had no accidents,no major break downs ,repairs etc.Run and use the car carefully and our premium payments will start going down.

Anti theft devices. Instal these in the car so that your CD palyers and other accessories are protected well.These accessories also will add to the re-sale value on your car.

If you have no thoughts on changing the car after the standard three years,then keep it for longer periods as your constant companion.The amount of time you keep the car after depreciation period runs out,is a profit and return on the investment.This has maximised your investment returns on the vehicle.For example,if average depreciation is 25% per year,after four years the value of the car theoretically becomes zero.Hence if you keep the car for 6 years,it means you had a car free of cosr for two years.

The above are a few points that are useful to maximize the benefits and returns of investing in cars.

Learn more about this author, Madhusoodanan.K.P..
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