Why do people invest in cars? How important are cars in the life of an individual? Can we consider a car an investment or is it only a luxury? Almost everyone wants to have a car of their own. They don’t just buy a simple car, but those cars that are in style and go with the fashion. Such cars cost a lot of money, but these people are willing to pay the price for nice wheels. After buying a car, buyers sometimes add additional features to their cars to make them more attractive and more convenient to use. Some people change the car’s color, others install high-tech features like DVD players, sub-woofers, or LCD monitors. This is how technology affects these simple cars.
Now the question is, “is a car an investment or not?” If we look at it simply, we can say that sinking a lot of money into a car is only for luxury and not for the purpose of investment. Why? Because paying a lot of money for a car can only cost us money; it cannot give us an income in return. That is true. Buying a car can only drain our cash-flow–especially with taxes. But there is a type of value provided by a car that cannot be found in other things. And that is the comfort that it can give to us in terms of transportation.
Investment doesn’t mean that when the money goes in more money will always be what comes out. There are more kinds of payouts than cash payouts. Encarta Dictionary defines investments as money invested: an amount of money invested in something for the purpose of making a profit; a contribution to activity: a contribution of something such as time, energy, or effort to an activity, project, or undertaking, in the expectation of a benefit, purchase: a purchase, especially something that somebody should be able to use for a relatively long time. It simply means that buying something, a car for example, can be considered an investment. Even placing your effort in something that can provide you a future benefit is considered an investment.
Buying a car costs you a certain amount of money. But you invest your money not for nothing. The gain that you will receive is the comfort and protection only a car can provide. It can give you convenience in terms of transportation and travel. A car, considered as an investment, should be taken care of and should also be protected by car insurance [http://www.1carinsurance.org]. This thing should be taken care of so that it can provide you your desired comfort for a longer period of time.