Will the 997's depreciate as badly as the 996?
#31
Race Car
Yes, I think they will and already have. There is nothing to indicate that the 997 will not depreciate in a similar manner as the 996.
A quick check on AutoTrader shows 100+ 2005 997 Coupes (excluding the GT3) listed from $34K to $69K, with the average being $49K. A similar search on AutoTrader shows 70+ 996 Coupes (excluding the GT3) ranging from $$27K to $69K with an average of $48K. I realize these are "asking" prices and this is not a statistically valid sampling, but it shows the relative "value" of the 996 and 997.
IMO, there is nothing uniquely "special" about the 997 that will keep it from depreciating like most "series" of 911s. Just one man's opinion.
A quick check on AutoTrader shows 100+ 2005 997 Coupes (excluding the GT3) listed from $34K to $69K, with the average being $49K. A similar search on AutoTrader shows 70+ 996 Coupes (excluding the GT3) ranging from $$27K to $69K with an average of $48K. I realize these are "asking" prices and this is not a statistically valid sampling, but it shows the relative "value" of the 996 and 997.
IMO, there is nothing uniquely "special" about the 997 that will keep it from depreciating like most "series" of 911s. Just one man's opinion.
#32
Rennlist Member
I have to think that the economic events of the last 18 months will continue to bear unfavorably on both new and used Porsche sales.
In a climate where 401 K 's have been turned into 201K's and where home prices are down almost everywhere, a prudent person has to pause and question why they would knowingly acquire yet another rapidly depreciating asset.
Granted, it's a whole lot more fun to lose money on a Porsche than it is to lose money on a stock.
In a climate where 401 K 's have been turned into 201K's and where home prices are down almost everywhere, a prudent person has to pause and question why they would knowingly acquire yet another rapidly depreciating asset.
Granted, it's a whole lot more fun to lose money on a Porsche than it is to lose money on a stock.
Actually in a way I got my car's depreciation for "free". Let me explain.
In 2006 I was going to either invest the $100k in stocks or buy this car. I did NOT have the foresight to see the market fall. With EITHER option I would have lost about 50% of the value of my asset. So in a way, my opportunity cost in buying the car relative to my other option with that money (investing in stocks) was zero, because either way it would have fallen in half. People who buy a new Porsche when the market goes up over a few years are the ones who are losing out - both the car's depreciation PLUS the loss of those earnings they would have received in the market. Their cost of ownership is substantially higher when you factor in the opportunity cost.
My situation from 1st year through 4th - Porsche $100k-->$50k vs. Stocks $100k-->$50k. (difference between $50k and $50k is 0)
Assuming stock market average annual return of around 9-10%:
Buyers in a bull market 1st through 4th - Porsche $100k-->$50k vs. Stocks $100k-->$140k (difference between $50k and $140k is $90k!!!)
#33
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No question the 997 is a nicer car. Typically each generation of a car is nicer than the previous. Yes, with some exceptions. I believe, proportionally speaking, the 997's will have almost the exact same depreciation curve as the 996's.
Hearing everybody talk about their 997's like they are so much different than 996's, in terms of depreciation, is funny. Reminds me of people that live in certain neighborhoods who claim houses in their prices never go down. Really, the rest of the city is down 50% and your neighborhood is so great it hasn't changed!?
When 997's are 10 years old you might not be able to pick one up for $20k, as you can a 996, but I am confident you will be able to pick one up for $23k or so. Proportional to initial purchase price that is very similar depreciation. Just my opinion.
Oh ya, and as for the V-dub involvement I always remember my friend in collge who drove a 924. This was back in the 80's. We loved, much to his chagrin, telling him he was driving a V-dub. He never laughed like we did! I think V-dub will broaden the brand but hopefully they will keep 911's at a high level.
Hearing everybody talk about their 997's like they are so much different than 996's, in terms of depreciation, is funny. Reminds me of people that live in certain neighborhoods who claim houses in their prices never go down. Really, the rest of the city is down 50% and your neighborhood is so great it hasn't changed!?
When 997's are 10 years old you might not be able to pick one up for $20k, as you can a 996, but I am confident you will be able to pick one up for $23k or so. Proportional to initial purchase price that is very similar depreciation. Just my opinion.
Oh ya, and as for the V-dub involvement I always remember my friend in collge who drove a 924. This was back in the 80's. We loved, much to his chagrin, telling him he was driving a V-dub. He never laughed like we did! I think V-dub will broaden the brand but hopefully they will keep 911's at a high level.
#34
#36
Still plays with cars.
Lifetime Rennlist
Member
I doubt that the Panamera will be worse than an S class or 7 Series BMW. It will depend on whether Porsche over-produces or not.
#37
Burning Brakes
#39
Nordschleife Master
Here is an interesting C&D article on the future direction of Porsche ...
http://www.caranddriver.com/news/car...rsche-car_news
http://www.caranddriver.com/news/car...rsche-car_news
Volkswagen Begins to Map the Future for the House of Porsche - Car News Porsche’s Panoply.
BY JUERGEN ZOELLTER, PHOTOGRAPHY BY MANUFACTURER, ILLUSTRATION BY RADOVAN VARICAK December 2009
Until he was beheaded (figuratively) in a recent battle with über-VW-mogul Ferdinand Piëch, Porsche chairman Wende*lin Wiedeking was close to occupying the big chairs at both Porsche and Volkswagen, where one of his first goals was to make VW take a considerable amount of cost out of its future product. But in the power struggle that ensued, it was Volkswagen that ended up owning Porsche, instead of vice versa, and Wiedeking was sent packing (with a colossal severance payoff). Now Piëch, the chairman of Volkswagen AG’s supervisory board, and VW chief executive officer Martin Winterkorn are calling the shots at Volkswagen and nine other brands under the VW umbrella, including Porsche. And what both leaders are looking for regarding Porsche’s future seems to be clear: Porsche has to sell more cars. A lot more cars.
Currently, Porsche is selling about 75,000 units per annum. Instead of the incremental addition of model variants as in previous years, the new VW bosses are demanding that several new Porsche models enter production in a short three-year span. Eventually, the new bosses are pushing for Porsche to sell 150,000 vehicles annually. Here is Winterkorn’s take on Porsche’s product line: The slow, evolutionary steps of the 911 have been too small. The Cayenne, even in its second generation (due later this year), is still too heavy, thirsty, and not innovative enough. The Boxster and the Cayman don’t sell in great enough numbers, and the new Panamera is too big and heavy. Above all, the Panamera’s chassis is used only for a single model today, which is not as profitable as it could be.
What to do?
Two words: platform sharing. Volkswagen has shown that its engineers and designers are capable of creating unique character out of careful modifications to a single platform. The Audi TT and the VW Golf come to mind. Their driving characteristics, packaging, design, equipment, and appeal are different enough that customers may not suspect that the two cars have a lot in common. The platform-sharing strategy has worked for the group’s volume brands: Audi, SEAT, Škoda, and Volkswagen. In the future, platform sharing will be applied among the group’s premium brands: Bentley, Bugatti, Lamborghini, and Porsche.
BABY BOXSTER: The first planned step is the creation of a roadster to slot in under the Boxster. Ex-boss Wiedeking believed that a Porsche smaller than the Boxster might dilute the brand, but Winterkorn wants a Porsche-badged, small mid-engined roadster based on the two-seat VW BlueSport concept car shown last January at the Detroit auto show. When badged as a Volkswagen, a SEAT, or a Škoda, the production version of the roadster would have 120- and 200-hp gas engines. As a Porsche, the little roadster would have a twin-turbo four-cylinder making about 300 horsepower. There are rumors coming from VW’s Wolfsburg headquarters that suggest this new powerplant could be a horizontally opposed four-cylinder. Detuned, the new flat-four could also be used in Volkswagen cars such as the New Beetle’s replacement.
CAYENNE: This SUV’s 2017 replacement won’t retain the current model’s off-road capability and top speed of more than 160 mph. Instead, it will lose weight (while remaining the same size as today’s Cayenne) and get more fuel-efficient engines.
911: Perhaps the most difficult question surrounds the future of the iconic Porsche two-door. Today, the 911 comes in 14 different flavors, but since the 911’s engine went water cooled in 1998, the changes between one generation and the next have been kept small to ensure the happiness of 911 loyalists. But Winterkorn’s intentions are now to change the 911 more extensively by implementing new technologies faster—just don’t expect the 911 exteri*or design to change dramatically. These new technologies will likely include the use of more lightweight components and more innovative engine and electronic technologies. For example, ultralight fiber-optic electrical architecture would shed pounds off the current car’s wiring harness, while a race-derived sequential gearbox would find its way into sporty versions (the 911 GT2 and GT3). Under VW’s guidance, the 911 could become a leader in innovative technology—and that’s what Porsche devotee Piëch wants to see.
BY JUERGEN ZOELLTER, PHOTOGRAPHY BY MANUFACTURER, ILLUSTRATION BY RADOVAN VARICAK December 2009
Until he was beheaded (figuratively) in a recent battle with über-VW-mogul Ferdinand Piëch, Porsche chairman Wende*lin Wiedeking was close to occupying the big chairs at both Porsche and Volkswagen, where one of his first goals was to make VW take a considerable amount of cost out of its future product. But in the power struggle that ensued, it was Volkswagen that ended up owning Porsche, instead of vice versa, and Wiedeking was sent packing (with a colossal severance payoff). Now Piëch, the chairman of Volkswagen AG’s supervisory board, and VW chief executive officer Martin Winterkorn are calling the shots at Volkswagen and nine other brands under the VW umbrella, including Porsche. And what both leaders are looking for regarding Porsche’s future seems to be clear: Porsche has to sell more cars. A lot more cars.
Currently, Porsche is selling about 75,000 units per annum. Instead of the incremental addition of model variants as in previous years, the new VW bosses are demanding that several new Porsche models enter production in a short three-year span. Eventually, the new bosses are pushing for Porsche to sell 150,000 vehicles annually. Here is Winterkorn’s take on Porsche’s product line: The slow, evolutionary steps of the 911 have been too small. The Cayenne, even in its second generation (due later this year), is still too heavy, thirsty, and not innovative enough. The Boxster and the Cayman don’t sell in great enough numbers, and the new Panamera is too big and heavy. Above all, the Panamera’s chassis is used only for a single model today, which is not as profitable as it could be.
What to do?
Two words: platform sharing. Volkswagen has shown that its engineers and designers are capable of creating unique character out of careful modifications to a single platform. The Audi TT and the VW Golf come to mind. Their driving characteristics, packaging, design, equipment, and appeal are different enough that customers may not suspect that the two cars have a lot in common. The platform-sharing strategy has worked for the group’s volume brands: Audi, SEAT, Škoda, and Volkswagen. In the future, platform sharing will be applied among the group’s premium brands: Bentley, Bugatti, Lamborghini, and Porsche.
BABY BOXSTER: The first planned step is the creation of a roadster to slot in under the Boxster. Ex-boss Wiedeking believed that a Porsche smaller than the Boxster might dilute the brand, but Winterkorn wants a Porsche-badged, small mid-engined roadster based on the two-seat VW BlueSport concept car shown last January at the Detroit auto show. When badged as a Volkswagen, a SEAT, or a Škoda, the production version of the roadster would have 120- and 200-hp gas engines. As a Porsche, the little roadster would have a twin-turbo four-cylinder making about 300 horsepower. There are rumors coming from VW’s Wolfsburg headquarters that suggest this new powerplant could be a horizontally opposed four-cylinder. Detuned, the new flat-four could also be used in Volkswagen cars such as the New Beetle’s replacement.
CAYENNE: This SUV’s 2017 replacement won’t retain the current model’s off-road capability and top speed of more than 160 mph. Instead, it will lose weight (while remaining the same size as today’s Cayenne) and get more fuel-efficient engines.
911: Perhaps the most difficult question surrounds the future of the iconic Porsche two-door. Today, the 911 comes in 14 different flavors, but since the 911’s engine went water cooled in 1998, the changes between one generation and the next have been kept small to ensure the happiness of 911 loyalists. But Winterkorn’s intentions are now to change the 911 more extensively by implementing new technologies faster—just don’t expect the 911 exteri*or design to change dramatically. These new technologies will likely include the use of more lightweight components and more innovative engine and electronic technologies. For example, ultralight fiber-optic electrical architecture would shed pounds off the current car’s wiring harness, while a race-derived sequential gearbox would find its way into sporty versions (the 911 GT2 and GT3). Under VW’s guidance, the 911 could become a leader in innovative technology—and that’s what Porsche devotee Piëch wants to see.
#40
Race Director
I say the 997 will stand the test of time better than a 996. Out of a lot of 911 models the 996 is one that not many in the Porsche world hold in high reguards from what I have witnessed.
#42
Rennlist Member
Wow...that 2013 two door Panamera looks great! Talk about competition to the F599.
#43
Nordschleife Master
#44
Instructor
#45
[QUOTE=MLindgren;7175998]Given the lack of serious quality issues emerging unlike those on the 996 (RMS)
You're kidding right? The 997's Gen1 suffered from IMS and RMS problems! I wouldn't touch one out of warranty! It gradually improved from 2006 onward, but the trouble still lurks!
The Gen2 997 will hold its value much better because of the engine redesign which is FAR better than the Gen1 version!
You're kidding right? The 997's Gen1 suffered from IMS and RMS problems! I wouldn't touch one out of warranty! It gradually improved from 2006 onward, but the trouble still lurks!
The Gen2 997 will hold its value much better because of the engine redesign which is FAR better than the Gen1 version!