993TurboS

I was visiting a car website (exotics) recently and was shocked to see a payment calculator that defaulted to 96 months. It made me wonder how people on Rennlist paid for their car.

sfbanchs

cash for both cars one check and thats all

last toy

these 96 month car loans are the prodigy of the mortgage subprime fiasco craze which we all will have to pay for eventually. Plus the cost of cars are getting to be rediculous, most 300 hp cars approaching $90k and it has a "S" behind its name. I'm amazed that almost 80% of the buyers paid cash. I must be old school, why would anyone take working capital and pay down a depreciating asset like a car unless it was a collectors model or its a business write-off . Its' been awhile since I got my MBA, but have they rewrote the principles of Finance 401:

pstoppani

1) I think you need to double-check the price of most 300HP cars
2) Finance 401 has little to do with why people pay cash

911/Q45

Investing working capital only beats paying cash if you show a profit, no guarantees for that.

johnneurauter

oh yeah! fiscal responsibility and owning a 10 year old, $70k air cooled car really seem like they should be discussed in the same thread.

Full Boost

You should be so lucky.....

Owning a $170K car, running it mainly on the track and fiscal responsibility.....

YEAH RIGHT!!!!!

I'm just lucky my wife understand my sickness.....

993TurboS

Assuming you can afford to pay cash, the question is , what will you do with that money if you do take a loan? Whatever the answer is, it had better make you more, on a risk-and tax-adjusted basis, than you are paying on the loan. If the plan is to keep it in "working capital", i.e., cash and the like, then you are probably making a mistake since you will be earning a lot less on any cash-like asset then you will be paying on a car loan. If you need it for "liquidity", then, in my book, that means that you can't afford to pay cash. Nothing wrong with that, by the way. Virtually everyone has leverage somewhere in their life: mortgages, leases, stock options, debt, rent, etc.

johnneurauter

whew, forgot about what it takes to get a car there! but there are unhealthier, substantially more damaging sicknesses one could pick up for a lot cheaper. if your wife is like mine, i think she might have that factored into her tolerance equation.

now, p-cars and unhealthy, damaging sicknesses, that's something that can be discussed in the same forum ;-)

WHB Porsche

Doesn't boost crazy have a TTS? That would account for the extra 100k.

malcolmd

Oh! that extra $100K
A$ 170K = US$136K
The rest relates to the consequence of our Government's "luxury car tax" that augments new car prices on vehicles above $65K, that then flows on to the second hand market.
A 993TT was A$305K new here in 1996!
Still, the beer is cheap
Cheers

hiflexaust

Pay cash for the toy and keep your working capital for working......that way, if you cant afford the toy, you keep working until you can! I think most of us here would have the finances to pay for the car and still have enough to invest, work and take the occassional holiday.........what did I just say?.....Holiday?....oh god!.....please dont tell her I said that!

atan888

all cash otherwise the wife wont allow it at all.

Turbodan

Ca$h. My wife thinks the car cost the same as my 951, around $10 k....just kidding. Imagine owing big money (percentage wise) on one of these cars, I'd be driving on eggshells and any repairs would mentally destroy me. If you need to finance (nothing wrong with that) IMHO you should pick a different model...say NA 993 or 996 or even 996tt. And if our cars appreciate (lets hope but not count on) we don't need to consider the cost of financing as a cost, let alone make those payments every month!

Air Kuul TT

Paid cash as it's a toy.

Working capital... depends on what and how it works, I've lost over $50k in a working capital that didn't work before. At east the TT is always there when I need some "my time".