"E. Julius" (soonerfrommi)
01/27/2015 at 16:41 • Filed to: Ask Oppo
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"E. Julius" (soonerfrommi)
01/27/2015 at 16:41 • Filed to: Ask Oppo | 0
| 15 |
Considering using some of my savings to have a little fun with a car this summer. The only problem is that selling my DD is absolutely not an option, I won't be willing to spend enough money to get something I'd really want as a long term 'fun car', and long term storage at school or with my parents is not an option. Would it be possible to spend something like $2-3k in May, get something fun (NOT a project car), and sell it without losing too much in August?
My main concerns are:
Living in Michigan—it's a seller's market for Miatas in May and a buyer's in August
How much would I lose in registration and insurance for three months of driving?
Can I insure a car for only three months?
How much could I reasonably expect to recoup on the sale?
Avoiding an unintentional money pit
If I can keep the net cost (profit/loss on the sale + gas + insurance + fees + maintenance) below $1500-$2000, it's something I'd be very interested in doing. How feasible is this? I'm not afraid of playing a little hardball when it comes to negotiating, but I know that many cars at that price can be risky. I have next to zero wrenching ability (willing to learn though) and less than adequate access to tools for working on cars.
What sort of suggestions do you have for a car that would be good for this? Keep in my mind I will be in Michigan, so the market is skewed towards American cars.
I'm also considering doing this with a motorcycle, but I've never ridden one before and I know that between taking the classes, getting great safety gear (necessity), insurance and fees, it could be close in cost. Thoughts? Any help appreciated.
Audi-os, Amigos!
> E. Julius
01/27/2015 at 16:48 |
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I basically did this last year. Remember: you'll have to pay sales tax on the purchase, pay to have it titled and/or registered, and pay to insure it if you intend to drive it.
Cars don't depreciate in 3 months so that's no problem. However, I actually made a little money buy buying a convertible in December, and selling it in May, when demand was much, much higher.
Also, pick a car that you can resell. I bought an A4 Cabriolet because hey, I live in Northern Virginia where there are lots of rich daddies with lots of princes and princesses who have birthdays and/or graduations in Spring and need fun luxury runabouts as presents. Think about your target market, as well as your own desires.
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E. Julius
> Audi-os, Amigos!
01/27/2015 at 16:53 |
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Good advice, thanks! Unfortunately I don't have the option of buying a convertible in the winter, as I won't be back in the US until May—I did consider that though. How much did those fixed costs (tax, insurance, registration, etc.) run you? Think it can be done for around $1500-2000 out of pocket?
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Audi-os, Amigos!
> E. Julius
01/27/2015 at 17:01 |
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Totally, utterly, and completely depends on the car.
For example: Sales tax in VA is somewhere between 4% - 10%, I forget. Say you buy a car for 3 grand: that's between $125 and $300 right there.
Insurance will probably be roughly $100/month, give or take twenty bucks. Times three months, let's call it $300.
Registration will cost <$100, most likely. Call it $100 to be conservative, that's about half of your allotted budget.
Basically: yes, it can be done, if this experience is important to you/would bring you joy . But there's a real good chance it might cost you that 2 grand you're willing to part with to do.
Also: used cars sellers hide problems with cars, period, full stop. EXPECT to make repairs as soon as you buy the car - which will cost money.
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E. Julius
> Audi-os, Amigos!
01/27/2015 at 17:05 |
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Ok, that all seems pretty reasonable. Are there any issues with insuring a car for three months? There's not like some thing where you have to pay for a year's policy or something like that is there? I think is something I would only do if I found the right car for the right price, but if there's something good that comes along, I'd be very interested.
thejustache
> E. Julius
01/27/2015 at 17:23 |
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Get a motorcycle, then keep it after the summer?
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E. Julius
> thejustache
01/27/2015 at 17:24 |
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Definitely considering it.
MysticStick
> E. Julius
01/27/2015 at 17:38 |
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You could get a lot more bang for the buck, but... #twowheelsbad
AdverseMartyr
> MysticStick
01/27/2015 at 19:04 |
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Shut your mouth. :P
Two wheels is awesome. Supercar performance for next to nothing. And its a skill that improves car driving.
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AdverseMartyr
> E. Julius
01/27/2015 at 19:11 |
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Get the basic gear you need for the MSF, take the course and see if you like it. Once you do, grab a used 250-500cc bike (cheapest POS you can find that is road legal and works properly) you like the look of and flog it for the spring/summer/fall. Then hold on to it until next riding season and sell it for what you paid for it. Get a bike more suited to your taste and hold on to it.
Really you should buy your next bike at the end of fall when people want to sell, but nobody is buying and then store both bikes over the winter, take the beginner out the first few weeks to get comfortable again and then pull the keeper out.
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E. Julius
> AdverseMartyr
01/27/2015 at 19:14 |
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Thanks for the advice! After talking with a friend who does a lot of motorcycle flips in the area I'd be buying, I'm definitely leaning in this direction. Can you estimate how much some basic safety gear would cost?
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AdverseMartyr
> E. Julius
01/27/2015 at 19:30 |
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Depends on how you buy it, and what you decide to invest in. The MSF in Hawaii only requires a helmet and then long sleeves, long pants and close toed shoes if I remember right. But I would definitely go with gloves as well.
Being a cheap ass I will try gear on in a shop and then look the price up on Amazon for what I want. Offer them the Amazon price and when they say no, then I order it from Amazon.
Buy your helmet new, any scratches are a warning sign (though my helmet rolled sideways and brushed a piece of drywall and received a scratch) and you don't want a suspect helmet.
If you have a friend who rides and his gear will fit I would just ask to borrow it for the course (assuming you wouldn't mind replacing his helmet). Otherwise buy a cheap Dot approved full face helmet for the course (I think you can find an off-brand on Amazon for less than a hundred and maybe even a known brand, just check google to see if a motorcycle mag has reviewed it), and a decent pair of gloves.
If you go whole hog on gear right away the cheap Viking jackets have good reviews from people (some on Oppo), and then find a decent pair of riding shoes and pants. Cheap gear is better than nothing, Good gear is better than cheap though. Some gear can be upgraded later though.
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E. Julius
> AdverseMartyr
01/27/2015 at 19:34 |
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Alright, thanks! My dad's a rider so I'll see if there's anything of his that I can borrow, although I think something like boots/shoes would be the only thing that would fit. Thanks again for your help.
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Audi-os, Amigos!
> E. Julius
01/28/2015 at 09:48 |
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I honestly have no idea about the insurance thing. I'd recommend calling your/a insurance company or using their live online chat to ask.
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E. Julius
> Audi-os, Amigos!
01/28/2015 at 12:01 |
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Good suggestion. After looking at what sort of stuff is available, talking to a few people I know who are into flipping cars/motorcycles in my area, and going over the costs, I think I'm going to go the two wheeled route. Probably keep it too since I think my parents have room for another bike, but not another car. Thanks for your help.
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Audi-os, Amigos!
> E. Julius
01/28/2015 at 12:09 |
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Good luck!