JOE: Journal of Ellen

Matters of Home, Cash, Career, Me, and More

November 8, 2012 Savings and Investments , , ,

Investment Ideas: Buying, Swapping, and Selling Used Cars

I don’t like keeping my money in the bank. I just don’t feel that it’s safe there considering that banks here do not offer a great deal of insurance and you would have to go through tons of meetings and papers – not to mention a lot of waiting – in the event that the bank you have trusted suddenly closes without any warning whatsoever. I also think that the interest rates in most banks are too low so I am trying to put my money to work – in other ventures.

I have been trying to think of a business which we would be able to manage but the thing is, we (hubby and me) are just so preoccupied with a lot of things now so we can’t launch some demanding business that would require a lot of time and effort from us (We have 3 kids, no nanny, and I have tons of online work). That’s why we have opted for a semi-passive way to save and profit a little bit since my blogs started earning more this year. We have decided to buy and sell cars.

The first car we got is a Daewoo Racer 1996 February this year. This costs roughly $1,300 and we didn’t pay this in cash. Hubby spent a lot of time cleaning, repainting, and polishing it so we could resell it at a bit higher price. We also had to replace a number of parts and we added some accessories.

After three months of owning the Daewoo, we decided to swap it with a Toyota Corolla AE92. We added cash, roughly $500. I think we didn’t profit from the swap but at least, we got the chance to start the ‘investment’ roll. Again, hubby spent time ‘designing’ the car and we had to have some parts replaced and some engine issues fixed. We added car accessories here and there. After a month or two I think, we sold this one for almost $2,200. Again, we didn’t earn from the sale.

The next car we bought with the money I earned from blogging and the sales we got from the Toyota Corolla was a Honda Hatchback 1993. It costs about $3600. It was a good buy considering that we didn’t have to fix anything with it. Hubby just added a few accessories, changed some lights, and we were able to sell it for $4250. That was the first time we actually earned a bit for selling our car.

With the $4250, I added my blogging earnings, and we were able to purchase this Honda LXi 2000. We invested $5,150 on this. Again, this car had no issues, nothing to fix whatsoever and we just decided to add fog lights, a front chin, tons of stickers, etc. After three months of use (the longest car we’ve owned) and long travels, we sold it for $5500.

We owned this Honda Fit 2003 (Honda Jazz – converted version from Japan) for a day. It costs almost $6,400 and it was not a good buy. We decided to return it to the seller because it had issues with its aircon system and local registration. It was also not as fuel-efficient as we expected so hubby thinks that there is a problem with its engine.

Since we had trouble with the converted version (Honda Fit), we decided to buy the local Honda Jazz 2005 just this week after some sleepless nights of work. LOL. It costs $7900 and I think it’s very much worth the price! I hope we can sell it a bit higher price after hubby does some improvements.

I actually don’t know which car will we buy next but I am hoping that by this way of saving, buying, and selling – and by earning more through my online jobs, we’d be able to save enough to buy a home of our own soon. When we finally accumulate $30,000 more or less, I plan on hunting for foreclosed or for sale houses online (one with a big lot area) and just do some renovations as we earn and save more in the future. At this point, I don’t plan on buying a brand new house and lot because most houses sold these days have very small lot areas. I hate getting a mortgage loan too because I’m trying to avoid the very high interest rates of real estate investors. Wish me luck in my plan!

3 to “Investment Ideas: Buying, Swapping, and Selling Used Cars”

Trackbacks/Pingbacks

  1. […] seems to be a bit impossible. I probably have to be more patient and wait til 2014 because I can raise enough funds for a home of our own. That would be the best Christmas gift I could get myself. Be Sociable, Share! Tweet […]

  2. […] NO. 2: A Car My plan is to keep on selling/swapping our car and adding my savings until we’ll be able to accumulate enough funds to purchase a home of […]

  3. […] still have a Nice Car by the end of the […]

  1. Random Thoughts: Christmas Is NEAR, Are You Ready? | JOE: Journal of Ellen says...

    […] seems to be a bit impossible. I probably have to be more patient and wait til 2014 because I can raise enough funds for a home of our own. That would be the best Christmas gift I could get myself. Be Sociable, Share! Tweet […]

  2. Stuff I Wish To Have Between December 2012 to June 2013 | JOE: Journal of Ellen says...

    […] NO. 2: A Car My plan is to keep on selling/swapping our car and adding my savings until we’ll be able to accumulate enough funds to purchase a home of […]

  3. JOE: Journal of Ellen says...

    […] still have a Nice Car by the end of the […]

Leave a comment