A friend of mine has just bought a £32k porsche. He reckons he'll be able to run it for a year and sell it for the same price at the end of the year. Now apart from servicing, cost of cash etc this means he'll be driving round in an expensive car for free. I'm not so sure - surely it can't be done.
I know people may pay extra to jump waiting lists etc, but once used don't Porsche's experience the 'normal' depreciation curve?
Thanks
|
|
Probably the lowest rate of depreciation of the lot, but I suspect your friend is a little optimistic. Fine but hopelessly impractical cars, and now getting as common as muck. I can understand their appeal, but I'm not one to follow the crowd.
|
|
Agree with Roger Jones. He's probably bought the best car to do his little experiment, but even so I doubt he'll run it for that long and be able to get his money back.
|
I think it can be done if he bought the car slightly below its true market value (desperate seller, cash in hand etc). Have a look on autotrader. There is very little difference in price between Porsches over a 1 or 2 year spread, assuming its the same model. Not sure I worded that correctly, what I am saying is that a 2000 registered 911 isn't much cheaper (and is sometimes more expensive)than a 2001 or 2002 registered.
If he bought at the right time (right afetr a service) and keeps the mileage low in his year of ownership he could probably even avoid paying for the next scheduled service too.
It wouldn't be free though. Even if he paid cash it would "cost" him lost interest if the money would have been put in a bank.
|
If you happen to be picking up a new F430 in the next year you could certainly sell it for a premium or sell the option if the dealer would allow.
Regards.
|
|
|
|
Chris Harris, who writes for Autocar, wrote an article on this in last Sunday's Driving section of the Sunday Times - you can find it on Times Online under Driving.
He has had some successes and failures, but as HJ implies it depends on the state of the market. All I know about economics is that the 'right price' is what some other poor sap will pay.
If enough people want a nearly-new car (e.g. to avoid a long waiting list) they will pay over list for it. The fun of the gamble is wondering which new Posemobile to buy and whether it will be in greater demand after a month, a year or whatever.
When I look at supplements like Driving and the motoring section of the Telegraph (after reading HJ first of course) I often wonder how many of the nearly-new cars for sale are bought by the speculators we're talking about, and if not where the money comes from. Perhaps I'm cynical because I do a lot of lectures on money laundering (avoidance, you understand, not how to do it; although I always say "if you pick up any tips, good luck...").
|
|
|
Depends on whether it is the old 986 or the new 987 model. From the price it is probably the former as £32k will only buy you a base 987 without options which will be extremely difficult to shift.
Old 986 values are plummeting due to the arrival of 987, and there are just too many well-kept examples around, just look on autotrader and ebay.
As for 987, sadly as previous posters said there are a number of factors affecting their values ... interest rates, possible recession, better competitions such as Z4, SLK, 350Z. Mind you, there is still a waiting list of 6 months for the standard Boxster (but I am pretty sure you can source a Boxster S within 1 month, in fact I can point you to the direction of a few unregistered ones selling at list or below list).
|
|
|
I recently missed out on a Citroen C3 Pluriel, 54 reg, 500 miles (not everyone's cup of tea, granted) for £7500, ex demo being sold by local Citroen dealer.
The plan was to buy the car late March, part exchanging my over the hill Octavia, sell July /August before 55 reg came in for c.£9,000 and buy a proper car with the proceeds.
Someone beat me to it though! I am keeping an eye on the same dealer though.
|
There is no reason this cannot be done. But the economics do play a factor. I've done it twice (briefly)...
In November 2001 bought a 1 owner 1998 R plate Avensis 1.8GS automatic hatch in solid red colour. Had 30-something genuine miles on the clock. The old boy who was selling (privately) had it up for £4k - I negotiated him down to £3,800 - but when it came to giving him the money, I ran him to the bank (so he could depsoit the cash) and paid him £100 extra since my concience wouldn't allow it. Ran it for about 10 months and paid for a service. Yes I ahd to buy RFL etc. but I didn't sell that with the car. What did I get for it? £4,400.
Then in January 2003 I bought a VW Golf 1.6 'S' five door hatch with 20-something miles on the clock. 1 owner FVWSH etc. etc. and paid £8K cash for it...put RFL on it and paid for a 30K service. In November 2004 sold it for £8,500 and bought the current 330 we have.
OK I didn't make a mint on these cars, perhaps I might have if I had been greedy - but it just goes to show that it cna be done. Timing is everything, but more crucially, it's the price you pay when you buy that will determine what happens at the end.
So if your mate paid a good price for the Porsche (sp?) and runs it carefully, then I don't see why he couldn't make some moeny on it or atleast break even. I mean not so long ago Ford KA cars were talk of the town since they were veyr much in demand and you could get back what you paid for it - so long as it was sensible money.
I'm not a trader and not in the business of buying cars to sell on - my wife wanted an automatic and since her tastes varied, we chopped and changed cars (well OK the Golf was nice and all but it lacked A/C) until we settled on the BMW. Give it a try people, drive the negotiation hard!
-----
Im not plain stupid, just a special kind of stoopid.
|
It is possible. And a Porsche is a very good bet - one of the reasons I chose it, and chose carefully from the many 911 variants.
But not now, and not with a 986.
|
Oh - I forgot to add one point.
He will lose money. But he won't regret it. :-D
|
|
I was sitting here wondering what a 986 was, after a quick google, I never knew the Boxster had that designation. Well we don't know what the Porsche in question is, but there is a fair choice of 996 (911) at 32K and I reckon one of those at 3 or 4 years old will have stabilized in price and would be a much better bet than the "budget" Boxster.
|
there is a fair choice of 996 (911) at 32K
Yes, but I'd be worried about it. Cheap Porsches are usually cheap for a reason, sadly.
|
|
|
|
|
I knew a guy who bought a new Lotus Elise and sold it after 18 months use for what he paid for it!
|
|
|
A lot of people try this with Porsches - once.
They loose a lot of money, or find the running costs are beyond their means. They sell it, tick the "owned a Porsche" box and then buy something cheaper.
Same happens with M3s and at a cheaper level Imprezas.
|
|
why Porsche? Bought a Cortina once for £500 then sold it year later for.. £600.
|
It used to be possible with a Boxster but the main rule was to buy in autumn and sell in Spring - this is they worst time of year to buy to grab a bargain. In autumn, dealers aren't buying them in for stock so the prices slip a fair bit.
If your're going to try the "run a Porsche for free" game you're probably better off with a good condition 993 than Boxster or 996/997.
986 prices have slipped 10-15% on average with the arrival of the 987 but this has mainly affected models under 2 years old and compared to most cars they still hang on to a remarkable amount of their value.
|
Anyone who does this with a Porsche can't be a true enthusiast..
A speculator is word that comes to mind, and with any speculating you can get your fingers burnt..
|
True enthusiasts don't have asbestos fingers either. In fact they probably get burnt more as they would be more likely to hang on to a money pit because, well, they are enthusiasts.
|
|
|
|
