Thread: Porsche bubble?
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DanielDudley DanielDudley is offline
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Originally Posted by Wayne at Pelican Parts View Post
I believe that the entire world is currently undergoing an "asset bubble" due to low interest rates and a flurry of cash around the globe chasing too few investments. Real Estate has been a major driver of the Porsche market, in my opinion, as people have refinanced their houses, and bought early 911s, 911RSs, and Speedsters, to name a few. It is my belief that we're all in store for a big Sunday-morning hangover, when interest rates increase (as they will as the value of the dollar declines in the future due to our trade and budget imbalances), and everyone's cheap mortgage turns into a huge monthly bill. At that moment in time, all of a sudden, the Porsche, Ferrari, or Muscle car that was bought with money borrowed against real estate will be the first to go.

Bottomline, look for the market to encounter a downturn just ahead of the real estate market...

-Wayne


If we go back to the OP, and the RS, I don't think that 200K is out of line for an authenticated RS. No matter how you slice it, that car will always be one of only about 1500 cars. The RS is a collectable toy for the super rich, and bubble pricing need not apply. I'm sorry, but ordinary folks just don't seem to get that not everybody sees value the way that ordinary folks do. I have friends who would never pay more than 2,000.00 for a car. Does that mean everybody should scrimp ?

In general, I think there is a trend right now in the magazines to flog old cars as investments. Most are not, but even so, if you can get a deal on a late model Carrera for under 20K, in the long run, you may have fun and break even. I still kick myself for not jumping on that nice one that sold here before Christmas for 14.5.

If you buy an early M3 right now, pay cash and hang on, in the long run you will be rewarded. There just aren't that many left, as most were driven to death. If you want a Porsche, get an 89 Carrera, or a nice 928 GT or GTS. While there may be a bubble, some people are begging you to buy their car. Guys like Wilhoit are picking them up. Someone sold a GTS on Rennlist a few weeks ago for under 20K. That is a deal. Now is a GOOD time to buy, if you are secure, and have your wits about you.

Bubble or not, some people always seem to buy right and sell at the ideal time. Others, like me, never seem to make or lose too much money on the cars they buy, because they either pay a little extra for the right car, or buy a cheap example because it is affordable. You will never get rich that way, but you won't go broke either. The guys who buy the GTSs for a premium from Wilhoit are the same ones who sell them back to him at a loss.

Now, as always, the question is, which kind of guy are you ?
Old 03-14-2009, 05:26 AM
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