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I actually find these discussions interesting. Those contributing more than derisive comments are helping to place a purchase decision in some kind of context - benchmarking, if you like. While I don't doubt that purchases by some buyers are patently financially imprudent, or equally may be financially inconsequential, I suspect that many may be in a more nuanced position, where the purchase is affordable, but may still seem a bit financially irresponsible when alternative uses for the purchase price are considered. To that extent, it can be useful to consider what tipped the scales for at least some others, not that decisions others make are necessarily appropriate for any other person.
Instead of thinking about it as "purchasing a $200k car", think about it as purchasing depreciation.
If you intend to keep the car for 3 years and lose, let's say, $60k in depreciation, are you able to afford $20k + wearables + gas + insurance +etc. per year? It doesn't matter if you write a check for $200k or lease it with no down payment, the math is similar.
Now, if you choose to buy the car outright in cash, then net worth matters much more than income. If you plan to finance / lease the car, income matters much more than net worth.
One reason why the GT3/RS model is so attractive to some buyers is that the total cost of ownership 'may' be less than a car half or a third of it's price because of limited or no depreciation... you only pay for running costs. At that point, as long as you have good insurance and can afford the monthly payment and running costs, net worth shouldn't be a factor.
I would assume most 911 purchases follow a bell curve... some people stretch their budget to attain, for some it is just pocket change, but for most that finance it is about 10-15% of their gross household income. Could be wrong though
I think most people want to know what "class of people" can afford to drive a $200k automobile and perhaps the OP may be asking the same question. I tend to agree with many folks on here who say, "if you can afford it, then...". Where I live in SoCal, more specifically O.C, it appears that networth has no bearing what so ever. It's more like reckless spending...stupidity, really. Bimmers and MBs are a dime in a dozen. I see several Teslas every time I'm on the road and I drive by a Ferrari when I leave my garage. I don't mean to brag about where I live but merely trying to paint a picture of my world, which I don't agree with for the most part. I don't consider myself wealthy by any standards (and I'm not) but i do feel blessed for what I have. In my neck of the woods, majority of the folks tend to live way above their means and go into huge debt because it's all about the appearance.
Although I can afford a relatively high car payment, I refuse to do so for a "toy". My dream car has been a Porsche Turbo ever since I can remember and I'm saving up for one as we speak. I'm with Tcomegna--I refuse go into debt to purchase a toy, whether it's for me or for any of my family members. I've had my thrill fix during my youth and I think that I can be completely content with a TT/TTS now. I'm okay taking a huge depreciation when it's time. No one lives forever.
I'm single so I didn't have to discuss purchasing a turbo with a significant other but I did opt for a certified pre owned turbo and saved about 70k . if 200k + may be out of some budgets it's a great option to still get into a turbo rather than settle for a lesser model Porsche that's brand new. My biggest reason I didn't buy brand new was I also purchased my mother and brother vehicles since I am fortunate enough to be in a position to do so. Like some of the guys said there's a lot of variables in play for each persons finances so it can vary.
I'm single so I didn't have to discuss purchasing a turbo with a significant other but I did opt for a certified pre owned turbo and saved about 70k . if 200k + may be out of some budgets it's a great option to still get into a turbo rather than settle for a lesser model Porsche that's brand new. My biggest reason I didn't buy brand new was I also purchased my mother and brother vehicles since I am fortunate enough to be in a position to do so. Like some of the guys said there's a lot of variables in play for each persons finances so it can vary.
If you have enough disposable income to purchase the car outright without any type of loan/financing then it's a good purchase.
I do not think financing a toy (from cars to ATV's, snow machines, boats) is ever a logical choice, along with furniture, electronics, and so on.
Net worth is negligible.
Agreed simple, but it is also naive. If one can borrow at 2% but invest and return 10%, why would you pay cash? That 8% could be making part of your payment.
Also, the ability to pay cash doesn't automatically make it a "good purchase" if that purchase has significant depreciation. A $200K TTS is going to be $140K in two years - even if it is a cash purchase. That's almost $3K a month that's just disappearing. Picture three $1000 bills flying out of your car's window EVERY month, still think that it is a "good purchase"?
Agreed simple, but it is also naive. If one can borrow at 2% but invest and return 10%, why would you pay cash? That 8% could be making part of your payment.
Also, the ability to pay cash doesn't automatically make it a "good purchase" if that purchase has significant depreciation. A $200K TTS is going to be $140K in two years - even if it is a cash purchase. That's almost $3K a month that's just disappearing. Picture three $1000 bills flying out of your car's window EVERY month, still think that it is a "good purchase"?
Exactly.
My car loans have interest rates of 1.74%... the small amount of interest I pay is well worth the benefit of being able to either reinvest or keep liquidity. Unless you absolutely hate monthly payments, financing is a good option.
Agreed simple, but it is also naive. If one can borrow at 2% but invest and return 10%, why would you pay cash? That 8% could be making part of your payment.
Also, the ability to pay cash doesn't automatically make it a "good purchase" if that purchase has significant depreciation. A $200K TTS is going to be $140K in two years - even if it is a cash purchase. That's almost $3K a month that's just disappearing. Picture three $1000 bills flying out of your car's window EVERY month, still think that it is a "good purchase"?
That's correct, those individuals who purchase these highly depreciating vehicles brand new are a god send to myself and many others on here who prey on these lovely used buys. I thoroughly enjoy watching people flush 3k down the toilet monthly, or more of its a mclaren.
I prefer to purchase my mint 997 GT3 at 70k CDN and 997 turbo for 80k CAD and make drive them for free, zero loans, and sell them at a minimum break even. Yes all purchased with cash, prefer to have ownership over the entire toy.
Either way, all depends what makes one sleep at night. For me (right or wrong) I would prefer to owe money to nobody.
Quote:
Originally Posted by KM1959 View Post
Agreed simple, but it is also naive. If one can borrow at 2% but invest and return 10%, why would you pay cash? That 8% could be making part of your payment.
Also, the ability to pay cash doesn't automatically make it a "good purchase" if that purchase has significant depreciation. A $200K TTS is going to be $140K in two years - even if it is a cash purchase. That's almost $3K a month that's just disappearing. Picture three $1000 bills flying out of your car's window EVERY month, still think that it is a "good purchase"?
Exactly.
"My car loans have interest rates of 1.74%... the small amount of interest I pay is well worth the benefit of being able to either reinvest or keep liquidity. Unless you absolutely hate monthly payments, financing is a good option."
I completely agree intellectually with this. But some of us were either brought up and/have been thru something that no matter how much sense it makes to borrow we won't (at least on a car). I hope people enjoy my lightly used P-cars and while the depreciation irks me I prefer to spec my cars. This 2016 TTS going away next week. As many above have pointed out this is all very personal and whatever works for each person is what is important. If a car payment or cash layout gets someone in trouble at least maybe they learned a lesson going forward that will guide them later in life.
I can't agree with buying anything, at any price, that sucks the life out of you, as smart. I have actually asked my friends that should I ever buy a Camry to please shoot me as my life is already over.
I can't agree with buying anything, at any price, that sucks the life out of you, as smart. I have actually asked my friends that should I ever buy a Camry to please shoot me as my life is already over.
You know what I mean.
5 page thread on the financial wisdom of making a stupid financial decision.
Buying a 911 Turbo is never smart money. No matter how much money you make.
But that's ok... Personally, I make nothing but sober, responsible decisions all day long. I've earned the right to be stupid once in a while.
02-07-2017, 09:46 AM
