Author Topic: Questions for the "car guys/girls" and maybe the financial guru's as well....  (Read 4353 times)

thurston howell iv

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The other day, I was perusing the forum (car related questions mostly), and I found one about a member buying a BMW on the cheap. 

I am a regular member of many car forums and am used to the craziness people have when it comes to spending on cars... But here?  I was a little surprised to see so many "car" folk chiming in. Glad I'm not the only one!

Getting to my point. I may need an intervention and maybe a few facepunches as well.

Here's the deal. I have a "car" problem.  Not to say that I have a broken car (I fix my own stuff- as much as I can). My issue is more along the lines of the quantity of cars and my reasons for keeping them.  Let me also preface this conversation by saying that I do not anticipate ever being able to ride a bike to work (It would be cool but it's not likely) So, I will always have a few cars floating around.

Up until recently, I had 7 cars. 2 dd's 2 toys, 2 suv's, and one project.
I've been wanting to thin the herd but it's been rather tough.
I recently sold one of the SUV's and essentially gave it away. (Still painful)

Anyway, I'm down to 6.  I have the 2 DD's (230k and 174k respectively), the suv (105k used to tow on occasion), the project which is almost finished, and the two toys.  I'm wanting to sell the toys (not really, we do derive pleasure from them- but I think it's the best decision for now)...

I estimate the value at around $18k a piece but the market is such that people are giving their cars away ( around $12-13k)so, my valuation is viewed as too high. (That is not to say that higher price cars of the same model are not selling, just not very quickly)  I could easily sell the toys if I were to give them away at fire sale prices and it seems like what I might have to do (considering that my "investment" is already a sunk cost)
I'm just apprehensive about leaving money on the table if I don't have to. (potentially $10-12k for the pair)

Side note: I am negative in net worth at this time- student loans and a mortgage put us over $500k in debt. So, every penny is valuable to me.

I have some friends who are not "car guys". They say to just dump the toys for whatever I can get and move on.  Others suggest that I hold out as there is an "ass for every seat".   While I am piled high with debt, and it would be nice to make a dent however small, it doesn't feel like taking a hit on my toys will make much a difference to my debt situation (or investment situation). I'd like to minimize the beating I take when I liquidate.

So, what do you all think?  What am I missing?













CarDude

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Have you considered selling them online, such as through eBay Motors? I've never sold a car that way, but it would definitely give you more exposure within a more targeted audience.

Greg

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I had 5 vehicles once.  It takes a toll on your ability to concentrate, not just mentally but to concentrate your efforts, to actually fix and/or enjoy them.  I'm down to 2 vehicles, one is my family/work van and the other is a sports car.  While both are older, only one is a "project".  Now I have a system, if I get a "new" project car, I get rid of the old one.  That's the deal I made with myself to better enjoy the hobby.  Wifey likes this arrangement better as well.

I'd side with your friends that it's time to purge.  I'd settle on one vehicle for utility, how you determine that I'll leave up to you, and one for "fun".  It might seem like a loss, but really the market is always determining the value of cars.  They're only "worth" as much as you can actually sell them for at any given time.  Offload the extras, take a deep breath and enjoy the absence of mental and physical clutter.  That's my advice.

thurston howell iv

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Thanks for the responses...

I've looked at selling on ebay. Prices still suck unfortunately. I guess it's still an option.

Of the 6 cars. Five are in tip top condition. All of the run well with zero issues. The project needs an interior and wiring and it will then be complete.
I don't know that they take a toll on my ability to concentrate. My concern is moving to a new location with all of them.

mcrow

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Yeah, you are probably going to want to sell down.

Unless you have the rare car that actually is collectible and may retain or gain some value you are just tossing money down the toilet between insurance, license fees...ect.


Greg

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I don't know that they take a toll on my ability to concentrate. My concern is moving to a new location with all of them.

That sort of proves my point. The number of cars is affecting your mobility, and causing concern.  For my, and I'm deep into the car hobby (Italian) that would prompt me to make a change.  I did exactly this years ago and the sell-off allowed me to invest in what became my future home.

CarDude

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I don't know that they take a toll on my ability to concentrate. My concern is moving to a new location with all of them.

That sort of proves my point. The number of cars is affecting your mobility, and causing concern.  For my, and I'm deep into the car hobby (Italian) that would prompt me to make a change.  I did exactly this years ago and the sell-off allowed me to invest in what became my future home.

Agree. I was the same way with computers once, except my limit was at 2. Once I went back down to only having one computer, things got a lot simpler.

Recon

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Ever consider selling through the forums you already frequent?  Most of the ones I've belonged to had a "Classifieds" section, and you're probably waaaaaaay more likely to find the right ass(es) for your seat(s).

Milspecstache

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Ever consider selling through the forums you already frequent?  Most of the ones I've belonged to had a "Classifieds" section, and you're probably waaaaaaay more likely to find the right ass(es) for your seat(s).

I recommend selling the toys and I would find forums that support the type of toy to try and hit the target audience most interested in purchasing.

BayIslandSaver

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depends on some details of the cars, but CarMax is a low hassle method, if they'll take it at all.


Glenstache

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Beware of falling into the sunk costs fallacy. Cars are fun, but they are nothing but money pits financially. Time rarely makes the math better... unless you are buying a used car instead of a new one. You might consider calculating how much extra you are paying in interest on your highest interest rate loan every single month by not converting those cars into cash and paying them down (4 cars at $15k each is probably a few hundred dollars a month in interest assuming a 6% loan). Use that $$ amount as a guide for how long you will wait for a better price on your vehicle(s). If you hit 3 months and no serious inquiries, then the market has spoken and your price needs to drop regardless.

You probably won't miss them a month after they are gone.   

thurston howell iv

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The toys are older muscle/hotrods and the project is a classic (American)
All the cars are paid for and classic insurance and registration is super cheap.

Target audience knows that people are giving the cars away so they're only looking for the "steals".

I think I'll check out ebay.
Thanks for all the input.