Sunk costs

So over the last 72 hours I've sold off about a third of a challenge car's worth of parts out of the shop, including three engines a transmission, and almost two dozen rims. By my best estimate I spent about twice what I got for the stuff when I bought it all, so I'm down about a third of a challenge car in sunk costs.

Similarly, after the dust settled from delivering a truck I'm ahead about enough on it to cover the cost of the new tires I had to put on the truck to safely make the trip. That's less that half what I paid for it.

I gave a 65 year old truck that was one of my father's joys to a kid for him doing a motor swap I could probably have done on a Saturday. The kid has been working on it for a month.

So as my father would have reckoned I've been "losing" money hand over fist this year. Why then is it such a good feeling to drop something I've been saving for years onto an old tire in someone else's truck and stack the empty pallet back in the corner of the shop?

I figure it's like lottery tickets. I only buy them for the excuse of being able to daydream about having a fortune a few times a year. Maybe buying a flathead Ford and spending a couple of years with the Speedway motors catalog is the same sort of thing?

Clearly the sunk cost fallacy is not an issue for you

Getting rid of stuff - especially projects that you claim you'll get to "some day" - is so freeing!

Don't feel bad I'm loading the bed of a truck i paid $950 for with scrap in preparation to go get $200 for it at the scrap yard, and the only miles I drove it were the 20 home. It's going to feel great to not look at it anymore

Sometimes you just have to let things go. Someday I'll listen to that advice.

Some day I'll probably buy your pile of stuff...and add it to my pile of stuff. I like stuff.

From a logical standpoint you're trading stuff for money. From an emotional standpoint you're trading stuff for opportunity.
Having 10 cars in the yard means you always have something to fix. Some car to exercise. Some car to wash.
Having 2 cars in the yard means it's time to cruise Craigslist. A man can't have just two cars, that's not natural.

All of it has made you happy at least twice. Once when you bought it, and now again since you are getting rid of it. Not to mention all the day dreams about it.

Maybe it's not a sunk cost after all. How much is happiness worth.

Toyman01 wrote: All of it has made you happy at least twice. Once when you bought it, and now again since you are getting rid of it. Not to mention all the day dreams about it. Maybe it's not a sunk cost after all. How much is happiness worth.

That's the spirit!

After 20+ years ... I sold it all off over the last 18 mos because I think I was tired of the same set of problems and of being a slave to having a race car(s) and all car related projects. When you have something that you spend so much time and money on - you have to use it when you can. So, you don't take that silly trip on Labor Day, you go racing again and again and again even after your heart is no longer in it. As long as the perceived investment is there - it's compelling to do only that. That is the same reason that owning an RV is death to all other types of vacations. You can't take a plane when you have an expensive mobile house parked at the local storage facility for even more money.

An empty garage is liberation to do something new. I've ridden my motorcycle 14k miles since February and I haven't touched a wrench when I didn't need to in months. I feel good about that.

In reply to Huckleberry:

That is some good perspective.

Toyman01 wrote: All of it has made you happy at least twice. Once when you bought it, and now again since you are getting rid of it. Not to mention all the day dreams about it. Maybe it's not a sunk cost after all. How much is happiness worth.

That's not always true. It can depend on the circumstances of the sale. I sold my '78 F-150 4x4 back in 1992 not because I wanted to, but because I'd just been laid off work and couldn't justify owning two trucks on no income (mainly the additional insurance costs at 22 years old). I didn't really want to sell it then and to this day often miss it, although not enough to find another one - yet.

When I sold my conversion van in 2007, I knew almost instantly I'd made a mistake, but I needed the room.

It's not sunk cost. If you no longer want it, the real cost is the cost to store and cost to remove.

How much would you PAY for someone to remove it for you? I just sold a shed yesterday for $200 because I am putting up a garage. Most people probably would have paid $1000 to just have it demolished and carried away.

Did the shed cost more than $200? Yes. But for my desired outcome I am $1200 in the right direction.

About 2 years ago I bought an 89 C1500 for $1k, then sank at least another $2k in parts in to it. I recently sold it for $2k and was happy to see that POS drive away. I was sick of constantly working on it, all the while it continued to piss ATF and oil on my street and driveway. Good riddance.

NEALSMO wrote: About 2 years ago I bought an 89 C1500 for $1k, then sank at least another $2k in parts in to it. I recently sold it for $2k and was happy to see that POS drive away. I was sick of constantly working on it, all the while it continued to piss ATF and oil on my street and driveway. Good riddance.

I don't view that as a loss at all. To me, any car is worth $200 per month in depreciation. That's about the cost of the cheapest lease on a fiesta or whatever. So, over two years, in my mind, it depreciated $4,800. And you bought it and repaired it for $3,000. So, if the truck caught on fire and burned up to nothing after two years, you were still ahead by $1,800. ($200 x 24 months = $4,800 - $3,000 original purchase) But, add the fact that you sold it for $2,000, means you are actually ahead by $3,800! So that truck actually turned a profit! At least in my mind lol.

Anyone else thought this was going to be a boat thread?

Toyman01 wrote: All of it has made you happy at least twice. Once when you bought it, and now again since you are getting rid of it. Not to mention all the day dreams about it. Maybe it's not a sunk cost after all. How much is happiness worth.

You've just described boat ownership.

In reply to T.J.:

It could be. I'm shopping for a bargain at the end of the summer season on CL in another window as I'm typing this.

Huckleberry wrote: After 20+ years ... I sold it all off over the last 18 mos because I think I was tired of the same set of problems and of being a slave to having a race car(s) and all car related projects. When you have something that you spend so much time and money on - you have to use it when you can. So, you don't take that silly trip on Labor Day, you go racing again and again and again even after your heart is no longer in it. As long as the perceived investment is there - it's compelling to do only that. That is the same reason that owning an RV is death to all other types of vacations. You can't take a plane when you have an expensive mobile house parked at the local storage facility for even more money. An empty garage is liberation to do something new. I've ridden my motorcycle 14k miles since February and I haven't touched a wrench when I didn't need to in months. I feel good about that.

This is why after years of having had project cars and track cars, and my unhealthy desire for a Camaro SS 1LE.......I just know I wouldn't use it that often for it's intended purpose.

And it seems silly to have a $45k street-legal, off the showroom floor track car, that spends 3 days and 30 miles per week taking me to work, to see the occasional HPDE/AutoX, because we'd take the girlfriends more practical car most of the time for errands and such.

Appleseed wrote:

Toyman01 wrote: All of it has made you happy at least twice. Once when you bought it, and now again since you are getting rid of it. Not to mention all the day dreams about it. Maybe it's not a sunk cost after all. How much is happiness worth.

You've just described boat ownership.

I have owned quite a few boats. I still own 3. I speak from experience.

It doesn't only apply to boats though.

In reply to joey48442:

True.

I'm not quite as optimistic, but I do realize I had a truck for a couple of years and got use out of it.

think of it as women who no longer fit your lifestyle...I would say you are getting off cheap