Hi Guys,
The Porsche market hit a real harsh low back between Jan and July this year, I could have bought several well sorted 993's (including variorams) for about £14k, and even a 993 cabrio varioram in need of a wash for £12k... Boxster S's for £8k.. Not to mention 996's for silly cheap money.
I think this was down to owners in the wrong industries at the wrong times going into a panic tailspin and expecting more financial armagedon than actually happened, or they just needed money fast.. Which then pushed the whole market for those cars down the toilet.
Sales of used 944's took a hit during this phase, good ones still sold for good money, but the odd bargain (on the surface) pushed some people to under estimate the market and sell rather cheap.
Having said this, I have been doing as many PPI's this year as last year and talking to the buyers of these cars it is obvious that a lot of buyers still have money to spend and are willing to pay over the odds for a great car.
For the last year or so, I have been weeding out my personal collect of what started out as around 30 Porsche (!).. Due to the workshop staying really busy we were only able to get 1 car every month or two up to my standard of being happy to put my name to it and be able to sell the car with confidence of my own personal underwritten no quibble "everythings covered" warranty... Each one of these cars has sold before I even had a chance to update the website or even finish preparing the car.. Good examples of the cars sold from my collection include the following.
My 944 Turbo, Black on the inside, black on the outside, 1989 SE spec, every option except cruise control and circa 320BHP 370lbs of torque, 968 mirrors, tailgate, handles and roll bars, This was sold effectively for £10,000, it sold before we even started getting it ready, sight unseen and I could have sold it 4 or five times over (for £12k) during the time it took to perfect anything I was not happy with. You see cars like this sell on ebay for £5k, but then again they probably turn out to be dogs and half the car mine was... But those £5k cars push owners of great cars to think thats all theirs is worth!
I sold my immaculate 924 Lux which I have had for years, even though immaculate, this is the kind of car that would on the surface probably only get £800 on fleabay, I sold this one for £2400 with a 3 month warranty, again before it was prepared. He got a great car, but remember, thats the price some people have been selling 944 S2's for during that same patch.. some of them would have been dogs, but some of them would have been good cars that the owners based their price on hounds out there.
I also sold my turbo cab during this rough patch and had people begging me to sell other cars in my collection for over market value, but we are and were too busy to think about preparing them, so we had to turn down those offers.
Since July the market has firmed up.. probably due to those poor sods in the wrong industry at the wrong time getting out of the market, allowing the rest of the market to recover.
I think what we are seeing at the moment is the gap between the prices of naff cars and great cars is widening. and yet, to be honest, even though people have said appreciation of prices of 944's isnt going to happen any time soon, its worth remembering that since 2004 (for example) if you compare the prices good cars are selling for today, they have not really seen a great deal of depreciation if any for nice examples, the only new news is that a rough one can be bought cheap, where as a few years ago a rough example was often worth within 10 to 20 percent of what a great one was worth (£4k for a rough one, £6k for a great one). I even remember the 944 register sec for PCGB sold his one back then for £8k and I thought that was strong money). Now a rough on is only worth 10 to 20 percent of what a great one is worth (£800 buggered S2 can be had versus a £6k great example)
As I said, my pricing may be skewed, but I am constantly watching the market at the moment with a view to set prices for the next ones to roll out of my collection and I will be setting the prices as follows.
944 S2, 92, over 100,000 miles, with all typical 944 problem jobs done, £7k
944 S2 Cab, 91, over 100,000 miles, again with all typical jobs done, £8k
The important thing is we will be selling these cars with "all the problem areas sorted" both have recent complete front engine overhauls (belts, water pump, oil seals, tensioners, rollers, drive sleeves, chain, chain slipper pads and cam cover reseals.), new front shocks, new wheel bearings, caliper slider plates and new brakes all round.
They might sell quickly, they might not sell until easter, which is the other important thing.
Porsche used car sales in the winter are crap, buyers are out there, but I tend to believe that dropping the price of a Porsche to match demand in winter is just crazy. My attitude is if a Porsche sells over winter before easter its a bonus, and they probably will sell, you just need to be patient.
I also know the right buyers will travel to an extent, but not always the length of the country, so to charge strong money you need to wait for that right buyer to come up in your general area that can take a couple of months to happen on its own.
I also know one other thing, good places to advertise your Porsche.
Pistonheads classifieds are king. The cars sell on there and the cars tend to be less likely to be the trash you find on ebay.
Ebay is full of shiney looking dogs, I am yet to see a first hand example of a Porsche bought on ebay for ebay prices which has not been a pile of **** even the ones that have looked great in pictures, there will be exceptions, but I see time and time again new customers who have bought what they have considered a great car on ebay, only for us to give them the bad news that it needs the same amount again spending on it to just get it to be a reasonable car.
Autotrader, might be ok for selling a mondeo, but for Porsche its wasted money.
The other thing is a sign in the window, a lot of people who do not own a 944 have no idea what a 944 is worth. You would not believe the amount of people that walk past our workshops and get chatting, who say "I wish I could afford one of those" pointing at a 944, and are blown away when you tell them its only worth X amount!
Anyway, to cut a long story short, if this S2 in this thread is a great car, with all the worries (belts, waterpump, front shocks, chain etc) all sorted, you will get £6k for it, it might just take some time and will sell within a couple of weeks of easter... If not, I will eat my hat!
Cheers,
Jon Mitchell
PS: My hat is made of chocolate
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