Why You Should Trade Your Car In For a Cheaper One In This Hot Used Car Market
And so, yes you read that line correctly, I am training in my currently $22,000 valued car, for likely a $7000 Honda Civic. Why am I doing this, aside from the fact that I don’t necessarily trust the CVT transmission of the Nissan Altima, giving a prior scare with the car, what I will say, is that I am looking forward to putting an additional $11-$14,000 in the stock market, due to this trade-in between my car. I also think that a Honda Civic, even one with 100,000 on it, it’s something that can last me a lot longer than my current car. Not only will I not have to buy a new car in several years hopefully, and instead will have a vehicle that last me for hopefully a decade or two, but also can I profit $10-$11,000 I’ll cash right now for this trade. With inflation as high as it is, and the Used Car market as high as it is, I think this treat makes sense to do as a deal. I have learned something over the last couple of weeks, and it’s that money is a game, it’s all just a game, and whoever plays the game best wins. And so, in this blog post, I’ll tell you why I am likely going to trade my cars for a cash for keys deal at $6300 for Honda Civic this weekend, and why am excited to rake in an extra $11,000 in profits.
Why The Used Car Market Is So Hot Right Now, And Why I Would Like To Put Some Extra Cash In My Pocket
The used car market is somewhat like the stock market. Uber is the same way, SC always similar to this, and even betting on eBay or Amazon products has the same affect, it all trades based on supply and demand, just like a stock market. In this case, we have the Used Car market being extremely propped up. And while I don’t exactly know off of the top of my head as to why the used car market prices shut up so much, what I know is that for right now it feels crazy to not take it vantage of this hot car market. A few thoughts as to why I am doing this or below
Even if it doesn’t work out and the Honda Civic goes bad, I still have an extra $11,000 in my bank account, and the car that can likely last a long time with some mild repairs. In looking at this scenario, even if the Honda Civic needs a new engine or a new transmission, I still come out ahead, because the car is going to last longer than I think my Nissan Ultima well, and because I’ll be able to put away a bunch of cash and get market appreciation and dividends on the money. My immediate plan is to take the $11,000 in profit and immediately put it into the S&P 500 in the stock SPY, and start collecting dividends on it. This along with the money I have sitting in cash will give me a very noteworthy portfolio, and will allow me to keep pressing forward. I love doing deals like this, where it feels like a win-win situation, and the only thing that I’m worried about is that I won’t hate driving the car, and then I’m not getting completely screwed on the deal.
I will admit, there are some downside risk to doing this, these include
Decreased safety features do to an older car
Driving around a vehicle at a lower cost
Final Thoughts On Why You Should Trade Your Car In For a Cheaper One!
Keeping this post short and sweet, I would highly recommend trading your car in right now while the market is hot. I have a friend driving around in an Infiniti Q60 sports car that is brand new and worth like $50,000 right now. If I had that I would trade it in overnight and pocket the money, putting it into the stock market and driving around the used car for awhile. I am hoping the Honda Civic lasts me for like 400,000 or 500,000 miles, at least that’s the goal. For more information on all things money, read on or subscribe to our blog for additional details and information.
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