How to trade up for nicer things.

This works in all kinds of areas, from small items all the way up to homes and beyond I suppose. In my instance today it is related to my ever changing vehicles.

Earlier I've blogged about how much I like cars and trucks, Chevrolet is my car of choice, but I like about anything with 4 wheels.

Last winter during my slow months I found a place, Copart.com, and signed up to be a buyer. I bought a few cars and made a few bucks. By the time I bought my 1999 Volvo for $575, I had made that much in profit so the Volvo was free and clear. Without over explaining, with fees, repairs, and other things cars invariably need during ownership, I am ALL IN (I love poker, especially Texas Holdem) for about $1100.

I love the Volvo, but I need a truck.. it's hard to be a handyman in a Volvo, as sweet as the car is to drive. So for about 6 or 8 months I have been looking for a shortbed, regular cab, chevrolet with a V8 and an automatic transmission... and as is my style.. at a great price! If you think I took my time, I didn't! I looked almost daily.. try finding one if you don't believe me. (And if you don't want it, email me! haha)

This week I finally found it! It is all of the above, and I'll go more into this in a post soon, but it "had all the RIGHT things wrong with it". And to save the full explanation til another post, by RIGHT I mean things I can do, or like to do, but that affect the price of the vehicle.

I gave $2200 for this truck, and being an expert in value (you'll become one too when you spend 6-8 months looking for something) I know I can re-sell it right now for 3000-3500 dollars.

So you say.. I'm still out the $2200. Not exactly. Being a minimalist, at least the best one I can be, I can only have 1 vehicle. (when I get better it might be NO vehicle, but that will have to be later) And we arrive at aforementioned Volvo.. which I just sold on Craigslist for $3000.

So, I sold a car I bought on profits from a hobby, used to money to buy a vehicle I need (and like) and put $800.00 in my pocket. What do I have now? An asset in the $3-3500 range plus $800 cash, all derived from doing something I enjoy. All with NO debt, and loosely speaking, no depreciation. (since I bought under market value, will enhance the value with repairs and TLC, and there is a bottom to depreciation eventually or at least it becomes marginal)

It's fun to do things differently. I know it's different, because the big news this week is that General Motors paid back 8 BILLION dollars in loans. Business is booming in the new car industry! If you're lucky enough to buy without DEBT, you won't be as lucky with depreciation.