997 - financial questions.
09-08-2005, 10:04 PM
#48
Instructor
I can say this, There is NO reason to spend this kind of money on any car, No one can justify owning a Porsche. Having said that, and having traded in my 330cic for a new06 997, I have come to the conclusion that the difference is about 50k, and when I am dead , 50k one way or another really will not matter. Look at La, Ms etc. Live life for now, dont be the wealthiest guy in the cemetary. I love my Porsche, but could never justify it, regarless of what I make, so why bother. In russia they say " if you eat you die, if you dont eat you die, I would rather die eating.
09-08-2005, 10:50 PM
#49
Not to chime in BUT as 40 appraoches I have lived thru both the pangs of materialistic 30's and the quest for security in the (almost ) 40. There are other issues here that you may remember.
Yes, you may die young and never have a 997. But isn't the real tragedy of dying young that your family would be worse off and a 997 would be no consolation.
So aside from personal strategies and when to buy and invest opinion- I would say that most CFA/CPA's would suggest-
Eliminate high interest debt. Establish a cash fund ( 3 months). Obtain adequate insurance of all kinds. Then move to invest, buy etc.
Best advice ever given to me-- the time value of money. So 50K now is not really 50K when you're dead -more like 80-150K depending when you go. Money in your 30's is early retirement in your 50's. Or less college loans for your kids.
The decisions you make now will alter your choices later. In the words of my father- if you have to ask SOMEONE ELSE than either A) you already know you can't afford it or shouldn't buy it or B) you don't really want it. I think you're more likely A. Wouldn't you rather want it longer and not feel guilty or have to sell it at more of a depreciation than buy it and feel guilty that maybe you shouldn't.
For me, I can't stomach the new car immediate hit anymore. Did it and now looking for someone else to take the hit and I will enjoy the discrepancy between the value of a two year old 911 and the price as opposed to the value of a new 911 and the cost. I've done it. Those break-in miles, not as much fun as miles 5k on up. And far more costly.
Weekend cars, they are plentiful and not all have to be 997.
Just a couple of 0.02's. Worth about 0.017 with depreciation.
Yes, you may die young and never have a 997. But isn't the real tragedy of dying young that your family would be worse off and a 997 would be no consolation.
So aside from personal strategies and when to buy and invest opinion- I would say that most CFA/CPA's would suggest-
Eliminate high interest debt. Establish a cash fund ( 3 months). Obtain adequate insurance of all kinds. Then move to invest, buy etc.
Best advice ever given to me-- the time value of money. So 50K now is not really 50K when you're dead -more like 80-150K depending when you go. Money in your 30's is early retirement in your 50's. Or less college loans for your kids.
The decisions you make now will alter your choices later. In the words of my father- if you have to ask SOMEONE ELSE than either A) you already know you can't afford it or shouldn't buy it or B) you don't really want it. I think you're more likely A. Wouldn't you rather want it longer and not feel guilty or have to sell it at more of a depreciation than buy it and feel guilty that maybe you shouldn't.
For me, I can't stomach the new car immediate hit anymore. Did it and now looking for someone else to take the hit and I will enjoy the discrepancy between the value of a two year old 911 and the price as opposed to the value of a new 911 and the cost. I've done it. Those break-in miles, not as much fun as miles 5k on up. And far more costly.
Weekend cars, they are plentiful and not all have to be 997.
Just a couple of 0.02's. Worth about 0.017 with depreciation.
09-08-2005, 11:44 PM
#50
Nordschleife Master
Originally Posted by jonquiljo
Actually, if pl is around 30 - his rates could really be that high. Risk takes a nosedive as we get middle-aged and older.
But, my question is where is pl located? Can't stand posters that come on here and never fill in their sig or profile info and are VERY vague when discussing topics looking for advice. $4800 is insane in ANY state. I live in one of the most EXPENSIVE counties to insure a car in (Clark county Las Vegas) and we pay $2200 a year on all of our cars (check the sig for listings). And that is with half a mil coverage not the cheapo 25/50 coverages.
09-09-2005, 01:20 AM
#51
It was a long time ago that I read the original post, but if I remember correctly, there's a 1/2 million owing on a mortgage. If that's the case, then getting a 911 seems ridiculous. I'd pay down that debt as fast as possible. Just calculate what you're paying the bank in interest on the mortgage and you'll come to the same conclusion. Any extra money not going to pay off that mtg is a huge waste.
The only thing worth it could be, well, a 911!
Is interest on your home mtg tax deductible in the US? If so, would that mean that you're really only paying about 2-2.5% interest on teh mtg?
-B
The only thing worth it could be, well, a 911!
Is interest on your home mtg tax deductible in the US? If so, would that mean that you're really only paying about 2-2.5% interest on teh mtg?
-B
09-09-2005, 01:54 AM
#53
Originally Posted by royalpar1
...Having said that, and having traded in my 330cic for a new06 997, I have come to the conclusion that the difference is about 50k, ....
AW
09-09-2005, 02:33 AM
#54
GT3 player par excellence
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having usually paid cash for my cars, my most recent acquisitions are all leased.
one, if i don't like the car, i dont have to keep it.
two, if i do like the car, at end of lease term i pay it off with cash, then a three year lease vs. a five year finaning is almost the same total cost.
three, if you can write off tax with lease, even better.
four, i tried to tell myself, "this" car i will keep 15 years. well, the longest i had any car was 5 years. if you change cars often, leasing is better, espeically expensive cars as lease you only pay tax on the depreciated part.
however, i don't want to over extend. the metric i use is : can i afford the car in one cash payment on day one. if i can't, forget it. if i can, i will the lease it.
the best thing with leasing is that at end of term, i turn the car back and just go. with a purchased car, you have to deal with private buyers who are ususally tire kickers. sure, you can quickly sell it back to dealer, but the slaughter you take is no better than the dep'n in leasing.
one, if i don't like the car, i dont have to keep it.
two, if i do like the car, at end of lease term i pay it off with cash, then a three year lease vs. a five year finaning is almost the same total cost.
three, if you can write off tax with lease, even better.
four, i tried to tell myself, "this" car i will keep 15 years. well, the longest i had any car was 5 years. if you change cars often, leasing is better, espeically expensive cars as lease you only pay tax on the depreciated part.
however, i don't want to over extend. the metric i use is : can i afford the car in one cash payment on day one. if i can't, forget it. if i can, i will the lease it.
the best thing with leasing is that at end of term, i turn the car back and just go. with a purchased car, you have to deal with private buyers who are ususally tire kickers. sure, you can quickly sell it back to dealer, but the slaughter you take is no better than the dep'n in leasing.
09-09-2005, 03:33 AM
#56
Lots of really bad advice on this topic. Placing your home at risk in order to deduct the interest payments is very risky and not advisable. You really want to secure a car loan with your house as collateral?? If you need to do this then you can't afford the car. Leasing is always cheaper in the short term but more expensive in the long term than outright purchace or even finance UNLESS you can dedcut it as a business expence. If you are leasing solely because you could not otherwise afford the car then ....you can't afford it and shouldn't buy it.
I would go so far as to suggest that if you are not paying cash for your cars because you cannot afford to do so (rather than because you can earn a greater return on your money than than the interest you are paying) then you really can't afford it either.
I would go so far as to suggest that if you are not paying cash for your cars because you cannot afford to do so (rather than because you can earn a greater return on your money than than the interest you are paying) then you really can't afford it either.
09-09-2005, 07:42 AM
#57
Instructor
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I saved up 3 weeks pocket money for mine.
Seriously though, I think ScottS makes the best point... if you have to ask, then you either can't really afford it, and / or you don't really want it that much.
My view is that based purely on financial criteria, you cannot justify any modern car. Vintage / classic is the way to go for that.
Seriously though, I think ScottS makes the best point... if you have to ask, then you either can't really afford it, and / or you don't really want it that much.
My view is that based purely on financial criteria, you cannot justify any modern car. Vintage / classic is the way to go for that.
09-09-2005, 08:42 AM
#58
Drifting
Thread Starter
Originally Posted by LVDell
25 is that magical number not "middle age".
But, my question is where is pl located? Can't stand posters that come on here and never fill in their sig or profile info and are VERY vague when discussing topics looking for advice. $4800 is insane in ANY state. I live in one of the most EXPENSIVE counties to insure a car in (Clark county Las Vegas) and we pay $2200 a year on all of our cars (check the sig for listings). And that is with half a mil coverage not the cheapo 25/50 coverages.
But, my question is where is pl located? Can't stand posters that come on here and never fill in their sig or profile info and are VERY vague when discussing topics looking for advice. $4800 is insane in ANY state. I live in one of the most EXPENSIVE counties to insure a car in (Clark county Las Vegas) and we pay $2200 a year on all of our cars (check the sig for listings). And that is with half a mil coverage not the cheapo 25/50 coverages.
Originally Posted by fast lane
I'm 30 yrs old. I have a 997 base which is my weekend car. I have my 997 on a policy with 7 other vehicles that I own. State farm is my insurance company. When I turned 30 last october my raqtes went down a little, my rate on the 997 right now is 4,400 for full coverage but I should mention that I live in New Jersey where the rates are high. I have no points on my liscense (knock on wood). My poin is 4,800 doesn't seem outrageous to me.
09-09-2005, 08:44 AM
#59
Drifting
Thread Starter
Originally Posted by Ronnie
I saved up 3 weeks pocket money for mine.
Seriously though, I think ScottS makes the best point... if you have to ask, then you either can't really afford it, and / or you don't really want it that much.
My view is that based purely on financial criteria, you cannot justify any modern car. Vintage / classic is the way to go for that.
Seriously though, I think ScottS makes the best point... if you have to ask, then you either can't really afford it, and / or you don't really want it that much.
My view is that based purely on financial criteria, you cannot justify any modern car. Vintage / classic is the way to go for that.
09-09-2005, 08:48 AM
#60
Drifting
Thread Starter
Originally Posted by mooty
having usually paid cash for my cars, my most recent acquisitions are all leased.
one, if i don't like the car, i dont have to keep it.
two, if i do like the car, at end of lease term i pay it off with cash, then a three year lease vs. a five year finaning is almost the same total cost.
three, if you can write off tax with lease, even better.
four, i tried to tell myself, "this" car i will keep 15 years. well, the longest i had any car was 5 years. if you change cars often, leasing is better, espeically expensive cars as lease you only pay tax on the depreciated part.
however, i don't want to over extend. the metric i use is : can i afford the car in one cash payment on day one. if i can't, forget it. if i can, i will the lease it.
the best thing with leasing is that at end of term, i turn the car back and just go. with a purchased car, you have to deal with private buyers who are ususally tire kickers. sure, you can quickly sell it back to dealer, but the slaughter you take is no better than the dep'n in leasing.
one, if i don't like the car, i dont have to keep it.
two, if i do like the car, at end of lease term i pay it off with cash, then a three year lease vs. a five year finaning is almost the same total cost.
three, if you can write off tax with lease, even better.
four, i tried to tell myself, "this" car i will keep 15 years. well, the longest i had any car was 5 years. if you change cars often, leasing is better, espeically expensive cars as lease you only pay tax on the depreciated part.
however, i don't want to over extend. the metric i use is : can i afford the car in one cash payment on day one. if i can't, forget it. if i can, i will the lease it.
the best thing with leasing is that at end of term, i turn the car back and just go. with a purchased car, you have to deal with private buyers who are ususally tire kickers. sure, you can quickly sell it back to dealer, but the slaughter you take is no better than the dep'n in leasing.
1. lease, 1099 tax write-off.
2. buy using home equity line of credit, tax break on interest.
think hard.
maybe i should think harder about how to make more $$
