i saw research peice on porsche - target customer for 997
#1
Three Wheelin'
Thread Starter
i saw research peice on porsche - target customer for 997
earns approx $175k US
im looking for the research peice...
Think this sounds about right for $100k cars ?
im looking for the research peice...
Think this sounds about right for $100k cars ?
#2
Edmunds used to have demographic data for their reviewed cars. I can't seem to find it anymore but one thing I do remember is that the average annual income of SL500 owners (an 85 - 90 K car at the time) was 250 K per year. Seems 911 buyers tend to stretch their resources much more than some other luxury car buyers.
A "rule of thumb" is that one should spend no more than about 4 months gross income on your car. That would amount to 58 K for 175 K yearly income. many people spend much more than this.
A "rule of thumb" is that one should spend no more than about 4 months gross income on your car. That would amount to 58 K for 175 K yearly income. many people spend much more than this.
#5
I was never very good at following “rules of thumb.”
Greg
2005 Carrera S Coupe, Lapis Blue Metallic, Carrera Classic Wheels, PCCB, Bose, Sport Shifter, Sport Seats
Rennlist member #050419-5832
Greg
2005 Carrera S Coupe, Lapis Blue Metallic, Carrera Classic Wheels, PCCB, Bose, Sport Shifter, Sport Seats
Rennlist member #050419-5832
#6
I'm sure that's true for a lot of people here.
That's why we are seeing nearly new 911s for sale. Some people tend to stretch their budget to buy cars and then find they can't reasonably pay for them without making some painful sacrifices.
That's why we are seeing nearly new 911s for sale. Some people tend to stretch their budget to buy cars and then find they can't reasonably pay for them without making some painful sacrifices.
#7
Originally Posted by robbonds
i'm looking for the research piece
Cars: $187,705 (with Mercedes in second at $162,824; top-10 average at $146,065)
Trucks: $199,733 (with Hummer in second at $150,026; top-10 average at $161,781)
Another interesting piece, but a bit older (and you may have seen it already): Ten years ago, a study classified U.S. Porsche buyers in accordance with their psychographical characteristics. Here are the quick results again:
Top Guns (27 percent of owners): driven and ambitious; strong desire to be noticed; consider power and control to be important.
Elitists (24 percent): old money; a car is just a car, no matter how expensive, and not a representation of one's personality.
Proud Patrons (23 percent): ownership is what counts and an end in itself; car is a trophy and a reward for hard work; being noticed is unimportant.
Bon Vivants (17 percent of owners): thrill-seekers; global mind; car increases excitement in life.
Fantasists (9 percent): car is a form of escape; some guilty feelings about owning the car; try deliberately to avoid impressing with the car.
If you are interested in figuring out your own value and lifestyle profile (not Porsche-related), take the survey at http://www.sric-bi.com/VALS/. I have my students do this every semester and it's kind of fun.
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#8
Poseur
Rennlist Member
Rennlist Member
..and what's the rule of thumb for housing expenses? What percentage of your income?
We in Southern California would love to practice THAT!
Dan
We in Southern California would love to practice THAT!
Dan
#10
My household income for '05 was approximately five times Porsche's target household income for the 911, but i still don't feel i can comfortably buy a 911 quite yet... I won't buy the car until i can afford it without hesitation. Granted, I live in NYC with a wife and daughter and have to deal with NY's high cost of living..
#11
Originally Posted by Edgy01
..and what's the rule of thumb for housing expenses? What percentage of your income?
We in Southern California would love to practice THAT!
Dan
We in Southern California would love to practice THAT!
Dan
Mortgage, interest and insurance should be no more than 28% of gross monthly income. Recently some lenders have pushed this up to 33%. Also interest only loans which look attractive but are a time bomb are becoming popular as housing prices escalate.
I paid cash for my house and cars. That's just the way I do it. Many would not be able to do this. I can see mortgaging a house but taking a home equity loan to buy a car is dangerous and just plain irresponsible (and I've heard that advice given on this forum).
#12
My rule of thumb...don't buy a Porsche unless you feel like you can pay cash for it. That doesn't mean you have to do it, just that you have the stable resources to do it.
Like many, I have quite a bit of home equity. I thought (briefly) of tapping a home equity line of credit, then thought the better of it, and paid cash.
Could I have done a bit better tapping the LOC and trying to get at least a 10-12% pretax return on the $$$, thereby making money on the spread? Sure.
But that's not the point. For me, like many of us, this is an extravagance. Better to feel the pain upfront to remind you of what you are doing, then enjoy the next 5-10 years...
Like many, I have quite a bit of home equity. I thought (briefly) of tapping a home equity line of credit, then thought the better of it, and paid cash.
Could I have done a bit better tapping the LOC and trying to get at least a 10-12% pretax return on the $$$, thereby making money on the spread? Sure.
But that's not the point. For me, like many of us, this is an extravagance. Better to feel the pain upfront to remind you of what you are doing, then enjoy the next 5-10 years...
#13
Banned
Originally Posted by boolala
Mortgage, interest and insurance should be no more than 28% of gross monthly income. Recently some lenders have pushed this up to 33%. Also interest only loans which look attractive but are a time bomb are becoming popular as housing prices escalate.
I paid cash for my house and cars. That's just the way I do it. Many would not be able to do this. I can see mortgaging a house but taking a home equity loan to buy a car is dangerous and just plain irresponsible (and I've heard that advice given on this forum).
I paid cash for my house and cars. That's just the way I do it. Many would not be able to do this. I can see mortgaging a house but taking a home equity loan to buy a car is dangerous and just plain irresponsible (and I've heard that advice given on this forum).
That rule of thumb simply doesn't apply here. Wish it did.
#14
True I live in the midwest where there has been some housing appreciation but nothing like the coasts. I just don't know how long this housing inflation can continue until it totally prices out first time home buyers. But, in my mind, taking out riskier loans is not the solution.
#15
Along the lines of previous comments, “household income” is one of these measurements that is fundamentally flawed unless you take into account moderating factors such as the number of household members that have to be fed with it. A single person earning a household income of $90,000 may very well have a higher discretionary income than a four-member household with an income of $250,000. Once you look at this and also start factoring in regional cost of living and other variables, it becomes obvious that indicators for your ability to afford a Porsche should be determined on the basis of other variables (such as current equity/debt ratios, etc.).