Of course we all like old cars otherwise we wouldn't be on here. Everyone needs to set their priorities in life and the education of a child has to rank up the near the top of the list and owning an old car has to rank near the bottom.
yes, of course-he likes cars-they don't cost him much (he is not into high end stuff) and he can sell whatever he buys when he needs to use the cash for the all important son's education-stocks sound good but they are just paper-tangables are much more fun and Todd has often turned a profit-so yes buy a hobby car-spend smart-buy smart-sell smart-Todd is a smart guy-it'll all work out and he should reward himself along the way-this is a great affordable hobby
I understand the need for putting money away for a child's education. I've done it as well as many others. My cars were not the bottom of the list or the top of the list but I am a car guy and think Todd is as well; just look at the site we're all using. I don't think the site is for the money.
There are some people that have bought a car over the years for different reasons. Some for the love of the hobby, some for the social get together, some because everyone else has one, some because they always wanted a certain car that they remember from their youth, some because their dad had one. Everone has their own reason.
When it is in your blood it doesn't go away. It may be on the backburner for a while but it doesn't go away.
With a flat market it doesn't seem like the best investment but is that why most of us do it? I don't think so. We do it becaue this is who we are.....car guys or car girls. But with a flat market it is a good opportunity to pick up a good deal.
Todd, I am not saying rush out and buy the first thing that comes along but you know something will at a price that works for you.
There is a danger in buying a car and planning to sell it when it's education time. We've seen how the collector market can be. Today's $25,000 car is tomorrow's $10,000 car.
We bought a cottage in 2008 when sales were brisk. I had people tell me it was a bad investment, absolute worst time in the world to buy a cottage. My reply was "We don't ever intend to sell and I don't care if it's only worth a dollar tomorrow". Same goes for the convertible we just bought. Tomorrow it may be worthless but I didn't spend our kid's education money to buy it, so that doesn't matter.
__________________
1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
I say yes Todd should buy another old car. Life is too short and you cannot predict the future. I read the book " The Wealthy Barber" quite a few years ago and in one chapter the author stressed we do not owe our kids a post secondary school education. If they want to continue their education the responsibility of saving for it should be up to them. Kids should start saving asap with their own bank account.
We are supposed to help them if we can but not be stressed out to pay for all of it. If they want that education bad enough they can work for it. Student loans , grants and busaries are available.
My son went to college in Toronto and while he was in school I gave him a credit card and allowed him $500 a month for food, clothes etc. No cash advances allowed and no entertainment on the credit. I paid the bill and knew exactly where the money was spent.
Todd buy a car and enjoy it with your son now. You can always sell it latter.
Al, reading your post (and wise words I will say) made me realize my response was a 100% NO!
That is not the case. The point I tried to make but maybe didn't was that buying a hobby car is great, but make sure it's not an investment but just that, a hobby car. Buy it for fun and expect no financial return on it when it's time to move it along.
__________________
1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
Thanks for the advice guys. Carl S has a good point that the market could be worse than it is now when the time comes for school. It's not quite as simple in my situation. I'm divorced and our agreement has a clause for paying for my sons education. According to my lawyer I'm responsible for a third (or more-it's based on my income vs hers). My son will be responsible for about a third. What's the going rate for university- about 20grand per year? So, for a 4 year course I'll need to cough up about 25k.. Since we are a single income household, and a good chunk of my AFTER TAX income goes to child support, there's little left to save for anything.
My thoughts are very close to Taylor55's. I think it is almost like therapy for us who love cars. All you have to do is buy what you can afford and then spend accordingly. I think we get way to carried away with spoiling our kids and paying for everything they do. We've probably paid for about half of our kid's university costs but they bust their ass when they are home in the summer and I have been very impressed with how much they have been able to earn and they haven't had to take out any loans yet. They have even taken on jobs refereeing at university and working at the gym to help make ends meet. There is something about teaching kids a work ethic too and not just having them holding their hand out for whatever you're giving them. Ideally the saving time for their schooling starts when they are just kids because I think you actually have a little more money then than when they are ready to graduate from high school. Life needs a balance but the parents shouldn't be left out neither.
Just read your post Todd on your situation so obviously alot of what I said wouldn't pertain to you and your son but it is my opinion for other situations. With your intelligence I know you will make the right decision.
-- Edited by jmont64 on Sunday 17th of April 2011 10:06:29 PM
Okay, after reading all the posts, I figure I might as well get on the band-wagon and make some kind of comment, whether it be right or wrong, atleast I will have played, lol. If you go out and purchase a wise choice $10,000 collectible classic in nice condition and the market absolutely tanks......it will still be worth $7,000 - $7,500 any day! If you go out and buy a 2004 whatever for $10,000 and the market doesn't even breathe, let alone move up or down.......it will still only be worth $5,000 when you go to sell it. It certainly won't go up in value, whereas the "possibility" of the classic gaining some ground, does exist.........and it will have made you feel good in the meantime.............what's that worth??
I think Todd has his priorities straight. I voted no.
I have had a lot of cool/classic cars between the age of 16 - 22, then I sold them all and went to college. I paid for my own education with the money, but I didn't see it as a sacrifice. I saw it as a new beginning.
I didn't let the car bug leave me, but I didn't own another cool car until about the age of 28, then sold it a couple years later. I have now had a classic for 2 years, and I'm 51.
I love cars, but they aren't everything in my life, sometimes (for years at a time) more important things come along. I have many more interests that rank higher than a classic car.
-- Edited by Pontiacanada on Monday 18th of April 2011 07:21:31 AM
__________________
Prince Edward Island
'64 Parisienne CS "barn find" - last on the road in '86 ... Owner Protection Plan booklet, original paint, original near-mint aqua interior, original aqua GM floor mats, original 283, factory posi, and original rust.
I'll toss in my 2 cents... first thing is to find out how much university costs now... A kid can live at home (doesn't need residence or apartment during uni), in that case the cost is probably less than $7k/yr.
Besides health and family, education is #1 in my opinion... It's the best investment you can ever make in your childrens lives. A car may mean much more than a hobby to some folks... for me, it's the time I spent building it with my dad, and that is priceless. Any other car I have doesn't have that meaning and can come and go... Know that without a doubt (imo), cars are not great investments -but at the same time many investments have risks. But at the same time you have to enjoy life and work towards long term goals in small steps...
I thank my parents every day for the education they afforded me, the sacrifices they made to do it. Some people do not appreciate it, I know what I've achieved is based on that foundation and effort.
Ultimately its his decision what is best for his family. You dont have to have a $10,000 car. You can always buy a $3500 old car and have it as a driver. You dont always have to spend $10k or more to take something out on a sunday cruise. Big reason why I bought what I am driving now. I can drive it all year around and still get a few heads turned and its fun. Children are our investment that pays the biggest in return. They are our future. I am in the same boat as Todd. I am divorced and share custody. My boy is with me over 50% of the time. I know what its like to have one parent contribute more than the other and so forth. Whatever decision he makes I respect. After my divorce I always said " you can take the hotrod away from me but not out of me" has always stuck. I went many years not having anything but still participated in the car hobby with attending car shows, cruise nights. Hanging with car guys and so forth. The car maybe gone but the love of cars for him isn't. I made a deal with my son. For every dollar he saves towards a car, I match. If and when we buy something I will help him work on it but I am not building it myself. So when the time comes and the car is in the garage, we work on it together ONLY. Not just dad. This will give him a sence of pride in ownership and hands on learning experience. I dont beleive in handing my son anything. Ill help him as much as possible. As my dad did for me. Best wishes on whatever you decide. If you have no wheels. Come over anytime and we can hit a cruise night together.(just my 2 cents)
If you could only do one, it has to be the education IMO! The first job my daughter ever had started above 70k. I paid 100% of her 4 years at UNB, including books, dues, tuition, housing, laptop etc.. I could never afford a classic/muscle car, but desperately wanted one. There was no decision to be made. I'd estimate direct costs at $60000.00 for 4 years at UNB. I'd have sold every car, even the house for any one of my kids education. It wasnt until all that was done and paid for, that I bought my first classic car. There may be a valuable lesson in making them pay for it themselves, and perhaps they should. But this is one of those accomplishments that I am proud of, and cant be taken away from me, and I dont have too many of those that really matter.
Todd, take care of the son and, god willing, he'll take care of the father...and make sure he buys you something REALLY GOOD when he starts making the big bucks.
Good drivable cars that are different, have a history and don't cost a fortune are still out there. Ones that are nice enough to be fun, but not so perfect that you're afraid to drive them, but would probably earn your initial investment back if need be.
Like mine.
It can be done Todd, with the thought to sell when the nees arisies.
__________________
65 Laurentian post, 67 Grande Parisienne 4 door HT.
Good drivable cars that are different, have a history and don't cost a fortune are still out there. Ones that are nice enough to be fun, but not so perfect that you're afraid to drive them, but would probably earn your initial investment back if need be.
Like mine.
It can be done Todd, with the thought to sell when the nees arisies.
are you doing RESP's (Registered Education Savings Plan) at all. i quit doing RRSP's a couple of years ago when i figured i would never touch them and switched over to RESP's no tax break but the gov't does kick in a bit. the plus is that if the kid doesn't use them for education it kicks back to you minus the grant portion.
