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

[Zedder]

I know there are a number of business owners here and wanted to get some opinions on a situation that I am facing. I lost my job unexpectedly earlier this year and have been looking for an other opportunity. Unfortunately, I work at the executive level in the manifacturing field and there just aren't a lot of jobs available at that end of the spectrum. A previous customer of mine would like to back me in a business venture and we may have found a suitable business that is for sale. I have enough capital to invest to a reasonable percentage, but could get to the 50% mark if I sold my '67 Z-28's. I am confident that I can make a success of this business and am leaning towards investing as much as possible without leaving us totally devoid of cash or mortgaging the house etc.

So for those of you who may have been in this position before...what did/would you do? Thanks in advance to those who share their thoughts http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

[Don_Lightfoot]

Very tough decision Mark. I must admit that such a scenario has not been present in my life. However, as much as we love these machines, there are some things that mean a lot more in my opinion. Family, employment stability and healthy lifestyle are a few that come to mind. Classic car purchases will no doubt present themselves in the future, while business opportunities may not. Good luck whith whatever you decide.

[Zedder]

Thanks Don http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

Sorry for posting this in the wrong section guys...I meant to put it in the lounge.

[firstgenaddict]

That is an extremely difficult decision. Of course the more equity you have in your business the easier it is to weather downturns. I was told quite a few years ago to measure the upside vs the down side. For example I deal in paperboard. If I buy raw material at $400/ton and I sell my rolls at $650 per ton but if I absolutely had to sell and could sell my inventory as waste at $300 / ton then the worst case senario is I lose $100 per ton best is I make $225 /ton. Do I want to take the chance of making $225 for the risk of losing $100?
Is the risk of giving up 67 z's worth the reward of running your own business and quite possibly building wealth for you and your family? Manufacturing builds wealth.
Look at the wealthiest families in the US, most of the wealth in the country has been built through manufacturing.
Ok now I will get doen off my soapbox.

[SamLBInj]

Hey Mark,
First off, in the end, they are only cars. With that in mind think of what the future could bring. If you lost your job again you may be put in a spot where you would need to sell them just to survive and then you basically have nothing. At least with a business you are creating your own destiny and opportunities. If your successful you will be back in the car world as its your passion, if your not you will have no regrets as the biggest regret is to not try in the first place. Just remember, owning your own business is 24 hours a day and starting one from scratch will feel like 48 but the rewards far outweigh the risks, Ive been there and have built 3 pretty successful companies and that took alot of time and effort, still does, but these days I can do pretty much what I want when I want. The cost of the cars is only relevent, when I went in the direction you are thinking of going back in 1982 a 69 Z was about 5K, now their 30-50K but I can get alot more today than I could back then and if I was working for someone else I might not even have one anymore, who knows you may wind up being the next Bill Gates and be in a position to have anything you want, you never know until you try...Good Luck and remember, there only cars. http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

[SuperNovaSS]

Very easy. Sell the cars. Once the investment pays off buy more cars if that is what you want. They are only cars and you will be giving someone else the oppertunity to enjoy them while opening doors of options for yourself. Good luck.


Jason

[WILMASBOYL78]

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 http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

[SamLBInj]

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]

Priorities...

[LVCamaro]

When you truly believe in the venture proforma...selling your cars will be an easy decision. You're a young guy with time on your side. Good luck...

SS

[WILMASBOYL78]

[ 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 http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

[Born30YrsLate]

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]

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 http://www.yenko.net/ubbthreads/images/graemlins/naughty.gif

Thanks again guys, I'll let you know what happens http://www.yenko.net/ubbthreads/images/graemlins/beers.gif

[92646]

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]

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.

[djunod]

Sell the cars... you won't have time for them anyway once you have your own business, not for a few years anyway.

[SamLBInj]

[ QUOTE ]
Sell the cars... you won't have time for them anyway once you have your own business, not for a few years anyway.

[/ QUOTE ]
You got that right, 18 years for me but that includes throwing a family in the mix http://www.yenko.net/ubbthreads/images/graemlins/blush.gif http://www.yenko.net/ubbthreads/images/graemlins/grin.gif http://www.yenko.net/ubbthreads/images/graemlins/beers.gif