How Old Were You & How Did You Purchase Your First Porsche?

[vath2001]

I was 42, bought the '98 w/ tip. This is a second car.... a toy. Paid for using the home equity account. I have been looking for about 3 years (on and off). I wanted something more than a Miata. The S2000 or the 350Z were contenders.

Advice: Cars eat money. Sport cars are really hungry. Get a good reliable cheap first car. When that is paid for, then think about a second car. Buy what you can afford. No use living in debt.

[PlayersExpress]

When did you decide you wanted one?
I was 8 years old. A family friend took me for a ride in his brand new 1998 Boxster... I guess that ride really made a lasting impression.

How long did it take to finally purchase it?
8 years... of waiting to drive....and waiting for the car. (1997 986)

How old where you then, and now?
I was 16, now im almost 19

Is there anything you would have done differently?
Yes, I would have put a few extra dollars aside early on for all the maintence.

Quick word of advice for a young person trying to save for one?

Buy a newer low mileage car. The older and the higher the mileage, the higher the upkeep (I found this out first hand.. I got my car for 60% of KBB value.. within 2 years, I dump the rest of the 40% savings back into the car.. what a deal! I would have been better off spening the extra 40% and buying a newer, lower mileage porsche.)

[jotoole]

"Paid for using using the home equity account." That toy is not paid for, unless you've paid off your mortgage. You simply added it's cost to the amount you owe on your home. You put yourself deeper in debt than you were before you made that deal.

[vijen6]

I'm 26. Got my first Porsche (2000 Boxster S) when I was 23. PAID for also with home equity.

Buying a house wasn't that hard in those days, especially if you had a RE Agent who's doing both sides of the deal and rebating you their entire 6% commission.

Short version .. I waited a bit for some appreciation .. refinanced .. and pulled out about $50K and paid off the car + some other toys. Now even if I lose the house, the car and the toys is still mine, so it is paid off. Yes, more debt, but I'm glad I did it that way, because when the housing market stumbled, all that 'appreciation' that bought my car went to dust. At least I got something from it.

[vath2001]

Originally Posted by jotoole

"Paid for using using the home equity account." That toy is not paid for, unless you've paid off your mortgage. You simply added it's cost to the amount you owe on your home. You put yourself deeper in debt than you were before you made that deal.

I agree, I did aquire debt when I bought the car... but the interest on the home equity is tax deductable on the Federal taxes... and the interst is Prime rate, about 4% right now.

And if I run into financial problems, it relatively easy to sell a car with a clean title.

[jotoole]

Point taken. 4% interest & tax deductible. Makes sense. Appreciate the info. Especially in this economic climate, I need to rethink some things, change my mind set. Am debt free, but I'm no Dave Ramsey.
Thanks for taking the trouble to educate me. Am embarrassed you guys had to point out the obvious (or not so obvious) to me. I should have known better, but I didn't. Econ 101? Can I claim dementia?
Thanks again

[teacher]

I think I got a good deal, as all readers know I paid it off. They wanted $30,000 at Mercedes Benz, but I took a good look at the car. No dings, so they later asked me "How much?" and I said $25000. Good enough, they counteroffered with $26000 and I am happy, still today =) New top, perfectly maintained, I'm happy

[Perfectlap]

NEVER EVER EVER EVER tie your home to a home equity loan to pay off credit cards or to buy a car. Bad move and one that the banks LOVE.
If you lose that job and can't make the payments on the equity loan they can come after your house. If you keep the credit card debt where it is (albeit a way higher interest rate probably) the worst that can happen is they hassle you on the phone, send you nasty letters and ultimately they just write off and some debt recovery service will try and hassle you some more. If you finance the car with a bank and you can't make the payments they just reposses the car but lately they're not even doing that because they're in no rush to sell your repo'd car in the worst car market in 30 years. They'll most likely work with you so you keep paying the balance on a car that isn't worth what is owed.

Sure the interest rate was lower by taking out a home equity loan but you taking a big risk for that savings.

[Dave S.]

Originally Posted by Perfectlap

NEVER EVER EVER EVER tie your home to a home equity loan to pay off credit cards or to buy a car. Bad move and one that the banks LOVE.
If you lose that job and can't make the payments on the equity loan they can come after your house. If you keep the credit card debt where it is (albeit a way higher interest rate probably) the worst that can happen is they hassle you on the phone, send you nasty letters and ultimately they just write off and some debt recovery service will try and hassle you some more. If you finance the car with a bank and you can't make the payments they just reposses the car but lately they're not even doing that because they're in no rush to sell your repo'd car in the worst car market in 30 years. They'll most likely work with you so you keep paying the balance on a car that isn't worth what is owed.

Sure the interest rate was lower by taking out a home equity loan but you taking a big risk for that savings.

That's really good advice. Your home is not an ATM. My next door neighbor is going through foreclosure on a house they have lived in for nearly 20 years. Should have been paid off by now...