Alan Smithee

Just curious how you concluded this "new paradigm" differs from those that ended in 2001 and 2008?

Guest89

Is there an echo in here?

Guest89

This time is different.

BBMGT3

i like bubbles

the soapy kind as well as the financial sort

VegasSpeedy

well, good question.

What is different now vs then:

What is different in the US economy, the global demand for luxury items, the omnipresent threat of rising rates and inflation (what impact does inflation have on 'assets'), how are the US and global demographics different, how are the sociographics different now vs then, are cars being purchased now using borrowed money or no borrowed money? etc.

Tacet-Conundrum

Wow, can just wonder what the rate of return, internal and otherwise, would be for someone who overpays for a GT3 at the Stealership after the bubble pops using borrowed money at current rates? Will figure that one out after the floor has fell out, everyone is perfectly happy with their swapped and newer 3's and idiots are paying $50K premiums on the new RSs VW will tell Porsche to over-produce like they did the last one.

Remember, no sunroof, no wart!

VegasSpeedy

Having spent some time researching this topic...an interesting question remains unanswered.

What caused the housing bubble to pop?

There is no real reason why it popped other than homeowners stopped believing..and then stopped making their payments. If you have no equity because you bought with no money down and you no longer believe your home will appreciate.. history has shown us that its easy for someone to simply walk away.

Are 'collector cars' being financed or bought with cash?

Cash.

Folks think about things differently when its their money vs borrowed.

ranger22

Funny thing, as I was looking for my GT3, I came across several cars that surprisingly had a loan/lien reported on them. I guess it's a different world when borrowing is cheap.

maomao911

last two GT3s I bought all had loans on them...

F1CrazyDriver

+1 .... money is free when i was looking for a car ... 1.7% interest ? ugh.... i can get a much higher return with MY cash. So i got a loan... cheap money for those whom have credit.

Nis1973

Well, I'm one of those who actually paid a steamy price for a 2011 gt3 rs. I did pay 169k for a 2011gt3 rs. It has 4,200 miles, virtually no over-revs, ceramic brakes and front axle lifter (like having ceramic brakes and absolutely need the lifter). It came with a new set of tires (original still in decent shape), spare front lip and a few other things so the real price of the car itself was a bit below 169k. I knew I was overpaying a bit but i was ok with it because:

1. It was the car I wanted both in terms of options and color. I was willing to pay a bit of a premium to get what i wanted. Red wheels and decals aren't my thing and that limited my options a lot. Blacklabel here on RL had (and may still have) a white/black 2010 that I thought was great and well priced but it didn't have the carbon seats and that was a deal breaker for me. Awesome car otherwise!

2. I had the benefit or drawback of not knowing where RS's traded last year. Rather than thinking of how much higher they are than last year I was thinking of how much a RS is worth to me today. I felt that at 4,200 miles I was basically getting a new car and was paying what I'd pay for a comparable new Porsche. To me it was the way to go because I just do not like new Porsches. It's purely subjective but to me they look too big and bloated, more of a GT rather than a sports car. I also find the interior is too fancy and flashy. And yes, I do want a manual, not for investment but personal reasons. I've just never owned a non-manual car. So i figured I paid a new car price and if worse comes to worse it will experience the depreciation of a new car. Since manual transmission cars are going to be harder to get in the future I don't plan to sell so it doesn't matter all that much anyways.

Now, I do think there are a lots of signs of a bubble in the car world. The gt3rs might be a part of it but if it is I think it's far from being the worst offender. It may take a hit but there is something to be said about not letting life pass by while timing the market. I guess I just really wanted one...

Fisher

Nis,
It's refreshing to learn about how you "sliced through all the BS." Good for you! You now have a true gem.

Drive it in good health.

VegasSpeedy

Dude, congrats. I am sincerely happy for you. My previous cars:
1) 2011 Lambo 570-4 SL
2) 2009 Scuderia
3) 2007 Lambo Gallardo Spyder
4) 2010 California
5) 2009 Porsche 997.2 S Cab
and a few more.....NONE were as incredible (to me) as our 997.2RS. In all areas that matter the RS is a more compelling car. Now, add to this the dramatic and painful depreciation from those cars...egad.

Your financial downside risk (if you care) is minimal. The market has spoken and these are now considered collectibles. You probably have what I like to call a 'guilt free' car. Would cost you a dime to own, insure and fix assuming you aren't a dirt track racer.

I am guilty as anyone thinking too much about values. I am getting bored of my own thinking! Simple fact is we are all stupid lucky and blessed to be alive doing well enough to own a GT3/ RS.

Opo

Well said

dasams

Stop believing in what? Hello. People were given loans who didn't make their first payment. lol