987S Residuals

[jw2015]

ORIGINAL: boxster27
So it looses most value in the first year of its life. The 67% residual number previously publised for Boxsters is after 3 years I believe.

I recently saw a report that put the Boxster as the least depreciating car you can get, so at least we have that consolation, but after 3 years I'm pretty sure an average boxster is still only worth 59% of it's original value. The biggest chunk of this 41% loss is going to be in the first year. My 1yr old 986 cost me 35K and originally listed at about 40K. If you didn't stop to think about it you'd have thought the residual looks really good, but I'm sure the previous owner probably only got 31or 32K for it, despite it being pristine with very low mileage. I'd be lucky to get 25K for it now (2.5 yrs old, still pristine with very low mileage), which is one of the many reasons why I'll be keeping it but I bought it originally with this intention anyway.

In fairness I'm not sure you can blame Porsche or the OPCs for 'poor' residuals, I think it's more to do with the fact that we now consume cars like everything else and it's simple economics. How many of you bought with the 'a boxster is for life' attitude? I'm inclined to think that most people can't help themselves but trade up after 2 to 3 years, especially when a new or tweaked model appears. The end result is lots of 2nd hand cars and lower residuals. There are a lot of 986s at my OPC, I haven't checked out the prices but they won't be too unreasonable as the OPC won't want them sitting on the forecourt in 6 weeks time. As much as I'd like to think dealers are greedy, they have a lot of costs, and margins are reasonably tight in the 2nd hand market these days. After all they have to make a healthy profit, not just break even. It's just a fact of life.

The only time you don't lose much on a car is when it is a complete revelation, like the Boxster was in 98, and a long waiting list naturally occurs, and you buy and sell in that initial period. After that it's business as usual. Even the completely revamped 987 doesn't cause anywhere near the stir the original car caused. You were only deluding yourself that you wouldn't lose a heap of money on your Boxster. Just be happy you're losing less than with any other car. For example, be glad you don't have my 3yr old Saab 9-5 estate, which is worth less than 40% of it's original value (if I'm lucky), again pristine and low mileage.

 

[Alex Postan]

Good points, well made. Since Saabs started making straight fours rather than V4s or straight threes, they too became just another car...

 

[oliver]

ORIGINAL: jw

The only time you don't lose much on a car is when it is a complete revelation, like the Boxster was in 98, and a long waiting list naturally occurs, and you buy and sell in that initial period. After that it's business as usual. Even the completely revamped 987 doesn't cause anywhere near the stir the original car caused. You were only deluding yourself that you wouldn't lose a heap of money on your Boxster. Just be happy you're losing less than with any other car. For example, be glad you don't have my 3yr old Saab 9-5 estate, which is worth less than 40% of it's original value (if I'm lucky), again pristine and low mileage.

Back in the late '90s the climate was very, very different.

I bought an Elise in 1996 for £21k and p/ex'd it for £23k in 1997 against a new Boxster[].

My wife didn't like the spec. of the Boxster so, after 3 months, I sold it back to my OPC for the price I'd paid for it[], and ordered another one. In the meantime I picked up a brand new Merc SLK for my wife for £35k.

When the second Boxster arrived a few months later, I sold the SLK to a dealer (for his wife) for £36k[].

Then I put my name down for an Audi TT. This arrived in 1999. Paid £32k, ran it for a few weeks, didn't like it, so sold it to a dealer for £32k[]

In those days there were too many people chasing too few cars. Now the market has completely turned on its head.

Buy a car to enjoy it and accept depreciation as the real price for that enjoyment.

 

[evoke]

Here are some depreciation figures on the Boxster and Cayman S taken from the What Car? Depreciation Index:

Porsche Boxster Open 2.7 2dr
Year 0: 32,320
Year 1: 27,475
Year 2: 24,999
Year 3: 22,750
Year 4: 20,700

Porsche Boxster Open 3.2 S 2dr
Year 0: 38,720
Year 1: 32,524
Year 2: 29,601
Year 3: 26,933
Year 4: 24,498

Porsche Cayman Coupe 3.4 S 2dr
Year 0: 43,930
Year 1: 37,749
Year 2: 34,001
Year 3: 30,601
Year 4: 27,548

 

[channella]

So published data is suggesting about 69% retained value (ratio of year 3 to year 0) in the second hand market for the 3.2. Boxster. Total depreciation in this data is 16% in yr 1, 24% in yr and 31% in yr 3. So deprecitation in yr 1 is twice the rate of yrs 2 and 3. Assuming in-year linearity, an 18 month old 3.2 Boxster would sell for about 80% of its original price: So for a £51k car, the second hand buyer would pay around £41k. This is consistent with an OPC offering about £35k for trade in, making him perhaps £3-4K after costs - around 10% return, which frankly seems a reasonable business proposition.

The conclusion I would draw is either keep it, and extract the value from ownership, or sell it privately, and keep some of the difference in your pocket.

 

[Alex Postan]

ORIGINAL: rumba

Here are some depreciation figures on the Boxster and Cayman S taken from the What Car? Depreciation Index:

Porsche Boxster Open 2.7 2dr
Year 0: 32,320
Year 1: 27,475
Year 2: 24,999
Year 3: 22,750
Year 4: 20,700

Porsche Boxster Open 3.2 S 2dr
Year 0: 38,720
Year 1: 32,524
Year 2: 29,601
Year 3: 26,933
Year 4: 24,498

Porsche Cayman Coupe 3.4 S 2dr
Year 0: 43,930
Year 1: 37,749
Year 2: 34,001
Year 3: 30,601
Year 4: 27,548

Interesting, they seem to be the same figures that I was given when working out how to finance my C7S. So the extras are the main hit. On that subject, now that I've done three weeks with the car, the satnav is essential, the PCM is nice but *loody expensive, the rear window wiper is sensible and the pASM is great. I have now started to see it as PASM on = normal preferred setting and PASM off is if you want increased comfort and compliance. By comparison with my other Porsche, even PASM on is compliant!
Wouldn't it be nice if the FSA made manufacturer branded finance packages publish their residuals with the purchase contract?

 

[daro911]

This makes 987 depreciation look small time [] Wonder what the dealer is taking as his commission!





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[oliver]

Nice colour combination[8D]

 

[daro911]

ORIGINAL: oliver

Nice colour combination[8D]

Are you tempted? Or have you decided on that 997

 

[oliver]

Why waste £210,000[:-]

I'd rather have a well spec'd Boxster 987S for 20% of the price.

 

[evoke]

The options indeed are worth very little when it comes to selling or p/x'ing your car. When I traded in my old Boxster I think the £9K of options added around £2000 to the trade-in price after 18 months.

My current 5-Series has a similar amount of options and OPC's are giving me around £1000 for all those options if I were to p/x the car.

During the car-buying process, I keep hearing how certain options on Porsches maximise the value when the time comes to sell your car. But when I take the same car back to the same OPC to p/x it a year or two later, I get told that the options only add a tiny bit to the value!

 

[oliver]

Yes, but when the dealer has the car in his showroom, he'll be trying to maximise the car's retail price by highlighting all the options.

Used car customers still want all the toys, not the so called 'poverty' spec.

 

[daro911]

ORIGINAL: rumba

The options indeed are worth very little when it comes to selling or p/x'ing your car. When I traded in my old Boxster I think the £9K of options added around £2000 to the trade-in price after 18 months.

when I take the same car back to the same OPC to p/x it a year or two later, I get told that the options only add a tiny bit to the value!

From a very experienced used Porsche Car buyer who I sold my 986S to back in Sept 04, which had £3k's worth of extras. He said stick to the popular metallic colours, have as few options as possible like upgraded speakers, wind deflector, 18" wheels, and full leather only if going for a light colour interior and thats it. Sat Nav, Litronics, Special Colours, Parktronic, Full Electric Seats, Bose Speakers, CD Changer, Ali Packs, Carbon Packs, Painted Packs, will show you very little return at PX time. Hence my current 987S cost me OTR £42K

 

[burrow01]

ORIGINAL: oliver

Yes, but when the dealer has the car in his showroom, he'll be trying to maximise the car's retail price by highlighting all the options.

Used car customers still want all the toys, not the so called 'poverty' spec.

Yes, that is what they want, but are they prepared to pay more for them.. I think the options only really make the car easier to sell, not worth more. Would the same salesman be prepared to give you a higher trade in figure because the car is a higher spec, that is the crux of the matter.

 

[jw2015]

You will get some return on certain basic options like leather or upgraded wheels or metallic paint but in general you just lose money on options, but try selling a Boxster without leather seats or aircon at the moment and see how difficult it might be. So if you look at it from how much more you'll lose by not having certain options or how difficult it'll be to make a sale without them, then you can say some options are worth quite a bit of money.

 

[Deano]

"It costs OPC's between 4 - 5K to prep cars to their standard for resale. They then have to figure in their margin. "

IF and its huge 'IF' that is true no wonder they can afford such lovely shiny showrooms and flash coffee!

Sorry, they tried that one on me at Hatfield, and when pressured he couldn't make it add up, got talking about a three month old 997 needing £3k spending on it to sell it. - Boll*cks!

 

[daro911]

ORIGINAL: Deano

"It costs OPC's between 4 - 5K to prep cars to their standard for resale.
Sorry, they tried that one on me at Hatfield, and when pressured he couldn't make it add up, got talking about a three month old 997 needing £3k spending on it to sell it. - Boll*cks!

Bottom line is whatever the actual car costs to prep be it £1-2000 probably, or £4/5K (Yeah Right) the OPC will buy in at the right price befitting the actual car and then will sell on at another price making a profit best described as "EXCESSIVE"

Example attached herewith for filed profits for PCGB 2003/2004/2005


Turnover
457,962,000 2005
388,777,000 2004
297,082,000 2003

Pre tax profit
26,257,000 2005
21,243,000 2004
21,176,000 2003

Shareholders funds
£52,020,000 2005
£48,580,000 2004
£38,034,000 2003
*******************************************************************************************
Then there is the seriously profitable side to the biz ... Porsche Finance GB []

Turnover
29,925,000 2005
24,141,000 2004
19,866,000 2003

Pre tax profit
6,130,000 2005
4,468,000 2004
3,034,000 2003

Shareholders funds
30,953,000 2005
26,817,000 2004
23,772,000 2003

 

[juliany27]

Robert

PCGB??

Such a profitable members' club. Let's wind it up and have a shareout amongst the members asap.

Or do you really mean OPC or PAG?

 

[daro911]

ORIGINAL: juliany27

Robert

PCGB??

PORSCHE CARS GREAT BRITAIN LIMITED
Registered Number
00861097

Registered Address
BATH ROAD
CALCOT
READING
BERKS RG31 7SE

 

[juliany27]

You see, that is what happens when acronyms have more than one meaning.

However PCGBL lacks a certain je ne sais quoi.

Robert - no offence meant - I thought that PCGB meant the owners' club and that OPC was the official Porsche organisation for the UK.