Alan Smithee

The residual value is based on many factors; standard depreciation is only part of it, so comparing residual values in current dollars of two models won't settle any debates of 996 vs 997 resale values.

2ndof2

Well I guess that settles it. Comparing the two is pointless then.

What IS true IMO is that vesus the 996 the 997 looks better to me and many porsche enthusiasts agree. Not only that, it is a newer car. Therefore I would expect less depreciation for the 997 but I have no idea if with higher interest rates, income levels, etc. if those factors mean the 997 will depreciate more quickly or slowly than a 996.

Somebody close this thread and revive my babes and 993's thread...its morphed into babes and porsches but its all good!

Have a great weekend everybody....I'm out

SciFrog

Anyone who thinks 977 will hold their value better than 996 is a fool. Just wait for the 997 facelift, the then the 998, or the PDK... History will repeat itself. Nowadays people just don't want used cars and there are too many advances coming too fast.

oalvarez

holding everything constant, they'll lose less money relative to their msrp over the same time period as the 996.

why? they look and drive better.

RoninM5

Finally. Short and sweet.

rcg412

Exactly.

AVoyvoda

I think you are all missing one key point: How many alternatives are there?

Some years ago, if you wanted a reliable sports-car, the only viable options were the 911 and the NSX. As a result, 911s held their values very well. Today, with so many manufacturers targeting the Porsche "niche" the potential 911 buyer has a huge number of alternatives: Some new, such as the Cayman, Z09, M type BMWs, Astons, Audis etc. And many more second hand: 996, 997, second-hand Astons, Mercs, some Audis, V8 Ferraris, etc etc

With so much choice out there, new and second-hand, it's absolutely certain that all mass-production 911s used values will keep declining. Fast.

The potential buyer will simply ask himself: What's better? A second hand 997 or a brand new Z06 at the same price, with financing and warranties thrown in? Multiply that by the number of available choices and you will reach the same conclusion.

Add to that a slow-down in the US economy (housing crisis etc) and the expense of Porsche spare parts due to a declining $-eu and the outlook isn't pretty.

Mike Murphy

If you're going to spend $80k on a new car, and you're worried about depreciation, then you shouldn't be buying one, because you can't afford it.

lwilkins

Okay, I have to chime in on the supposed "substitutes" for a Porsche.

I simultaneously had an 2001 M3 and a 1999 996, and the 996 was far the superior car in feel and everything else, except rear passenger room and trunk room.

Sold both and drove a 1992 911 Turbo, which would do things neither of those would do. But it had poor A/C which finally, in July in Dallas last year led me to seek a new car.

I was interested in the Z06, and think they look great. Trouble was I could not find any owner willing to let me drive one before buying it. (I once owned a C5 Corvette for 3 days, which was fine on the day I bought it but which I began to discover things I didn't like almost right away, so I wouldn't buy even a Z06 without driving it first.)

I did speak with an owner who had a Z06 for sale with 2k miles, but he had a buyer already. He was selling it becuase he had bought a 997.

I was intent on buying a Cayman S, but when I went to the dealership they had a used 2005 911, and a 2006 Corvette in the lot. So I drove all 3 in series on the same lap. The Corvette power (not a Z06) is very strong, and acceleration is immediate. But in terms of handling around turns, I frankly was disappointed compared to both of the Porsches. Same for interior fitment. The Corvette had some plastic pieces that were hanging loose due to the heat having melted the glue, I suppose.

Although I went to the dealership to buy a Cayman S, I liked the power of the 911 more, so that's what I got. I'm still thrilled with it, and surprised at its acceleration after giving up my beloved 92 turbo.

Just my opinion, but there it is.

BrokenE

I think it's easy to get caught up in "997 is more desirable than the 996 so it should depreciate less" argument ....right now, in 2007. And maybe that desirability will carry through some of the 998's life cycle, but eventually, the 997's curve will look fairly similar to the 996's.

In absolute terms will the depriation curves 996 vs 997 be the same...no.

Will they be significantly different...no.

AVoyvoda

Iwilkins, I agree with you that 911s are great cars. Fun to drive and - mostly - reliable. I own two.

However, when faced with a choice:
a) A used 997 that just came off a 3 year lease, owned by a 27 year old, who's probably thrashed it to an inch of it's life showing-off to the "babes" and hasn't even checked the oil level, or
b) A brand new car of another make at a similar price, with full warranties, financing, built to spec as-you-want-it etc,

most people would opt for the brand new car.

Also, with engine power increasing exponentially over the last few years, the un-weary will think: "Why a 997 with just 325 hp, when I can have a brand new M3 or RS4 at 400 a Z06 with 500 etc etc" Lets not discuss weight, driving qualities etc etc It stands to reason however, that for the second-hand buyer, there is no compelling reason to pay-up for a used 996 or 997 nowadays.

To reinforce the above, I recently bought a rare low mileage 911 (1994) off a US "collector" that had 8 other 911s in his garage. On examination, we found the oil hadn't been changed once (since new !!!) had the consistency of treakle, aircon fluid in the brakes etc. A death trap.

Frankly, not sure I'd buy a used 996 or 997 at any price.

Targa Tim

You have a lot of good and valid points. But you forgot the one most important thing. The Porsche 911 has a long history, it is the icon of sport cars, and it is the dream car of many growing men. If the price of 996 or 997 falls into the same price range of a new Audi A4 or BMW 3 series, I'll be surprise if some young men will not consider driving a 911 instead.

And go back to the original thread, I believe that the depreciation of 997 will follow the exact curve of the 996.

Edgy01

Perhaps in 10-15 years we'll see what the Porsche enthusiasts think!

OCBen

You're wasting your breath.

It's already been stated and noted.