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+1 DO NOT TRUST THE DEALER...get an inspection in writing
I have owned (2) 996's(2001 cab & 2003 c4s) Now I have 2006 C4s...no comparison. GET the 997....Have the dealer run a DME printout for you(to see if the car has any overrev issues) and insist on CPO...if everything looks great...GO get it...you will love the car...small word of advice...make sure rotors, pads, tires, and scheduled maintenance are current...the dealers are known for stating the pads or rotors have 50% life remaining(usually do not) to avoid replacing these parts as part of the CPO process
For sure the 997S. I just received a PM from a member here with a very clean, low miles example he is going to sell. PM me if you want his contact info.
I would say it depends on pricing. I had a 40th Ann and loved it. Had sport exhaust, short shifter, air intake, lower spring and wheel spacers. This car is fun to drive, very responsive. Of course the 997 is better, it would be dumb if it wasn't. 997 definitively easier to drive and better appointed inside BUT if you can get a 40th Ann way cheap than it might be worth considering, it's still plenty of a car to have fun with.
If money is not a concerned then of course get the 997.