Restoring old cars - is it cost effective?
Renovation of old cars is a very profitable venture, especially when really we gain experience in this matter, and cars leaving our workshop turned into real gems automotive industry. While many people engaged in this activity are people who have no training in this area, it does not mean, however, that renewed their cars are worth nothing. Not only that - very often replace an old car in a modern and luxurious car turns out to be really gold investment. No wonder that the number of people interested in restoration of stylish and often very old cars is expanding from year to year.
Public costs - car issue
The external costs of automobiles, as similarly other economic externalities, are the measurable costs for other parties except the car proprietor, such costs not being taken into account when the proprietor opts to drive their car. According to the Harvard University,11 the main externalities of driving are local and global pollution, oil dependence, traffic congestion and traffic accidents; while according to a meta-study conducted by the Delft University12 these externalities are congestion and scarcity costs, accident costs, air pollution costs, noise costs, climate change costs, costs for nature and landscape, costs for water pollution, costs for soil pollution and costs of energy dependency. The existence of the car allows on-demand travel, given, that the necessary infrastructure is in place. This infrastructure represents a monetary cost, but also cost in terms of common assets that are difficult to represent monetarily, such as land use and air pollution.
About automotive industry
The automotive industry is a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.1 It is one of the world's most important economic sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations.
The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. This term was proposed by SAE member Elmer Sperry