Lets Discuss Boxster Pricing

[JFP in PA]

Originally Posted by My_Name_is_Dan

It has always been my rule that one shouldn't pay no more than NADA pricing on any vehicle. The justification for this is is mainly from an insurance perspective. If you buy a vehicle for $15K and it is worth $12K and you have an accident and the car is a total loss, the insurance company is only going to pay up to NADA retail (maybe). So, you just lost $3K right off the bat.

So, when I start cruising CL for Boxsters, I see asking prices from private owners that are far more than what NADA will support. Am I missing something here?

For Example: a 2009 Boxster with auto and navigation, 11K miles. Owner is asking $35K. NADA is $32K and this is clean retail, which is what a dealer would charge.

Another - a 2005 Boxster, manual, no navigation and 66K miles. Owner is asking $25K. NADA is $19K. Again, clean retail.

Now, lets get back into 986 territory:

2002 Boxster S, manual, 47K miles. Owner is asking $15K. NADA is $16K. Okay, now we've got someone that is sensible about their pricing. Unfortunately the car has been sold....

None of us want to pay clean retail when dealing with a private party, but negotiate something less than that. Unless, the owner can justify cost with receipts and even then I figure those costs are a result of keeping the car properly maintained.

These are just a few examples. The 09 would peak my interest if it was less than $30K, but even at that price point, there is no warranty and there is always the concern something may go wrong with a $30K car.

I fully understand cars are a depreciating asset, so I'm well aware the longer you own it, the less it is worth. I get that. But, I'm having a hard time wrapping my head around the initial cost - where it is higher than book.

So, can someone explain Boxster pricing to me? Would you pay more than book value, and if so, why?

You are dealing with people's egos, which they usually are not going to negotiate away easily. We often see people asking prices that are so far outside the realm of reality that it becomes laughable. Recently I saw an ad for a "rare" Boxster (the original over used adjective) which was asking more than twice the price for a car that we had just done a PPI on (exact same year, model, more options, fewer miles, immaculately clean). Some people cling to this dream for a while and then quietly drop the price and move on.

If you think asking prices are out of line, when we do a PPI, we provide the prospective buyer with a detailed list of what the car needs and how much we would charge to do the repairs. Sometimes the seller, when confronted with the PPI results, either refuses to drop the price, or only offers a token price reduction that is only a fraction of what it would take to make the car 100%; and the sale falls through.

Some people just need to learn to take the ego and emotion out of the process. In the real world, the market determines the car's worth, not your dreams.

[Fyeganeh]

Originally Posted by JFP in PA

You are dealing with people's egos, which they usually are not going to negotiate away easily. We often see people asking prices that are so far outside the realm of reality that it becomes laughable. Recently I saw an ad for a "rare" Boxster (the original over used adjective) which was asking more than twice the price for a car that we had just done a PPI on (exact same year, model, more options, fewer miles, immaculately clean). Some people cling to this dream for a while and then quietly drop the price and move on.

If you think asking prices are out of line, when we do a PPI, we provide the prospective buyer with a detailed list of what the car needs and how much we would charge to do the repairs. Sometimes the seller, when confronted with the PPI results, either refuses to drop the price, or only offers a token price reduction that is only a fraction of what it would take to make the car 100%; and the sale falls through.

Some people just need to learn to take the ego and emotion out of the process. In the real world, the market determines the car's worth, not your dreams.

Last time I checked the price of a Boxster with all new parts and a four year or greater warranty is running somewhere around $60,000. So getting a used one for 10-20K could be considered somewhat of a bargain and the problems you find in a PPI gives the buyer an idea of how much they need to keep it running - not necessarily how much to reduce the price. The 10-20k already has the reduction in it.... Like I said it has to do with the art of negotiation......

Another way to look at it is if you do a PPI and find no problems does that mean the car price should go back up to 60k..... I would guess no.

Bottom line - how bad does the seller want to sell and how bad does the buyer want to buy....

My guess is 10k will be close to the bottom for a working Boxster and given inflation and the scrapping of 986s over the years - the number for sale will drop over the next 15 years and prices then will be higher than today. I'm just hoping mine will keep running without making me go bankrupt;-)

[JFP in PA]

Originally Posted by Fyeganeh

Last time I checked the price of a Boxster with all new parts and a four year or greater warranty is running somewhere around $60,000. So getting a used one for 10-20K could be considered somewhat of a bargain and the problems you find in a PPI gives the buyer an idea of how much they need to keep it running - not necessarily how much to reduce the price.

With the exception of the rare cases where the car up for sale literally needed nothing, I do not believe any car we have done a PPI on that ultimately went to sale closure ever went for the asking price, always less. Besides sorting out the really undesirable cars (and we have seen a few of them as well), the PPI results have nearly always been a negotiation leverage point for the buyers, which is one of the principal reasons many buyers require one.

[Fyeganeh]

Originally Posted by JFP in PA

With the exception of the rare cases where the car up for sale literally needed nothing, I believe any car we have done a PPI on that ultimately went to sale closure ever went for the asking price, always less. Besides sorting out the really undesirable cars (and we have seen a few of them as well), the PPI results have nearly always been a negotiation leverage point for the buyers, which is one of the principal reasons many buyers require one.

If I were a buyer, I would definitely get a PPI both for leverage and for evaluating what troubles lurk ahead. I told my friend who was buying a BMW and asked for advice to get a PPI.

A seller though should start at a higher price knowing there is room to go down for bargaining purposes. A seller should also be prepared to respond to the results of the PPI and have a little room to move so the buyer feels happy - ie the art of bargaining.

The reality is that 10-15K already has priced in a lot of depreciation for future maintenance. At 1-2k per year maintenance these cars are bargains when compared to buying or leasing new cars. But then again they are older.