Hey guys,

I'm 20 years old, making 100k a year on the books. I am also making about 40k from my personal ventures annually, and have a chunk of equity in my company that cannot be cashed out for another 3 1/2 years. My current net worth is ~$150k, 40K in the bank right now. I am projected to be making around 200k next year. Given the fact that I am young, I think a lot of car dealerships would be skeptical to give me a loan. For me, financing a car with the lowest down payment makes the most sense because I reinvest all of the money that I earn. What kind of car can I afford with what kind of down payment? Any advice would be greatly appreciated

 

That's not true. Think Honda and you will be Ok.

 

Awwww man. I guess you're right though. I'm not in a position to endulge in luxuries....yet one day.

 

KMJ, if you truly have a properly documented portfolio there should be no problem as credit is very easy nowadays at very low rates. Unless of course your leveraged up and carry too much credit/debt with your liabilities being a high percentage of overall income.

 

For a 20 year old you are doing very well, better than I did at 20 for sure. You seem to take kidding extremely well and for that you will make a great Bentley owner. Forget the Honda. Take your time (there is much to learn about Bentleys and you can get a great deal of it from this wonderful forum) and then go for it.

It is a different way of life.

 

I disagree. Banks etc want to see a history. A 20 year old doesn't have the kind of finacial history needed to make banks think he would be a good risk. BTW what's the rush kid? Live a little, save your money. I assume you still live with your parents. Doesn't sound like you either in College or have finished. Get some things done first. Owning a fancy car is not a priority today. Plus at 20 most people will think you are driving your parents car. Just because you think you have some money doesn't mean you have earned the right of passage to buy a luxury car. Kids today. They need everything NOW!!!!!

 

What a stick in the mud!

If he starts being practical at such an early age he may never change and therefore live like most people live "Quiet lives of desperation." Maybe I didn't have his money at his age or wasn't as young but I did crazy stuff when I was young and I think that prepared me to be as happy I could be throughout my life. At age 70 I can tell you that I am probably the happiest man on this planet and I probably wouldn't have done so if I hadn't practiced at it.

 

Hey guys,

Thanks for all the responses. I guess i'm just a little insecure about my financial stability and always looking to do more. I'm just the type of person who wants to push my limits I guess. It's hard for me to judge my progress comparitively because all my friends aren't anywhere near what I am doing. Just for clarity, I have no debt whatsoever, and my expenses are extremely low. My rent costs $500 for 2500 sq/ft (I rent a room in my 'residential' office). I also pay $250 for my Infiniti Q50 lease. My company pays for gas, auto insurance, and maintenance. My goal is to not be able to afford a Bentley right now, but to amass enough wealth by the time i'm 24ish and be able to afford one no problem. My real question is....am I on the right track?!

Btw, did you guys/gals finance your Bentleys or buy them outright?
Seems like a ton of money to drop all at once even if you are a millionaire.
Details please!

 

Nope, i've been living by myself since I was 16! I used to be a troublemaker and got kicked out a bunch of times. I do not/have not gone to college, nor do I plan to in the near future. I don't even have a high school degree! I got my GED when I was 17 and I was high on LSD . Although ambitious, I am also patient. Not looking to overextend myself with foolish indulgences anytime soon. I agree with you though that as of now, no bank would give me that type of loan. Heh.

 

… Perfect. As Steve Jobs once said "Stay hungry, stay foolish."

… Great plan.

… Yes.

… Outright.

 

Hmm, then a B is a very bad "investment". You could try other alt investments such as artwork, rare musical instruments, timepieces, etc. if you need to migrate your dollar holding into other items not strictly based on FX values per se.




As we can all agree, the modern 'mass produced' Bentley is a guaranteed investment loser. All in all sounds to me like you have an excellent grasp of where you are and where you want to be. BRAVO as you are way ahead of many others your age. Am sure with a little care, some wise diversification and NEVER getting emotional on trading/investments, the day will come where you could have just about any car you desire within reason. You're doing great right now, yet you know time marches forward and the market changes................


PS: IMHO finance 'toys' and never drive a car so expensive that if you pushed it off a tall cliff you could not financially/emotionally recover from the 'hit'.

 

Great responses guys. Enjoythemusic, I am surprised you would recommend artwork/collectible commodities as a viable investment. Many people think that is ridiculous! Well, then again, you are a Bentley owner. I myself run two rare coin businesses. Stocks are something I wish to get involved in soon, but have not had the time to properly develop my skills. I have invested in a couple low risk/high dividend stock, but tbh I have no clue what I am doing LOL.

 

Really?????????
The things you mention come in and out of vogue easily. The disposal costs can be very high. IMHO these item are the kind of things that are bought to be enjoyed and if they appreciate, so be it, but I would not count on that. I have a spent a great deal of money on timepieces but I would not refer to it as an investment. Maybe you guys don't watch enough "Pawn Stars".

To be more specific:
Liquidity (very poor to horrible)
Rate of return - Depends very much on the economy.
Risk - Depends very much on the economy.
Knowledge required - Very high.

Try AAPL instead. Be prepared to lose 25 to 50% of your investment in the short term. In the long term - just hang on and don't look back. BTW - AAPL stock bought my new 2013 GTC. It sports an Apple sticker on the left rear taillight.

 

Well, ok, in a general sense i agree with you guys. BUT.... that depends on PRECISELY what you buy. Picasso, Dali (full painting, not the smaller items), Stradivarius violins, pristine early Gibson guitars, vintage highly complicated Patek Philippe timepieces....


So you gentlemen are correct UNLESS you choose well. BTW, Sir Evelyn de Rothschild said for safety you should hold on to your gold bars.


Rare coins? Hmm, if I ever dump my PCGS MS70s I know who to contact. Does investing $1300 each for quite a few MS70 First Strike UHR Double Eagle 1oz sound ok to you?


But yes, I tend to be VERY different in my approach than others. This is where knowing the market is key of course. Agree too many things come in and out of fashion. Look at all the STUPID money people have been paying for not-so-rare muscle cars at auction(!). Dumb money.

 

Seems simple enough to me, being a microbe and all. I fell for the smaller item Picasso and Dali paintings more than once. And where were you when I bought a Stradivarius that had been painted black with gold pinstripes.