Overanalyzing finances. What are your thoughts?
#48
Rennlist Member
My front Brake Job today for rotors, pads, and sensors = $895.
#49
I've wanted a 911 since I was 16 and didn't get one until I was 36. I was making over 100k a year in my late 20's directly benefitting from the loose credit markets and housing boom of 2002-2007. I could have easily bought a 911 then making a $500-$600 payment. I'm so glad I didn't when the bubble burst and I was out of a job at the end of 2008. Instead of that 911, I had savings that got me through to the next job and picked up a condo at the bottom of the market. I'm easily $200k better off in net worth today by waiting to buy toys and focusing on saving in my 20's and early 30's.
By the time I finally got my 911 I paid cash and was maxing my 401k and IRA. If you're not it that position then don't do it. Perhaps you can buy the car but you can't afford it.
By the time I finally got my 911 I paid cash and was maxing my 401k and IRA. If you're not it that position then don't do it. Perhaps you can buy the car but you can't afford it.
#50
I don't think age is a main factor. Don't let the way many stereotype young people with nice cars get to you. You're 29, I'm younger than you. However, with a $64k annual salary, I would NOT consider a 911 (especially a 997), doesn't matter what year model. a 05 priced around $35k can easily cost the same to own after the immediate/ongoing stuff you need to maintain and fix as a 07 priced around $45k-50k. You seem to have thought through all the expenses, budgeting, etc, and that's good. But there will be things that always fall through the cracks and reality doesn't always turn out as well. I can say from own experience. For example you're missing out on a lot of stuff to consider in your calculation, car insurance, goods you want to buy, other hobby expenses if any, holiday shopping, vacations, trips, etc.
My recommendation is to reach a minimum of $100k salary before you start looking for a 911. I think you're already doing awesome with your current BMW. When I was making in the $60s my car was an old E43 BMW 3 series that I paid $11k. Even so I regret buying the car and should have put that amount into investments or savings as well. And, no matter what, buy a house FIRST before you buy the car. Put at least 20% down. PMI is just money out the window. And the house should be in a decent neighborhood since you'll be parking a Porsche in the future. Just things to consider.
And you mentioned future wife...have you allocate savings for a ring yet ? If you feel like she's the one, that should be your #1 priority. Hot cars alone can only get you into relationships that often doesn't last more than you care to remember.
Ultimately these are just suggestions. If you really want one go for it, and enjoy the moment.
My recommendation is to reach a minimum of $100k salary before you start looking for a 911. I think you're already doing awesome with your current BMW. When I was making in the $60s my car was an old E43 BMW 3 series that I paid $11k. Even so I regret buying the car and should have put that amount into investments or savings as well. And, no matter what, buy a house FIRST before you buy the car. Put at least 20% down. PMI is just money out the window. And the house should be in a decent neighborhood since you'll be parking a Porsche in the future. Just things to consider.
And you mentioned future wife...have you allocate savings for a ring yet ? If you feel like she's the one, that should be your #1 priority. Hot cars alone can only get you into relationships that often doesn't last more than you care to remember.
Ultimately these are just suggestions. If you really want one go for it, and enjoy the moment.
Last edited by php; 02-28-2014 at 12:16 PM.
#51
Lots of ultra-conservative financiers here! While I think you can certainly afford it, I'm not sure it's a great idea. I'm in a similar boat to you financially and here's my (intended) path:
1) Paying for a DD that should be reliable for at least the next 10+ years. Car will be paid for in two years time. (Lexus IS250)
2) Pay off revolving debt
3) Continue to match max 401k from work (6% match).
4) Continue to save for rainy day and homeownership
5) Get re-married and buy a house (currently dating a wonderful young lady)
6) Continue to save for rainy day and 911
7) Purchase 911
Now, I don't have a hard and fast time for any of this besides paying off my car. There are just a number of things more important to me than a 911 right now. I collected a bit of debt going through a divorce and selling my last house. Nothing terrible, just will take time to get it cleared up. I need to make sure I continue to max my 401k match and start saving money for a ring and a house. Already have enough on hand for the former but not the latter.
In my opinion, it's not a great idea to DD a car that has a $30k engine and $10k transmission - if that thing breaks, it may cost more than I have available to fix it at the moment. So, to me, it's a perfect secondary car - if I get a 2005 and it get socked with an IMS failure that grenades the engine, I can continue driving my DD and save money to get it fixed or make the judgement call if it makes more sense to sell it as a roller. Or swap a LS1.
I also think financing the 911 is okay. Money is so cheap right now and safer investments aren't posting high returns, so if that's a method you're comfortable with, I don't see a problem with it.
To summarize, I don't think you'd have an issue buying one or finding financing to get one, but I think it's risky to have a car that's extremely expensive to repair as your daily driver without a fallback, even if you are religious about saving lots of money...an engine or transmission replacement could clean you out quickly even if you have a nice amount set aside.
1) Paying for a DD that should be reliable for at least the next 10+ years. Car will be paid for in two years time. (Lexus IS250)
2) Pay off revolving debt
3) Continue to match max 401k from work (6% match).
4) Continue to save for rainy day and homeownership
5) Get re-married and buy a house (currently dating a wonderful young lady)
6) Continue to save for rainy day and 911
7) Purchase 911
Now, I don't have a hard and fast time for any of this besides paying off my car. There are just a number of things more important to me than a 911 right now. I collected a bit of debt going through a divorce and selling my last house. Nothing terrible, just will take time to get it cleared up. I need to make sure I continue to max my 401k match and start saving money for a ring and a house. Already have enough on hand for the former but not the latter.
In my opinion, it's not a great idea to DD a car that has a $30k engine and $10k transmission - if that thing breaks, it may cost more than I have available to fix it at the moment. So, to me, it's a perfect secondary car - if I get a 2005 and it get socked with an IMS failure that grenades the engine, I can continue driving my DD and save money to get it fixed or make the judgement call if it makes more sense to sell it as a roller. Or swap a LS1.
I also think financing the 911 is okay. Money is so cheap right now and safer investments aren't posting high returns, so if that's a method you're comfortable with, I don't see a problem with it.
To summarize, I don't think you'd have an issue buying one or finding financing to get one, but I think it's risky to have a car that's extremely expensive to repair as your daily driver without a fallback, even if you are religious about saving lots of money...an engine or transmission replacement could clean you out quickly even if you have a nice amount set aside.
#52
Rennlist Member
Among Porsche owners, a net worth in excess of $1M is far more common than you might think. Having said that, it may not be absolutely necessary to be a millionaire to own a Porsche, but it makes the cost of ownership a lot easier. You never want to stretch yourself financially to own any "toy" like this.
#53
Ok here is my 2 cents:
Dont get married! Unless shes richer than you.
I would not buy the 911 until you have a slush fund in case of emergencies of a year of expenses.
I like others here say max out the 401k and IRA contributions for the year.
And did I say dont get married? lol
Dont get married! Unless shes richer than you.
I would not buy the 911 until you have a slush fund in case of emergencies of a year of expenses.
I like others here say max out the 401k and IRA contributions for the year.
And did I say dont get married? lol
#54
Nordschleife Master
these are the smartest words from a young guy i've heard in a long long time.
dasams, your logic makes sense to me in many ways, by no means do i think it's easy or common.... but it's not impossible.
'afford' is a very abused term in today's high consumption society.
My recommendation is to reach a minimum of $100k salary before you start looking for a 911. I think you're already doing awesome with your current BMW. When I was making in the $60s my car was an old E43 BMW 3 series that I paid $11k. Even so I regret buying the car and should have put that amount into investments or savings as well. And, no matter what, buy a house FIRST before you buy the car. Put at least 20% down. PMI is just money out the window. And the house should be in a decent neighborhood since you'll be parking a Porsche in the future. Just things to consider.
'afford' is a very abused term in today's high consumption society.
#55
Drifting
Porsches have been the cheapest cars I've ever owned. But I buy old cars. Find a good deal on an aircooled, sell in a few years for a profit or for the same amount.
#56
I see a lot of criticism in this thread but no constructive criticism. For example, Dasams - what should he look at buying for a car? What should his pricing budget be? Now that you know his finances and believe he needs a 1M net to own a 35k car, I'd like to know what he CAN afford in your opinion....
I worked hard and set aside money for years, specifically to buy a 997. It serves as a means of transportation, hobby, piece of artwork, project, speed demon and therapist all in one. I have a great friend who is a Porsche Master Tech and I buy all of my parts from Suncoast and have him do the installations.
This has been easily the cheapest car to own and maintain that I've ever had. We aren't talking about 1997 Ferrari's here...
I worked hard and set aside money for years, specifically to buy a 997. It serves as a means of transportation, hobby, piece of artwork, project, speed demon and therapist all in one. I have a great friend who is a Porsche Master Tech and I buy all of my parts from Suncoast and have him do the installations.
This has been easily the cheapest car to own and maintain that I've ever had. We aren't talking about 1997 Ferrari's here...
#57
I bet most people do not put a lot of thought in to buying a $30-34k car, they walk into the Toyota/Nissan/Ford/GM dealer and walk out with a new car without batting an eyelid. You are already putting in a lot more thought than most, so you most probably already know if this is the right purchase for you or not.
At the end of the day, it's just a car, albeit it can come with somewhat higher running costs than many, but it's not like you are buying a 918 or something, a $30k+ car is not an excessive purchase nor an unwise one for just about anyone who can consider an average sedan or pickup truck.
At the end of the day, it's just a car, albeit it can come with somewhat higher running costs than many, but it's not like you are buying a 918 or something, a $30k+ car is not an excessive purchase nor an unwise one for just about anyone who can consider an average sedan or pickup truck.
#58
I bet most people do not put a lot of thought in to buying a $30-34k car, they walk into the Toyota/Nissan/Ford/GM dealer and walk out with a new car without batting an eyelid. You are already putting in a lot more thought than most, so you most probably already know if this is the right purchase for you or not.
At the end of the day, it's just a car, albeit it can come with somewhat higher running costs than many, but it's not like you are buying a 918 or something, a $30k+ car is not an excessive purchase nor an unwise one for just about anyone who can consider an average sedan or pickup truck.
At the end of the day, it's just a car, albeit it can come with somewhat higher running costs than many, but it's not like you are buying a 918 or something, a $30k+ car is not an excessive purchase nor an unwise one for just about anyone who can consider an average sedan or pickup truck.
#59
I don't think anybody is trying to be negative here, it's just most would agree $64k is tough to afford and upkeep a Porsche 911 based on our own experiences.
#60
I don't disagree, but apart from catastrophic engine or gear box failure most things are still affordable. Yes, the running costs can be high, although not necessarily so, but a $30k+ car, whether used or new, is hardly an expensive vehicle. Your average Susie Soccermom drives around in a $50k SUV and no one ever bats an eyelid about it.