Don't spend too much on 1st car, mine cost me 2 million dollars...

D

dareo

Joined
Oct 17, 2007
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Location
utah
So it was about 2003, i purchased a 1989 Nissan 240sx with high miles for 2k. I bought wheels, suspension, stereo, drove it a ton, threw a rod on the stock engine around 225k miles. I did the SR20DET swap with a nice intercooler, skyline seats, ect, i spent at least 8000.00 extra on this car that could have been considered optional. After driving it around like an idiot for about a year i blew the SR20. I was broke and traded the broken car for something that ran reliably. Had i simply placed that extra cash into Apple stock, that would be worth over 2 million dollars today.

Lesson? If your young, spending money costs an absolute fortune in theoretical opportunity costs.
 
JustN89 said:
Hindsight is always 20/20, especially in the stock market. Had you put your money in Lehman Brothers in 2003 (which would've been seen as a smart investment in that time), you probably would've wished that you had just fixed the 240.
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I did cherry pick Apple pre iphone/ipod but even just a S&P 500 dump would have turned into a considerable fortune. I had a blast with that car and did learn a lot at least.
 
Back in the 80s I had a chance to invest in Microsoft. Decided I couldn't afford it. Kick myself daily over that one.
 
No regrets, just learn and earn. Earn more money and use what you learned. Who hasn't wasted a lot of money when they were young?
 
When you are 85 and talking to your grandkids you will smile when you tell them about that 240. I am a cheapskate and as financially conservative as you can get, but spending some money on car as a boy is just plain American.
 
Except that my wife's cousin is Bill Gates lead attorney. I get to hear about his 2 million dollar art collection and private jet.
 
JeffKeryk said:
Cars are depreciating assets. Don't put money into a depreciating asset.
Finance 101.
Unless it's a '65 Shelby Cobra 427 Competition.
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Most cars are a liability an asset brings in a profit. My house is a liability my rental house is an asset.
 
wpod said:
Most cars are a liability an asset brings in a profit. My house is a liability my rental house is an asset.
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Yep. My cars have taken me to and from work--I could live closer to work but housing prices are higher, as are crime rates. Car costs me money but allows me to live where I'd rather be. Not the perfect choice of either--time spent commuting, time spent maintaining, and of course, money. A car is a depreciating asset that has a higher value than its dollar amount to me.
 
Most people are going to need a car anyways. Besides that, I financed my car, so thinking of it in terms of putting money in stock is pointless. But saving money and putting it aside in long-term, stable investments is a pretty good idea.
 
dareo said:
So it was about 2003, i purchased a 1989 Nissan 240sx with high miles for 2k. I bought wheels, suspension, stereo, drove it a ton, threw a rod on the stock engine around 225k miles. I did the SR20DET swap with a nice intercooler, skyline seats, ect, i spent at least 8000.00 extra on this car that could have been considered optional. After driving it around like an idiot for about a year i blew the SR20. I was broke and traded the broken car for something that ran reliably. Had i simply placed that extra cash into Apple stock, that would be worth over 2 million dollars today.

Lesson? If your young, spending money costs an absolute fortune in theoretical opportunity costs.
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Yes, I agree with this hypothetical Apple investment...
Lots of folks enjoy their money rather than investing in _____ stock 25 years ago.

Unfortunately parents don’t teach their kids about the power of investing money that would be spent on crap.
 
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I've heard of, and was friends with too many people who spent their lives building their fortunes and squeezing the life out of every nickel, with big plans of retiring comfortably in their favorite spots. They dropped dead shortly after retirement. They died having never bought that cool car, or seeing Fiji, or enjoying the finer things in life while they were breathing. I don't want that to be my story.
 
y_p_w said:
Most people are going to need a car anyways. Besides that, I financed my car, so thinking of it in terms of putting money in stock is pointless. But saving money and putting it aside in long-term, stable investments is a pretty good idea.
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Yes, needing A car is a constant thing for most. I could have gotten a really nice Metro for 2k back then. Or just not modified my 240sx and driven it conservatively and it would have lasted a lot longer.

I also finance all my cars because rates under 2% i am money ahead investing over paying them off.

"Well, i have to have a car." has lead all of us into overspending on a car right? I am 100% guilty of this for 18 years now with no plans to stop.
 
It's pretty hard to play both hands of the game--to both invest and to buy. To invest 10% into retirement, 10% into savings, and figure out how to live on the rest... even if that involves financing a car.

But then one feels like they can't do anything until they max out their retirement, regardless if that is 1% or 50% of their income.
 
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