Cars for sale
03-25-2009, 08:31 PM
#47
03-25-2009, 08:54 PM
#48
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And who said that is a problem? That's the point, not everything that is for sale, HAS to be sold for less than the owner wants to get. Some may be desperate, but some don't give a rat's *** if their stuff sells. I know guys who build cars to allegedly sell, act like they're selling them to keep their wives happy, but never do, unless someone drops a load of cash on them.
03-25-2009, 08:57 PM
#49
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the price of porsche parts is not relavent to the market value of the cars. The porsche dealer has the monopoly on genuine porsche parts. The car market, on the other hand, is not. There are hundreds, of 911s on the market at any given time, sellers have to be competetive to get the buyer, just like the real estate market, the biggest way to reel in the buyer is to offer a better house than the next, for a competetive price. If you price it too high, there will be no interest, no matter how nice the property is. Ive seen this downturn in every car market. I have been an Rx7 enthusiast for years, and the values on those cars have dropped drastically in the last 6 months. I still see uneducated buyers post a car up for $20,000 that is only worth $12,000 in todays market. With a few exceptions, porsche 911s are not rare, it is the longest production run vehicle ever made, which means there are thousands of cars still on the road, and lots are for sale.
03-25-2009, 08:57 PM
#50
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03-25-2009, 09:03 PM
#51
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And who said that is a problem? That's the point, not everything that is for sale, HAS to be sold for less than the owner wants to get. Some may be desperate, but some don't give a rat's *** if their stuff sells. I know guys who build cars to allegedly sell, act like they're selling them to keep their wives happy, but never do, unless someone drops a load of cash on them.
As i have said before, im sure the market prices will go up one day to where they were before. So maybe the uneducated sellers will be able to get their hefty prices for their cars. I wish them all the luck.
03-25-2009, 09:07 PM
#52
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how many people do you know who are actively trying to sell their cars that do not want to sell it? Why go through the trouble? Everyone is entitled to their opinion.
As i have said before, im sure the market prices will go up one day to where they were before. So maybe the uneducated sellers will be able to get their hefty prices for their cars. I wish them all the luck.
As i have said before, im sure the market prices will go up one day to where they were before. So maybe the uneducated sellers will be able to get their hefty prices for their cars. I wish them all the luck.
03-25-2009, 09:09 PM
#53
I haddah Google dat
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the price of porsche parts is not relavent to the market value of the cars. The porsche dealer has the monopoly on genuine porsche parts. The car market, on the other hand, is not. There are hundreds, of 911s on the market at any given time, sellers have to be competetive to get the buyer, just like the real estate market, the biggest way to reel in the buyer is to offer a better house than the next, for a competetive price. If you price it too high, there will be no interest, no matter how nice the property is. Ive seen this downturn in every car market. I have been an Rx7 enthusiast for years, and the values on those cars have dropped drastically in the last 6 months. I still see uneducated buyers post a car up for $20,000 that is only worth $12,000 in todays market. With a few exceptions, porsche 911s are not rare, it is the longest production run vehicle ever made, which means there are thousands of cars still on the road, and lots are for sale.
But what you are referring to is "opportunity cost".
In other words, the price for Porsches is not likely to fall below the cost of replacement by some other manufacturer. First as transportation, and second as a form of recreation. It will never go to zero. Real estate is also subject to opportunity cost, which is an economic "cost". It is not a commodity. That is because it is both unique and not disposable, and the value will never go to zero even if demand falls below cost. Also, the investment is permanent for as long as you have demand.
Another consideration is new construction vs. existing real estate. You will never get a builder to build below his cost plus a profit. That alone is a price floor. Same with new cars. The theory that you can drop price to meet demand is good only good so far. There are times when demand is simply not sufficient to justify the cost. There no reason for manufacturers to operate at a loss, and there is no reason for a Porsche owner to sell his Porsche for less than he can get for his Acura or Lexus. We are seeing that right now in new cars, new homes, and some used cars. So, what happens is there is no sale.
Last edited by rusnak; 03-25-2009 at 09:27 PM.
03-25-2009, 09:48 PM
#54
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I have taken advantage of the buyers market and bought my first porsche. Did i lowball, no. The asking price was more than fair, and everyone was happy. Luckally, most porsche owners are well off enough to endure the tough conditions we face these days and ride out the storm. We will see better days soon.
03-25-2009, 09:55 PM
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one thing that you have overlooked is most porsches are still selling for 75-100% of their original value or more. Try that with a Lexus, or an Acura.
I am in support seeing the prices head back up. But the reality of it is the market is down. no one can deny that.
I am in support seeing the prices head back up. But the reality of it is the market is down. no one can deny that.
Yes, I understand your analogy.
But what you are referring to is "opportunity cost".
In other words, the price for Porsches is not likely to fall below the cost of replacement by some other manufacturer. First as transportation, and second as a form of recreation. It will never go to zero. Real estate is also subject to opportunity cost, which is an economic "cost". It is not a commodity. That is because it is both unique and not disposable, and the value will never go to zero even if demand falls below cost. Also, the investment is permanent for as long as you have demand.
Another consideration is new construction vs. existing real estate. You will never get a builder to build below his cost plus a profit. That alone is a price floor. Same with new cars. The theory that you can drop price to meet demand is good only good so far. There are times when demand is simply not sufficient to justify the cost. There no reason for manufacturers to operate at a loss, and there is no reason for a Porsche owner to sell his Porsche for less than he can get for his Acura or Lexus. We are seeing that right now in new cars, new homes, and some used cars. So, what happens is there is no sale.
But what you are referring to is "opportunity cost".
In other words, the price for Porsches is not likely to fall below the cost of replacement by some other manufacturer. First as transportation, and second as a form of recreation. It will never go to zero. Real estate is also subject to opportunity cost, which is an economic "cost". It is not a commodity. That is because it is both unique and not disposable, and the value will never go to zero even if demand falls below cost. Also, the investment is permanent for as long as you have demand.
Another consideration is new construction vs. existing real estate. You will never get a builder to build below his cost plus a profit. That alone is a price floor. Same with new cars. The theory that you can drop price to meet demand is good only good so far. There are times when demand is simply not sufficient to justify the cost. There no reason for manufacturers to operate at a loss, and there is no reason for a Porsche owner to sell his Porsche for less than he can get for his Acura or Lexus. We are seeing that right now in new cars, new homes, and some used cars. So, what happens is there is no sale.
03-25-2009, 10:44 PM
#56
I haddah Google dat
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The market is below what it was, sure. But as you said your offer was not lowball. I think if you lowballed it, then you'd be Porsche-less.
03-26-2009, 11:52 AM
#57
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I hope this is relevant:
My car is a DD so it replaced a $500 a month lease. I figure if its drop in value on an annual basis is less than $6,000, factoring in maintenace costs, than I have done well. As an example if I spent $1500 this year on maintenance and it's value only dropped $2,000 then I am ahead by $2,500. Since my car is an 87 Targa if I get 4 years of use out of it and spend an average of $1,500 per year to keep it going I could throw it away and still be satisfied financially (don't anyone get any ideas about a free 87 Targa, I'll take what the market will bear when it's time).
As far as buying and selling I work with a friend who is a small import dealer. He got me this car and eventually I would like to move into a 964 Coupe when the right one shows up. My only concern is the difference between the new car and my current car because the new car will be a replacement and if the market has dropped it will effect both vehicles.
My car is a DD so it replaced a $500 a month lease. I figure if its drop in value on an annual basis is less than $6,000, factoring in maintenace costs, than I have done well. As an example if I spent $1500 this year on maintenance and it's value only dropped $2,000 then I am ahead by $2,500. Since my car is an 87 Targa if I get 4 years of use out of it and spend an average of $1,500 per year to keep it going I could throw it away and still be satisfied financially (don't anyone get any ideas about a free 87 Targa, I'll take what the market will bear when it's time).
As far as buying and selling I work with a friend who is a small import dealer. He got me this car and eventually I would like to move into a 964 Coupe when the right one shows up. My only concern is the difference between the new car and my current car because the new car will be a replacement and if the market has dropped it will effect both vehicles.
03-26-2009, 12:36 PM
#58
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how many people do you know who are actively trying to sell their cars that do not want to sell it? Why go through the trouble?
I put my '66 convertible Mustang up for sale last year and it brough 4k more than where my reserve was set. Was I happy - OH YEAH!
03-26-2009, 01:12 PM
#59
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I fall in this category. I will actively try to sell a car just so I can pick something else up. Hence, I am not motivated. If it sells, it sells. If it stays, that's cool too. I don't find it troublesome either. It gives you a good ballpark for where your car is sitting price wise - if it doesn't sell.
03-26-2009, 07:49 PM
#60
I haddah Google dat
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MDL, I agree with your earlier statement that if you price something fairly, even a used Porsche, eventually it will sell if properly exposed to the right person. You have to sometimes work harder to find that pocket of demand, and sometimes it will take longer, but eventually it will sell.