Kuhan

Since I'm a numbers guy AND I've never bought a second hand car before, I'm probably thinking too hard about maximising my value for money when I get my first Porsche.

I did a quick dump of prices for a base model 911 (no options) and how the second hand value stacks up and ended up with this:



Now I'm looking at a 997.1 for around $50k. What is worrying me is the drop in price from the 997.1 to 996.2 - for a $40k car, the drop against the curve is about 10% - i.e. a 996.2 is selling for less than it should so because people would rather have the new model. I'm wondering if the same scenario play out when the 998 is released...

So my options:

1, wait for the 998 to be released and impact the prices of 997s so I get a 997 cheaper (slower depreciating).
2, don't worry about it, the price drop was purely due to the fried egg headlights.
3, just buy it anyway, the time I'll spend enjoying the car while I could have been waiting for the 998 release is well worth 10%.

What say you?

yemenmocha

There's an anomaly to take into account which is the brief oversupply of 997's when the economy collapsed yet Porsche did not cut production in anticipation of this. Then people got crazy deals for $20k off new models and such. Quite a few of us think this was a once in a lifetime opportunity for buying new. I think it was MY 2007 or 2008 cars.

I don't have a crystal ball so I don't know where we're going from here, but the recent/current trend is that prices are stabilizing a bit instead of the free-fall, so your savings by waiting may not be so dramatic.

If it was me I would conduct a slow, patient search and get exactly what I want.

Nugget

I think the 996 takes a unique hit to resale because the cosmetics are so polarizing. I don't think you can infer that the 997 will see as dramatic a drop when the 991 hits the street.

What's the value of having a Porsche for the next year? It far overshadows any marginal gains you might realize from timing your purchase, in my opinion.

Put me down for an equal mix of 2 and 3 I guess.

Alfaguy2

I bought a used 2005 997.1 C2S with all the options ticked in September 2009 for €57,000 (I am in Ireland).

For me buying a 996 was considered but when I looked at the used prices at the time for 997's then there was simply no question of me buying a 996.

I was one of the No 2 option - never liked the general design or interiors of the 996's but then loved the 997's.

LlBr

This sounds oxymoronic.

Change the word "Porsche" to "Ford Focus" and it makes sense.

Besides, you should "pay to play" and suffer like the rest of us!

Also, I'd like to protect our hard-won "rich-bastard" moniker. God forbid Porsche owners get the reputation for being value-conscious!



(nah, just messin' with you. )

kdurg

Clearly, you fall into the camp of " more sense than dollars " and this is a good thing even if you've got bank.

All too often more and more Porsche buyers are in the " more dollars than sense" category and I find it irritating they even bother getting into these cars.

Either way, I like your thought process and strategy.......opt for #3 on your list and don't look back.

cvazquez

Your over analyzing, take your time and look for a great example with all records and first ownership. Once you pin-point her start your negotiation process. Some here do not plan on selling their 997's in the future, unless something drastic happens. So start looking now that they are available or else you will find fewer numbers to choose from...IMO

cvazquez

P.S. Do I plan on selling my 997, HELL NO!

Edgy01

If you think too much about the economics of Porsche ownership you inevitably arrive at the decision that it is not fiduciarily sound to buy a Porsche for any amount of money if you think of it as merely transportation. Common sense dictates that current models will drop in perceived value when newer models hit the streets. A common problem with potential Porsche buyers is this issue. If you dwell upon it long enough you will never get to enjoy Porsche ownership. You must simply allow your heart to rule here. Buy any of these models and simply GET OVER IT. You are not calculating the lost opportunity costs of continuing to drive something other than a Porsche because you're worried about the time-value of money.

rijowysock

i think its a great time to buy any 997.

when i bought my 997.1 i saw some as low as 35-40k which you just cannot beat, especially considering 996's still sell in 30's as well.

i got 29% off my 997.2 because the promo's and i regularly see similarly built 07/08's for more expensive than my car... i know the promo's arent going now but im sure you can find someone that got the promo's and use that as nego tactic..

buy!... be another year for the 998... thats just too long to wait!

dD/dt

If you want to buy something that's relatively flat in value, get a 993. Anything newer will lose money.

Consider this. Say you defer the purchase for three years to wait for the value curve to flatten, and keep the car for five years. If you bought that car now vs three years from now, the depreciation on the current buy would probably be within $4k of what you'd lose deferring the purchase. Plus putting off the purchase would put you in an older car with older technology. There's a reason the value curve flattens out.

You've clearly put a lot of thought into this. I did too. At some point, buying one of these cars requires the admission that it's going to cost money, and you can only mitigate the loss so much. All cars lose money.

Mspeedster

IMHO - The best time (hence value) to buy a Porsche new or used was last year. With the economy down and supply relatively high, there were super good deals to be found. Prices seemed to have firmed up this year, but still good deals can be found.

If you're looking for a 997.1, I see no reason to wait. The prices will come down, but then the car will be older. I can't see the depreciation curve changing that much. If you've never bought used before, you'll probably want to buy as close to new as possible.

ADias

A sports car buy is an emotional decision not a financial one as Edgy01 said. I add that when the 997 came out it repositioned the 911 on its path and corrected many things fans objected on the 996, thus the accelerated depreciation of the 996 from that point on. When the 991 comes out I do not think that will happen. If anything the 991 will be less of a 911 than the 997 is (my opinion, previously stated on this forum). I think that the 997 is a high water mark in the 911 development.

surfer

#3 all the way. Even when you commit to buying one, you may spend months (I spent 6) searching to get your dream car with your desired color, options, milieage, etc. Every day you wait is one less day you could have been out driving and enjoying your P-car. 3 years into ownership and I still glance over my shoulder when I'm walking away from my C2S after parking her.

997_rich

Whoa my financy friend, where is your cost of ownership curve? I've laid one in with a red line. It makes a jump (only if you buy from a dealer, but that affects the average) because you'll still probably get a warranty on even an '05 from the dealer.

I can tell you're going to be really annoyed if you have to lay down cash to fix something on this car. What if the engine blows up? Why not go with something with a bit of a warranty from a dealer to mitigate your risk a bit if you're all about the dollars and cents? If you're going to look at this like a business decision we've got to consider risk.

My recommendation is to buy something THAT YOU LOVE that's over two years old and less than 6 years old. Just make sure you love it. The love will help you rationalize any issues you have to deal with so you can be at financial peace with yourself. I would guess that as the economy turns up slightly the general prices will increase so it might be prudent to buy sooner rather than later (but don't buy anything that doesn't make sense.

Good luck.