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Which enthusiast car in India is a good financial investment?

In general, performance oriented models have worse resale in India due to perception of high maintenance, abuse and low sales, which makes them depreciation disasters. Exceptions are very rare.

BHPian PrideRed recently shared this with other enthusiasts.

Good investment to me should let you enjoy(give returns timely) and at the same time, appreciate. Cars are depreciating assets, however there are some cars which appreciate a wee bit or have minimum depreciation. Some cars that fall in this category are Innova, Swift, Bolero etc. These are in no way performance cars but have good resale, due to reliability, utility or cheaper cost of running/maintenance. You list these cars for sale and will keep getting numerous calls everyday, even after the car is sold.

Other than these well known resale champions, there are few other cars which command good resale value primarily because of the performance aspect. These cars were sold in limited numbers and hence not easily available. Of course, beyond certain period, these car lose value due to lack of spares, cheaper/newer cars offering similar or better performance. Some of the cars in this category:

  1. First gen City Vtec
  2. First gen Octavia vRS
  3. Palio GTX/1.6
  4. Fiesta 1.6 S
  5. Polo 1.2 GT TSi/ GTi
  6. Ford Endeavour 3.2(Not limited edition, but still commands decent resale despite Ford exit)
  7. Octavia RS230/245
  8. i20/Venue N line(Too early may be?)
  9. BMW 330i
  10. Duster AWD

Even though these models didn't set sales chart on fire, well maintained cars command good resale. Not to forget, good discounts offered by dealers on some these cars makes for sweet deal. These cars offered performance which was unheard of in the segment and have been enthusiasts favorite. While buyers enjoyed driving these cars, they also got a decent resale despite some of the cars not performing well in terms of sale. Of course not everyone would have got good price, which would vary depending on car condition, demand in your area, years/KM's of usage etc. What are your thoughts ? Do you think these type of cars offers perfect balance while letting you enjoy the car without huge depreciation?

Here's what GTO had to say on the matter:

Buy performance-oriented cars for the joy of driving + driving pleasure. All cars are money-losing pits (with very rare exceptions). In fact, some of the cars on your list are expensive to buy and very hard to sell, because few people are interested in them.

Get a good car and drive the pants off it . The fun, memories created, laughs & grins are your ROI.

Here's what BHPian cs_rajesh had to say on the matter:

Well my colleague, and neighbour too, has picked an Octavia RS230/245, made in germany tag and he is extremely happy with that car and even shows off in his relatives and friends' circle. The car's performance is extra-ordinary with no such similar sedans on the market and everyone loves to have an opportunity to drive and some want to pick similar one too. Unfortunately the imports are too less and rare.

Here's what BHPian sunikkat had to say on the matter:

Atleast in India, the resale is driven by reliability, ease of maintenance, the service support etc. and not by whether the car is very enthusiastic to drive or not. I guess VRS 230/245 is an exception to this.

From my experience, I can say Fiesta 1.6s did not command any additional resale value atleast in 2010. Now with Ford shutting shop, I would expect it only to go down.

Here's what BHPian Mortis had to say on the matter:

Pretty much all these cars aren't really collectors cars in the true sense.

As such there is a 50-50 risk that you will get either better than usual or worse resale on these due to various factors. Also you will only get the benefit in resale if you sell the car "early". But if you keep the car for a longer period of time and actually enjoy it then the difference in resale between a similar car will have reduced to a much more insignificant degree but it will be better value as you would have gotten a lot more miles of smiles.

As GTO said. Enjoy the car while owning it rather than thinking about the resale value. That aspect is more relevant to aam aadmi cars rather than enthusiast cars like putting on seat covers on day one to save the seats for the next owner

Here's what BHPian Shreyans_Jain had to say on the matter:

Cars are not investments. Period.

They are all depreciating assets. They WILL loose value over time, that is a given. No matter what you buy, you will not get any kind of monetary growth out of them. They cannot be considered as or compared with investment.

In general, performance oriented models have worse resale in India due to perception of high maintenance, abuse and low sales, which makes them depreciation disasters. Exceptions are very rare.

Here's what BHPian jbpanda had to say on the matter:

You may like to add Abarth Punto to the list. It did not sell in numbers but as a proud owner I can assure you that it’s very hard to find a suitable replacement today even if you are willing to spend double or triple the price for which it was available for. I understand that well maintained Octavia vRS and Abarth Punto have a decent resale value. Unfortunately, in India we all aspire to own a Horse but when it comes to putting in our money, most of us settle for a Cow.

Read BHPian comments for more insights and information.

 
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