boolala

You hear this all the time. I don't know of a reliable way of getting a risk free 8% return. Certainly the market as a whole has not returned this over the past 5 years (closer to 0%). Sure you could find 8% returns somewhere but not without risking substantial losses as well. You can get a risk free 4 or 5% return on average. After taxes you are still behind. If you purchace your car with a home equity line of credit (which I think is stupid) then it's a wash.

So you can't "do better" reliably and you can't "do better" on a risk free basis and that should be the standard by which you decide where to put your money (cash or credit).

Sorry but it's just a fundamental fact of free markets. The greater your reward the greater your risk. It has to be this way. If there were no greater return for higher risk then why, in the world, would someone take a greater risk?

Vancouver83LTD

BAH!
Drive it home

aaoun

actually, i fundamentally agree with you. there is more risk. i'm not saying the certainty of making a greater profit is 100%. but what i am saying is that i'd rather take that risk (mitigating it with education, diversity, world-wide investing, etc), and that i think it's reasonable for most educated people to do so. but you're right, it's a judgement call :-)

Brian E

Right on!!!

aaoun

gotcha. thanks for the clarification, appreciate it!

MHC2S

If you don't mind me asking how many miles were on it at time of purchase???

aaoun

18k.

fast1

I just sent you a PM.

Moderato

Seems like a fair deal to me, what was the sticker price on this car?

sunlion

WOW! This is great. I got more than I asked for, although I didn't ask for investing advice. The purchase of a 997 is by no means an investment, especially when you factor in the cost of money and depreciation, whether it be cash or credit. It is about how the car speaks to one's soul.

There are so many options available that I'm having a difficult time making a decision. I do know that I'll enjoy whatever I get tremendously. Porsche makes the only car that I want.

Vancouver83LTD

buying an original RSR and putting it in a box is a 911 investment... Buying a mid to late 80's turbo slantnose and not driving it is an investment. Buying a new 911 on margin is an investment (albeit a horrible one)

Vancouver83LTD

aaoun

haha. sunlion, didn't mean to give you investing advice.

then again, one GREAT investment would be to buy ME the car.... nothing says ROI like a smile on my face :-)

pongobaz

Just curious why would using your line of credit be stupid? Assuming you had payed off your mortgage and you had this available line of credit at prime, wouldn't it make more sense to use that than borrowing at higher car loan rates? I think PCNA finances at 6.9% vs prime at 5.25% (in Canada anyway). The reason I ask is because I'm weighing all options: finance, cash or lease.
The money I lost in the markets between 2000-2002 could have easily financed a couple of nice p-cars! In 20/20 hindsight, I guess that would make a Porsche a better investment; certainly more fun while it's rapidly depreciating than watching your stocks tank.

Just my 2cents...meanwhile the hunt continues for my perfect p-car.

fast lane

Everybody has a different financial situation. They also have different priorities, I don't think anyone could give good advice on how an individual should purchase a car after only reading a post that they make. It's usually a more complex situation that only the individual is fully aware of. I think it's ignorant to say that using a home eqity line of credit to buy a car is stupid. And no I did not use a line of credit to buy my car.