The Chrysler Experiment

Buy the Honda it’s the best. No, buy the Toyota it’s the best they screamed. Another said I would rather be dead than drive a minivan.

I took another approach when we bought a car when we moved back to Canada. I wanted a minivan, I love the things. I can load up my sporting gear, take stuff to the dump, haul large items from Home Depot and when friends visit from Europe we have room for everyone. When we go camping if it rains too much, no drama, flip the seats down and it becomes a chavvy hotel. There is a lot to like.

Now before we go any further we need to quickly review our Immediate Action Drills for transportation:

1. Feet: Short trips walk. Our nearest grocery store is just over one mile. Last night it was -8C and we needed a small item. It’s unlikely you will remember this young lady in years gone by but we walked along the ridge top taking the marginally longer route and we saw a coyote and several rabbits with our flashlights. It was a really enjoyable  walk with you, lots of laughter/giggling with a fair bit of whinging at first to get you out the door. But once we got going you said you really enjoyed yourself and want to go again today. RESULT!

2. Bicycle: For slightly longer trip the humble bicycle with trailer should we need to carry anything.

3. Public transport: In Calgary they raised the price to $3.15 for a single adult ticket in January. An absolute bargain to get all the way across the city.

4. Driving: For long distances and really heavy stuff.

I am a fan of buying mid range and at the best possible price.

I bought a Chrysler minivan. I could have easily bought the Toyota of the Honda (remember we always pay cash, we never ever finance depreciating assets) but they were both just under $11,000 more out the door. There is no doubt that the Japanese makes are more refined vehicles and have likely better reliability. But I am betting that over 10 years of ownership I am unlikely to need an additional $11,000 in repairs. I am not bothered by the resale value as I keep cars until they die.

So I wanted to illustrate a point. What happens if we invest the $11,000 instead? That’s exactly what we did. In August of 2014 I purchased 45 shares of Visa at a total cost of $10,850.28 CDN. More importantly I expect Visa at an absolute minimum to double in value over 10 years and hopefully we will use those funds to purchase another vehicle 10 years from now.

It all comes down to the most basic consumer decisions of delayed gratification. If I don’t spend the money now and instead I invest it in high quality assets, what will become of it? Lets take this journey together.

I will aim to report back every 6 months or so.

 

As of the close of business of 27 February 2015 our 45 shares of Visa is valued at $15,283.91 CDN. This is to date a 41% increase. Some of that is not down to the growth of the stock price but rather the plummeting value of the Canadian dollar with the recent drop in oil  prices. So don’t get too excited yet, we are in this for the long haul and share prices can fluctuate wildly.

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