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Value threads are the best. Price delta on 997's are about +/- 15%. The same guys who worry about that go out and buy a daily driver Escalade or Benz and lose 50-60% in a couple years.
Can't put a price on driving a GT3. It's worth every penny.
I can't believe the prices all over, cars I looked at a year ago are selling for +20k, watches are up, construction costs are through the roof. With all the money printing and now focus on crypto, I think its beginning of hyper inflation. And now more acceleration of the disparity between wealth and poor as brought on faster via the pandemic. Those who continued to work and not go out/vacations, etc, have much more disposable income and it's showing in luxury goods. Those who lost, lost big.
But re: watches I bought my grail watch a few years ago. I got tired of having a couple watches and wanted something I could wear everyday and still go out. A 40mm DDII will continue to appreciate. Not that I care, but rolexes not in production will always do well. I dont get the whole new Daytona market.
That would be worth it, of course. But, today it's not $1-2k more; it's $15-30k more. That's a different decision for a lot of folks.
Totally understandable - what I mentioned above was my situation in 2019 when I was buying. I had to pay $2-3k more for my car than I budgeted, which yes, was a lot of money to me. As a hard working normal guy that just happens to have a strong passion for Porsche it was not an easy decision. I financed mine too. Truthfully, if I had to pay $115k right now for the same car, I wouldn’t be able to justify that. I’d probably go for a 981 GT4/Spyder or a 987 Cayman R/Spyder or just go for an E46 M3 or E39 M5 or a CLK63 Black.
Hopefully my post did not make it sound like $15k is not a big deal, let along $2-3k.
I’m out of the value thread now. These never end well. Lol.
You're right, they don't have a happy ending. Both camps end up getting upset for various reasons. The 991 section is a mess of these sorts of things.
I just have to be patient (not easy for me) and trust the right car will eventually come around.
I think core inflation will stay modest - higher than before. But not insane like you see in other countries. The fed have said so - more or less quietly raised their inflation target from +/- 2% to +/- 3%...
With that said the way the Fed measures inflation is crap - a lot of day to day staple prices won't go up that much because it can't. I've long had the believe that a lot of non-discretionary prices were held back frankly because for the most part there isn't any slack in the demand side. Wage have basically been stagnant (or in inflation adjusted terms - decreased) over the last 2 generations. Not much room to increase prices when most people are already living paycheck to paycheck and spending every penny on necessity.
However, when you get into discretionary spending / luxury goods (and assets), I think you'll continue to see raising prices. As others here have said - all that printed money has to go somewhere - If it can't touch the "real" economy so to speak then it'll flow into investment assets and other non-discretionary goods.
I think all of us are seeing some of this - your stock market portfolio is up, valuation / PE ratio are sky high and people are still willing to pour money into stocks like there's no tomorrow. Real Estate are doing great in certain areas (even though rent is down). I don't follow prices on watches but it sounds like they're going up too. I'd bet boat / yachts are doing the same thing...
Some of that gain is now being used to push up the cars we want to buy... a $150k .2RS a year ago is now $220k, etc.
TL DR - yes I think higher prices on GT cars are here to stay - at the same time, that also means current GT4/Spyder really looks like a comparable bargain. I don't think they'll make enough of them to make a dent on their collectability / desirability down the road...
04-05-2021, 06:34 PM
