Boxster depreciation?

[TriGem2k]

Last I checked you don't buy cars hoping to make money on them after years of ownership.

[MNBoxster]

Originally Posted by TriGem2k

Last I checked you don't buy cars hoping to make money on them after years of ownership.

Hi,

I do... and have...

Happy Motoring!... Jim'99

[Brucelee]

You COULD do some quick analysis on this if it makes sense.

There are data on the web for MSRP for most cars and there is KBB.

Taking the same data points for a comparable car, say a Corvette, Z4 etc. you could take a particular set of years and calculate the percentage drop over time for each car.

Interesting, maybe I will try it.

Subjectively, the Box would do worse than say, an M3 but that is just a guess.

[1JB]

The depreciation on a new Porshce is no worse than any other comparable car but please show me a comparable car. BMW's aren't comparable. I'm not saying they're better or worse they're just not a Porsche in any sense of looks, driving, etc. Mercedes are not comparable, Audis, and so on. All of the luxury sport cars depreciate, but they're each in a unique market as well. The biggest depreciation comes from the Porsche options. They don't provide any return at resale. None, zip, zero, nada. Some are a liability at resale, pccb, pasm and pcm likely candidates for costly failures with pccb being the worst.

If you're going to buy new get a car lightly optioned with the options buyers expect at this price level: halogens, climate control, top of the line sound sytem with a cd changer. Also look to a minor change within the same platform. I looked at used 986s and found a significant difference between the 987 and 986. I love the 986 but liked the 987 and potential increased reliabity, rms for example, much better. Buying a 987s at the end of '06 when Porsche announced the 3.4 for '07 was a good time to do so. There was a lot of hype of 15 more hp and vario cam plus which is really a big yawn unless you're Speed Racer at the track. I got mine for 15% below msrp. Now it's depreciated 30% but that's from msrp. A neighbor waited and got an '07 for list. He can't go any faster than me down the drive to work even if there are no cars on the road because you can only get 80% out of the cars performance on the street at best. Don't ever pay msrp. That means you need to be patient and time your purchase when the market is soft.

The used 911's that were in the same price range as the new 987s were completely different beasts. They just weren't my cup of tea and being out of warranty the potential maintenance costs were a real concern. I keep my cars for a long time and get my money's worth out of them. I'll seriously consider a RUF upgrade when the '06 is out of warranty. That'll be the bomb.

So it's a matter of choice and common sense. If an '02 turbo melts your butter go for it. You'll get a heck of a deal but not necessarily more bang for the buck of a new 987. If you want brand new, popular and highly optioned be prepared to take a bath on depreciation. The Cayman S when it came out is a very good example. They were selling at or above msrp when they first came out and the dealers brought in a few with options that put them well over $70k US. If you can't pick up a Cayman S for 15% below msrp right now you're in a completely different market than I am in the NE US.

[larryshomework]

You can get a hint at depreciation by looking at lease terms on new cars.

BMWs have residuals in the 60-65% range after 3 years. This is strong but it still shows a drop of 1/3 after 3 years.

Many cars have 3 year residuals in the 52 - 57% range.

Sometimes the residual is inflated to get lower (subsidized) leases but across the model line they generally indicate the anticipated depreciation rate -- 5 years out, most everything is going to be below 50% of original value.

My 2002 Box was 48% of original value when I bought it and was between 5 and 6 years old. That doesn't seem like excessive depreciation to me.

[Frank Patrick]

Cars are, not a good investment, to say the least. That said however in thirty years of buying (61 vehicles), kind of a dumb hobbey of mine, mostly sports cars, and a few bikes;I would like to share with you my experience. This is my experience and may not reflect any resemblance to the automotive market what-so-ever. With the excpetion of a 67-427 Corvette Convertble, a HD-Fat Boy, and a 1970 -914-6, I have never actually "made" money on any vehicle. I lucked out with the 914, which was sold at an auction in Scottsdale, AZ for more than 4 times I paid for it.
Without any specific studies, just what I have personally experienced, PORSCHE in general, has held thier value better than any other vehicles I have owned. Maybe it is the mere fact that there is just not many, by general comparison, built, or the folks who buy them will not settle for much else, not sure.

[Darkhamr]

Originally Posted by larryshomework

You can get a hint at depreciation by looking at lease terms on new cars.

BMWs have residuals in the 60-65% range after 3 years. This is strong but it still shows a drop of 1/3 after 3 years.

Many cars have 3 year residuals in the 52 - 57% range.

Sometimes the residual is inflated to get lower (subsidized) leases but across the model line they generally indicate the anticipated depreciation rate -- 5 years out, most everything is going to be below 50% of original value.

My 2002 Box was 48% of original value when I bought it and was between 5 and 6 years old. That doesn't seem like excessive depreciation to me.

I agree with this as in general I find all cars depreciate within a couple of points of each other when years and mileage are constants. The problem is that 50% depreciation on a $60k car seems worse than the same depreciation on a $30k car

[KevinH1990]

I think there are a lot of great deals on used Boxsters out there. They will continue to depreciate, but I expect there will be a "floor" for prices of Boxsters in good condition with reasonable mileage. So at some point, depreciation will probably slow down.

I look at it this way: I paid $21,250 for a 2000 with 30k on it and overall excellent condition. My total outlay is just a bit more than what I would have paid for a good new economy car. I'll enjoy driving the car for at least 10 years, and it will be worth something at the end of that time. So, I'm paying an economy car price to drive my Boxster. If I get $4000 or $10,000 for it in 2017, I'm going to be happy either way.

[Perfectlap]

Originally Posted by Darkhamr

The problem is that 50% depreciation on a $60k car seems worse than the same depreciation on a $30k car

it seems worse because it is worse. Losing $30K in an investment is one thing, there are deductions you can take on that. There's no deducting $30K on car depreciation. If there is please tell!

Cars are not about investing, but there are ways to reduce your exposure, which are largely ignored. I know many wealthy financial advisers and not one of them has a new car or leases one for pleasure. Meanwhile they tell me their wealthy clients rarely buy used.