Off Topic ForumThis is the place for mature discussions not necessarily related to cars. This is however also moderated and only registred members are allowed to post. No religion and no vicious attacks.
Beware, long post ahead, but as I value this group's opinions as a group and as many individuals, I thought I would post this here for comments.
A few days ago something truly drastic occurred to me. To give you some background, I'm 20 now, and bought the first m5 (now lemoned after 14 months of ownership) when I was 18. At the time, I bought it on a whim and while it was a good expense, due to luck, timing, networking, good advice, and even a little skill , I've been incredibly fortunate to be able to afford what I can. I absolutely don't mean to sound braggish, just trying to put things in perspective. Over the time, even in the course of events such as the recession, I've managed to keep a fairly good upward trend, definetly ahead of my fellow investors. Due to this and my insatiable love of cars (as ignorant as I may be), I was fortunate to be in a cash position to buy another M5, fully pay for my 360 Spyder (due in less than two weeks! ), and put down hefty deposits on two Aston Vanquishes (long story), a Murcielago and the SL55. I also went diablo shopping over the weekend and am on McLaren Cars Ltd. waiting customer list for any previously owned F1's that might come into their hands (I wasn't goign to mention this until I was sure it's going to happen, but for reasons described below, it's ok now). Again, i *really* don't mean to come off the wrong way, just putting things in perspective.
Well, due to an unfortunate thing with investing, and the realization that I'm still very young, and that it really ISNT appropriate for someone my age to own even half of the list above, I've come ot the following resolution: sell everything (someone offered me 70k more than I paid for the ferrari, which is good), and collect any deposits I've made on any cars whatsoever. I mean liquidate to the point where my only car for the rest of college is a '91 Toyota Corolla 4 banger.
Now the question: WHY ON EARTH WOULD YOU DO THAT!?!?! Well, as I said, it's really not appropriate for someone my age to own that stuff. But moreso, I've come upon what I would consider a fairly unique opporunity that's very low risk, but also very very high returns (oxymoronic, I know) - to the point where every dollar I put in will give me roughly 20-25 fold in 18 months' time (conservative estimate).
So what I'm proposing is living with the shame (or is there even any?) of driving a single old beater car for the remainder of college, and really curtailing my lifestyle and expenses to the basics: food, housing, insurance, entertainment, speeding tickets (yes, you can even get them in a toyota!) - the basics. All for the possibility of, with some patience, some sacrifices, some tenacity, and a little bit of luck, of breaking the nine figure mark. I figure life has got a long way to go, and I'm still in the early stages.
To me, the sacrifices seem well worth it, and while I won't own an M5 anymore, I hope that doesn't preclude me from membership here. I'm not really sure what I'm looking for specifically, but I'm curious to see what sort of comments (good and bad, but please critique it on the basis of what's proposed) people have.
So whichever way things go, all the best to everyone out there!
Wow Dan... I'm uhhh speachless... ya owning all those cars is a little much IMO... I am also 20... but I dont see why u have to just drive the corolla for the rest of college... get yourslef the M5 if you want it... thats not too much. Get one car u love. We are all car enthusiasts here and of course we want the cars you listed. Ok even at that u can surely get a 330Ci or a M3 or something and not feel the guilt. I mean have u checked out some other boards? THere are 16 yr old kids with M3s that their parents got for them... I mean U earned the money u have now... ok maybe got lucky. none the less its yours. enjoy some of it not all... you have to have some saved up.
Eric
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2008 ///M5 SMG | Alpine White | Black Full Merino Leather w/Aluminum Trim | Logic 7 | iPod Adapter | HUD | Heated / Ventilated & Adaptive Comfort Seats | Comfort Access | Rear Side Airbags | Rear Side Sunshades | Folding Rear Seats | 35% Sides 15% Rear Windshield Tint
Honestly, you earned your money and you should do whatever you want with it regardless of what people think of you. Hell, if I had earned the money to buy all those at 20 years old, I'd be very proud to drive them and tell people I earned it and I wouldn't really care if people didn't believe me or told me I was too young to own these.
But it's true, education is really important and it's probably the time where you really need to focus on that rather than on spending time looking and buying cars. But wouldn't it be nice to have at least an M5 or a 360 spider waiting outside for you once the bell rings at the end of the day...
Anyways, I can't really give you advices but since I'm your age, I can relate easily to how you think and how I would feel if I was in the same situation. Happy driving!
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2006 Interlagos Blue M5 - My father's
2007 VW Golf GTI - My little rocket!
Last edited by VanCooper; 17th January 2002 at 12:07.
Re: To my fellow board members: request for comments
Quote:
Originally posted by bobafett I've come upon what I would consider a fairly unique opporunity that's very low risk, but also very very high returns (oxymoronic, I know) - to the point where every dollar I put in will give me roughly 20-25 fold in 18 months' time (conservative estimate).
Dan,
Call me sceptic, but I somehow don't believe in a 'sure thing'. I think with the amount of money you currently have stashed in the bank, you have a wonderful safety net for the rest of your life. Betting all that on a 'sure thing' seems pretty unwise, especially as the difference between a high 8-figure sum and a 9-figure sum is fairly irrelevant as far as personal finances go.
With regards to your car collection, your current attitude seems wise...the best way to enjoy life is to always have something to wish for...
From your post I'm assuming you play the stock market? (and do quite well by the looks of it!!)
If this 'investment' is gonna give you a return of 20 - 25 dollars for every dollar you put in, even if you have to wait for 18 months, then I'd go for it...
Like you say you're only 20, and it must be great being able to drive around in cars like that (I'm your age, so I can see how hard it would be to get rid of them all!) but imagine the amount of ridiculously expensive and fast cars you could get after the return on your investment!
I suppose what I'm saying is; look at what would be best in the long-run...
But like Jet black M5 in Van said - it doesn't matter what other people think of you, if they say you're too young to be driving cars like that, it's probably coz they're a damn sight older than you - and couldn't dream of affording such cars!
Anyway - good luck with whatever decision you make.
AJP.
PS. Why two Vanquishes?
__________________ "If everything seems under control, you're just not going fast enough."
- Mario Andretti
1) to be very honest, my first thought is to let us in on the deal, I mean we're all friends here, right?
2) I suspect alot of us have a considerable experience with the concept of delayed gratification, through college, postgrad and beyond. What confuses me is that if the returns are as you expect, it seems to me you can afford a comfortable lifestyle (better than a Corolla) on a very modest budget while waiting for your next proverbial ship to come in. I also believe it would be prudent to keep a little nest egg *just in case*. It doesn't sound very long to wait. In the the meantime you can plan what to do with your windfall......like collecting other modes of transportation.......good luck
Just another $.02
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Glenn
08 M5 Interlagos
Dinan Exhaust
01 M5 Anthracite
UUC short shift
Dinan 3.45 Diff
07 Exige S
Call me sceptic, but I somehow don't believe in a 'sure thing'. I think with the amount of money you currently have stashed in the bank, you have a wonderful safety net for the rest of your life. Betting all that on a 'sure thing' seems pretty unwise, especially as the difference between a high 8-figure sum and a 9-figure sum is fairly irrelevant as far as personal finances go.
With regards to your car collection, your current attitude seems wise...the best way to enjoy life is to always have something to wish for...
Just my $0.02
Kees
Kees: You're certainly right that there's no such thing, which is why I was distinctive between very low risk (which is what I truly believe) and no risk. As for 8/9 figures, i know the difference can be as minimal as $0.01, but I'm not close to high 8's and meant it as a point of reference.
Naturally I will leave something so that i"m ok, but the idea is to liquidate enough capital to be able to so. after all, let's say i miss the mark by 75% and get only 5x returns, that's still 5 m5's to one...
All: thanks for the comments, as usual, everyone's full of great advice.
--Dan
PS: Two because i originally ordered a '03 at msrp, but then a frien told me he could get me a '04 for 20% off of msrp (i did him a favor in an earlier investment, so he owes me ), so my plan was to buy the 03, keep the mileage low and sell it for as close to msrp as i can, and then buy the 04 for the discount and keep that.
Last edited by bobafett; 17th January 2002 at 12:55.
Dan
It's all about priorities. If you can afford that magnicent stable you're describing with discretionary $s - goforit. If you have other things you want to do with your money then it's really not discretioanry $s we're talking about but prioirities. I think only you can decide but, FWIW, your automotive addiction looks pretty deep and I would worry you'd do yourself irreprable damage over a few years if all you had was a 91 Corolla.
All the best in whatever you decide.
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Steve ///M
'03 Infiniti FX45 Silver/Tech
'01 Carbon Black/Black Sport (sold 31 Dec, 03)
1967 GTO Conv Red/White/White
For someone who invests other people's money, here's my take.
1 - Any investment that will give you such a tremendous return has a downside. No matter what the gurus tell you. Be prepared to lose a good chunk if things dont work out. Heck, my clients are happy with a 6% (tax-free) annualized return.
2 - Personally, I would'nt go from one extreme to another. From 4 exotics to a Corolla? Keep the M5.
3 - The Beast gives me so much pleasure well beyond the financial considerations that it's worth every penny. We all know what would have happened if we invested $80k in the S&P 500 on 1/1/2000.
4 - A college education is also worth every penny.
I'll get off the soap box now.
later
Last edited by blue max; 17th January 2002 at 16:36.
, I've been incredibly fortunate to be able to afford what I can. I absolutely don't mean to sound braggish, just trying to put things in perspective. Over the time, even in the course of events such as the recession, I've managed to keep a fairly good upward trend, definetly ahead of my fellow investors. Due to this and my insatiable love of cars (as ignorant as I may be), I was fortunate to be in a cash position to buy another M5, fully pay for my 360 Spyder (due in less than two weeks! 
none the less its yours. enjoy some of it not all... you have to have some saved up. 
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