View Poll Results: Responsible Individual Net Worth to own a $100-$150K Car?
$400K
24
13.87%
$500K
10
5.78%
$700K
11
6.36%
$900K
2
1.16%
$1M +
126
72.83%
Voters: 173. You may not vote on this poll
Responsible Net Worth for Owning a $100K-$150K Car?
02-28-2013, 03:35 PM
#92
Three Wheelin'
I dont have a wife 
(more room in the garage) and my daughter gets all A's.
(more room in the garage) and my daughter gets all A's.
02-28-2013, 03:36 PM
#93
Three Wheelin'
if all things fail...................
02-28-2013, 05:12 PM
#94
Racer
There is a thread somewhere on RL that has many cliches about sports cars and motorsports
my favourite is
" I made a small fortune out of motorsport, I started with a large one!"
now owning a toy puts you into one expense category
taking it to the track adds a zero or two
getting bitten by the bug and competing - $$$$$$$$$$$$
my favourite is
" I made a small fortune out of motorsport, I started with a large one!"
now owning a toy puts you into one expense category
taking it to the track adds a zero or two
getting bitten by the bug and competing - $$$$$$$$$$$$
02-28-2013, 05:25 PM
#95
02-28-2013, 05:41 PM
#96
Three Wheelin'
02-28-2013, 06:26 PM
#97
Race Car
Tal
02-28-2013, 08:01 PM
#100
I think that as long as you can pay cash for your car/toy, or finance at good rates, but can afford to pay it off at any time, then get what you want within those limits. It is certainly not an "investment", it is a depreciating asset, however it does have value. Insure it at the track if that makes you comfortable, I do. As long as you realize you are going to lose money, and that it is going to cost you money, especially if you track, then go for it. IMHO boats coast a whole lot more, and golf, boats, fishing, travel, can equate to track day expenses. That said $150K is my personal sweet spot for my obsession. If I lose it all then I can live with it. Just know your limits and consider how much you spend on other "things".
02-28-2013, 08:22 PM
#101
Drifting
$150k for a new 2010/11 GT3. Depreciates. Repair bills. Insurance bills. Maintenance bills. Fuel Bills. Tire bills. Track parts....
So we start with a 150k LIABILITY (not an asset, as assets pay you money and my car has never paid me a dime). Then we spend MORE (hence the liability).
So I am going to talk just about the $150k and not the other stuff mentioned above.
Version A - take 150k out of bank, go buy GT3. Done. Money gone. Never gonna get it all back.
Version B - get big fat loan for whole thing 150k for new GT3 (about 2500 a month +/-).
Version C - go buy a rental property with 150k downpayment with 80% LTV. Use net monthly cash to pay for the loan in Version B above. After 5 years, go get another new GT3 (which will now cost probably 175k+/-) with another 100% loan and use net monthly cash from same rental property (inflation makes rents rise but your costs stay same as you have a 30yr amm schedule loan on rental and increase in RE tax and insurance is negligible). Repeat every 5 years. FOREVER.
Bonus - your net worth is going up along with your rental property. When rental property value gets too high (lol) then refy the sucker at a higher loan amount and buy a boat with cashout.
FWIW - In Late 2009 I bought a building in Arlington I call "GT3". I paid $760k for the building and put down $166k for dp and closing costs. That building initially (higher now) spun off about $2000/month before tax and depreciation (depreciation almost wipes out the tax). In early 2010 bought Blackie (2010 GT3) with Porsche Financial loan $2,038/month and a traded-in wrecked 2005 997C2. I used no cash whatsoever to buy Blackie. When Blackie is paid off and and all used up and practically worthless - who cares??? I still have my rental building!!! And I'll just go get a new GT3 with a new loan.
I have similar stories that explain the new F450 and my latest GT3RS Silver Bullet.
This is also the biggest reason I don't own a Cup car. No one will loan money on a Cup car. I hate the idea of an uninsured, no-loan, 6-figure car that I had to put a big pile of cash into. Instead I want to buy another ASSET (rental property) to start another endless thread of monthly cash payments to ME!
My financial philosophy has nothing to do with net worth. It has everything to do with cashflow.
So we start with a 150k LIABILITY (not an asset, as assets pay you money and my car has never paid me a dime). Then we spend MORE (hence the liability).
So I am going to talk just about the $150k and not the other stuff mentioned above.
Version A - take 150k out of bank, go buy GT3. Done. Money gone. Never gonna get it all back.
Version B - get big fat loan for whole thing 150k for new GT3 (about 2500 a month +/-).
Version C - go buy a rental property with 150k downpayment with 80% LTV. Use net monthly cash to pay for the loan in Version B above. After 5 years, go get another new GT3 (which will now cost probably 175k+/-) with another 100% loan and use net monthly cash from same rental property (inflation makes rents rise but your costs stay same as you have a 30yr amm schedule loan on rental and increase in RE tax and insurance is negligible). Repeat every 5 years. FOREVER.
Bonus - your net worth is going up along with your rental property. When rental property value gets too high (lol) then refy the sucker at a higher loan amount and buy a boat with cashout.
FWIW - In Late 2009 I bought a building in Arlington I call "GT3". I paid $760k for the building and put down $166k for dp and closing costs. That building initially (higher now) spun off about $2000/month before tax and depreciation (depreciation almost wipes out the tax). In early 2010 bought Blackie (2010 GT3) with Porsche Financial loan $2,038/month and a traded-in wrecked 2005 997C2. I used no cash whatsoever to buy Blackie. When Blackie is paid off and and all used up and practically worthless - who cares??? I still have my rental building!!! And I'll just go get a new GT3 with a new loan.
I have similar stories that explain the new F450 and my latest GT3RS Silver Bullet.
This is also the biggest reason I don't own a Cup car. No one will loan money on a Cup car. I hate the idea of an uninsured, no-loan, 6-figure car that I had to put a big pile of cash into. Instead I want to buy another ASSET (rental property) to start another endless thread of monthly cash payments to ME!
My financial philosophy has nothing to do with net worth. It has everything to do with cashflow.
02-28-2013, 08:40 PM
#103
Instructor
Join Date: Apr 2012
Location: Tampa, FL
Posts: 123
Likes: 0
Received 0 Likes
on
0 Posts
$150k for a new 2010/11 GT3. Depreciates. Repair bills. Insurance bills. Maintenance bills. Fuel Bills. Tire bills. Track parts....
So we start with a 150k LIABILITY (not an asset, as assets pay you money and my car has never paid me a dime). Then we spend MORE (hence the liability).
So I am going to talk just about the $150k and not the other stuff mentioned above.
Version A - take 150k out of bank, go buy GT3. Done. Money gone. Never gonna get it all back.
Version B - get big fat loan for whole thing 150k for new GT3 (about 2500 a month +/-).
Version C - go buy a rental property with 150k downpayment with 80% LTV. Use net monthly cash to pay for the loan in Version B above. After 5 years, go get another new GT3 (which will now cost probably 175k+/-) with another 100% loan and use net monthly cash from same rental property (inflation makes rents rise but your costs stay same as you have a 30yr amm schedule loan on rental and increase in RE tax and insurance is negligible). Repeat every 5 years. FOREVER.
Bonus - your net worth is going up along with your rental property. When rental property value gets too high (lol) then refy the sucker at a higher loan amount and buy a boat with cashout.
FWIW - In Late 2009 I bought a building in Arlington I call "GT3". I paid $760k for the building and put down $166k for dp and closing costs. That building initially (higher now) spun off about $2000/month before tax and depreciation (depreciation almost wipes out the tax). In early 2010 bought Blackie (2010 GT3) with Porsche Financial loan $2,038/month and a traded-in wrecked 2005 997C2. I used no cash whatsoever to buy Blackie. When Blackie is paid off and and all used up and practically worthless - who cares??? I still have my rental building!!! And I'll just go get a new GT3 with a new loan.
I have similar stories that explain the new F450 and my latest GT3RS Silver Bullet.
This is also the biggest reason I don't own a Cup car. No one will loan money on a Cup car. I hate the idea of an uninsured, no-loan, 6-figure car that I had to put a big pile of cash into. Instead I want to buy another ASSET (rental property) to start another endless thread of monthly cash payments to ME!
My financial philosophy has nothing to do with net worth. It has everything to do with cashflow.
So we start with a 150k LIABILITY (not an asset, as assets pay you money and my car has never paid me a dime). Then we spend MORE (hence the liability).
So I am going to talk just about the $150k and not the other stuff mentioned above.
Version A - take 150k out of bank, go buy GT3. Done. Money gone. Never gonna get it all back.
Version B - get big fat loan for whole thing 150k for new GT3 (about 2500 a month +/-).
Version C - go buy a rental property with 150k downpayment with 80% LTV. Use net monthly cash to pay for the loan in Version B above. After 5 years, go get another new GT3 (which will now cost probably 175k+/-) with another 100% loan and use net monthly cash from same rental property (inflation makes rents rise but your costs stay same as you have a 30yr amm schedule loan on rental and increase in RE tax and insurance is negligible). Repeat every 5 years. FOREVER.
Bonus - your net worth is going up along with your rental property. When rental property value gets too high (lol) then refy the sucker at a higher loan amount and buy a boat with cashout.
FWIW - In Late 2009 I bought a building in Arlington I call "GT3". I paid $760k for the building and put down $166k for dp and closing costs. That building initially (higher now) spun off about $2000/month before tax and depreciation (depreciation almost wipes out the tax). In early 2010 bought Blackie (2010 GT3) with Porsche Financial loan $2,038/month and a traded-in wrecked 2005 997C2. I used no cash whatsoever to buy Blackie. When Blackie is paid off and and all used up and practically worthless - who cares??? I still have my rental building!!! And I'll just go get a new GT3 with a new loan.
I have similar stories that explain the new F450 and my latest GT3RS Silver Bullet.
This is also the biggest reason I don't own a Cup car. No one will loan money on a Cup car. I hate the idea of an uninsured, no-loan, 6-figure car that I had to put a big pile of cash into. Instead I want to buy another ASSET (rental property) to start another endless thread of monthly cash payments to ME!
My financial philosophy has nothing to do with net worth. It has everything to do with cashflow.
02-28-2013, 08:58 PM
#105
Rennlist Member
If I wasn't busy running my business everyday, I'd have more time to look for some ways to create passive income. Spending less time on Rennlist might help
