Some say buying a car is to throw money out of the window, but in some cases it can be the complete opposite.
Here we are going to look at different ways it is possible to make money on cars.
The most obvious one is through appreciation over time. This usually happens to classic or rare collector cars.
Older Ferraris and air-cooled 911s are good examples of this, but also more modern limited edition models such as the Ferrari F12 TDF have risen in value due to rarity.
A lot of factors contribute to a cars appreciation such as rarity, race history, performance, iconic styling, cars featured in movies and nostalgia.
Buying a car and selling it in a different market, also known as arbitrage is another used method.
Here the money is made simply by selling the car in a marked where its value is higher.
Buy to fix and sell can be very profitable if you are skilled at fixing cars.
Sometimes many cars can be sold at a very cheap price because of very small problems that can be fixed easily if you are a decent mechanic.
There is always however the risk that you unintentionally end up buying a lemon that requires many expensive fixes and eats up all of your profit.