If you are interested to see the prices we pay in Australia, have a look at this website: carsales.com.au
Less expensive cars are not so disproportionately expensive. We have an extra tax on new vehicles with a purchase price net of the tax in excess of 57,000 aud (about $50k USD). This tax is called a Luxury Car Tax and is set at 25%, so basically any car costing more than $50k USD brand new is subject to 25% of its value paid in a further tax on top of the 10% sales tax and the transfer duty (about 8% on my Boxter just for transfer).
This 25% is only payable on new cars, however it filters down through the second hand market due to arbitrage between second hand and new prices.
To cut through all the tax accounting/economics/finance of it all, we pay more than 2 times the price for our Porsches.
The average yearly wage in the state I live in is just over $70,000 AUD ($63,000 USD) before tax, which translates roughly to $50k USD after tax. This figure is a statistical mean.
In terms of borrowing money to buy cars, I believe it is relatively easy here. I have never borrowed for a car (too much debt in margin loans and business, don't need any more), but most people I know do not seem to have difficulties doing this. I know finance companies will only lend against cars up to 10 years of age, therefore if you want the car on a 5 year loan term, it cannot be older than 5 years. On a new car it is normal to have a 5 year term with anything up to 40% residual to be paid at the end. Interest runs at between 8% and 9% as long as the borrower has good credit and does not need to go to a second tier lender. As for the income necessary, it depends more on disposable income than net. Other loans and obligations, dependents etc are taken into account. As a guide, a loan of $50k for 5 years with zero residual should cost close to 1,100 a month in repayments. If someone could prove disposable income of this amount with other loans and living expenses taken into account, they should be able to borrow the money.
Sorry for the long windedness, but it is the only way to explain the full picture here, rather than just the shock value in "wow, cars cost twice as much there" type thing.
Hope this answers your questions.
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Originally Posted by Perfectlap
I have a question. If an eight year old Porsche costs $55K u.s. (not that I'm asking your income) what is the minimum income you have to have to get a car loan for this amount of money? What is the usual amount that an Australian spends on a boring type car (Accord'ish) and a slightly nicer car (Audi A4'ish)?
As for the question at hand. I had ZERO interest in other convertible Porsches.
A Carrera Cabriolet looks like a bathtub with a big butt and handled worse. I'm not sure if they're any better now. In terms of power, I've never really been impressed with the Porsches in the Boxster /CarreraS territory. One is certainly faster than the other but neither set the world on fire. If I were interested in a Carrera it would be one in a different performance category that usual comes with a much higher price tag. But my #1 go-to sports car will always be a mid eninge roadster. The lack of a true dry sump engine in most Carreras has always cooled the urgency to pick up a second Porsche. Although seeing the odometer climb higher on my pampered Boxster, particularly during our snowy winters, has increased my interest in a four wheel drive Carrera. The old Carreras look nice and don't feel numb like all modern Porsches, but I have no interest in spending a small fortune should I run into engine trouble. A water cooled Porsche engine may kick the bucket and in one day you can have a fairly new crate motor to get you back on the road for less money and more power. I doubt I will ever own an SUV but if I did I'm a lot more intrigued by the BMW X6 than a Cayenne.
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