Buying a Porsche - Advice, financing
09-15-2012, 01:23 AM
#31
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[QUOTE=cmb13;9841823] ... those who have accumulated wealth... QUOTE]
Yup, there are two types of people in the world: those who accumulate wealth, and those who don't. These two types of people often have a lot of contempt for the other type. You can see some of that in this thread. Income is not a dominant differentiating factor, either. The dominant factor is consistently producing more than you consume.
There’s a theory that if the government confiscated all wealth and evenly redistributed it, in ten years the previously rich people would be rich again and the previously poor people would be poor again.
I know several single people with six-figure incomes and near zero-net worth... and a lot of cool toys... and plan to work into their mid-sixties.
Everybody has different priorities. I enjoy a few nice things, but I really enjoy not worrying about money and looking forward to retiring in my mid-fifties.
Yup, there are two types of people in the world: those who accumulate wealth, and those who don't. These two types of people often have a lot of contempt for the other type. You can see some of that in this thread. Income is not a dominant differentiating factor, either. The dominant factor is consistently producing more than you consume.
There’s a theory that if the government confiscated all wealth and evenly redistributed it, in ten years the previously rich people would be rich again and the previously poor people would be poor again.
I know several single people with six-figure incomes and near zero-net worth... and a lot of cool toys... and plan to work into their mid-sixties.
Everybody has different priorities. I enjoy a few nice things, but I really enjoy not worrying about money and looking forward to retiring in my mid-fifties.
09-15-2012, 01:34 AM
#32
Goatboy, thanks for the comments. Im also debating with the white Porsche carrera S (red interior) but Im leaning towards the Agate Gray because theres lot of videos and pics of that particular color on the WWW and I like it. Why not pay cash? Because I listen to Suzie Orman (no kidding) and she recommends to have like a 4-6 months of "F&*& you" money in reserve for emergencies. I realized that here most Porsche owners have deep pockets; Im just a simple guy who through hard work is finally able to afford a NEW 911 (I dont like to buy used stuff - If you have to buy a used car then maybe you can't really afford a porsche --- just kidding 
. I dont want to start another controversy). It'll be my first and last one probably. I have worked hard all of my life and my walls have been filled with posters of Porsches all my life. Finally I'll be able to afford a 911. I know Im losing a bunch of $$$ in the first year but thats ok.
With regard of the chick's magnet comment I guess thats a plus. I have always wonder why Porsche doesnt offer a "panties compartment" as an standard item in their cars. Or could be an option instead of the smoking package.
Can anybody PM with instructions in how to join penfed.org (the back door - no pun intended)
. I dont want to start another controversy). It'll be my first and last one probably. I have worked hard all of my life and my walls have been filled with posters of Porsches all my life. Finally I'll be able to afford a 911. I know Im losing a bunch of $$$ in the first year but thats ok.With regard of the chick's magnet comment I guess thats a plus. I have always wonder why Porsche doesnt offer a "panties compartment" as an standard item in their cars. Or could be an option instead of the smoking package.
Can anybody PM with instructions in how to join penfed.org (the back door - no pun intended)
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maschinetheist (08-31-2020)
09-15-2012, 01:43 AM
#33
Drifting
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If you have to ask about financing, then I'd suggest that you make sure that you qualify for financing before you put down a deposit. Because maybe you won't qualify?
As for Porsche financing - do your homework, talk to your bank, see what the current rates are and decide for yourself. It will depend on your relationship and credit rating.
Is park assist worth a grand? Absolutely not. Unless you can't drive. Or you intend to let people who can't drive borrow your car. That said, if you have a tight parking spot or small garage, then it is nice to have.
As for Porsche financing - do your homework, talk to your bank, see what the current rates are and decide for yourself. It will depend on your relationship and credit rating.
Is park assist worth a grand? Absolutely not. Unless you can't drive. Or you intend to let people who can't drive borrow your car. That said, if you have a tight parking spot or small garage, then it is nice to have.
I generally pay cash for my toys unless someone wants to give me free money. Which I usually take advantage of.
09-15-2012, 02:52 AM
#34
Burning Brakes
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with regards to financing. I agree that you should be able to afford the car, and have liquid assets greater than its value, but that most assuredly does not mean you should pay cash for it - with interest rates at 3% for new car loans, you are much better off finding investments that pay 5% to 10% (I am not going to provide investment advise, others do that for a living). If interest rates rise and you make out like a bandit (my opinion is that over the next 2 years or so interest rates pretty much have to rise, but others will differ). If interest rates fall (and they can't fall much), you take your cash and pay off the loan. don't be afraid to leverage your money within reason.
But if you have to scrimp to make the payment, as others said, don't buy the car. and in addition to depreciation, allow several grand per year for service and maintenance, particularly if you don't do virtually all of your own work.
But if you have to scrimp to make the payment, as others said, don't buy the car. and in addition to depreciation, allow several grand per year for service and maintenance, particularly if you don't do virtually all of your own work.
09-15-2012, 07:43 AM
#35
Goatboy's first post is a pathway to Wealth accumulation if it can be followed early in life.
I would not order park assist. Backup cameras were to be required in all cars MY'14, but I think that was delayed. I would pay for an integrated backup camera.
You can't miss a downshift with a PDK. 7 gears leaves lots of wrong slots in MT.
I would not consider a car without ventilated seats.
I liked the anthracite brown better than agate, but that's personal preference.
I would not order park assist. Backup cameras were to be required in all cars MY'14, but I think that was delayed. I would pay for an integrated backup camera.
You can't miss a downshift with a PDK. 7 gears leaves lots of wrong slots in MT.
I would not consider a car without ventilated seats.
I liked the anthracite brown better than agate, but that's personal preference.
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maschinetheist (08-31-2020)
09-15-2012, 10:03 AM
#36
Burning Brakes
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This will likely be a very unpopular opinion around here, but here goes...
If you're having to finance a Porsche, you shouldn't buy one. Actually, that goes for pretty much any car except Civic's, Corolla's, Cruz's, Sentra's, etc. bought as a first new car.
A multi-millionaire relative once told me "Borrow money for only three things: an "economically-relevant" education (e.g. BSN, engineering, JD, MD... not English or Art History), an economical first car, and an affordable house." Not borrowing money will cause you to spend less. After working and saving that money, you're more hesitant to let go of it so easily. It's a whole lot easier to spend money you don't have.
I was in my professional job 12 years before buying a zoot car, and then I wrote a check for it. Until then, I'd put 100k miles on used cars and two new Sentra's (although SE-R's). My first zoot car ended up bing about 20% of my net worth at the time, which is normally stupid. But, I was living on less than half of my income, and banking the other half. (I was single then. I pretty much lived like a college student before marriage... but one with a cool car and a lot more guns than the typical college student... except for maybe that psycho in Colorado.)
New cars generally depreciate 20-25% the first year, and 10-15% each year after that. So, driving that new $110k 991 will likely cost you $27k that first year, $12k the second year, $11k the third year, $9k the fourth year, etc. etc,. Actually, the fourth year will likely be more since your warranty will expire, causing an abrupt drop in value. As your annual depreciation goes down, maintenance costs will go up. If you can afford that kind of annual expense, go for it... when you've saved up $110k.
I would suggest you take the two-day PSDS Peformance course. You'll have more Porsche fun in two days than you will in a whole year with a 991 financed up to your teeth that you're afraid to drive hard on a track. Also, you'll be about $24k richer a year from now. Actually, just the first year's interest would pay for a trip to PSDS.
Somebody previously suggested finding a good used 911. There are a lot of owners who buy these as garage furniture, drive them infrequently and gently, and keep them in mint condition. It will take while to find one before somebody esle does, but they're out there. PCCA chapters are a good place to find them. A lot of people trade in these cream puffs if they can't sell it to somebody they know, for personal safety reasons. I remember reading about some guy ending up dead in the trunk of his FSBO M3.
If you can fit in a Boxter or Cayman, they're actually better handling cars. (Boy, I'm really causing trouble here, huh?) I'd hold out for an S, though.
If you're having to finance a Porsche, you shouldn't buy one. Actually, that goes for pretty much any car except Civic's, Corolla's, Cruz's, Sentra's, etc. bought as a first new car.
A multi-millionaire relative once told me "Borrow money for only three things: an "economically-relevant" education (e.g. BSN, engineering, JD, MD... not English or Art History), an economical first car, and an affordable house." Not borrowing money will cause you to spend less. After working and saving that money, you're more hesitant to let go of it so easily. It's a whole lot easier to spend money you don't have.
I was in my professional job 12 years before buying a zoot car, and then I wrote a check for it. Until then, I'd put 100k miles on used cars and two new Sentra's (although SE-R's). My first zoot car ended up bing about 20% of my net worth at the time, which is normally stupid. But, I was living on less than half of my income, and banking the other half. (I was single then. I pretty much lived like a college student before marriage... but one with a cool car and a lot more guns than the typical college student... except for maybe that psycho in Colorado.)
New cars generally depreciate 20-25% the first year, and 10-15% each year after that. So, driving that new $110k 991 will likely cost you $27k that first year, $12k the second year, $11k the third year, $9k the fourth year, etc. etc,. Actually, the fourth year will likely be more since your warranty will expire, causing an abrupt drop in value. As your annual depreciation goes down, maintenance costs will go up. If you can afford that kind of annual expense, go for it... when you've saved up $110k.
I would suggest you take the two-day PSDS Peformance course. You'll have more Porsche fun in two days than you will in a whole year with a 991 financed up to your teeth that you're afraid to drive hard on a track. Also, you'll be about $24k richer a year from now. Actually, just the first year's interest would pay for a trip to PSDS.
Somebody previously suggested finding a good used 911. There are a lot of owners who buy these as garage furniture, drive them infrequently and gently, and keep them in mint condition. It will take while to find one before somebody esle does, but they're out there. PCCA chapters are a good place to find them. A lot of people trade in these cream puffs if they can't sell it to somebody they know, for personal safety reasons. I remember reading about some guy ending up dead in the trunk of his FSBO M3.
If you can fit in a Boxter or Cayman, they're actually better handling cars. (Boy, I'm really causing trouble here, huh?) I'd hold out for an S, though.
09-15-2012, 05:27 PM
#37
Rennlist Member
I'm personally not in favor of financing (let alone leasing) cars as you get no tax benefit and end up paying interest to banks which is absolutely ridiculous if you can afford to pay cash...
09-15-2012, 05:46 PM
#38
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Business's usually finance or lease vehciles becuase they're liquid collateral. No bank really wants to have 100,000 widgets in WidgetsRUs's inventory as loan collateral.
I'm planning on consulting after I retire. Maybe I can get a magnetic sign "Goatboy's Financial Planning, Inc. - Do as I say, not as I do!" for the door of my 911, and write that puppy off!
Last edited by goatboy; 09-16-2012 at 11:14 AM.
09-15-2012, 09:26 PM
#39
Also, sometimes car dealers are willing to give a larger discount if you finance as they get financial incentives from various finance firms for doing so. My dealer offered me an extra 1% off my 991s if I financed the car, so I took the deal but made sure there was no early repayment penalty as I only intend to keep it financed for the minimum required time, which is 6 months on a 60 month term.
09-16-2012, 10:34 AM
#40
Burning Brakes
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Goatboy, thanks for the comments. Im also debating with the white Porsche carrera S (red interior) but Im leaning towards the Agate Gray because theres lot of videos and pics of that particular color on the WWW and I like it. Why not pay cash? Because I listen to Suzie Orman (no kidding) and she recommends to have like a 4-6 months of "F&*& you" money in reserve for emergencies. I realized that here most Porsche owners have deep pockets; Im just a simple guy who through hard work is finally able to afford a NEW 911 (I dont like to buy used stuff - If you have to buy a used car then maybe you can't really afford a porsche --- just kidding . I dont want to start another controversy). It'll be my first and last one probably. I have worked hard all of my life and my walls have been filled with posters of Porsches all my life. Finally I'll be able to afford a 911. I know Im losing a bunch of $$$ in the first year but thats ok.
With regard of the chick's magnet comment I guess thats a plus. I have always wonder why Porsche doesnt offer a "panties compartment" as an standard item in their cars. Or could be an option instead of the smoking package.
Can anybody PM with instructions in how to join penfed.org (the back door - no pun intended)
. I dont want to start another controversy). It'll be my first and last one probably. I have worked hard all of my life and my walls have been filled with posters of Porsches all my life. Finally I'll be able to afford a 911. I know Im losing a bunch of $$$ in the first year but thats ok.With regard of the chick's magnet comment I guess thats a plus. I have always wonder why Porsche doesnt offer a "panties compartment" as an standard item in their cars. Or could be an option instead of the smoking package.
Can anybody PM with instructions in how to join penfed.org (the back door - no pun intended)
09-16-2012, 01:51 PM
#41
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I can understand two of the three, but borrowing money for a first car? Does not have to be new car I suppose.
09-16-2012, 02:33 PM
#42
Advanced
if you want the car, can afford the payments and don't want to put all that cash out...why not finance it? personally, i'd rather have the cash. you shouldn't feel guilty about it either way. life is too short. get your car and enjoy it. none of your friends, no one on this forum, no one needs to know either way. its your life. go for it. by the way, porsche gives you anywhere from 2 to 7 years in payment options.
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maschinetheist (08-31-2020)
09-20-2012, 08:04 PM
#43
I got an email from Penfed for .49%, you just need to sign up for a veteran's association to get membership to PenFed, cost $15 I believe, google it and you'll get everything you need.
Tie up $100K or borrow at .49% and invest the cash?
09-21-2012, 12:44 AM
#44
Rennlist Member
Amazing the sort of assumptions that get thrown out when anyone asks about financing on a Porsche board.
I got an email from Penfed for .49%, you just need to sign up for a veteran's association to get membership to PenFed, cost $15 I believe, google it and you'll get everything you need.
Tie up $100K or borrow at .49% and invest the cash?
I got an email from Penfed for .49%, you just need to sign up for a veteran's association to get membership to PenFed, cost $15 I believe, google it and you'll get everything you need.
Tie up $100K or borrow at .49% and invest the cash?
09-22-2012, 01:16 AM
#45
Three Wheelin'
With "Helicopter Ben" suppressing interest rates for the foreseeable future, I think financing is a very prudent strategy. If you have a 150K of cash to invest, you should be able to easily exceed any of the interest charges you will face.
A client, very successful, once told me, "that if it flies, floats, or fornicates, RENT IT!
I have no earthly idea what you should do, but I trust that you are the world's greatest expert on you, and I trust you to make a wise decision.
Don't let all of these pseudo responsible killjoys dampen your enthusiasm. Everyone has hobbies, I don't golf or own a boat or a plane, I play around with my cars. Unlike other high end sports cars, the Porsche can be a practical daily driver.
Some people like white cars, some like red cars, some are comfortable owning a nice car and living in an apartment, some would rather have a nice home and a used Toyota, you know whats best for you!
Life is short, enjoy the ride!
A client, very successful, once told me, "that if it flies, floats, or fornicates, RENT IT!
I have no earthly idea what you should do, but I trust that you are the world's greatest expert on you, and I trust you to make a wise decision.
Don't let all of these pseudo responsible killjoys dampen your enthusiasm. Everyone has hobbies, I don't golf or own a boat or a plane, I play around with my cars. Unlike other high end sports cars, the Porsche can be a practical daily driver.
Some people like white cars, some like red cars, some are comfortable owning a nice car and living in an apartment, some would rather have a nice home and a used Toyota, you know whats best for you!
Life is short, enjoy the ride!
I agree. Some people have 10 year old Camry and live in 3 million_ house with horses and boats. Some people rent all their lives but drive fancy cars and wine/dine. At the end... do what makes you happy (and can afford)