Think twice before buying a new Porsche
01-05-2011, 02:23 AM
#34
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I have been buying new Porsche's for decades, just because I am financially comfortably to do so. Lots of joy and no regret.
I also happened to buy some used Porsche in the past, and ironically some of them were the most expensive to own due to their unexpected non-warranty repairs.
Regards,
I also happened to buy some used Porsche in the past, and ironically some of them were the most expensive to own due to their unexpected non-warranty repairs.
Regards,
01-05-2011, 03:09 AM
#35
GT3 player par excellence
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01-05-2011, 03:43 AM
#36
Was sitting down doing some financial planning and decided to work out the cost of owning the GT3. I was glad I was sitting down! I'll save you the morbid details, but the depreciation alone works out to $1,375/month... and that's over 40 months.
I had owned three pre-owned Porsches before this one, so I don't know what possessed me to buy new. I got caught up in the "order the options *I* want" mentality. Oddly, most GT3's are ordered pretty similar in spec so I could have easily found the right spec had I waited.
If I could go back in time, I would have waited a year and bought a pre-owned one. I would have missed out on 12 months of track fun, but at least the financial hit would not have been so bad.
If you're in the market for a new one now, think about buying pre-owned and save yourself the tears.
I had owned three pre-owned Porsches before this one, so I don't know what possessed me to buy new. I got caught up in the "order the options *I* want" mentality. Oddly, most GT3's are ordered pretty similar in spec so I could have easily found the right spec had I waited.
If I could go back in time, I would have waited a year and bought a pre-owned one. I would have missed out on 12 months of track fun, but at least the financial hit would not have been so bad.
If you're in the market for a new one now, think about buying pre-owned and save yourself the tears.
If you want a really expensive car to drive, get a Range Rover -- they make the various Porsches look like Toyotas.
I agree the buyer should always "think twice" and there's a couple of easy ways: look at the lease residuals; look at the market value of the one year-old, two-, three-, four- and five-year-old examples of the same base car.
Buyers that get into trouble think their "special" situation won't conform to past resale prices because "it's a 997, not the 996" or "it's a GT3, not a Carrera" or whatever, only find, yup, they're losing the same $2K per month and they're down 30% in two years or 50% in three to five years.
What's the solution? The price of the car should be less than 2% (conservative) to 5% (normal) of the net worth of the buyer -- governments, banks and lenders should not lend money to a consumer to buy a car that's more than 5% of the documented net worth of the buyer.
We have been subject to brainwashing that makes it seem "reasonable" to spend beyond our means. Surely the last decade should have taught consumers that it's all a scam. Sadly, I think the same observation could have been made any time since the "roaring" 20's when banks and governments invented the debt mechanisms to prevent people from living their lives.
01-05-2011, 04:43 AM
#37
Rennlist Member
What's the solution? The price of the car should be less than 2% (conservative) to 5% (normal) of the net worth of the buyer -- governments, banks and lenders should not lend money to a consumer to buy a car that's more than 5% of the documented net worth of the buyer.
01-05-2011, 04:58 AM
#38
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By that token I have lightyears to go before I can afford my dream garage...
01-05-2011, 10:33 AM
#39
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unfortunately current way of life got everything totally upside down and people buy stuff they physically cannot afford.
when new wardrobe on wheels costs $30K-$50K and requires 5 year loan for folks who earn $70K annually top - it is a total financial insanity. people just used not to think about this anymore for some reason. whole industry now is designed to suck out each and every penny out of your pocket making sure you spend your entire paycheck, contrary to the normal way when people have savings, then choose what part of previously accumulated wealth to spend on what priorities.
I still think soon we will see 10 year car loan programs, so you would be forced to pay for a freaking car long after it rusts into dust.
as of my opinion, 3 year old after lease vehicle is a best buy financially, but with GT3 kind of cars it is a trick to find a non-abused one to make sure if engine got close to 0 track hours so you would have it all for yourself.
01-05-2011, 10:54 AM
#40
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That seems about right. I think his conservative figures are too conservative. Normal seems right. There are other factors that are obviously important. Net worth is only your balance sheet. You have to consider your income and expenses. If you have a net worth of $2M and no income, maybe you shouldnt buy $100K car.
01-05-2011, 12:39 PM
#42
Rennlist Member
Ive been talking to a couple of dealers about a new RS ... one on the west coast and the other back East ...
they both offered me between 90-100k for the 2010 GT3 I bought last April MSRP 147k with 14xx miles ...
thats right, a 30% depreciation in 8 months and 1.4k miles ...
(in defense of the easterly dealer, he is really trying hard with the numbers)
needless to say the Scotsman in me is rebelling!
YMMV
they both offered me between 90-100k for the 2010 GT3 I bought last April MSRP 147k with 14xx miles ...
thats right, a 30% depreciation in 8 months and 1.4k miles ...
(in defense of the easterly dealer, he is really trying hard with the numbers)
needless to say the Scotsman in me is rebelling!
YMMV
01-05-2011, 12:49 PM
#43
Rennlist Member
Since when was buying a new Porsche a sound financial decision...or did someone happen to just wake up to reality....there is no logic to buying expensive toys but the same can be said for rare mechanical Swiss watches and luxury leather goods or jwelery....however if anyone is following these companies ( COH, LVMH, TIF) they are doing really good....so back to OP if you really want to be astute with your cash Buy a 2 year old Subaru.
I have been buying new Porsches for years with no regrets...you simply can not put a price on the joy of owing a new one....
If you can, you should.
I have been buying new Porsches for years with no regrets...you simply can not put a price on the joy of owing a new one....
If you can, you should.
01-05-2011, 01:33 PM
#44
Those numbers make sense, give or take -- about $1500 to $2K per month per $100K to own/drive a new 911 purchased any year in the last 10-15 years. It's getting cheaper. I've only two 911's for basically zero dollars (each owned and tracked for more than a year, including the cost of tax, fuel, insurance and consumables) and the rest of them have been less expensive than the cheapest cost of owning a USA-built SUV for the same dollars/time/miles.
If you want a really expensive car to drive, get a Range Rover -- they make the various Porsches look like Toyotas.
I agree the buyer should always "think twice" and there's a couple of easy ways: look at the lease residuals; look at the market value of the one year-old, two-, three-, four- and five-year-old examples of the same base car.
Buyers that get into trouble think their "special" situation won't conform to past resale prices because "it's a 997, not the 996" or "it's a GT3, not a Carrera" or whatever, only find, yup, they're losing the same $2K per month and they're down 30% in two years or 50% in three to five years.
What's the solution? The price of the car should be less than 2% (conservative) to 5% (normal) of the net worth of the buyer -- governments, banks and lenders should not lend money to a consumer to buy a car that's more than 5% of the documented net worth of the buyer.
We have been subject to brainwashing that makes it seem "reasonable" to spend beyond our means. Surely the last decade should have taught consumers that it's all a scam. Sadly, I think the same observation could have been made any time since the "roaring" 20's when banks and governments invented the debt mechanisms to prevent people from living their lives.
If you want a really expensive car to drive, get a Range Rover -- they make the various Porsches look like Toyotas.
I agree the buyer should always "think twice" and there's a couple of easy ways: look at the lease residuals; look at the market value of the one year-old, two-, three-, four- and five-year-old examples of the same base car.
Buyers that get into trouble think their "special" situation won't conform to past resale prices because "it's a 997, not the 996" or "it's a GT3, not a Carrera" or whatever, only find, yup, they're losing the same $2K per month and they're down 30% in two years or 50% in three to five years.
What's the solution? The price of the car should be less than 2% (conservative) to 5% (normal) of the net worth of the buyer -- governments, banks and lenders should not lend money to a consumer to buy a car that's more than 5% of the documented net worth of the buyer.
We have been subject to brainwashing that makes it seem "reasonable" to spend beyond our means. Surely the last decade should have taught consumers that it's all a scam. Sadly, I think the same observation could have been made any time since the "roaring" 20's when banks and governments invented the debt mechanisms to prevent people from living their lives.
I'd go as far as saying that some have loans on these cars in the form of second mortgages etc..... NOW THAT'S CRAZY.
01-05-2011, 01:49 PM
#45
My grand mother said "spend some and keep some" she had it about right.