Macca

I've always wanted to understand the fiscal profile of the typical person on this board who is buying a new GT car such as the 991 GT3 or is hypothetically in the market for such. This can also apply if you currently own a 997.2 GT3 generation car that you purchased new.

Assuming the car delivered on your door step with options, on road costs and tax is $150,000 USD what proposition off your estimated net wealth would that represent today?

Assume Net wealth as hard assets and investments a fair and reasonable market value (house, land, stocks, cars but not house contents, jewelry etc) minus debt and give the total a small haircut for any legal, fees, commission, disbursements or costs relating to a timely sale).

This is a confidential way to find out how you may compare to others on this board. Its not a boast of fiscal prowess more a curious question as to what level of Net Wealth folks on this board are prepared to "invest" in a new GT3....

For Clarity the levels below coordinate to a Personal Net Wealth level

• <5% = US$ 3 Million and above
  
  
• 5-10% = US$ 1.5 - 3.0 million
  
  
• 10-15% = US$ 1.0 - 1.5 million
  
  
• 15-20% = US$ 750,000 - 1 million
  
  
• 20% = US$ 750,000 and below
  

frayed

I think interesting to see the results with a lot of data if people do choose to participate.

Cuda911

You can do a Google search of Porsche buyer's demographics, and you will find plenty of info.

I doubt many will want to post that here.

You can put me down for: "Somewhere between 0% and 100%," just to get things kicked off in this thread.

P.S.: I would hardly consider the purchase of a depreciating asset as an "investment."

frayed

It's not a public poll and I suppose a hacker or board owner could figure out who clicked on which choice. And, this is specific to GT cars. Macca did say "invest" clearly indicating he has enough grasp of money matters that the GT3 is not an investment.

Macca

Yes. Just to be clear this is for fun. Given google and any one of your full names and DOB Im sure almost anyone with a credit card could ascertain within a day or two more or less what your gross assets and registered liabilities totalled.

That is not the intention of this thread.

This is a casual "look see" as to how a car mad bunch like us are prepared to prioritize our "toys"!

The POLL is blind, confidential and the ranges are wide so 5% could be US$3M Net wealth to infinity. 5%-10% can be between US$3M and US$1.5M etc. Pretty wide ranges really....

If the question offends your sensibilities or you feel the topic is "off limits" then by all means hit the back key.

carcommander

When I was younger and had perhaps a wee less judgement, it was like 500%. When I graduated from college I had a Porsche 924 and had negative net worth. LOL.

Manifold

I didn't respond to the poll, but looking at the results, I'd say the vast majority of people who responded can afford to buy the car. Now whether they can afford to total it on the track, without insurance, may be a different story, depending on one's liquidity and cash flow.

TomTom77

For the 'kids crowd' here (I'm probably one of them, being 'only' 36), the element of PNW might actually not be the main factor. The car's value as a percentage / ratio over your monthly net disposable income might be just as relevant... or at least a combination of both!

mclaudio

For me to buy a depreciating asset with operational costs, it's TCO and monthly cost would have to both be <5% (of net worth and of cash flow, respectively). A 991GT3 is such an asset.

OTOH, collectibles such as certain cars may be significantly higher, depending on future outlook and how much I enjoy the collectible.

frayed

Good point and tend to agree. If one was pulling down $1MM/year but had comparatively low but quickly escalating net worth, that's much different than someone with 3MM in net worth but making 200k/year.

tanman88

I don't think anyone thinks of cars or any recreational toy as an investment. So evaluating it's value as a % of your net worth is only a concern when your stretching your finances to purchase it. I think the majority's attitude will be, I can afford this so I'm buying it. Let's just say that if you can afford to pay cash for these purchases then, your finances are in good shape.

Dr.Bill

Exactly. My general guideline is for the total value of all 'toys' (cars, boats, plane, whatever) to be less than 1/2 of yearly income.

And, of course, the ability to pay cash for any toys. Not that borrowing at ridiculous low rates can't be an option, just that you should have the cash available.

Mike in CA

I think where you are in your life, investment and otherwise, has a lot to do with it. If you have accumulated significant assets and major financial liabilities like saving for retirement, children's educations, large mortgages, etc. have been addressed then a huge cash flow is less important in deciding whether you can afford a large discretionary purchase. OTOH, if those things haven't been addressed then you'd best be sure you have a large and secure cash flow. All that said, I prefer to pay cash for items like cars.

frayed

Since the <5% category = >$3MM net worth, then this ensnares a large range of PNW values. So, I'm not surprised by the numbers so far. Macca you should have done a <1% ($15MM category). That would have been interesting. I would bet most of the <5% guys are in the 1-5% range, but of course could be wrong.

carcommander

Net worth you know. Income is highly variable.