Would you sell your car(s) to buy a business?

**WILMASBOYL78** · #1 10-17-2005, 01:38 AM

It sounds like you have more than one car. Why not think of this scenario: Sell one of the cars and then get a collector car loan against the other. You can use the cash to help finance the project. You could even hock both the cars and get cash against them. I know some banks who offer very friendly terms for financing: eg: interest only, long term or balloon note. If you sell both cars outright and invest the cash in the new business and then something goes wrong, you are still out the money and the cars are gone! Worst case scenario you are forced to sell the cars to pay off the debt. You could even set aside some of the cash you get upfront to help pay the carrying costs of the note for say a year or so. This way you don't have to sell anything and you have the time to get your new venture up and running. Keep in mind that those 67 Z cars are apprectiating assets, don't be so quick to sell. Meet with your acct and run some numbers. You might be surprised at how it could work out. If you really believe the new venture is a winner then it should turn out ok. Get a professional appraisal of the cars with deatils and photos, rarity, etc. This will establish credibility for the loan if you go that route. Hope this helps...

wilma

**SamLBInj** · #2 10-17-2005, 04:14 AM

Hey Tom,
From reading Marks post Im getting the feeling he is trying to finance this without creating more personal debt. Otherwise, by putting up the house he would have the most cost effective way to keep and get everything he wants as cheap interest only loans could be used. Without knowing more details like long term zero paychecks for a while its tough to make a call. I think the basic question is, Would you sell your cars in order to take a risk in hopes of a better more secure life. I think most would.

Belair62 · #3 10-17-2005, 04:27 AM

Priorities...

**WILMASBOYL78** · #4 10-17-2005, 05:02 AM

[ QUOTE ]
Hey Tom,
From reading Marks post Im getting the feeling he is trying to finance this without creating more personal debt. Otherwise, by putting up the house he would have the most cost effective way to keep and get everything he wants as cheap interest only loans could be used. Without knowing more details like long term zero paychecks for a while its tough to make a call. I think the basic question is, Would you sell your cars in order to take a risk in hopes of a better more secure life. I think most would.

[/ QUOTE ]

Good point Sam, it is hard to walk in another man's shoes. I hope his business is successful. I have known a lot of guys who sold too quick and regretted it. Just wanted to throw out a few ideas for consideration. Good luck Mark, with whatever route you take.

wilma

**Born30YrsLate** · #5 10-17-2005, 06:12 AM

If it were me I would definitely say YES...my ultimate goal is to own my own business eventhough my love is for these cars...

**Zedder** · #6 10-17-2005, 06:31 AM

Thanks guys for all of the thoughtful responses and well wishes. I really do appreciate it. Going through a job loss like I did this summer is a really humbling experience and not something that I would wish on anyone. However, I believe all things happen for a reason and I'm sure there are many lessons to be learned from the experience.

I agree with most that the cars should be sold if it allows me a stronger position in the business and I am prepared to do that. I don't care for personal debt, so borrowing money for something "fun" just isn't somthing that I would likely do.

I do believe in the business and think it has tremendous upside potential, so if the cars must go, they will. However, I am proposing a sweat equity arrangement in addition to my cash investment, so we'll see if I can at least keep one of them this way

Thanks again guys, I'll let you know what happens

**92646** · #7 10-17-2005, 09:16 AM

If I can add my 2 cents. When I worked for the phone company with all the security that a large corporation offered its employees back then. I remember a 30 year employee saying that you will never get rich working for somebody else. About 10 years ago I sold a 1967 R/S Z/28 project car that was granada gold with black deluxe interior, cowl plenum air cleaner and factory gauges for $9,500.00. I sold the car to a buddy so I could buy a house by the water for my family in Huntington beach and I never regretted that choice.
Mark Sheppard

Canucklehead · #8 10-17-2005, 09:39 PM

15yrs ago i was in the same boat and i sold my cars to buy a buisness. After years of hard work and several buisnesses later (it seemed as one became successful another chance to buy another came up) i was glad i did it. Although i missed my toys i would'nt have had time to enjoy them anyways as my schedule was quite full running several buisnesses. Now i am finally managing to free up time and money i will soon be back into it with a better chance to get what i really want with the time and money to enjoy them.

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