997 purchase - what's the best option?
Discussion
I'm considering getting a 997 in the next few months.
Having bought my last two cars (nearly new 996 and new Boxster) "cash" from OPCs, and lost rather a lot come sell on time after 3 years (30K on the 996!
), I was wondering what advise anyone had on alternative methods of getting my grubby hands on the ultimate sportscar!
If I go down the cash route again, I'd probably look at a "pre-owned" car, but would it be worth considering Lease/Lease Purchase/Hire purchase on a new one? Do the OPCs themselves offer any deals worth considering?
Any sharing of experiences very welcome ...
Chris
Having bought my last two cars (nearly new 996 and new Boxster) "cash" from OPCs, and lost rather a lot come sell on time after 3 years (30K on the 996!
), I was wondering what advise anyone had on alternative methods of getting my grubby hands on the ultimate sportscar! If I go down the cash route again, I'd probably look at a "pre-owned" car, but would it be worth considering Lease/Lease Purchase/Hire purchase on a new one? Do the OPCs themselves offer any deals worth considering?
Any sharing of experiences very welcome ...
Chris
Mine was C2S £72462 purchased new 1/6/05. Sold to Porsche Reading (direct) on 21/9/05 with 2292 miles for £66250. I was lucky to get that. Strongly advise against a new one, too many about. Mine was the 12th he'd bought in 2 weeks and was not interested in purchasing any more for time being. Great car, just didn't do it for me.
Rob
By the way, the finance deals I was offered from various sources were pretty awful once you worked them through, cash is best if you can and don't need the money for other financial loans/mortgages or commitments where interest is involved.
>> Edited by Robbo66 on Wednesday 16th November 17:28
>> Edited by Robbo66 on Wednesday 16th November 17:29
Rob
By the way, the finance deals I was offered from various sources were pretty awful once you worked them through, cash is best if you can and don't need the money for other financial loans/mortgages or commitments where interest is involved.
>> Edited by Robbo66 on Wednesday 16th November 17:28
>> Edited by Robbo66 on Wednesday 16th November 17:29
Depreciation won't magically dissappear by a different purchase method (ie lease vs cash).
Clearly, financing will cost you interest and costs. BUT, this may be less than the opportunity cost for you - if you have £70k cash to spend on new cars, you are probably more than capable of realising more than 6.5% pa yield with it, so it may make sense for you to finance a car at 6.5% and stick your cash somewhere that will make you more than 6.5%.
Either way, the Porsche is going to lose value - but that is just one of the costs of enjoying a great car.
Clearly, financing will cost you interest and costs. BUT, this may be less than the opportunity cost for you - if you have £70k cash to spend on new cars, you are probably more than capable of realising more than 6.5% pa yield with it, so it may make sense for you to finance a car at 6.5% and stick your cash somewhere that will make you more than 6.5%.
Either way, the Porsche is going to lose value - but that is just one of the costs of enjoying a great car.
simonharrod911 said:
Mine was £72k
I put 10 grand down, maximum balloon then £928.28 a month over four years.
The plan was to hand it back after 24 months and start again, however values have fallen so much recently I'm not sure it'll work out.
Oh my god. That is a bit of an eye opener. If the punter kept the car for 4 years, he would have paid over £54,577. Crikey. Would the guaranteed future value get some of that money back for him after 4 years?
In your case, Simon, after 2 years you will have paid £32,278. That's a hell of a lot of money.
Surely you fellas must be tempted to get into depreciation-proof cars? I don't expect my 993 RS to lose any cash. I knock about on a day to day basis in a 5 year old Mondeo that cost me £1,200, so the car is practically disposable and depreciation isn't really an issue at that price.
Just my thoughts.
Quote- '£70k cash to spend on new cars, you are probably more than capable of realising more than 6.5% pa yield with it, so it may make sense for you to finance a car at 6.5% and stick your cash somewhere that will make you more than 6.5%'.
Kinda tough to secure over 6.5% guaranteed risk free yield at the moment John
Kinda tough to secure over 6.5% guaranteed risk free yield at the moment John
johnny senna said:
Mine was £72k
I put 10 grand down, maximum balloon then £928.28 a month over four years.
The plan was to hand it back after 24 months and start again, however values have fallen so much recently I'm not sure it'll work out.
Oh my god. That is a bit of an eye opener. If the punter kept the car for 4 years, he would have paid over £54,577. Crikey. Would the guaranteed future value get some of that money back for him after 4 years?
In your case, Simon, after 2 years you will have paid £32,278. That's a hell of a lot of money.
Surely you fellas must be tempted to get into depreciation-proof cars? I don't expect my 993 RS to lose any cash. I knock about on a day to day basis in a 5 year old Mondeo that cost me £1,200, so the car is practically disposable and depreciation isn't really an issue at that price.
Just my thoughts.
Johny
I'm with you on this concept - but for some, its easier to come up with £800+ per month and get a new motor every 3 yrs, than find £40k-£50k for a depreciation proof, used 911. Most finance companies won't look at a car over 3 yrs old in my limited experience.
I'm waiting (still) for my cottages to be built so I can justify spending £50k on my 'depreciation proof' GT3.....
[quote=johnny senna
I knock about on a day to day basis in a 5 year old Mondeo that cost me £1,200, so the car is practically disposable and depreciation isn't really an issue at that price.
Just my thoughts.[/quote]
Sorry johnny i would rather lose 20k than drive around in a 5 year old mondeo,love you RS tho.
I knock about on a day to day basis in a 5 year old Mondeo that cost me £1,200, so the car is practically disposable and depreciation isn't really an issue at that price.
Just my thoughts.
[/quote] Sorry johnny i would rather lose 20k than drive around in a 5 year old mondeo,love you RS tho.
every day car. every day fun. = 
= fact of life clubsport said:
Johnny, depreciation is one aspect of things, but many owners will use their 997 as a daily car. It is all very well to have a 40-50k car sitting in the drive while you run around in a much cheaper car...but is certainly an acquired taste for many.
Very true. I drive 1500 miles a month in a Golf GTi whilst my 993RS sits in the garage. I am very tempted by a 997C2S as I'd rather do 1500 miles a month in it than in a Golf. But I don't think it would be as much fun as the RS at Spa/Ring/Silverstone/Brands/Bedford/Coombe etc next year. Plus the Golf (petrol turbo) is actually quite a good fun drive.
johnny senna said:
Mine was £72k
I put 10 grand down, maximum balloon then £928.28 a month over four years.
The plan was to hand it back after 24 months and start again, however values have fallen so much recently I'm not sure it'll work out.
Oh my god. That is a bit of an eye opener. If the punter kept the car for 4 years, he would have paid over £54,577. Crikey. Would the guaranteed future value get some of that money back for him after 4 years?
In your case, Simon, after 2 years you will have paid £32,278. That's a hell of a lot of money.
Surely you fellas must be tempted to get into depreciation-proof cars? I don't expect my 993 RS to lose any cash. I knock about on a day to day basis in a 5 year old Mondeo that cost me £1,200, so the car is practically disposable and depreciation isn't really an issue at that price.
Just my thoughts.
That would be the common sense thing, and I'm sort of in that position with my 965. I've done that in the past and probably will in the future, I just saw the 997 design shots and had to have one. It's my first new Porsche, not sure I'll do it again, but it was a decision of the heart rather than the head. I don't think of it as 'ownership', just a really good everyday tool that I'm renting.
I should have said, driving a 1200 quid Mondeo really sucks. I used to drive a Boxster S every day and it was sublime.
I think a sensible approach for me now is to look at replacing the Mondeo with a sub-20 grand Boxster S which will obviously depreciate slowly as it's nearer the bottom of the depreciation curve. Or if I do OK, perhaps a 997 when they hit 40 grand, again, lower down the depreciation curve than they are now and financially better sense.
>> Edited by johnny senna on Friday 18th November 08:59
I think a sensible approach for me now is to look at replacing the Mondeo with a sub-20 grand Boxster S which will obviously depreciate slowly as it's nearer the bottom of the depreciation curve. Or if I do OK, perhaps a 997 when they hit 40 grand, again, lower down the depreciation curve than they are now and financially better sense.
>> Edited by johnny senna on Friday 18th November 08:59
But surely depreciated and annual costs tend to add to the same, when a car is older it depreciates less but the costs of repairs etc are small. When it is newer it costs little to maintain but the depreciation is severe. Hence why older ferraris hardly depreciate because they cost about 7k to keep on the road.
Laingy said:
But surely depreciated and annual costs tend to add to the same, when a car is older it depreciates less but the costs of repairs etc are small. When it is newer it costs little to maintain but the depreciation is severe. Hence why older ferraris hardly depreciate because they cost about 7k to keep on the road.
I depends on the car doesn't it? Like I said, my 993 RS doesn't depreciate, but there's no way it costs a grand a month to keep it on the road, and that's what new 997s/Boxsters lose a month on depreciation. So no, it isn't the same.
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