Older Porsche price freefall myth
Discussion
Quote from another thread:
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"Sorry to pour cold water on a hot idea - and I know it seems like a good idea to buy an older Porsche, drive it around for a year and sell it for the same price - giving a years free enjoyment - but it rarely works out like that and if you keep a Porsche for only a year - it can often be very expensive indeed. Because older Porsche's do not get scrapped as often as most other makes there are more and more of them each year and presently there seem to be too many for the sub £20K (and particularly the sub £12k) market and hence prices are in free fall."
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Sorry, but this is rubbish. Relative to other cars the price of older Porsches - especially 993s - is rock solid.
I sold my 1995 993 to a dealer in 2001. He paid me £27.5k and sold it for £30.5k. Five years on both prices would have dropped by about £5k - a loss of £1k per year.
Since selling the 993 and buying a new M3 I have become resigned to losing £5k per year (and even that's good compared to many sports cars).
Yes, you'll lose a packet on a newish Porsche, but an older one? No!
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"Sorry to pour cold water on a hot idea - and I know it seems like a good idea to buy an older Porsche, drive it around for a year and sell it for the same price - giving a years free enjoyment - but it rarely works out like that and if you keep a Porsche for only a year - it can often be very expensive indeed. Because older Porsche's do not get scrapped as often as most other makes there are more and more of them each year and presently there seem to be too many for the sub £20K (and particularly the sub £12k) market and hence prices are in free fall."
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Sorry, but this is rubbish. Relative to other cars the price of older Porsches - especially 993s - is rock solid.
I sold my 1995 993 to a dealer in 2001. He paid me £27.5k and sold it for £30.5k. Five years on both prices would have dropped by about £5k - a loss of £1k per year.
Since selling the 993 and buying a new M3 I have become resigned to losing £5k per year (and even that's good compared to many sports cars).
Yes, you'll lose a packet on a newish Porsche, but an older one? No!
But what about the costs of running it, i believe that as depreciation falls the cost of running cars goes up, and there isnt that much difference. A friend bought an old porsche and seemed to be spending 5k a year when it was repaired and serviced - he sold it for what he bought it for, but he had been 'paying' to keep the cars value.
you are always going to lose money on cars, porsche or otherwise, it is just a case of picking the ones that are going south slower. I paid £27 for a 996 4 months ago & i thought they wouldn't fall much further, then some pipes up this morning with one for £18, admitidly it has 105000 miles but I bet that 1 car has put at least a £1k dent in all old 996 residuals.
Deutscher said:
Yes, you'll lose a packet on a newish Porsche, but an older one? No!
you will lose a packet, except the packet will be smaller.
c'mon folks, were not fools here, lets not all start sweating everytime someone points out a cheap car or that theyve noticed a 'trend': we bought our cars as cars not as investments (with the exception of Riccardo) so accept that itll cost money, and go get your moneys worth from it.
Those of you that get flustered by this constant scare-mongering over value are missing the point.
nervous said:
Deutscher said:
Yes, you'll lose a packet on a newish Porsche, but an older one? No!
you will lose a packet, except the packet will be smaller.
c'mon folks, were not fools here, lets not all start sweating everytime someone points out a cheap car or that theyve noticed a 'trend': we bought our cars as cars not as investments (with the exception of Riccardo) so accept that itll cost money, and go get your moneys worth from it.
Those of you that get flustered by this constant scare-mongering over value are missing the point.
a sports car is not a savings plan! Porsches cost, but boy do they give it back in spades.
An article in the recent German motor publication Auto Motor & Sport praised the Porsche 996 to be the least depreciting car (in Germany) over a 3 year period. Cannot remember the figure but it was something in the region of 40% over 3 years which was considerable better than industry average.
clorenzen said:
An article in the recent German motor publication Auto Motor & Sport praised the Porsche 996 to be the least depreciting car (in Germany) over a 3 year period. Cannot remember the figure but it was something in the region of 40% over 3 years which was considerable better than industry average.
seriously, we shouldnt care about this.
how about along with rms gags we enforce a voluntary ban on any discussions of trade in value? most especially those ones that enquire about resale value before the car has been bought. please.
Laingy said:
But what about the costs of running it, i believe that as depreciation falls the cost of running cars goes up, and there isnt that much difference. A friend bought an old porsche and seemed to be spending 5k a year when it was repaired and serviced - he sold it for what he bought it for, but he had been 'paying' to keep the cars value.
Running costs is a separate argument altogether - I'm trying to debunk the price freefall myth. If my old 993 had dropped by as much as my M3 over the same period I'd now be able to buy a 1995 993 for £7.5k!!!
Hmmm, I got the distinct impression that Baz of Hartch was talking about 944's, 924's and 968's. Which I think are a bit of a different kettle of fish to 911's (of all types.)
(Although I have to say, I have a 944, which seems rock-solid, has cost me nothing more than petrol and insurance in the 3 months I have owned it and is not looking like it will throw up any major nasties in the near future ... fingers VERY crossed.)
Oli.
(Although I have to say, I have a 944, which seems rock-solid, has cost me nothing more than petrol and insurance in the 3 months I have owned it and is not looking like it will throw up any major nasties in the near future ... fingers VERY crossed.)
Oli.
nervous said:
how about along with rms gags we enforce a voluntary ban on any discussions of trade in value?
Good thinking, then we'll just be left with the nob gags.
I find them more tiresome than the RMS stuff. Why are people so concerned about the value of a car they don't own / aren't about to buy / aren't about to sell.
If my car is coming down in value, so is it's replacement.
magic torch said:
Why are people so concerned about the value of a car they don't own / aren't about to buy / aren't about to sell.
If my car is coming down in value, so is it's replacement.
If my car is coming down in value, so is it's replacement.
look! everyone! over here! theres that common sense thing ive been telling you about! here! here!
I am trying to sell my 968CS and if it does sell it wont be for much less than I paid for it 2 years ago.
However, that doesnt take into account the head repair, the new brakes and plate lift repair, new clutch, new cams, servicing etc etc etc. I have probably spent nearer to 5K in those 2yrs so unless you buy a car and only have to spend minimum amount of money you may get most of your money back and be very very lucky.
I think the number of Porsches for sale (esp the older ones) reflect a general slump in the market all round.
However, that doesnt take into account the head repair, the new brakes and plate lift repair, new clutch, new cams, servicing etc etc etc. I have probably spent nearer to 5K in those 2yrs so unless you buy a car and only have to spend minimum amount of money you may get most of your money back and be very very lucky.
I think the number of Porsches for sale (esp the older ones) reflect a general slump in the market all round.
paul968 said:
To be precise, he was talking about 944/68 cabs in particular, because they compete in the same market as similarly priced but newer Boxsters.
This was the focus of his post, but if you read it you will see he was also referring to older Porsches in general. (I would like to point out I'm not attacking everything he said - there were some good points there.) Edited by paul968 on Thursday 6th July 11:02
But going back to older 993s...
A car that drops from £27.5k to £22.5K in five years has sensationally strong residuals. Another quality (but mass-market) car would be worth, what, £10k?
paul968 said:
I didn't read it that way - he doesn't say that all old Porsches will depreciate heavily (in fact, I'm surprised that he says that the 968 coupe will depreciate the least, when 944s appear to be much closer to the bottom of their depreciation curve than 968s).
He said: "Because older Porsche's do not get scrapped as often as most other makes there are more and more of them each year and presently there seem to be too many for the sub £20K (and particularly the sub £12k) market and hence prices are in free fall."
Articles like the glowing end of term reference to the 993C2 in Evo really help. Being only a couple of tenths slower than a Cayman S with massively larger tyres / wheels, very impressive.
They also list the depreciation as zero, the first time I've seen that. Whether or not they get that price doesn't matter, compared to a new car, will be minimal.
Having said that, 350Z residuals have been trully stunning. With hindsight, would have run one for a couple of years, losing perhaps only a couple of k.
They also list the depreciation as zero, the first time I've seen that. Whether or not they get that price doesn't matter, compared to a new car, will be minimal.
Having said that, 350Z residuals have been trully stunning. With hindsight, would have run one for a couple of years, losing perhaps only a couple of k.
Edited by abarber on Thursday 6th July 12:55
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