I was looking at buying a 91-96 964/993 for a few months but I think I have talked myself out of a Porsche. There is no way I could afford a rebuild. After researching them and seeing that they cost around 10K I am too scared. The only other option I am thinking of is to put 10-12K on a 99 C2 and Lease it hoping to get my payment around 400 a month. I figure as long as I am leasing it and I think I can lease it again at the end of the term it is under warranty and I wont have to worry much about huge cost coming up. Any comments, suggestions?

 

It sounds to me like you're stretching things a bit. You're going to end up "renting" a car and never having any equity in it..and the 10K you're throwing in to keep the lease cost down is gone w/o any benefit to you except to lower your lease costs.

If you really want a Porsche, buy what you can afford after thoroughly checking out each series. Knolwdge when involving yourself with Pcars is a very valuable tool...as it commin sense!

 

I'm with Don, I considered leasing but was confident that Porsches do not depreciate as quickly as other cars. So for a couple hundred more a month I feel less like I am throwing my money away. BTW this is the first car I've "owned" since 1995, leasing WAS the way to go for me, but I was always under the mileage and I returned my cars in clean condition.

 

" I'm with Don, I considered leasing but was confident that Porsches do not depreciate as quickly as other cars. So for a couple hundred more a month I feel less like I am throwing my money away"

That might have been the case in the past but it appears Porsche is turning Japanese on us with multiple product revisions. I too wrote a check for my last two P-cars seeing how well values had held up. However, 996s don't hold their value worth a crap. My 01 996 cab stickered for nearly $90k, I've had it for less than two years and 10k miles. I'd be lucky to get $70k for it today. In the meantime, I've had opportunity cost on the cash as well as paying full sales tax up front. On the lease you referrenced paying down $10k and paying $400/month, after two years you'd have paid out the same $20k I've lost over the last two years, only you didn't pay $5400 in sales tax up front and had use of your capital for the two years! Now that Porsches tank, I'm inclinded to think a lease is a better deal. It would have been a WAY better deal back when I bought because they were still stupid about the poor residual prices cause the dotcom scam hadn't yet imploded (in fact I paid less for my car new than it would have cost to buy a used one!). Perhaps they have properly adjusted for the reality that Porsche resale was a bubble phenomenon by now. Still, if you can put down $10k, and pay $400/mth, you'll probably end up much better than us check writers have. Just wait til the 997 and/or 998s come out. The 996s are NOT 993s and are NOT holding their values even remotely as well. In fact, the 996s are quite possibly going to be the first 911s with no collectability factor. There's nothing special about them and they are more a mass market car than any of the previous 911 renditions. That's showing up in the glut in supply and resulting prices. Also, should you have an accident that doesn't result in the totaling of your car, you won't be able to give the car away. With a lease, you can just have it repaired, fulfill your lease term, and hand them back the keys.

 

These post have been extremely informative. The thing that steers me from P-Cars is the fact that the rebuilds are so expensive. I believe if I buy a 996 it would be a car I would like to keep forever but I cant afford to rebuild the motor in one =( In all honesty I like the styling and the car as a whole on the 993 much better. I just feel it being older might be a bigger risk for a rebuild. I cant believe its $10K to rebuild these cars. Why? I guess thats why they say "you can afford to get a porsche, but can you afford to have a porsche"

 

I'd have to agree with Don and Renato. You are already looking at the MY '99's, and they are going at bargain prices. Ben's complaint actually works well for you. Most of the depreciation has already been taken. As such, the price is such that the demand for the car at these prices will keep the value of the 2nd hand car that you have bought. If you lease it, you will not see any of that equity whatsoever. You will have a very expensive rent-a-car with nothing to show for it at the end of the lease term.

On the other hand, if your budget is $500/month with $10,000 down, a '99 996 may be a stretch if not out of your reach as a purchase. You are then limited to a lease, with all the above disadvantages. You may want to research older models such as the 993 or 964, and still own a great P-car without a rebuild.

I bought mine new, and I am willing to pay the premium for a "new" car. From a purely financial aspect, a used 996 is a great bargain. We are in a reccesion, and all used car values of the expensive cars are waaay down. This is not limited to Porsches. The market is flooded with cars from all the failed dot coms. Take advantage if you can.

 

 

"These post have been extremely informative. The thing that steers me from P-Cars is the fact that the rebuilds are so expensive. I believe if I buy a 996 it would be a car I would like to keep forever but I cant afford to rebuild the motor in one =("

Like I said earlier, I'm on my second one. Other than making sure the car is at normal operating temp before taking it much above 4500 rpms, I do NOT baby them - at all. That said, neither one ever needed anything (so far). This one had some silly rattles that I had fixed during it's annual service, but other than that, they've been rock solid. Further, if the car is still 1k miles and 1 month in the factory warranty, you can get a bumper to bumper, no ded, warranty from Warrantygold.com. I've used them several times and have been quite pleased. In addition to having road service, you will have a more fixed cost of ownership. But, do be advised that you can go thru some tires (about $300/each mounted and balanced) with these cars - especially the rears and especially if you "drive" them. Other than that and routine oil changes once a year or every 15k miles, they are very cheap to maintain.

 

"If you lease it, you will not see any of that equity whatsoever. You will have a very expensive rent-a-car with nothing to show for it at the end of the lease term."

I wrote a check for $95k when I bought my 2000 996 coupe in May 2000. What do I have to show for it now? A $55k car. That means I spend $40k over 2 1/2 years.

Damon,

If you don't drive a lot of miles and like to get new cars every few years, then leasing is the way to go. (The $10k cap reduction makes me a little nervous though. Are you stretching things a little too much?)

When it comes down to it, whether you buy or rent, you are still paying a cost just to drive a car. Why not pay that cost monthly and put all that money saved to work for you someplace else.

Unless you are buying a Ferrari, Bentely, or any kind of "Collector car" then all this talk about equity is just crap.

I have always leased all my Mercedes, but thought the Porsche was closer to a Ferrari in its resale value. Well, it is not!

 

I'm completely agree with Palting.

 

"I wrote a check for $95k when I bought my 2000 996 coupe in May 2000. What do I have to show for it now? A $55k car. That means I spend $40k over 2 1/2 years."

That's the difference between you and Damon. You bought it new and ate the depreciation, and since he is buying it used, he doesn't have to anymore.

 

Palting,

You make an excellent point. (I did not read the original post carefully enough regarding year of car.)

I stand corrected, but in the case of a new Pcar I stand by my original words.

I do have to say, that it does seem that after taking a huge hit in the first couple years, the depreciation on the 996 does seem to be stabilizing.

 

I agree with Erik H concerning new cars and if you don't mind used then most Porsche's are really a bargain for what they offer.

 

Damon

What is your limit when it comes to capital? Could you stretch to buying a 964 at $20-25K? If so, you will have no financing costs and can put the $$$ aside each month towards a rebuild or other work that may be required in the future.

No matter which model and method of payment you go for, these cars will not be cheap to run. My 964 will cost a little more to run than a 996, but the depreciation here in the UK for my car is pretty close to zero.

I would either a) save up enough cash to buy a 964/993 outright (perhaps $20-40K depending on model and year) and then have relatively low outgoings each month to prepare for future work that may need doing and very low depreciation; or b) put nothing down and take the $1000 per month leasing option (figures are probably way wrong, but just to illustrate) if you have the disposable income to do that.

If you don't have the capital or the disposable income, I think you are lining yourself up for some trouble in the future.

One very brief note on engine rebuilds - most 964 owners like myself accept that at some stage our cars will need a rebuild. Whether it is 50k miles or 150k miles remains to be seen. However, the need for a rebuild is not usually something that happens overnight. You will have some increase in oil consumption through leaks/burning etc. - you generally have ample warning. Besides, $10k is probably a bit high - here in the UK one of the best specialists in the South charge around $4200 for the basic full rebuild including the expected parts to be replaced. A recent example of a full bill including lots of other 'while-we-are-in-there-parts' was around $8000.

Don't stretch though - you don't want to starve just because your car needs a new clutch. A Porsche is a very special car, but is also just a load of metal bits screwed together to get you from A to B.

 

I don't understand all of this concern about the rebuild. What's the worry? If you are looking at a lease, then you're probably only looking at 10-15K miles a year. If you were to buy, for example, a "typical" 993 with "typical" mileage of 40K, then in two or three years, you're still way below 100K miles, and everything I read about 993's is that they're bulletproof. That means, typically, no need for a rebuild. So, no worries. Sure, you've got wear issues like tires, clutches, brakes, etc., but a lease or warranty wouldn't cover those anyway. You prefer the 993, then buy a 993!

Yeah, I've got a 993.

Michael