Rick in Colorado

Warning: this may be controversial to some.

As I read threads I tend to glean (unsolicited) information on people's financial status: talk of 2nd mortgages, car loans, ratty looking house in the background of pictures.

My take is that a Porsche is a want not a need and it takes a backseat to food, shelter, clothing as well as other fiscal security items such as college and retirement funding. Basically, I think that if you can't write a check for your car without the slightest amount of pain, you can't afford it. Having said that, it seems like some are “stretching” to obtain their dream.

Am I just overly conservative, or do others see this the same way?

abe

Very interesting observation. Without stepping on anyone or offending anyone....I think this is a reflection of today's society where many owe alot and own very little. It is what I have....not who I am. As for myself, very very very old school.... pushing 50, house will be payed off in 2 years, same wife for 22 years (divorces are costly) all my cars are payed in cash ( I buy cars every 10 years and start saving for the next one as soon as I buy). If I financed....I could be in a his and hers 599 Ferrari! No I did not get a big inheritance nor was a silver spoon handed to me....just my own philosophy (unless there is a major tax benefit and I can earn more than paying things off). If I can't afford...I wont buy. Just take a look at what is happening with realstate and subprime loans. In CA there are people who also own million++++homes who risk loosing it because of economic reasons. Meantime, they refinanced several times, bought their goodies (boats, cars, airplane, 'other honies')....but nothing to show for now.
Then there are those who love to tell you how much they have...remember the "what is the most expensive watch you have" thread in another site? God bless them if they earned honestly without hurting anyone....they deserve what they have.

abe

nyca

You mean a car like this should only be purchased by someone who can afford to pay all cash? That's a bit much I think. In the US, debt is the new wealth.

jollyjolly

I would say yes.... The $ on a luxury item that depreciates like a current model production car, should be a fraction of your net worth.

Whether you do or not depends on liquidity, other investment ROI...

911Dave

Naw. If ya got a Porsh, you don't need nuttin' else.

'cept food.

Rick in Colorado

Actually, my point is that if one's liquidity threshold is so low that $100K causes a pressure point, they're overextended in buying a Porsche.

Again, people have different financial comfort levels.

rfedele

My parents always taught me, "If you can't afford to buy something (i.e. cash) you shouldn't buy it."

That said, I don't think that premise should apply to home ownership, but it should apply to all else.

Soulteacher

How funny, every semester I use my Porsche as one of the examples when teaching Maslow's Hierarchy, simply because it satisfies needs at all five levels:

Physiological Needs: It provides transportation from A to B.
Safety Needs: It is one of the safest cars.
Social Needs: Works well with chicks.
Esteem Needs: Is clearly a sign of status, leads to recognition and respect.
Self-Actualization Needs: The achievement of a life-long dream of mine.

Of course the Porsche is a want, just like any other brand. But if you have needs at all five levels, no other car (or product, for that matter) satisfies those needs at the same time.

As you said, there may also be negative need satisfaction, for example the financial risk involved. Here's a related discussion that is going to give you an idea of what to expect in this thread:
How much income do you need to buy a 997?

And some empirical follow-ups:
How much income do you need to buy a 997, Part II (survey)
How did you acquire your Porsche?
Cash, payments, or lease?
Do you own your car?

There was another cool thread that touched a little bit on these issues:
Target customer for the 997

Definitely a good question and you'll get plenty of opinions!

nyca

Forget sports cars for a moment, the typical suburban middle class transportation vehicle is an SUV or minivan costing near $40K. And that family typically has a second car also. The duration on typical auto loans are getting longer and longer.

abe

Then again, you can buy your porsche outright and live in it.....then you can say you own your house and car outright without any debt!! AND NO CALIFORNIA PROPERTY TAX EITHER!!
abe

Circe

How big/small a fraction?

Edgy01

Or you can merely shift out other expenses like eating. Those Ramen Noodles are only 25¢ a meal...

Stephenkng

Ramen Noodles??? The good one cost over a dollar now. Things are not cheap any more.

PAULSPEED

Hi,
When I bought my first house I was eating Top Ramon
for $.25. I guess this shows my age.
Paul

p-cardriver

As to Maslow, I can't eat the Porsche or shower in it, and I don't want to "evacuate" in it, but otherwise it does a pretty good job of meeting the needs at every level, as commented in a post above.

p-cardriver