ChristianR

gotta love these topics

Randyc151

I think it goes down to priorities. If you think about the actual total cost of ownership, then the depreciation costs and maintenance/insurance/taxes are what you need to consider, but your net worth vs car budget speaks to your priorities. Personally, I prioritize my cars over a bigger house/beach house, gambling, street drugs, or a girlfriend.

If you buy a brand new $200k 991.2 TTS and drive it off the lot, it's now worth $175k and you just threw $25k out the window. After that, the $2500/mo payment is going to keep you in a position where you can dump the car at any time and wont be in a negative equity situation. Make a reasonable downpayment, maybe $20k, and within a couple of months you will have the safety net of being able to get out of the car without much pain if something were to happen. In a few years, with a 60 month loan, you will have a lot of equity in the car, since it won't ever be worth less than maybe $80k, but it will be paid for and loved every day. The great thing about modern Porsches is that they are "relatively" cheap to maintain vs other exotics.

Second, if you are a car guy, never make car decisions with your wife. My wife has absolutely no idea what these cars cost, has never asked, and has no interest in finding out. She knows that we have everything we could ever want, our kids college is taken care of, and if I go spend some of the "gravy" on a car, then I must be able to cover it. (She also knows that I don't have high priorities for a girlfriend, which must somehow help with this very successful strategy)

SilveRT8

After 38 years together, my wife has given up on worrying about how much I spend on new cars....so it's a clear path from now on !

Mike Murphy

Well said. These cars are largely toys. The truth is, most Americans spend way too much money on cars. I have been paying cash for my cars for 15 years. If you have $200k cash sitting around for a toy, you can afford it. If you have a negative net worth, or even a net worth that's $0-$1M, it's still probably not smart.

carcommander

Anything over a 6 year old Toyota is an emotional purchase. You can't make it make sense logically. Not on a mass produced car like a Turbo.

When I was younger I had lots of cars I couldn't really afford. I don't regret any of it.

The 5 percent rule is great if you can do it. I can but most car nuts cannot.

Tomorrow is promised to no one.

Mike Murphy

997rs4.0

This is the way I buy toys.

If you're fortunate enough to have a large income every month. Just save the cash until you're net worth is big enough so you don't have to worry about it.

Porsche 25th

There are too many variables to answer the OP's question. My philosophy is pay as you play. My wife and I are VERY debt averse. We pay cash for everything (cars, homes, children's education ) even when it may not be the optimal strategy. I flip 911s (997TT->991C4S ->991TTS) every two years and Cayennes every four or so. I always pay cash and I always buy a one year old CPO car and usually save 5 figures off sticker. But to each his own.....

rimbytx

As my best evil twin said "you're only paying for the part you use". And by the way, where does the word 'responsible' and or 'necessary' come in when you are talking a $200k car? Get in and drive.

FBA

My take is, if if can buy it outright and not feel it...I'm fine with it. If I have to monthly any part of it...I won't do it. If I have to think about it, I won't do it. If I can't write the cheque, I won't do it.

I think it's bad practice and a dangerous place to be if in negative net worth and owning/ leasing a luxury car, but everyone is entitled to their beliefs. YMMV

FBA

Like what? What's out there for 200K as an appreciating asset?

FBA

Many can easily afford millions of $ in their garage at substantially more than 5% of their TNW...

5% is very conservative IMO...however, it's an individual thing. Certainly at 5% of TNW, you don't go broke buying toys - LOL

nategracey

Well...
I live in a 250K condo and drive a 15 gt3.
Don't make much money(as compared to most rennlisters),
but enough to enjoy what I always wanted since I first saw a 993 as a young boy.

20% down on everything I buy, payments are reasonable for me. I make about 30k per month, but spend almost all of it on stupid crap...

After reading this thread I realize I might need to reprioritize a bit, as I'm 34 now with no retirement or plans... hmmm..

Help!

JD911

Well stated, FBA. My sentiments exactly!

Randyc151

The good news for you is that you picked a car that barely depreciates, compared to many of us that get killed when the TTS hits the street. You probably have decent equity in that car now, so if stuff hit the fan, you could sell it back to the dealer and leave with a check all within 24 hours. You have your dream car, and it's not costing quite as much "total cost of ownership" as you'd think, compared to buying many other cars that cost $150,000 and depreciate $25k per year or more. I always make my car buying purchases, except the TTS, on exactly how much does a car cost to own and operate over X years, including depreciation. You will find the GT3 is probably cheaper to own for 4 years than a Mustang or Camaro or Vette.

My free advice, as long as you are managing to pay for your dream car, keep it and enjoy it with a vengeance. (Also, enjoy being 34!!) Don't be in a rush to flip it for something new...just keep paying it down. Otherwise, you need to begin stashing and investing away $3000-4000 per month immediately. How you do that is totally up to you to discover, but you need to begin building cash/net worth ASAP.