I think those 0% APR or $XXXX cash back deals are hilarious.

If you take the 0% APR, you have essentially paid the interest on the loan upfront. I've run some net present value calculations on those deals and found the effective interest rate to be as high as 15%!!!

How do you figure?

+1

Heavier than a Corvette, about as fast as a Beemer sedan, with more creature comforts than most SUV's. Totally disconnected from the road via PASM, anti-lock, cruise control... Naw. Gimme a Lotus Elise, if we are talking new cars.


That is a large part of why I agree with Paul. In addition to having lost their soul, I don't even want to think about maintaining one off warranty. Egads.

The folks in this end of the pool are not DIY mechanics, either. What would be mechanically daunting to most of us (or even pretty damn simple, for that matter) would be a simple impossibility for them.

Notice a large number go up for sale with a major service pending? Or the ones that have just had one use it as a critical selling point? Then the next poor schmuck is just buying time, afraid to drive it with that service looming within a finite number of miles. I know a guy like this. Once accross town is a very big day for him. Sad.

The only problem with this math is NO new car that has a MSRP
of $15,000 also has a $3500 rebate or 0% offer, plus standard rates are a bit higher now than 4.99%
In some situations you are better off taking the rebate in lieu of 0 %

I have a 2002 Boxster, and the warranty runs out in July 2008, and sure don't plan on owning it after June. Things might be fine, but WOW can you get into the expensive end of the pool with those puppys.

I don't buy into your guys disgust regarding constantly changing cars. So what if want a new car every 2 years? I REALLY enjoy my cars, and I don't see anything wrong with viewing it as a luxury.

There are 2 different scenarios for people always buying new luxury cars. One is the typical consumer who is getting reamed on interest and depreciation just so that they can drive something new with a warranty. Usually they do not realize how many replacement engines and transmissions plus complete wiring harnesses they could buy with the $$ they are pissing down the toilet. And of course 1 in a million car owners ever has to buy a new engine, but anywhoo...

There is a second scenario, which for some reason people here choose not to acknowledge or understand, and it applies to new Porsches. There are a LOT of people with a LOT more money than you and me. Buying a new 997 is like buying a pair of socks for them in terms of household expense. Why on earth would they look at a used car? That's an absurd concept; they would liken it to buying used underwear. Even if it's in mint condition, no thanks.

This has not significantly changed over the years, it was the same when I sold new Porsches 20 years ago. 944s might have sold to people who were living off of credit cards, but 911s and especially 930s and 928s were cash deals. They would usually write a check of have their business managers wire the $$ over. Frequently they did not want to test drive the car first, just "get it ready for me".

There is a crazy amount of money in the world right now. Sales of private jets are at an all-time record high. Apartments in NYC and houses in Malibu sell for $20 million plus the day they are listed. Average shmoes like us can get smoking deals on the discarded expensive schit they buy when they are through with it in a couple of years. There is no strong secondary market for used 5 yr. old Porsche turbos.

The 996TT are in the toilet for re-sale. Great for a buyer, not so great for a seller.

The 930, 965 and 993 are holding their values well.

Yasin

Nothing at all? Megamillions?

Heathen!

http://forums.pelicanparts.com/uploa...1173233062.jpg

Good points all! A couple of my own. Dealerships make their money mostly on service, not selling cars. Those shiny new buildings are being built on $500 brake jobs and $100 oil changes. As far as any of these car "appreciating" in value, well, that's not going to happen for a long time. They may depreciate less, like the 993 or 3.2's, but no one is buying and then selling these as any profit like a longhood S. They car has to be in low production and highly sought after. I don't thing a 996 turbo falls in either. Depreciation is also based on production numbers which are very high for any late model Porsche. I've been shopping around and in my opinion, BMW has the best programs for buying a used vehicle with warranty coverage. I can buy a certified 545i from a dealer with an additional 2 years, 50,000 miles on the 4/50k. Even add no maintenance up to 100k miles for $1200. Now add loan rates at 3.9 to 4.7% up to 72 months (this month they are paying the first two months on top of this). I wouldn't even consider this with a used Porsche.

Wow, and I thought Pelican were die hard P-car fanatics. Guess not.
But, I still love my car, even if it's not appreciating in value. What happened to the saying, "these cars are meant to be driven?"http://forums.pelicanparts.com/uploa...1173284623.jpg

Look how sad she looks...:(

Actually, I haven't found a situation where you were better off not taking the rebate. The number themselves may not be realistic, but you get the picture. I just whipped those up on the spot.

People with Cash Flow buy new cars. People with lots of money buy 2 year old cars.

I bought a brand new F150 in 1998, I still have it today, just crossed the 100K mark. So far maintence has cost less than $2000, including a new set of tires. Before that I had an 85 Ranger that I bought in 86.

Cars are for the utility for going from point A to point B.

Well-put.

The corollary to this is that "people with cash flow" are very often not the same as the "people with money". In fact "people with cash flow" tend to have too much of that flow flowing away from them. If you want to be a person with money, don't be a "consumer".

I to have looked towards the Exige/ Elise side of things. The new Porsches are to loaded up with electronic gizmos and gadgets. Give me something light weight < 2000 lbs and about 300 hp with no radio, power windows, air conditioning blah blah blah.

Speedy:)