Drifiting a little off topic, if we go into a recession caused by the popping of the housing bubble, what can we expect in the way of impact on used Porsche values? I was dreaming of getting a used single-engine plane back in 99-2000, and recall that prices went flat as the tech bubble burst. I may be sitting in the echo chamber, but eveything I read makes it look like a major housing bust is on the way.
I'm hankering to swap my 993 for a GT3.

Any ideas of how the prices of our cars will hold up if times turn hard?

-John

 

good investors will find ways to make good moves with their money in a down market also- even if you stick with housing...

1. stop flipping and become a landlord- rental housing is very stable compared to the alternative. someone else pays the bills, builds your equity- even if the house stays the same price , you make more out of it later because someone else build equity for years
2. if home prices drop, buy- because it's buy low sell high!
3. homes are not the only investments!
4. if porsche prices drop- buy low and mod high!
5. wait it out with cash in hand- you never know what opportunities are coming.
6. if you are super worried about how much your 100k gt3 is going to be worth- you might not be able to really afford it just yet


i'm already looking for my third rental property. i partnered up with one person on the other two, rented to a close friend, and place my order for my black gt3 later this week.

 

gee! you ought to do an infomercial.

 

don't want to let all the secrets out! i didn't even mention tax liens, foreclosures, etc. haha


seriously though it's sad. I'm trying to buy a 993 TT and a 997 GT3 in the next 6 months without selling my 993S, and my major league baseball salary just isn't gonna cut it til i reach free agency. If I didn't really do this on the side i'd be riding a bike!

 

At the end of the day we could speculate,theorize and ponder what the economy will do,however it's up to YOU and your finances and how bad you want the car that will determine your course of action. Having said that, I'm 100% you will always ALWAYS find a buyer for your car if you needed to sell it. People are still getting more wealthy as we speak, and their bank accounts don't know the difference between a housing bust or not.

 

The answer is nobody knows. if they did, they certainly wouldn't be sharing it here.

993 already had a sizeable depreciation so your car value is probably much less vunerable to market swings. A new GT3 along with any new mass produced car will have an immediate depreciation. If you wait a few years, you probably could get a used GT3 with low miles for a very reasonable price. If the economy tanks, the rich will not be affected however the current GT3 won't be what they want at that time. They will want the latest and greatest. Who knows what that will be but I guarantee you it won't be a 3 year old GT3.

If you are also concerned about the resale value on your next car, don't play that game. you will lose. unless its a rare classic that never gets driven, cars are not investments. they are toys. buy what you can afford and enjoy it. expect to lose money selling it and you wont' be disapointed. The cars I buy are for me and not the next owner that gets it.

 

Well if the world is coming to an end, as some are theorizing, then you better tell them... Take a gander at what the market has done the last couple weeks/months. I would like to think that most people buying a Porsche at the level you describe, are beyond levering their house (major asset) to buy their car, and that they have other investments. Sure there are some that might do this, but not many. Anyway, people like that cannot afford to lose the image, so they will give up other things before they give up the items visible to the world. So, don't expect washer/dryer sales to pick up, or furniture.

 

CJ Ichiban, what specs did you order for your GT3?

 

pretty light spec actually: not my 'official' layout since i'm kinda low on the list, but here goes

black paint, black alcantara and leather, black wheels, black center console, pcm, some carbon bits, no wart on the dash, red dials, red belts, steel brakes. might go with ceramics when it gets closer. any advice on that one is appreciated.

 

Well......I went thru a serious recession when I was employed as the sales manager at a Porsche dealer in 1992/93/94/95........

New car sales were flat for that entire time, and we had 1 and 2 year old "new" cars in stock........the cars dropped in value by 50% in about 18 months (versus 50% in a 36-48 month time frame today).........hope that helps.

Thing is.......there is more real wealth around now than there was back then........which may have an affect on things this time around.

 

I hope it provides bargins and I can buy a couple more. I for one will not participate in a recession

 

One thing I have noted in recessionary times is that the value of "toys", like collectable cars, usually sinks early on in the recession and surfaces last on recovery from the recession.

 

C.J. that is one cool avitar! Very nice photo skills

 

thanks dell, not as much street cred as yours though. Probably better to have two hands on the wheel than two hands on the digicam!

 

well, at least you weren't speeding at 750 rpm!
besides, that's dell's wife in the helmet.
he has both hands on the camera!