PushingMyLuck

A friend wants to buy a new Porsche as a weekend car, but he was having a hard time justifying the $800/mo lease for a car that might get driven 3000 miles a year. Of course, I advised him to just buy the car outright and keep it for 20 years. Isn't that how people do it? That got me to thinking about total cost of ownership of an exotic. I was thinking more about people who lease exotics (rappers) vs. enthusiasts who buy/own the car for many years. What is the best way to calculate this?

How about an example? 1993 Porsche 911 MSRP was $55k. 20 years later, trade in value today is about $20k. Netting out the sale price, you’re out $35k to own the car for 20 years. That’s about $100/month. Is that right?

Today, a late model Porsche 911 with 20k miles can be had for $50k. Basically a new car. Assuming you have the money, what is the cost of owning this car for 20 years? $50k "self-financed” over 20 years comes out to $275/mo. But, you’d still have a residual value of $15k-$20k.

Numbers might be off, but can you net that residual right off the top? So, you only take a $30k loan for 20 years at 3% = $166/mo. (The main flaw here is that I am ignoring the time value of money)

The general premise holds, regardless. Owning an exotic for 20 years is a fraction of the cost of leasing a new $800 exotic every few years.... The key to this analysis is that the 3rd weekend car barely gets driven. Many people own these cars for 20 years, since they are often the 3rd car, and see little use. Most 20 year old 911’s are lucky to have 100k miles on them.

If the desire is to enjoy a true driver’s car, it appear that it can be done very affordably. But, if the goal is conspicuous consumption to impress others with the latest/greatest, then this analysis doesn't apply.

Anyone done this type of analysis and have anything to add?

Van

I think some people have a desire to try different things, and they wouldn't want to hold onto a car for 20 years... That's a long time.

Also, if you're buying your car with payments, is interest factored in?

Voith

Cars of today wont be as happy 20 years later as are cars of the past now.

Van

Phooey... I'm really looking forward to owning an MP4-12C in 19 years....

mytrplseven

My 26 year old 944 is getting better by the day, as I replace practically "everything" on it. I expect to be buried in it. It's my "therapy" car (although some issues do drive me crazy trying to solve).

odurandina

Porsche Cayman S, Boxster S, 996 for the win. Porsche 968 is pretty good. Porsche 944 is a bit too much old, electrical nightmares, clutch horror-shows, etc, all for not enough speed.

the maintenance for my 968 to take it to 280,000~300,000 miles is just about $40,000.

the pleasure is worth every penny.

f1rocks

That vinyl business must be doing real well.....

JustinL

The problem with any financial equation for goods like this is that it's hard to value the unit of "joy" to balance the equation. If your friend gets enough joy from having a new 911 in his garage to offset the $800/month then go for it. For me, I can't fathom buying or leasing a new Porsche. I lose too many joy units knowing the depreciation is so harsh.

VirginiaF1

Howdy..
Any sense of whether the 944 S2's are any better/improved in terms of electrical issues?

To the OP,
While a 20-year ownership delta is pretty incaculable, let's take a 6-year run:

Today, I test drove a 2009 Maserati GT ( price: $73k with 5k miles on a pristine grey coupe ) and was duly impressed; clearly pushes all the right buttons.. Ferrari V8, modern interior, lovely exterior, active suspension, clutch paddles yet retains full auto for traffic jams.. nearly full-size backseats & decent trunk offering 0-60 in 4.8s and 176mph; theorectically.

Immediately jumped into a '99 996 C4 coupe manual ($18,000 with 61k and a new clutch/tires, pads, but still the original dual-row IMS) and was also impressed: Clutch, shifter and hydraulic steering are mechanical nirvana, usable form factor with dwarf rear seats/golf bag shelf, reasonable fuel efficiency given 0-60 @ 4.9secs..

My father asked which would have been the future better buy after 6 years of 9,000 miles driven yearly. Well, the Maser would lose another $45,000 ( original 2006 sticker was $118k, the 996 was $66k in '99) over the next 6 years by 2019 with 59,000 miles by then; driven a fair bit each week and on the summer trips to the beach house... which equals $625/month in 0% NPV capital costs.
Reduce that mileage figure to only 3,000 miles annually and the Maser will still lose $37,000 from today's $70k value by 2019.... which equals $515/month.

Now, the 911 will only depreciate another $9,000 at 9,000 miles per year over the next 6 years..
Thus, no other car that offers sub-5 second 0-60 performance and 1.0g skidpads can be enjoyed for a mere $125/month in 0% NPV capital cost.

Ask your friend to consider a 996TT and run the capital/depreciation costs and let us know his/her thoughts..
Cheers!

Voith

Oudurandina obviously never owned an alfa romeo

ForceReconTrojan

or a Merkur Xr4ti!

Dino V

Or anything British lol

Madridcab

For a low mile weekend car I would buy self financed 2nd or 3rd hand in good condition and let somebody else pay the worst of the depreciation. My 993 is worth pretty much the same now as when I bought it 7 years ago, In those years beyond oil changes, the only expense has been tires.., pretty cheap, but then I probably only do some 2k miles a year on it, and is very low miles..

PushingMyLuck

I personally am on these forums to research buying a 1980s SC/Carerra 3.2,
but my friend would be someone who feels more comfortable with a modern car.
In fact, the newer, the better, for the typical consumer.

964: 1989-1994
993: 1993-1998
996: 1998-2005
997: 2004-2012

964, 993, 996.....They all seem to be within the same ballpark price, for various reasons.
For a non-purist/non-DIY guy, which model is the best bet?
I think my friend can find a car like the 996 for $30,000.

Is there an article or link that compares these 4 models? Pros and cons?
For example, the 996 gets a scathingly negative overall review here:
http://www.thetruthaboutcars.com/201...e-911-996-3-4/

Or an article with common failures, like this one:
• Rear main oil seals: Just like the Boxster, the 996 suffers from leaky rear main oil-seals. And, just like the Boxster, it’s a £20 replacement part with £500 labour, due to accessibility issues. It can make sense to swap the clutch at the same time.
• Intermediate shafts: Another niggle shared with the Boxster is intermediate-shaft bearing failure. The bearing goes and the shaft can wobble. When it does that, the pistons and valves have a punch-up. It’s a £7-8k fix.
• Radiators:The radiators in the nose are made from very thin aluminium, which can corrode and is susceptible to stone chips, with consequences for both the engine’s coolant supply and the air-con.
• Sat-nav: Don’t pay extra for a car with the optional sat-nav – it’s so dated these days that it’s nicer to have a car without it. Don’t you have the app on your iPhone 5?
Used cars: how to buy a second-hand Porsche 996 | Road Testing Reviews | Car Magazine Online


Lastly, thanks for all the helful responses. I am just making a VERY rough calculation. I didn't include costs like maintenance. I was not implying owning a sports car is cheap, just that it may be more affordable than people assume, in light of a few factors (Buy used, buy outright, own the car for a long period of time, realize a significant resale value) instead of assuming you need to pay $1200/mo to lease to get into one of these.

odurandina

i'm taking a Boxster a few thousand miles tonight.

already love the damn thing.