Corvette Z06 Forum banner

1 - 20 of 27 Posts

·
Registered
Joined
·
56 Posts
Discussion Starter · #1 ·
wellll I bought my Z about 2 months ago and have loved it like no other car... I don't have a problem being able to afford it at all, however I know that a car that expensive isn't exactly the best use of money, but my reasoning is that for 1, its something I can afford, and 2, if I get married in a few years or so a sports car is going to loose it's place on the priority list, so I should enjoy it now while I can. I'm wanteing to buy an apartment community within the next 2 years, So I met with my financial advisor yesterday and he agreed that it would be best to sell the vette and put the funds toward my investments. I'm 22 years old, and I put about 60% of my income towards my house and other investments. Financial stability is my main goal, but I also don't want to end up at 80 with $200 mil and didn't have any fun with any of it...I've already put the vette up for sale, but I'm having some doubts as to whether I should keep it or not.. Does anyone have any suggestions or input as to what someone at my age and position should do in this situation? thanks in advance for any advice!!!
 

·
Registered
Joined
·
1,183 Posts
Live for the now, the hell with the future.(bad advice but a lot of fun)
Keep the car, you can always make more money.(my 2 cents)
 

·
Premium Member
Joined
·
10,080 Posts
I commend you for (at 22 years of age) thinking about your future. Not to many 22 yr olds I know have the desire or ability to own a Z06 or plan to purchase a house in the near future. Getting a good start on your financial future is always a good thing. The toys will come later if you are successful in your endeavors. Just think, in a couple of years you can buy a used 06 or 07 Z06 with more horsepower!!!! I know this must be a hard thing to consider (fun factor with the Z) but you should look at the long term as time will fly by and soon you will look back and say "why didn't I put something away for the future?" Just my .02 cents. :yeadog:
 

·
Registered
Joined
·
1,311 Posts
what's more important? getting the place in 2 years or getting it in 5 or even 6 years but with a vette the entire time?
 

·
Registered
Joined
·
31 Posts
You have to think of it like this. If something happend to you and you were not able to work anymore would your wife and kids and the things you cared about be taken care??? If not than I would worry about the financial situation now. There will always be another corvette. But maybe not another one of you for the people you love. Just my 2 cents
 

·
Registered
Joined
·
474 Posts
I bought a new 97 TA WS6 when I was 21 and a Jr. at Trenton State College. I was paying for school and I figured that the loans were not due for a few years so I figured WTF...I busted my butt for a 3.7 GPA majoring in Engineering so I deserved to treat myself. I had a blast w/ the car and met a lot of people at various events. I was able to afford the $400/mo payments + insurance with my internship, lawn service, detail service, pumping gas...etc. I held onto it and thankfully it retained its value ($9700) when I traded it in on the Z this past December.

At 25 I bought my house and (smartly) found a room mate to pay my taxes and utilities. I was able to save some $$ over the next two years, and at 27 I bought an engagment ring and put $$ down on the Z. However, I got the title outright because I took a small home equity loan out to float the loan (i.e. tax advantage). Once again, I figured w/ all the OT I was working and after busting my hump to get a Master Degree in Engineering Management (while working 40+ hrs a week) I owed myself the pleasure of something nice.

I recommend buying some real estate as soon as you can. Wait a year or two to save some $$ and use the equity in your property to either (1) buy more rental properties or (2) buy something for you to enjoy the fruits of your labor. Make the real estate (and tax laws) work for you. You only live once but don't strap yourself. Find a balance.
 

·
Registered
Joined
·
56 Posts
Discussion Starter · #7 ·
just thought I'd specify a bit... I do currently own my home, and it will be paid off in a couple years (I originally took out a 5 year mortgage)... What I'm wanting to buy in the next couple years is an 8-12 unit apartment community... I sold my other properties and would like to get into commercial real estate.. The problem with putting the vette off for a few years is that if I do decide to sell it, and I buy my apartment community in 2 years, couldn't you still use the same arguement that I should wait a couple years until I buy a vette and invest the money? Couldn't that reasoning repeat itself until your dead??
 

·
Registered
Joined
·
1,963 Posts
Wow.That's a hard one.A Corvette or any car,for that matter,cannot be considered a good investment:)mah:moneypits:bmad: ).However,you must have a car and what will you buy to replace it with and how much will it cost?How much do you have invested in the vette?How much will you save by selling the vette and do you really need that money?
Sounds to me like you have a good attitude and plan and it is always good to listen to your financial advisor.If you sell the Z,you can always get another one later,when you are more solvent and have the extra $$.You don't have to wait until your 80.You're young take the money and run.If your plan works out,buying another Vette won't be hard to do.Consider this Z the first of many.
 

·
Registered
Joined
·
3,646 Posts
I say keep the car. you have the rest of your life to make money. I bought my Z when I was 23. Now I have a house, and a wife. When life gets to stressful I hop in the Z and go for a ride. It's amazing how much stress this car can relieve.
Best of Luck on you decision :cheers: :cheers:
 

·
Registered
Joined
·
1,265 Posts
NSX,, Question, Is the Vette paid for?? You say the House is almost paid..

And your question is a good one, tell you the truth,, Yes it just goes on and on.. Next thing your in a pine box..

Ernie
 

·
Registered
Joined
·
56 Posts
Discussion Starter · #11 ·
no, the vette is not paid for. I put a good bit down but I still owe a couple more years on it.. Kinda sad that the house might be paid off before the car...ha! I also 93' acura vigor that has been my daily driver for 2 years, so if I sell the vette I won't have to buy another car. and the acuras paid for...
 

·
Registered
Joined
·
311 Posts
:cry:
nsxcorvette said:
just thought I'd specify a bit... I do currently own my home, and it will be paid off in a couple years (I originally took out a 5 year mortgage)... What I'm wanting to buy in the next couple years is an 8-12 unit apartment community... I sold my other properties and would like to get into commercial real estate.. The problem with putting the vette off for a few years is that if I do decide to sell it, and I buy my apartment community in 2 years, couldn't you still use the same arguement that I should wait a couple years until I buy a vette and invest the money? Couldn't that reasoning repeat itself until your dead??
Yes it surely could repeat itself until your dead! I think what your financial advisor means by recommending you sell the vette is so that you can establish yourself in this "rental" business. Right now it isn't off the ground because you haven't bought it, and considering that the Z is a drain on your capital (regardless of fun factors :cry: ) it does make "financial" sense for you to invest in this business first. Short way of saying this is that the rental community is making you zero money right now and paying for a Z is draining the investment into it. Once it is bought and is up and running and "making" you money (and presumably lots of it!!) buying a Z will be a smaller percentage hit out of your "capital available for investments" and it would make more economic sense to buy it then, but don't wait forever!!!!
I would like to do something in business like you are planning. You are making me think about selling my Z! j/k Good luck to you.
:z:
 

·
Registered
Joined
·
311 Posts
Jayzvette said:
I say keep the car. you have the rest of your life to make money. I bought my Z when I was 23. Now I have a house, and a wife. When life gets to stressful I hop in the Z and go for a ride. It's amazing how much stress this car can relieve.
Best of Luck on you decision :cheers: :cheers:

Agreed! :cheers: The greatest stress relief in the world! :cheers:
 

·
Registered
Joined
·
141 Posts
It sounds like you already have financial stability, being a couple years away from owning your home. I would say if you have a career where you are upwardly mobile, to keep the Vette. You have the rest of your life to make money and invest. However, if you will need the apartment income to supplement a dead end job sell the Vette. I know they're two extremes, but you get the idea.
 

·
Registered
Joined
·
752 Posts
You have just articulated one of the greatest questions of "life".

Save for the future....or enjoy the present? Everyone will need to determine their own comfort levels when seeking this balance.

One of my close relatives was a saver. He always wanted to have a sports car and decided he would buy a new corvette when he retired. He finally had raised his kids, built a nestegg that would keep he and his wife comfortable in the future, and was planning his retirement...at an early age so he could enjoy all his hard earned efforts.

One evening I got a call from him. He was planning on traveling to Idaho to visit and go archery hunting for elk with me. He said he felt some pain in his neck when pulling his bow
and was going to see a Dr. to see what might be causing the pain. Other than the pain in his neck, he was in good shape as he had been working out to get conditioned for climbing around the Idaho Mts. in search of an elk.

As it turned out, the pain was caused by a cancerous growth on his spinal cord, in the cervical region. Elk season didn't happen that year, as my wife and I traveled to a funeral.

My friend often put off the things he wanted or would enjoy...frequently saying just a few more years...he could retire, have plenty of time and money, and really enjoy the things he had always wanted. Sorry...didn't happen!

Whatever you decide...save / fun - make sure you strike a balance that YOU choose. If you want a Corvette, pick one up and enjoy it! If your car prevents your from achieving your future plans, and they are of most importance to you, sell it.

It sounds to me like you are already ahead of most young folks in the planning for the future. Congradulations. However, don't underestimate the value of doing something you really enjoy...good for your health and outlook.

I have a wealth of memories about the good times, fun, and people I have met while enjoying my "toys" :sneaky: but dang...I can hardly remember any of the investments giving me those same memories and satisfaction.

Silvertp
 

·
Registered
Joined
·
9,957 Posts
Sounds like your doing fine. Slow down your payoff of the house since the mortgage is tax deductable and pay off the car loan first...(as its not tax deductable) or even if it is..

keep the dam car...You deserve it and the apartment complex will be available a few years down the road...The bubble is going to burst and you'll be better off waiting till it does..

JMO enjoy your life.
 

·
Registered
Joined
·
693 Posts
nsxcorvette said:
no, the vette is not paid for. I put a good bit down but I still owe a couple more years on it.. Kinda sad that the house might be paid off before the car...ha! I also 93' acura vigor that has been my daily driver for 2 years, so if I sell the vette I won't have to buy another car. and the acuras paid for...
You can write off the interest on a home but not a car. If you are going to keep the car then pay it off. If I can't pay cash for a car then I need to save more or (never done this but) take a very short term equity loan out. I save my borrowing power for things that make me money not cars.

Not the answer to your question but a helpful hint.
 

·
Registered
Joined
·
137 Posts
JBsZ06 said:
Sounds like your doing fine. Slow down your payoff of the house since the mortgage is tax deductable and pay off the car loan first...(as its not tax deductable) or even if it is..

keep the dam car...You deserve it and the apartment complex will be available a few years down the road...The bubble is going to burst and you'll be better off waiting till it does..

JMO enjoy your life.

I agree with the above. You have way more sense than I ever did at your age, and you have a good head on that set of shoulders. Balance your life........

We also have plenty of rentals that eat up some of my free time, and sometimes I still want "more" investments, and then I think about the time it will take to maintain them......

Keep the car, and as someone else said, do not be in a hurry to pay down that write off home interest- sometimes works against you. Good luck, you will do well...
 

·
Registered
Joined
·
19,096 Posts
You show maturity regarding financial matters and your future. That's very commendable.

Life is a matter of choices and decisions. No one makes the right decision or choice every time.

Balance is the key.

Having said that....keep the Vette, and enjoy the rest of your life! :thumb:

Best of everything to you! :cheers:
 
1 - 20 of 27 Posts
Top