billh1963

Someone on the 996 board is bemoaning 996 prices and stated:
"I learned these 996's don't go very high in the used market since the supply is just too much. Most of the 996 oversupply came from quick rich guys first time porsche buyers in 99-00 when they realized a year later that either it was too much for them or not very practical car. I was one of them in 01 and 02. I tried twice to sell the car for an acceptable loss but all the offers were insulting or discouraging. Compared to the 993's I think they held up their values pretty well."

Being new to the 993 world I was wondering if someone can give me a perspective. Let's take my car, for example. It's a 1996 C4S (currently with 38k miles) that sold new somewehere in the upper $70's. I imagine that in 2000 the car would have had around 15 to 20K miles and been worth $55k to $60k (someone help me out here...I wasn't in the market then).

I believe a new '99 996 (C4...no S model available) sold for around the same price as my 993 did new. A 996 C4 with 15 to 25K miles can be had for mid-to upper $40's.

Considering that my car is worth mid-$40's now (2003) it looks to me that all things being equal the 993 has depreciated less. Am I missing something?

No trying to start an issue of 993 vs. 996...I'm trying to understand the 996 board statement.

Jim Michaels

Considering what came before, I don't understand the last sentence in the quote. Typically, the newest cars experience the steepest depreciation slope, with the depreciation curve gradually decreasing in slope through the years. Thus, the 993 is more into its more gradual slope now, whereas the 996 is still in its steeper slope. This is the usual pattern, but I think there are several other unique factors at play as well. First, the uniqueness of the 996 compared to all the 911s that came before; it's water cooled and more of a grand touring car. While some traditional enthusiasts were turned off, that may be part of what attracted so many first time Porsche buyers. A second factor is the growing popularity of leasing, and the number of 996s now coming off their leases. Finally, the recent economic situation has apparently contributed to lower market values of both cars. 993 owners on this very forum have recently expressed their shock at the declining market value of their cars. 964 values are also declining, even though they are way along in their depreciation curve now. If you've got the money and the desire to buy newer, it appears that now is a good time.
What am I saying? I'm not an economist! All that can't be right.

adsc4s

Our cars are worth as much as we think they are...unless you want to sell. Seeing as you just bought it, enjoy it. Remember, when buying a car, a better car with more options at a lower price will always be found the next day.

Don't stress, enjoy your fine automobile.

Dave Crellin

I don't have any proof, but I clearly recall that in 1999, the last of the 993 still commanded a premium over the new 996. A loccegue of mine bought a 1998 993 Cab new here in LA and took it back to the dealer for services. They had a couple of 1 yr-old 996s that were cheaper than 3 yr old 993s (similar kind, eg C2 to C2).

I'll bet my 96 c4 is worth more than a 1999 or 2000 C4 in the long run.

Tech-Law

My estimate is that 993 are not only farther along the depreciation curve but were also not sold new during the final insane years of the Internet boom - when everyone had to have a Porsche to prove something.

The 993 is a classic - the 996 is just a fast, competent car and will never be viewed as anything but - just my $02.

DC from Cape Cod

You can buy a 1999 C2 for less than a 1996 C2......what does that tell you?

Rezal

Not being an economist and without any real data, I suspect it's Supply and Demand due to several factors:

On the Supply Side:
1) As someone pointed out, a lot of 996s are coming off lease, bought during the boom years. Combine that will ballooning dealer inventories who don't want their capital tied up on a lot. Most people lease because:
---a) they want the latest and greatest
---b) they want a lot of flash for not much cash
For (a), the new kid on the block is the Z4, Viper, etc. The 996 is now an evolutionary design. For (b), they might now be cash strapped in a slow economy and will probably go for a lower priced lease

2) 99s and 00s were known for the cheaper plasticky interior. Those who can afford the newer models are upgrading to an '02.

On the Demand side:
1) Slow economy
2) Looks
3) Potential competition from new M3s ('99 996 or '01 M3?)
4) Buyers having a "wait and see" if:
---a) prices will drop even further given the recent drop
---b) the 997 will further erode 996 prices

Speedraser

There has been much discussion on the 996 board about the high depreciation rate of their cars. Most over there (I think) seem to believe that the 996 depreciated faster than the 993 when each was the same age, which I think is accurate.

Rezal

Todd,

I'm not sure that the hypothesis is correct. If so, then why are there '99s being sold in the high $30Ks when '96s are being sold at the same prices? Also, '98 C2S's are also going for more than '00 996s and I'm not convinced that the "S" designation alone can cause that delta.

Anyone want to do a depreciation plot of prices, to put this speculation to rest?

Speedraser

Rezal,

I think we're saying the same thing -- 996s depreciated faster than 993s. A 993 had depreciated less when it was 4 years old than a comparable 996 had when it was 4 years old.

Rezal

Todd,

My bad. I reread your post and yes, we're saying the same thing.

fbfisher

Seems that you would also have to compare the economy during the respective four year periods and adjust for that since depreciation seems to a function of the state of the economy as well as the desirability of the car.