Sell or Keep another valuable car, advise needed
 

Ok, I'm posting here because the Aston Martin site is not good on this subject.

I have an Aston Martin DB4 which I've owned for 34 years. I bought it for very little, but what it was worth then ($1,750). I've restored it over the years, there isn't a point in time when it was completely fresh. But its in good shape. I make a pretty good living by U.S. standards, and an OK living by Los Angeles standards. Compared to many in Los Angeles, I don't have a big mortgage (about $200k with ten years left to go). But with a daughter in college and a son going to college in 1-1/2 years, every bit of discretionary money that I have is taken up. I need a new barbeque and can't stand the though of putting $500 or more on an ever increasing second mortgage. We live pretty frugally, but still don't have much money at the end of the month.

Anyway, the DB4 is worth some crazy amount like $120k to $150K. I hardly ever drive it (hot, uncomfortable, doesn't like LA traffic, parts are expensive, etc). So I'm debating with gas prices now if I should sell a member of my family. I could use the money for lots of things, credit card debt, pay of second on the house, restucco and double pane window the house, replaster the pool, flooring for the house. But in the end, the money would be gone and so would be the car. I'd probably keep the Targa, cause at least I can get parts for it and its drivable in LA. I just sort of hate the though of seeing another DB4 some day and thinking I USED to own one of those. Six or seven years from now I won't have college tuitions to worry about.

What would you do?
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Nice looking car. It's a very tough call to sell or not.

I think you have to ask yourself, do you get $120 - 150k worth of joy out of the car? If so then keep it. If not your funds may be better used in a place where it brings the most value to your life.

While I would love to have this car, the market is pretty hot right now. I think it would be pretty hard to keep unless you plan on growing your collection.

If it was me, I'd have to replace it with something I'd drive more.

My thoughts exactly...

+2

I'm hearing that the major compelling reason to not sell is concern about regret.
All else - attractive big $, your budget concerns - tells me to sell.
You sound like someone who finds great peace in financial security, being smart with money, the future, etc.
Selling the car would be consistent with that...the way I see it.
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Having said that, while reading your post I had phantom heart tugs from past vehicles I wish I still had.
But when common sense prevails, the tugs/regrets fade.

Damn!...where are those winning Lottery #'s, eh?

Good luck.

+3

You should either enjoy the car frequently or have the money make no material difference in your life. Didn't sound like either to me.

In the grand scheme, +4.

Dissenting point of view here. You said it best yourself-"the money will be gone, and so will the car". The value now isn't "insane"-a 300k Cuda is insane.

That said, the market is likely peaked. And there is the issue of not driving it. That's really the killer-its not good for the car, and it makes it seem like a burden.

The car is a part of your personal history. I'd have a frank conversation w/ the family about it, and see what they think. Make sure they're not pandering, and you can value their imput.

The way I look at it, your son is likely to feel about it the way you do about the Rudge, so it may be worth keeping it around regardless.

Hugh R: "...a son going to college in 1-1/2 years, credit card debt, pay of second on the house, restucco and double pane window the house, replaster the pool, flooring for the house."
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That's what he'd gain.

I noticed you had a DB4 when we were on another topic. I was going to ask if you had pics. BEAUTIFUL. 120-150 grand is a lot of cash. Will you have a problem with capital gains tax? Look into a 1031 exchange to help offset some of that.

*****! I didn't even think about capital gains! I'll be fu(ked if I'm giving the IRS a penny from any proceeds from that car. I used to haul starter motors and flywheels in a backpack on my bicycle in the winter in Boston (uphill both ways with the wind in my face bothways) trying to get that damn thing operational. I better look into that before I make any decisions. I'm in the top tax bracket as it is, and I don't care to hand the IRS 20 grand or more. 1031 exchange, better look into that. I've got a lot of money into the car (nothing compared to the value) but an awful lot of hours over 34 or 35 years.

Thanks for the points guys. Except for my son's college, which I can afford, the rest (except the credit card debt and the second mortgage are results of the daughter's college, and some hopefully non-recurring medical debts). The rest are "wanted" items, stucco, flooring, pool replastering, etc.) Hopefully when the kids are out of school, the cash flow will go the other way (hopefully).

Just ask for cash. Don't pay no stinkin capital gains dude. Also do NOT tell the wife what you sold it for. Just tell her and the IRS that you got $10k, just what you paid for it.

Racers rule: Tell wife everything is $/10 the IRS $*10 (for dedections) and $/100 for gains. The truth, tell no one.

Smoke the car. It's just a car and from the sound of it too much worry to drive and enjoy.

I lean towards the sale...but really, use the $ to get out of debt, starting with the highest interest debt first. Money paid in interest is money you can't spend on yourself. One reason I plan on keeping my car until I can't drive is because the $$$ I'd get for it would absolutely make no difference in my lifestyle. It sounds like selling this car could make a difference in your financial health. Snowman's advice may not be so sound...can you be sure nobody reading this board works for the IRS???? Talk to your CPA or Tax Attorney.

Capital Gains? . . .Everyone knows that when it comes to old cars, the cost of storage, parts and labor far out paces resale.

My gawd, man; it's old AND British! --Cheerio ;)

oh, and to the Q "what would I do?" -- I would have the kids figure out how to put themselves through college. College seems to be one of those things where the kids need to be clearly investing themselves. It would really suck if your kids essentially burnt up your Aston, because "it was just something to do."

Have to agree, Hugh - dump it. Invest in your credit card debt and house. The memories are what count, not the fact that you can barely drive the car without a worry.

Here's another way of looking at it...

Imagine you won 120k... what would you do with the money? Pay off debt and fund your children's university, or go out and buy a DB4?

It's hard but you should sell the car and use the money to pay off debts.

1031 exchange on a pleasure vehicle? I'm all for tax avoidance, but this is really pushing it.

I dunno what you should do. Normally, I would support guys selling 911s to start families and buy a house, but you've already got the family and kids. Plus, 911s are just 911s (dime a dozen). A DB4 is a special ride. I'd lump this in with a 73 Carrera 2.7RS, and I sure as he!! would never sell one of those.

Your kids can get student loans. The rates are low, and you don't pay until you graduate. You can still pay, but defer one kid's payments.