Can Vehicle Purchases Be Considered as Financial Investment Tools? Evidence from Türkiye
Chapter from the book: Şahin, C. (ed.) 2024. Current Financial Developments and Practices.

Mustafa Koç
Sakarya University

Synopsis

This study investigates the hypothesis that purchasing brand-new vehicles can serve as a viable financial investment. An analysis of 17,285 second-hand vehicle listings for a specific brand and model was conducted using a case study approach grounded in empirical data. The findings reveal that an individual who purchased a vehicle in February 2020 and sold it in October 2023 would achieve a 540% return. This significant appreciation shows that, under certain market conditions, vehicles can be highly profitable investments. The study also highlights differences in returns between automatic and manual transmissions, indicating varying market preferences and demand dynamics. This variability emphasizes the importance of considering vehicle specifications and market trends when making investment decisions. Additionally, the research concludes that buying a vehicle in 2023 is consistently profitable, regardless of type or model. This consistent profitability underscores the strength of the automotive market during this period. These insights suggest unique investment opportunities in the automotive sector, influenced by supply chain disruptions, economic conditions, and changing consumer behaviors. Based on these findings, several recommendations are provided to help investors optimize returns in the vehicle market.

How to cite this book

Koç, M. (2024). Can Vehicle Purchases Be Considered as Financial Investment Tools? Evidence from Türkiye. In: Şahin, C. (ed.), Current Financial Developments and Practices. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub494.c2072

License

Published

October 26, 2024

DOI