Thinking of selling my car

[Kapy]

I have recently got the bug to develop wealth. I came into this car able to afford it and I still very well can. But the possession does nothing for me other than bring a little joy. That money could be making money for me. A lot of guys are older and have been wealth builders for some time but I am barely starting to see more clearly and material possessions don't make money. I also have like $60,000.00 worth in Jewelry I am going to be selling soon. I want to make smart financial decisions now while I am young so that I can have more freedom throughout my life and when I retire. I am far from being financially savvy and over the past 4 years have been more of a train wreck financially. So what do the smarter more experienced wealth builders think here. Im not looking to make 20K into 1 million. Hell I'd be happy to make 500 out of 10000. As long as it compounds and continues to grow. I have a lot of work and studying to do but my goals are realistic and when I'm old and gray I can get a Shelby, and if I can't at least I'll have my sanity and freedom. I think it's time to dump the car and make my money work for me. What does everyone think?

I understand your position totally. But......should have never bought the Shelby thinking it was going to be a financial boom.

If at best, 20-30 years from now the car will bring back some significant return, which I believe it will. But what is significant to some is not to others.

I feel if this car reaches value of $150,000 plus in the future we all will be doing pretty well. Just depends on many factors. Like:

1. Economy, surely everyone on this forum can understand that.

2. Overall public interest in automobiles. I feel this will always exist, but at what extent. Cars were once looked at as mechanical marvels, unfortunately most people view them as a necessary means to move to one point to another and are more interested in what creature comforts and amenities the car offers vs. it's performance and character.

3. If North Korea decides to Nuke us all, well then none of this matters. Which brings me to my last point. Buying and enjoying cars like this are not meant to think about the future, but to think purely about the present and how much fun you can have while you are here.

BTW, North Korea will never Nuke us, because we will have plenty of opportunity to kick their ass quicker than Kim can say GT500.

*Point 3 is of course supposed to be funny and hopefully uplifting

Keep the car and enjoy it. Unless it doesn't put a smile on your face when you drive it, then I would sell it.

 

[Bllit11]

All I can say is enjoy the ride i'm 50 and I never could afford a car like this when I was younger. I know I will get flamed for saying this DON'T PARK IT AND TELL PEOPLE YOU HAVE ONE OR IN THE FUTURE I HAD ONE. Think about the future when you have younger people saying man I wish I could've bought one of those. You can tell them the stories of what it was like to drive it not to look at. I love mine and I drive it.

 

[IA Shelby]

Well, if you decide to keep the $60K in jewelry than you can transition into being a pimp pretty easily. (J/K)

Sell the toys and get yourself squared away.

 

[dmaxwellh]

"Going from the GT500 to a Prius may be too much of a shock to your system to follow through on"

I don't know about that. I have a Prius as my DD and the Shelby for the occasional joy ride... They are both fantastic in quite different ways!

 

[mustangc]

You just took your first step out of the middle class and into becoming wealthy. $60k in assets going up in value will have a positive effect on your net worth, unlike a $60k asset that is depreciating.

Kenwood is right on the money, pardon the pun. Building wealth, and keeping it, is like cooking in a crock pot (slow and steady). You must have long term discipline. How is that possible? You don't have to lock yourself in a room and only come out on triple coupon Thursdays. Create a written plan on paper on purpose every month. Allow yourself a little blow money for having fun. The budget keeps you on track AND removes the guilt: because you planned for fun and you know it's not destroying your wealth-building plan.

My advice to you is to avoid debt, live on less than you make, and maintain honesty and integrity in everything you do. Oh, and read at least one non-fiction book a month.

There are many ways to build wealth once you've freed up your income to do so (mutual funds, real estate, business investment, etc). The choice is yours.

Aword of warning: You will have a lot of people try to hold you back by telling you that
"you only live once" or,
"you can't take it with you", or
"the little man just can't get ahead"
...These are the mantras of the middle class. But when your broke friends are making fun of you, you know you're right on track. The Bible says a wise man leaves an inheritance to his children's children. Good luck!

 

[lethal]

I did it backwards, I guess. I worked my ass off, still paid for a new 2003 (in 2002 when I was 29) and managed to buy a duplex (in 2004) and pay it off (2010) because I just worked hard, did side work, anything. Now, I can afford a new car, have very little living expenses, even left my job to start a new business -- wasn't easy to do and figured a big car payment would be motivation for working hard. I could hold off, but I want it, and why not? I've never seen a luggage rack on a hurst. I'm nearing 40, so I don't want to be the old man that just got a new muscle car. I want to be that old man that's had his car for 30 years =) Of course, I thought the Terminator would be that car ... times change. Do whatever motivates you. I want to build a business again, in the process, and its looking good. By the time I need to make payments, I'll be all set.

 

[dom418]

Having a $60,000 depreciating asset in your garage obviously is not an investment. A lot of guys bought these cars and now that the large payment is setting in, they are freaking. Most people don't have that kind of expendable income and this is why the Shelby attracts the higher end buyer i.e. corvette owners who are financially stable or retired. Or too many have bought these cars are living beyond their means.

If I were you invest your money now. There are plenty of other cheap toys out there that will put a smile on your face. I can't believe you own $60k in jewelry. That's nuts. Sell the car, jewelry and liquidate your assets. Then invest

 

[derklug]

While it is good to set up your retirement to keep you secure, skimping too much on the rest of your life will leave you old and disgruntled by all the things you didn't do. Arrange your finances to allow for some fun, not NFL star $1000 hooker fun, but enough to keep life interesting.

 

[MNCobra]

i am on the slow and steady pace...no CC and only have the GT500 and insurance payments...all else goes to savings and for the family needs...max out the 401(K) and now i just work and not worry about money...do what is right for you....

 

[Bllit11]

It's your life just remember the choices you make today you will live with the rest of your life. Good luck and choose wisely.

 

[662HP631TQ]

you're right, material possessions don't make money. but at the same time you can't drive and enjoy a roth account.

I don't care about driving it, I've had a mind shift. My children are young and the greatest thing I can give them is the example to understand that material things are overrated in comparison to the freedom building wealth provides. I see your point, but that's more emotional to me. I am trying to break that habit.

 

[662HP631TQ]

When I read 60,000 in jewelry, instantly thought this guy is impulsive. Just ridding yourself of nice things won't make you rich. If you have a spending problem there is actually a 12 step group for spendaholics.

Before you do anything, I'd suggest taking a deep breath. If it's an extra car and a true toy then getting rid of the extra expense may make sense, however, the depreciation on the car is greatest in the first year or two and slows after that. If it's a daily driver then realize that you still have to drive to work etc.

I agree with the above, slow and steady wins the race. Make sure you are maximizing the tax benefits of Roth accounts, 401ks, IRAs etc. If you maximize that stuff and you can still afford the car then I'd enjoy it.

I'd suggest reading the book "The Millionaire Next Door." The book is an interesting read and a lot of the financial self help "gurus" have been found to be full of crap.

Good luck and congrats on your realization. It's not an easy change so take it easy on yourself and know that you will have slips.

Currently reading that book actually. In addition I feel I am an Average Accumulator of wealth, and I'm trying to become a Prodigious Accumulator of wealth. I will tell you one thing I am certainly not as impulsive as when I bought that Garbage. The thinking was I grew up around Drug dealers and Gang bangers that bought cool looking jewelry, and when I had the chance to legitamately buy things others had to do illegally I did. It was stupid in Retrospect but I'm glad I am seeing the fault in my ways. Over the past 5 years I have MAXED out my 401K so I am doing really well with that and that is what started my journey. I have 3 cars and I can get a Shelby later, and if I can't I won't for a second regret it. Not that I don't like the car...I lvoe it but other things will come along.

 

[662HP631TQ]

You have been watching Suze Orman to often.
If you have been living outside your means, then perhaps it's time to make some changes.
Investing in your future should be priority 1, and if your young, say in your 20s,
then time is on your side and is your best friend. Invest wisely now and you'll be in good shape.
On the other hand, you want to enjoy the fruits of your labor along the way.

Remember though, there will never be another Shelby like the 2013 & 2014

I don't watch Suze Orman at all. I read and READ A LOT. I haven't at all been living outside of my means because my savings show that I have a 6 month emergency fund so I have no issue and have maxed my 401K for 5 years now.

I don't care about the fruits of my labor I want to be a good example to my children. My parents weren't that lucky...so mistakes aside I decided to make a change. There may never be another Shelby and I may never be able to acquire another, but something else will come along it always does. Emotional attachment will only serve to make me more of a slave.

 

[662HP631TQ]

This sounds like it's straight out of one of those money conventions where the speaker explains to you how easy it is to be a millionaire.

Honestly, I'd sell the jewelry and start with that money and see how you do; if you end up doing well and would like more money to play with sell the car. The car isn't going to devalue substantially in the next several months up to a year.

Mark my words, if you sell it now, when you get older you're going to be showing your kids/grandkids pictures of the car you use to have and how you would give a lot of money to have it back. My dad did the same thing with a Boss 429, he sold it in the early 90's, it had 1700 original miles on it and he sold it for $45,000. Not only would it be awesome to have now, but they're bringing 10 times that too. :bash:

You only live once, and money saved today is money spent tomorrow.

People keep assuming I want to turn 500 bucks into a million. No, I am realistic. 500 into 525 is just fine. I guess I'll restate my point. I want to be a good example to my children. My parents couldn't be to me, so I think it's the best thing I can ever give them. My kids will respect and appreciate more the examples and life lessons than a car that will just might be a regret or a cool thing passed up.

 

[662HP631TQ]

Like others have said...sell the jewelry first. They aren't making any more 2013 Shelby GT500 convertibles, but they mine new diamonds, gold, and silver all day every day.

If you can afford to eat and live, I'd seriously consider hanging onto the car. Although not short term, it is very likely to be a good investment later on. ESPECIALLY for someone as young as you are. Take care of it, don't overly mod it, keep excessive mileage off of it and you will one day do well. The 2013/2014 are CS's last cars and they are likely to be the pinnacle of HP in a factory Mustang. We already know for certain that the 5.8L engine will not fit into the new Mustang. And there are only 808, probably less now, that were built!!

I am 34, max out my 401K ($17K a year), have a 15 year mortgage on my house, and am well on my way to being a millionaire before the age of 50. Hopefully I will have at least $1.5 million at 50. Anyway, as others have said the key is to saving and not living excessively. I don't consider the car excessive (unless you daily drive it and the expenses associated with it) because at the end of the day it will hold it's value very well and should appreciate as time goes on. It's the one investment I have that I can actually enjoy now, unlike my stocks & bonds.

Best of luck in whatever you decide to do! :rockon:

I'm the same max out 401K and save save save. 15 year mortgage as well. I am doing the slow and steady over life to win at the game and have peace of mind.

 

[662HP631TQ]

I don't understand the need to "build wealth". I pay my bills, contribute to my retirement (401K, ESOP), save some money and spend the rest. Why work if you don't use and enjoy it. If you get frugal or cheap now and it become a lifestyle, you will be the same when you retire. You will continue to be cheap and die with a ton of money in the bank.

"Enjoying" is an emotion that can be spread to many things in life aside from material things. I certainly hope I can continue to live cheap and my dream would be to die with a ton of money. It isn't about me anymore, it's about my wife and kids. I have to be a good man and a good example to them.

 

[662HP631TQ]

My $.02...

You own an amazing car, but guess what--there's lots of them. I'm just a few years younger than the Mustang, and have been a Mustang fanatic all my life, even though I haven't owned one for much of my life. I spent a lot of my time driving nice (not NICE cars), working a good job, owning nice homes, and raising my family.

When you talk about "building wealth", you've got at least the right terminology. I'd highly recommend avoiding investment advisors, and doing it yourself, with the idea of the long game. Real estate, purchased wisely, is a great wealth builder--starting with your personal residence. 401k--max it out to get all the matching money you can from your employer. My personal preference for additional investments is index mutual funds, rather than individual stocks. Buy and hold...

This approach has put me at being able to completely retire before my 48th birthday. My kids are grown and on their own, my wife and I are looking for a retirement home in a beach community, I've got some cool toys, we travel and enjoy life, and I'm in a place where I can work for someone who can't afford to pay me, making a difference in people's lives, and hopefully making this world a better place.

To do that, I passed on the several Cobra R models, the Terminator, and several other cars that I thought I would DIE if I couldn't own... I'm still alive and a lot better for it.

If you're still single, you might consider giving yourself a cheaper toy--like a Termi or something that you can play with, have fun, and not be financed to the gills. Going from the GT500 to a Prius may be too much of a shock to your system to follow through on. My toy for several years was my 95 GT convertible. Not a screamer, but she handles well, looks good, and is a genuine joy to drive.

I'm apparently the minority, but I'll tell you that I think you're on the right track.

PS: If your motivation is so you'll be in a position to tell your boss to pound sand whenever you feel he's being a jerk, then you're going to be miserable for most of your life--you'll eventually find yourself self-employed, and then it's really hard to tell your jerk boss to go f himself...

There's jerks in every workplace; quitting won't make them go away, and the buzz will wear off after a few days. Spend your time learning how to work with difficult people, how to positively influence them, and help make your company better. Much more rewarding, albeit much more difficult (at least in the near term).

One of the best responses I've gotten. I hear what you are saying about the jerks and acknowledge that a better plan than mine. It will make me happier in the end. Most people I've told tel me a few different things:

1. It's risky (as if I haven't done my research and expect to make a million dollars tomorrow, I'd be lucky to make it by 60 and that is ok with me.)
2. You have to let yourself live. Well I am! I am making a decision to do just that. I'll find other things to "Enjoy" it doesn't have to be a car or any other depreciating asset. That is the beauty.
3. You only live once.....Yes, and I have 1 chance to teach my children to be free of debt and build wealth.

So I like your answer! Thanks!

 

[662HP631TQ]

You just took your first step out of the middle class and into becoming wealthy. $60k in assets going up in value will have a positive effect on your net worth, unlike a $60k asset that is depreciating.

Kenwood is right on the money, pardon the pun. Building wealth, and keeping it, is like cooking in a crock pot (slow and steady). You must have long term discipline. How is that possible? You don't have to lock yourself in a room and only come out on triple coupon Thursdays. Create a written plan on paper on purpose every month. Allow yourself a little blow money for having fun. The budget keeps you on track AND removes the guilt: because you planned for fun and you know it's not destroying your wealth-building plan.

My advice to you is to avoid debt, live on less than you make, and maintain honesty and integrity in everything you do. Oh, and read at least one non-fiction book a month.

There are many ways to build wealth once you've freed up your income to do so (mutual funds, real estate, business investment, etc). The choice is yours.

Aword of warning: You will have a lot of people try to hold you back by telling you that
"you only live once" or,
"you can't take it with you", or
"the little man just can't get ahead"
...These are the mantras of the middle class. But when your broke friends are making fun of you, you know you're right on track. The Bible says a wise man leaves an inheritance to his children's children. Good luck!

YEP!! This is what excited me. That I can build wealth but more importantly guide my children onto a path of success my parents never were able to.

 

[662HP631TQ]

I did it backwards, I guess. I worked my ass off, still paid for a new 2003 (in 2002 when I was 29) and managed to buy a duplex (in 2004) and pay it off (2010) because I just worked hard, did side work, anything. Now, I can afford a new car, have very little living expenses, even left my job to start a new business -- wasn't easy to do and figured a big car payment would be motivation for working hard. I could hold off, but I want it, and why not? I've never seen a luggage rack on a hurst. I'm nearing 40, so I don't want to be the old man that just got a new muscle car. I want to be that old man that's had his car for 30 years =) Of course, I thought the Terminator would be that car ... times change. Do whatever motivates you. I want to build a business again, in the process, and its looking good. By the time I need to make payments, I'll be all set.

If you are able to buidl wealth backwards and have toys all the better. Mine is a mentality change so what I am doing is freeing myself from independence on material objects for "Enjoyment"

If you have done that well then your formula is working for you, and mine will work for me. I have spent too much time being a husband and father who is selfish and not being a good example....and that has changed!

 

[662HP631TQ]

While it is good to set up your retirement to keep you secure, skimping too much on the rest of your life will leave you old and disgruntled by all the things you didn't do. Arrange your finances to allow for some fun, not NFL star $1000 hooker fun, but enough to keep life interesting.

I thought that was an awesome and funny example. I have had an amazing life and I am only 32, so I have and doubt I ever will have regrets. I have a wonderful wife and awesome kids. So to me that is the Joy in my life. The rest is living for them and being an example to them.