The Great Porsche Resale Value Myth

[dawn lang]

ORIGINAL: Andy Tims

It never ceases to amaze me that people buy a brand new car & then moan about depreciation.
There are only 2 ways of avoiding big depreciation:-
1) Buy used & preferably rare(ish)
2) If you must have brand new, buy something that is only going to be made in fairly limited numbers & don't go mad on the options.

I've never bought a new boxster in my life. On my second one now. I've bought both boxsters at 18 months old when they've done their initial 'left the forecourt' depreciating. I've bought them both privately too.

I've not been unduly worried about buying privately - I do my homework. I know that at the point of buying i've got 6 months left of Porsche warranty so that's not too much of a worry as i'll simply renew the warranty when it runs out. I've always phoned the OPC the car has been bought from/serviced with and checked it over thoroughly with them to make sure it's not suffered from any major mechanical failures or missed a service date. It's also worth looking at what options will help to sell your car later on. A 2.7 with climate will always sell better than a 2.7 without and buying a boxster new, speccing it up to the eyeballs will not help one iota when it comes to trade in at an OPC. They tell you it's worth it when you're paying for it new but tell you they're worthless when you come to trade in - seen it happen to lots of people but surely this is the same for any car make! Apologies if it sounds like i'm teaching you hardened box owners to suck eggs []

Back to buying. I have the car inspected by an OPC prior to handing over the cash. I happen to be one of the few who really likes the chaps at my local OPC and they've always looked after me really well. I trust that they're not having me on and to their credit, when I didn't bother renewing the warranty on my old boxster they always tried to get work like the RMS (on the old car - the S hasn't suffered with this at all) done on goodwill - and they succeeded![]

As a consequence, I can claim to be on of the ones who has bought and sold a Porsche and lost relatively bu99er all! I had the 2.7 for 2 years, did 20,000 miles and sold it for £1,800.00 less than I bought it for!

Now I shall take a bow - leave you spitting chips - and depart!

 

[NicD]

Dawn,

this is a candidate to be added to the Boxster FAQs under "how not to lose money when buying"

 

[dawn lang]

Thank heavens you see it that way - I re-read it and was a bit horrified as it sounds like a know it all - rub your nose in it big boy - rant!

It wasn't meant to be honest - I'm just a rampant explainer/waffler!

[]

 

[Dapster]

Like cricket, timing is everything. When I bought my first one, the 2.7 had been launched a few months earlier. I wanted the 2.7 rather than a used 2.5, and the used 2.7's on the OPC forecourt selling at list persuaded me to order new. As such I couldn't do the old "18 month old" trick. As if to prove I learn nothing, I've now talked myself into a brand new 987 S and stiffed myself again! I really tried to get a 2 year old 911 but it just didn't do it for me.

Basically if you want to save a load of money, don't stick it all into a car - Porsche or otherwise. If you want cheap motoring, don't buy a forty grand sports car. If you love cars, and talk yourself into ignoring the fact that you can get from A to B in a diesel Mondeo with 130,000 miles on the clock, and that you are shoving a small mortgage down the toilet every few months for the unmatchable pleasure of driving a fabulous bit of engineering, then get a Porsche.

Edited to say: Big respect for Dawn and her "have cake and eat it" result!

 

[dawn lang]

lol! Isn't there an adage somewhere along the lines of 'you don't buy a car to make money'?[]

I appreciate that the car i've bought now is going to lose more than the 2.7 ever did but I bought the S because it has absolutely everything I want in it and i'm totally in love with it. I certainly wont be selling it in the next 2-3 years either.

Last time I bought wisely with the intention that if I hated the car I could punt it on easily enough (head buy) - this time it was most definitely a heart buy (with one or two sensibilities thrown in) and I will pay more dearly for it.

But hey, didn't we all buy the boxster because we genuinely enjoy driving the boxster?

Blow depreciation - here's to summer and many roof down days!

[]

 

[dawn lang]

Just re-read your post and had to laugh at your edit.

As I said, the next result will likely be less favourable - but what the hell!

[]

 

[Mark_Bennett]

It didn't have any bearing on the sales, that the sellers/buyers were 40+ years old blokes, and you are young and cute... did it Dawn?[]

 

[dawn lang]

I haven't been called young or cute for a very long time Mr Bennett! []

But do continue......

 

[Dapster]

Someone please call for a bucket of cold water! The 14th was 2 days ago! Now behave you two....

 

[Guest]

I too was sold on the great residual myth.

The girlfriend & I purchased 2 Boxters January 2004. Fully spec'd £39k.

Went into OPC to buy a £73k 997 4 months old today (yes full price despite being 4 months old inc extras - but beats waiting). Offered £25.5k on each!!

£27k depreciation in 14 months despite immaculate garaged examples!

Thanks to the great OPC conspiracy the offer is logged on my OPC dealers network so guess what?? You got it .........no other OPC dealer will tread on my local dealers toes and strangly all offer £500 less! Everytime no matter where the location. Strange eh?

Posted on Pistonheads.com for £28k ono if you know anyone interested?

Cynic me?

 

[Rotorhead]

Depreciation is the great black hole into which more than £50,000,000,000 disappears each year. It is the real cost of car ownership and, generally, exceeds fuel, insurance and servicing costs combined. Yet most people accept it. OK they might grumble a bit at trade-in time but, 9 times out of 10, they just spend more money on another car which will do exactly the same thing.

It's all basic economics. You buy the car at the price determined by the market and you sell it at the price determined by the market.

In my experience of Porsche ownership, over 22 years, Porsches are much better than most. There were times when depreciation was negligible but inflation was higher. However, we recently sold a Boxster S, that we had owned from new for 4 1/2 years, that had depreciated by an average of less than 10%p.a. We also have classic Porsches that have significantly appreciated in value.

The biggest mistake anyone can make is to buy a mainstream model at full retail, from a dealer, on long-term finance, and then try to trade it in after a relatively short period. There may be exceptions, but the chances are you will get well and truly stuffed, and it's a bit unfair to then blame the car or the dealer.

 

[JCB..]

The biggest mistake anyone can make is to buy a mainstream model at full retail, from a dealer, on long-term finance, and then try to trade it in after a relatively short period. There may be exceptions, but the chances are you will get well and truly stuffed, and it's a bit unfair to then blame the car or the dealer.

Oliver

Very sound advice!

JCB..

 

[TopBear]

ORIGINAL: Jon Layton
Thanks to the great OPC conspiracy the offer is logged on my OPC dealers network so guess what?? You got it .........no other OPC dealer will tread on my local dealers toes and strangly all offer £500 less! Everytime no matter where the location. Strange eh?

No sure how vaild this statement is, as I have had quite varied quotes from OPC's for my car from different dealers recently, and all around the same time. AFAIK, there isnt some 'super-computer system', linking all the stealers together to see what everyone gets offered.

 

[Guest]

The biggest mistake anyone can make is to buy a mainstream model at full retail, from a dealer, on long-term finance, and then try to trade it in after a relatively short period. There may be exceptions, but the chances are you will get well and truly stuffed, and it's a bit unfair to then blame the car or the dealer.

I'm not sure I would go so far as to say it is a mistake. You just need to be aware that it is not the cheapest way to do it.
There are merits in that it allows you to have a brand new car in the latest look with the most power etc., with maximum warranty, spec all the options and colour yourself, but you have to pay for the privilege.
Finance costs you whatever option you choose and the balloon payment/rental options cost the most (hence the reason the dealers like it - Ford make more money from finance than from the cars). However, they there are merits in terms of cash flow, flexibility and the ability to get a more expensive car than would be the case through a straight repayment approach. Again you pay for the privilege.

The issue is to enter into these things with your eyes open. As long as you know what it will cost you, then you can make a judgement as to whether you think it is worth it, given your particular circumstances.

Unless you buy a limited edition model then you will always suffer significant depreciation if you buy new and actually use it (although speculators also get burned on the limited edition models, particularly if there is a recession).
Of course, if everyone bought 18+month old cars, then eventually there would be no used cars since no-one is buying the new ones, and the cost of the used ones would go up to match the new ones.
In the car market in general, more people can afford new and are buying new for the peace of mind it brings (and the choice you get) and the value of used cars continues to fall. The solution is either to limit the supply of new cars, or price them so that fewer people can afford them.

Then again, it is only money, and you can get too worked up about it. Whilst a Porsche may be a more sensible than some, it is still an axtravagance and a heart decision. Else you would have a Toyota diesel.

 

[Michael Downing]

ORIGINAL: Stuart Martin
Then again, it is only money, and you can get too worked up about it. Whilst a Porsche may be a more sensible than some, it is still an extravagance and a heart decision. Else you would have a Toyota diesel.

Spot on, Stuart.

 

[vitesse]

Our main house cost 29K in 1978,worth575K now,our cottage was 126k 2.5 yrs ago,value today 200K.I don't care that we can't afford a new 911 nor do I want to waste the money.We can drive just as fast and as excitingly in our two P's as anyone else can if they want to keep their licences.
If you can afford it spend your money and don't complain.