Depreciation

[karlj0]

Hi Guys me again.

As i mentioned in my previous post i'm on the verge of swapping my boxster 2.5 for a 993 C2 Tiptronic. The one ive seen is a basalt black 95N with 75k miles from a porsche specialist @ £23k approx. However due to my current financial situation and a potential house move the only way i can afford it would be to get a £23k personal loan over 6 years.

Due to the fairly long period of this loan I'm concerned that the car will depreciate quicker than my loan can keep up. ie after 12 months based on an APR of 6.9% I will owe £20k ish and after 24 months approx £16,500.

Should i be worried about getting into a negative equity situation or are the 993's residuals fairly static ?

Any feedback would be greatly appreciated.

 

[nickgardner]

depreciation on good 993s is now pretty low. 3 key factors - condition/appearance (bodywork, interior etc) mileage, service history. If you can tick all the boxes they are going down slowly (and in some cases hardly at all). really check the one you are buying closely or get someone who knows what thyey are doing to do so - they are not like rocking horse poo - there are enough of them out there especially at that mileage to walk away if there is any issue. On mileage 75 K is an OK mileage but if you put a lot on it it will be getting high which may make resale trickier (though if looked after they go on and on without serious problems). You need to keep its service record up. I guess at that price and mileage you'll probably not going the OPC route but make sure a good specialist looks after it according to schedule. the price you're paying looks OK and I would have thought you will do better than the financing and not end up with negative equity if you follow the above. Not sure what tiptronic does for the value - not my cup of tea but probably not a big issue Anyway a new repmobile will depreciate a lot faster!

 

[Dylan1]

whilst 993 depreciation is fairly static it seems,there is in my experience no guarentee that this will remain the case,and certainly not if you add lots of miles.I have never heard of the subject of negative equity in relation to cars before(plenty of times of course with housing)bearing in mind that i have always lost money on cars,sometimes as much as 8-10k in a year so i have never bought a car when i couldnt afford the possible depreciation.
i guess having had friends who were really badly affected by negative housing equity in the early 90`s i would never risk doing this for a car(bad enough for your home!)

 

[karlj0]

Cheers guys for your advice.

I suppose once ive had it year or two its unlikely to depreciate past a certain point.
Plus although it will be my daily driver i only do about 8000 miles per year so with 75k on the clock its not going to creep up too quickly.

My only final hurdle is that because the seller (911sport in lincolnshire) is so far away it will be hard for me to go and look at it first so im putting my trust in their description etc. Ive asked as many questions as i can thanks to this forum and am so far happy with the responses that ive received. has anybody had any experience with 911sport ?.

Ive bought cars on this basis before but is the 993 such a different beast to the boxster that i should test drive it first ?

Cheers

Karl.

 

[Simon P]

Hi, I bought a 993 last November. They all sounded good until I went to see them! You abolutely must go and check it out yourslf!
regards
Simon

 

[mmylonas]

Karl,

I bought a couple of years ago and am very pleased with the result but would mention a couple of things:
1. Tiptronic - seems to turn a number of purchasers off. I'm sure you've already trawled around Pistonheads' classifieds and other sales sites but unless you aprticularly want an auto box then I would have thought a manual gives you a better chance of retaining your money on any re-sale - or at leasta better chance of selling on swiftly should you need to;
2. Consumables/Sums stacking up - It might be worth asking some forum members what their average outlay is and checking that the sums work up long term for you. Insurance is usually about £500 a year; Tax about £180; Tyres aren't cheap and can be toasted in a single track session; brake services add to the bill and there are the standard costs of annual servicing. In addition there's often a small shopping list of items that you discover need doing as soon as you've had the car a week. With a dealer down the road it's not a problem but you're unlikely to want to travel all teh way to Lincolnshire to get it done so you'll probably end up paying for it yourself, I'd be a little surprised if you get away with less than £1,500 a year running. Add say £750 a year depreciation (which is pretty low) then you're looking at 10% of the car's and your loan value each year anyway.

As everyone on the forum would tell you, they're great fun cars to drive - whether on the track or the open road - but there's nothing worse than having a relatively expensive car in the garage and worrying about driving it because of the costs and depreciation. The other factor of course is that buying from a dealer you're likely to be spending more by way of premium than if you go privately so if you decide to sell early then you'll suffer a relatively large hit.

Michael

 

[Dylan1]

karl-911sport have a great reputation and ihave had dealings inthe past-howveer certainly go see car first[]
also tip is only 4 speed unlike later 5 speed so not the best feature manual definately better on the 993

 

[FLAT-SIXY]

Not only should you test drive the car, you should insist on a pre purchase inspection. I dont care how nice the dealer sounds on the phone, trust me there all gona hope you will purchase on first impessions. Just replaced the front arms on mine, for 3 years I think that
my car was handling normally, My god was I wrong, The car was all over the place. Being my first 993 I thought it was a characteristic of the model, bumps in the road would shoot me left or right, Its a different car now. So a test drive is a must. one last thing, When I purchased my turbo I did so with leaky camcovers and a bullshit waranty, so please get the car checked out. I hope you find the car your after, good luck.

 

[Johnny C]

Colour seems to be a factor in resale and black is best for a 911, so it ticks that box

I'd guess that you've done your sums, at 6.9% a 23K loan over 6 years is going to cost you £350 a month approx.

Fuel costs - I do 16K miles a year and that costs me £60/week at the moment

Insurance - do look around a lot. The cheapest I get mine with driveway parking and no tracker is approx. £900, but I had quotes up to £2,500!

Servicing. With any porker I'd expect year 1 to be a bit higher whilst you sort things out, so try and negotiate as long and as comprehensive warranty as you can. I bought mine privately and had to fork out approx. £3K in the first year - nothing major, but even small things can cost a lot. Get the aircon checked, that seems to end up cost £1k for people on here. ABS can cost £1K if that needs sorting (which mine did). Brakes, you're looking at £1K for disks, pads, sensors etc all round, though at 8K miles as long as you don't drive on the brake you should sonly need disks every 4 years or so. Clutch - fingers crossed mines okay, but that is heading towards the £1K mark if the flywheel needs changing.

I saw an article today saying that after 2012 the EU is planning to ban any new cars from doing >100mph. In that case, if you're planning to keep it until then I suspect that faster cars that last (such as 993's) will go up in value a bit.

My only experience of depreciation on a porker was my last car, it was an '87 3.2 carrera with 70K on the clock. I bought it for £20K and sold it 6 years later for £10K with 200K miles on the clock. so I had no hesitation about buying another carrera. I probably spent £10K in running it, but at least it was money spent on an asset rather than a repmobile which would have been scrap value after that sort of mileage, if I'd had a loan and needed to pay it off at short ntice I wouldn't have had a problem.

 

[2.4te]

Suggest you view the car and if you like it, get it checked independetly of the supplying dealer. A good option in Lincolnshire for the PPI would be Gantspeed, only just down the road from911sport (relatively speaking for Lincs!)

 

[pse_SC]

i have always lost money on cars,sometimes as much as 8-10k in a year

[&:][&:][][:-] You could run a good car (not necessarily Porsche) for a couple of years+ on that[8|]!

 

[Dylan1]

thats why this one is staying for a few years but-
i know those whove lost a lot more[]

ferrari and db9 to name but two makes !!
but they were richer than me[]

 

[Gary C]

If you are worried about negative equity then you could take out gap insurance. Its fairly cheap and on total loss can cover any difference between your insurance payout and any amount still owing.

You can also get Vehicle Replacement Insurance Protection (VRIP) which is meant to cover the diff between purchase price and payout (cost me £300 on a new car).

I am currently claiming under a VRIP policy and its been hard work but should payout an extra 10K.