I have $3000 I need to turn into more... | FerrariChat

I have $3000 I need to turn into more...

Discussion in 'Other Off Topic Forum' started by triXXXter, Feb 11, 2004.

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  1. triXXXter

    triXXXter Formula Junior

    Nov 11, 2003
    Ft. Worth TX
    Full Name:
    Steven G. Ogden
    I have recently sold my 97' Prelude SH and now I am driving a 96' Geo. I have no car payment now and have $3k left. I have debt that is more than the money left over that needs to go. (And a new S2000 in a garage wouldn’t hurt either) So I am looking into buying and reselling cars. I plan to own dealerships later done the line in life and figured this would be a good place to start. Any suggestions or tips would be greatly appreciated!

    Thank you for your time

  2. NY Joe 360

    NY Joe 360 Karting

    Nov 2, 2003
    New York
    Full Name:
    Cars are very hard to value and "flipping" as a side investment is risky, at best.

    Given your age I recomend opening a Roth IRA, if you have not already done started one. If you stick with it, by the time you're 60 you'll have a considerable amount in the account. Stick with a balanced mutual fund like DODBX to start out.

    Interestingly, the maximum contribution for 2004 is $3000 =)
  3. BRaskin

    BRaskin Rookie

    Nov 13, 2003
    Alright, You need to get to a DEALER auction! Bottom line inless your getting cars from there you are really gambling with the amount of money or if you'll make anything off the cars. You gotta find an in with a deal that'll let you toss him/her some cash to purchase some cars for you using their delaer liscence. That way your getting cars that are worth 5gs for 1500 but you gotta toss that person some cash for buying them for you. Now there is also a limit on how many times your gonna be able to keep doing this for cash. Because if you don't have a dealers liscence your only allowed to sell X amount of cars per year I beleive. IM looking into purchasing that MotorMillions infomercials system. Im sure there are tons of little facts and other interesting tips and hints in there.

    My .02
  4. Tyler

    Tyler F1 Rookie

    Dec 19, 2001
    dusty old farm town
    Full Name:
    NY Joe is right, put it in a ROTH or pay down your debt. Take care of the basics first.
  5. Dom

    Dom F1 Veteran
    Owner Rossa Subscribed

    Nov 5, 2002
    I agree here as well. Pay down your debt first (assuming it is bad debt), then invest in retirement accounts. Once you have maxed out your retirement account investment, you can go onto other things.

  6. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    Nova Scotia Canada
    Full Name:
    It won't make much sense to be in debt while trying to make money. I say put the 3g's down on the debt, then work for awhile and get back to square, then go ahead. That's what I would do.
  7. YellowMaranello

    Jan 7, 2004
    Mount Holly, NJ
    Full Name:
    Pete Gold
    I'm with him on this one. If I were in your shoes, getting any debts off my back would be the very first thing on my mind. It's risky buying and reselling cars, and if (IF!) you made money doing that, you would just end up losing a large chunk of it when you paid that debt off. If you just wait, you can start reselling cars later and just count and enjoy the cash as it comes in, instead of counting it and knowing that you'll have to give it away.
  8. triXXXter

    triXXXter Formula Junior

    Nov 11, 2003
    Ft. Worth TX
    Full Name:
    Steven G. Ogden
    Very true. Thank you for your comments, I appreciate all of them.
  9. f355spider

    f355spider F1 World Champ
    Owner Rossa Subscribed

    May 29, 2001
    Dittos, start as "debt free" as possible, so pay that sucker off. Start studying up on the car biz, heck get a job as a salesman at a dealer (used car side), that will teach you a bunch about sales, and what the margins and wholesale costs are. Also about what it takes to find cars, prep them for sale, and completing the sale.
  10. Auraraptor

    Auraraptor F1 World Champ
    Lifetime Rossa Owner

    Sep 25, 2002
    Debts first. Invest the rest. Personally I say put, Post debt payment, 25% into stock and the rest into something more secure.

    but I like it a bit more risky...
  11. robiferretti

    robiferretti F1 Rookie

    Oct 31, 2003
    NYC area
    Full Name:
    rob ferretti
    How much are you looking to get out of your $3000....how much do you owe if you dont mind me asking
  12. triXXXter

    triXXXter Formula Junior

    Nov 11, 2003
    Ft. Worth TX
    Full Name:
    Steven G. Ogden
    eh sure. I have a little over $10,000 in credit card debt. Out of work for a while bla bla bla... I know a good amount about working on cars and I have been in sales job for over 5 years. I have friends who buy and resale cars with no dealer license and have done ok. But I am looking to do it a little more aggressively. I am working two jobs and going to school. I could pay off my debt then save up to have enough to start then, but I am looking at 1 1/2, 2 years if I do that. Time is not on my side. (When is it ever?) I am 23 and still live at home, a plus, but I don't want to burden my parents any longer than I have to. Hell I'm 23! So I am just looking at all my options. I have considered car sales several times but "commission only" worries me a little. I work commission with base pay now and I am increasing my sales steadily at my job.
    I have $3000 cash to either try to build from or send to the credit card company not to see again for years. (All while driving a Geo Metro. Has anyone here DRIVEN a Geo Metro? I was in a Prelude SH! But eh no car payments.)

    Like I said, I'm trying to look at all my paths. I know I need to plan for long term but I would like the debt gone first.

    Thanks again for all your comments.

    Anyone here own auto dealership? If so how did you start?
  13. MikeZ_NJ

    MikeZ_NJ Formula 3

    Dec 10, 2002
    Southern NJ
    Full Name:
    Mike Z.
    Since you go to school, do you have any student loans that you get/can get? If so, the rates are a LOT lower, the repayment period is longer, and people checking your credit report will be much less put off by some student loans than 10 grand in revolving debt. Pay off as much of the credit card as you can with the loan. Then set up a schedule to pay the rest off and stick to it. You could even set up automatic payments online with my bank to pay back your credit card weekly/monthly. General rule of thumb is to pay off your debt before investing your money (as everyone has been saying) - look at it this way... If you find an investment that gives you a 10% return, and you're credit card has a 12% interest rate, you're still losing money.

    That said, I have used a credit card to finance something similar - I bought and sold tickets on eBay. I thought it was a lock - find a show guaranteed to sell out, buy the max tickets, sell them off on ebay at a higher price. It's never as great as it sounds. I made out a couple hundred ahead, but I got killed by one concert. It was sold out, but more shows kept getting added, and I couldn't GIVE away the tickets. (FYI, I was using a card that had a 0% promotion for the first 12 months, so there was no interest.)

    The point is, yeah, it could be some extra money, but there's still a significant risk involved. Being in debt already, you don't want that risk right now - put the $3000 towards the CCs.
  14. TestShoot

    TestShoot F1 World Champ
    Silver Subscribed

    Sep 1, 2003
    Beverly Hills
    start 'f-porn' and make millions
  15. Gilles27

    Gilles27 F1 World Champ

    Mar 16, 2002
    Full Name:
    Don't worry yourself about the age issue. My sister divorced at 28 (in debt--2 kids), put herself through med school and now has a successful OB practice. Just focus on what you want to do and don't rush it. You've got all the time in the world--to many of us, 23 is infancy! You'll be able to look back one day and reminisce about the GEO Metro days. Good luck and keep us posted.

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