Al Pettee

I got a chuckle this summer at a Riesentoeter PCA event at Watkins Glen seeing a driver whose 911 vanity license plate said "Car-Poor," meaning "bragging" that he has thrown most of his earnings into maintaining his 911, of course a take-off on being "house poor," i.e., having most of one's assets in the value of one's home, neither of which are smart ways to allocate said assets.

991GT3

Also a 'fun fact'; What is the age of the 991 GT3 drivers? (If you are in the 'kids crowd' , I am in the 'baby crowd' here with my almost 29 years of age. )

mousecatcher

ding.

The question is a silly way of asking, how much money do you have? I don't know why anyone would answer such a question.

Really it's about cash flow, not net worth.

frayed

Um. Mclaudio didn't state what you just represented. His view was that for him a GT3 purchase is *both* a question of cash flow and net worth.

------------

Anyway, if you pay cash and purchase it <5% of PNW, then most likely (almost certainly) it's running costs will be <5% of your cash flow.

Cuda911

Mouseketeer is referring to the OP's question, when he means that this is a silly way of asking how big your pile of moola is. And he is right.

Bluehinder

Good post Macca, very interesting. I don't see a reason to for people to be weird if they perceive it's a veiled question about net worth. I mean, obviously most everybody is paying cash and can swing the bat.

<5% easily here, only pay cash for all cars, no sense making a depreciating asset more expensive.

frayed

I think the question is completely valid. As is cash flow. And age.

But that doesn't mean you have to answer. And it looks like your prediction in post #2 isn't coming true.

I don't think benchmarking your buying habits against others is a bad thing. It's not like you can see what anyone clicked so there's not a bunch of millionaire braggarts in this thread.

Cuda911

??? Hmmm... ZERO people answered the poll so far (and, that was Post #3). Sheesh. OK, I'm done with this moronic thread. See ya in other moronic threads!

frayed

LOL. Cuda I think the salt air is getting to you.

You said

28 minutes after macca posted his poll.

Now 50 have answered. Not sure what you mean by 'many' but it would be cool to see a few hundred responses.

alpine-al

Like every other poll on rennlist, if you vote then you'll see the results. Or you can click the link to "view results".

Manifold

LOL, the guys at >15% should be wondering by now if they're making a mistake considering the car. That might be the greatest value of the poll.

Macca

This has been a valuable poll so far for me so I do thank all 60 odd participants that have taken part.

Its very reassuring that 85% of buyers of new GT3 (be it the current 997 mode or the almost arrived 991 model) have spent less than 10% of the net wealth on this purchase. Its also interesting that 85% of participants have a self calculated net wealth of US$1.5M+ and that 61% have a net wealth of US$3.0M+

For me its shows that the majority of new GT3 buys are being sensible with this investment, paying cash most part and keeping the majority of their equity in other (hopefully appreciating) assets.

Cashflow & equity are two totally different things. Ive had mates get wealthy very quickly in terms of cashflwo, go and spend $MM on toys, holidays and luxuries then come unstuck again in business, a bad deal, stock market, GFC etc and have little if any equity at the end Then I also have friends earn 400K a year and dont seem to beable to save a dollar (due to high lifestyle costs, poor budgeting, saving and investment).

I suspect its the younger amongst us that are more concerned about purchase price to cashflow, and they may have better cashflow than the older of us with more assets. My guess is that the average age of ownership on this thread is probably around my age, 43...we need another poll for that....anyone?

frayed

Perhaps.

But also the >15% guys may be reluctant to click on the poll.

I"ve purchased cars along the entire spread of PNW values.

jlee504

I think net worth is probably the last data point. It's about disposable income and disposable cash on hand right?

I think you switch the poll around and ask how much the gt3 represents as a percentage of their cash or liquid position.

Then at what age. You can squander, like frayed said I squandered the entire range, but the closer you get to retirement the lower that percentage should be.

Jeff

Macca

Some good points above.

On cashflow I might add that many of us own our own businesses so cashflow can be a moving target from year to yer and for me at least the sign of a person who has successfully demonstrated fiscal jurisprudence is infact how well they have converted that cash-flow to equity over time. Lifes events can take a toll on equity (GFC, divorce, kids etc) and of course cashflow can be affected at the net net bottom line by lifestyle and tax (which may change form state to state and country to country). At a certain point in time, whether it be visiting the bank for a loan on an investment property, retiring or simple measuring ones performance over time one has to stand back and say "if I liquidated everything tomorrow and stopped how much would I be worth at the end of the exercise"?. This is net wealth for me.

In truth I do not include cars, toys, furniture, watches or jewelry as part of my personal net wealth calculation, however others may differ. Essentially if it cant be liquidated or leverage quickly and using fair market value then its not on my balance sheet.

I do agree its an age thing. In your 40 & 50s you look more towards equity and equity preservation in your 20 & 30s its probably more about cashflow and growth.

Frayed I do agree with you like any poll this one is probably self skewing (i.e. those investing more than 15% of net wealth may be shy to respond). However as its a Blind Poll all contribution on whatever level is useful.

And, I like Frayed, have in my 20s & 30s spent well over 20% of my net worth on sports cars. I guess thats what makes us all passionate car nuts after all! Infact Ill go as far as to say that until not so long ago my car passion was what drove my income ambition LOL!