One of the more interesting economic fallouts from the global pandemic is the impact it’s had on used car prices.
Rental car agencies sold a good portion of their fleets when global travel shut down last spring. A semi-conductor shortage has slashed the production of new vehicles.
Now that travel is slowly returning, rental car agencies can’t get the new cars they need so they’ve been buying used cars. Lengthy wait times for new vehicles have other car shoppers looking to the used car market as well.
The result is soaring prices for used cars.
That gave this money blogger the idea to dust off (literally) his 2007 Hyundai Tucson and sell it.
My wife and I work from home full-time on our business. We live five minutes from our youngest daughter’s school, and our oldest daughter catches a bus nearby to go to her school. We order groceries online and have them delivered (the best $4.95 service fee we spend). Kids activities had been mostly curtailed this past year but even when they return we can easily manage them with one vehicle.
The Tucson hasn’t moved for 20 months. It only has 111,000 kilometres on it. Kelley Blue Book says I could get $4,500 to $5,000 for it. Not bad!
It’ll take a bit of work to clean it up, and it needs a new battery. But there’s never been a better time to sell it. And I think we’re ready to become a one-vehicle family.
This Week’s Recap:
I received some terrific feedback from readers on my Coast FIRE article this week. I really appreciate the comments and emails. It sounds like the concept of Coast FIRE really resonates with many of you.
Last week I shared how to reframe the RRSP advantage by focusing on the average tax rate in retirement.
From the archives: Changing investing strategies after a market crash.
Promo of the Week:
I’m awash in Membership Rewards points and Aeroplan miles thanks to several almost unbelievable offers from American Express. There’s still time to grab one or more of these cards before the offers end August 3rd.
American Express Platinum Card – Earn up to 150,000 bonus points: 70,000 when you spend $6,000 in the first six months, plus 10x points on groceries and dining (up to 50,000 points).
American Express Aeroplan Reserve Card – Earn up to 100,000 Aeroplan points + 10x points on groceries and dining up to 50,000 points. Also, enjoy benefits like Maple Leaf Lounge access, an annual Worldwide Companion Pass, and priority airport services.
My strategy is to spend $1,000 per month on each of these two cards to maximize the grocery & dining points multiplier and meet the $6,000 minimum spend in six months. Granted, this is easier to do at grocery stores that accept American Express cards (Save On Foods, Sobeys, and Safeway) so your mileage may vary.
Max out both cards after six months and I’ll have 150,000 Membership Rewards points and 150,000 Aeroplan miles. I’ll convert the Membership rewards points to Aeroplan (giving me 300,000 miles) and aim to redeem them at 2 cents per mile.
That adds up to $6,000 in travel rewards for $12,000 in grocery and dining spending over six months. Subtract the hefty annual fees ($599 + $499 after redeeming a $200 travel credit) and I’m left with a net of $4,902. As I said, almost unbelievable.
Our friends at Credit Card Genius have a great line-up of rewards cards that comes with a free $100 Amazon.ca gift card upon approval.
As travel slowly starts to open up, travel expert Barry Choi shares the best currency exchange options for travellers.
Erica Alini at Global News looks at the stealthy kind of inflation known as ‘shrinkflation‘ that’s reportedly on the rise.
Jesse Cramer at The Best Interest blog explains why investing at all-time highs is still a smart strategy.
Now, if you’re a net saver in the years ahead, you should be hoping for a market crash for better buying opportunities.
A look at the quest for the investment Holy Grail – an index of everything:
“A true ultimate index would go further, including other big asset classes, like commodities, and even private assets that do not trade on an exchange, like real estate, infrastructure, bank loans and stakes in hot Silicon Valley companies.”
Nelson Smith shares a short history of everyone who’s been wrong about Canadian housing.
Here’s Alexandra Macqueen with a terrific look at how this retired couple can spend their savings in a tax-smart way.
Most people want more financial literacy taught in school, but here’s why stock picking games in schools are harmful.
A better idea would be to spend 12 minutes watching this excellent video from PWL Capital’s Shannon Bender about how to choose the right asset allocation ETF:
Why early RRSP withdrawals can lead to a lifetime of regret.
I quit. Why a wave of resignations is prompting concerns over a labour shortage.
Many young retirees are giving up urban living for the small-town life, and, in many cases, lower house prices.
Millionaire Teacher Andrew Hallam looks at whether you should buy a stock that’s poised to join the S&P 500.
My Own Advisor Mark Seed looks at the emotional side of early retirement, including the key question of how will you structure your time.
Finally, seniors aged 75 and older will receive a one-time $500 OAS payment next month as part of a plan to boost old age benefits over the long term.
Have a great weekend, everyone!