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My son wants to borrow $1500 from me to buy a 1999 4 litre Ford Falcon.

He is saying that he could sell it for at least $1000 profit.

Would this be an investment or a risk?

Corinne

From the "Ask Jack" archives - 14 December 2009

It's very hard to say without knowing something about the general condition of the car. One thing is for certain however, bigger cars have dropped in value as people look for more economical vehicles. Yes, there is still a market for the bigger vehicles but it is not as good as it once was.

Is this car road legal and does it have a new WoF (less than 1 month old) is one question I would be asking.

If the car is in need of a bit of 'love & care' then it would not be hard to spend another $1500 to be honest.

Cars are very rarely an investment, and a nine year old Falcon would in my view be classed as potential high maintenance rather than high risk.

Once again it would depend on the odometer reading and general condition.