Are you looking to purchase a luxury vehicle? Have you considered hiring may be the better option?
Luxury Cars have increased in sales since 2014. Luxury vehicles have steadily increased in their desirability as well as, actual sales numbers. Those which are considering the purchase of a luxury car may want to consider additional options, however. While the sales numbers do reflect a growing market, they do not advocate that luxury cars are a solid financial investment. Hiring instead of buying has several both financial as well as practical benefits.
Investments are based upon the RIO yields which one hopes to have after initially putting capital into an asset. While the return on investment may be high for business mergers, real estate, and other sectors, when it comes to vehicles, the depreciation value and the ROI for the investments are rather low. In fact, consumer reports have shown that the moment a vehicle leaves the sales lot, it depreciates substantially in value. Over the course of three years, a vehicle can lose up to 45% of its net worth. For the purchaser who is considering spending £160 on luxury cars. This equates to a loss of £72000 on the initial investment.
Due to the gross depreciation value, the ability to make a profit from the sales of a vehicle is rather slim.
Theoretically, a person could use the capital interest from other investments to pay for the hire which would, in turn, pose little risk to the person wanting to acquire the luxury cars for a time. As the interest from one investment is not apt to cause financial gain or ruin for the individual, and as there is a high probability that the investor will have other dividends coming from other assets, this is ideal. Consider. If an investment yields 10% interest on the return and the percentage of the hire is equivalent to 6% per term. Then the capital interest can pay for the hire and still yield a 4% increase to the overall finances of the individual.
Even a person who takes care of his or her luxury cars extremely well will see a decline in the gas mileage of the car as the years go by. It is just one of the downsides to owning a vehicle. Investing in hiring over buying allows the person to have higher odds of higher MPGs. The reason being this. As the person who offers luxury cars wants to appeal to the luxury class, vehicles with high mileage are unattractive (as they tend to have more cosmetic and performance issues). Therefore, hiring options are typically low mileage and offer higher MPGs. Even if hiring from a smaller company, the likelihood of having better MPGs, is high as the company in most cases will reserve the luxury vehicle for clients and not everyday usage (which a purchaser would typically use the vehicle for).
Owning luxury cars has a high level of maintenance associated with the purchase. While a vehicle for hire does require a level of responsibility. Maintenance is carried out on the vehicle by the vehicle owners saving you the hassle of maintenance. Granted, minor maintenance and stewardship are expected. Again, the financial risks are minimised. Whereas a purchase of a new luxury car will be bound to the costs of all repairs and maintenance. The person which uses a hire vehicle will be issued a new vehicle should repairs be required.
Perhaps one of the greatest advantages of hiring instead of buying luxury cars is in the shifting of luxury trends. Often, with new models released, this year’s luxury car may not be next years. Having the option to change to the leading luxury car is ideal. Yet, for a person who just spent £160000 on a car, the ability to have the newest automobile may not be an option. Why not try our Luxury Car Hire option?