Many people share the belief that buying a car is a good investment because it is part of their financial goals. Surely you’ve heard it before, first the car and then the house or the apartment. Although this approach pursues the security of an estate, as it is high value assets, a credit commitment of several years must be assumed for its liquidation.
Today we will share one of those success stories:
We will call our client Juan. Juan decided to sell his Golf GTI 2010 car in March 2018 and invest the $ 240,000 pesos earned in Casa Company. Over the course of 12 months, he allowed his investment to pay off, achieving yields of $ 38,400. However, its transportation expense was $ 192.50 pesos per day, which added up to $ 70,260 in total.
After a year, Juan obtained $ 278,400 pesos from his investment, less the cost of his transfers, he was available $ 208,140 net. Initially, it would seem that our protagonist made a bad decision because at the beginning he had $ 240,000 and had he kept his car, he would not have had to make extra expenses in transfers, do not you think?
Let’s look at the opposite case:
Let us think that Juan did not sell his car and in March 2019 the cost of the car would have been reduced to $ 216,000, according to data from the Blue Book, resulting from the depreciation of the asset. Up to this point it seems that it would have been more convenient to keep the vehicle, however, we must subtract other expenses that occurred that same year.
After 12 months, Juan would have spent $ 13,200 on gasoline, equivalent to $ 253 pesos per week. Additionally, other disbursements such as $ 4,356 for tenure, $ 11,844 for car insurance, $ 972 of the corresponding checks and approximately $ 626 pesos per month or $ 7,512 per year for general car services would be accumulated.
By adding up all the expenses of the car we get $ 37,884 which, when compared to the current value of the vehicle, results in $ 178,116 net pesos. This means that both depreciation and everything that involves the maintenance of the car damaged the total value of Juan’s good. Interesting, right?
Once we review both scenarios, $ 208,140 compared to $ 178,116, we see that the distance of $ 30,024 pesos will continue to increase because the following year investments will continue to generate returns while the car will continue to depreciate. Juan made the good decision to invest in Casa Company, since his capital will continue to grow, he will recover the value of his car and get more profits.
Like Juan, you could be the next success story. If you have accumulated money and want to avoid losing its value, come to us and invest in Casa Company.
If you currently have problems with your auto credit, please come to us and an advisor will provide advice on your case.