You're conflating investments and expenses. When I buy a share of stock, I expect a good return, not a good time. When I buy a new Porsche, I expect a good time, not a good return.

 

Very good points. In the grand scheme of things, if you can do it, go for it ! Life is too short.

 

Exactly !

 

I have had 18 911s since 1982 -sometimes 3 of them at a time- now without- was tempted to buy a C2S cab this summer- 10% off deal- could not bring myself to write the check plus $7K sales tax- have had enough big depreciating assets over time- capital is going to be harder to make and keep in this country going forward with the direction this country is heading.

 

For me the Porsche's are my Toys/Hobby (along with involvement in PCA). Toys and Hobbies cost money (cheaper than boats though - been there). If I can't afford them I wouldn't get them. No kids so no paying for them and future education. I tend to keep the Porsche's for a long time and there is no plan to make any changes in/with them in next 4-5 years. Change my DD regularly (every 2-3 years normally) as I can write off those costs for tax purposes.

 

There is no question that these cars are not a good investment but you can minimize the loss by minimizing your initial cost. Adding a whole lot of options will make you happy but will add little to the resale value of the car. Someone was recently selling a 991 4S that he had configured to around $145K including thousands for deviating stitching throughout the full leather interior but opted not to include a sunroof. That car would wind up with more than a 25% hit because of how difficult it would be to find someone who wants all those options and no sunroof. I guess you could certainly save a whole lot of money and still have a fun car buying a VW GTI but then again you've earned your money and if you want to spend it on a 911 then go for it.

 

For many people, stocks cost more than a Porsche.

ChuckJ

 

A 25% hit sounds sounds like a good deal.
If one buys with a 9% discount, that ends up being just a 16% hit.
The biggest factor in depreciation is what you buy in for.

Am I mistaken, or did Porsche raise the base price of an S by $5K for 2014?
If so, that discount is even more necrssary.

 

I have terrible ADD when it comes to cars…I know it, I embrace it, and I consider it the least offensive of any of the possible vices I could have(at least that is what I try to tell my wife)! I take the philosophy that i will always have a car payment…i had an AMG for 4yrs, an S5 for 6months, X5 for a year etc…and now I've had my 991 16mos and love every minute driving it but find myself ogling over the turbo S. I know I am pathologic, but after a long stressful day at work, driving that 911 is what puts the first smile on my face leaving work. Cost of the car? 130k. Value of the smile? priceless. I think life is too short and unpredictable not to embrace these small pleasures regardless of the cost and depreciation hit.

 

Try -35% haircut from MSRP is more real world.

 

I've got the same attitude with respect to the way the car makes me feel. Is it the wisest "investment?" Maybe not. But it sure makes me look forward to jumping behind the wheel every night on the way home from work. In fact, the car's so great I don't even mind sitting in the occasional traffic on the way into Manhattan either ;-)

 

I think we can all agree that as an "investment" a new car is one of the worst things to buy. As a depreciating asset it is one of the worst. However, with that said you'll spend a decent amount of time behind the wheel of something so you may as well get something that will keep you smiling (within your financial limitations). I have bought outright and sold several cars these past 2 years (not a smart decision) but will be financing my 14 C4S for 2 reasons. 1. To not pay the large sum all up once and 2. In hopes that it will prevent me from getting antsy and trying to sell it to "upgrade" (having the pink slip so readily available is too much temptation). I agree that the purchase of something 150K+ should only be down with the mind-set that it will be for the long term. This will be my first 6 digit car purchase and I do hope to keep it through 100k miles (hopefully close to 8 years of ownership) and beyond, maybe even until the wheels fall off (dare I aim for the million mile club hah)? Sports cars (and cars in general) will only continue to become faster/more fuel efficient and full of more tech toys. There will always be the next generation and the next "great" thing (Not always better IMHO. I prefer the hydrolic steering to the new electric). But in the future if everyone goes all electric I will be very happy knowing I made this purchase and got to enjoy a car like the C4S sometime in my life. A lot of people (myself included) buy a car and are so festidious about keeping it "clean" and "mint" (never seen rain, snow etc.) that they miss out on what it means to truly own the car and all that it has to offer. At that point you're really saving it for the next owner especially if you keep it for only a couple of years. All cars these days were meant to be driven and should be able to handle the elements. I will be driving this car rain or shine (maybe even in some Tahoe snow?) and with a smile on my face. Over time that to me is far more valuable than the amount of depreciation the car will take.

 

I think if you are worried about depreciation, you shouldn't be making this purchase. That said, the other car I was considering was a Jaguar F-Type and the reason I didn't buy it was that I thought the depreciation on that car would be immediate (given the #s of them on the lot) and difficulty in selling it if I didn't like it. I spent way more on the 911 cause I felt it would hold it's value much better than the Jag would and I would have no trouble selling it if I ever wanted to.

 

I agree that you shouldn't make the purchase if you are concerned about the depreciation. I think that is a point the OP was making. He is now tired of the depreciation hits. I think it is a lot easier to accept the depreciation hit on one of your first high dollar cars. Not saying that your 911 is your first. However, after you have been raped by the dealer on depreciation hits on high end cars 15 or more times, depreciation becomes more of a concern, and you start to question it more. I know that is the way it works for me.

If I didn't have a very nice 911, or had never had one, or not many, the depreciation factor would not bother me as much. But, I have been down that road many times, and I am getting a little weary.

 

“Never ask a barber if you need a haircut.”
― Warren Buffett