Why do 911 Turbos depreciate so quickly?

[HardDrive]

I was wandering around E-bay tonight looking at cars, and zeroed in on 911 turbos. I was shocked at how low the prices were. Cars that were $140k+ new are now in the $60-70 range, and some have less than 20,000 miles on them.

Obviously E-bay is not the definitive place to go for market prices, but it still indicates a huge depreciation curve. Understandable for Boxsters, when the company is making tens of thousand a year, but the turbos?

There is a 2001 on there for $62.8, 24,00 miles. $63k for a car that hits 60 in 4.3, 185+ top end? Sign me up chief!

Are they pieces of junk?

[speeder]

I think that's a normal depreciation curve for that car. In the realm of $100k+ luxury/sports cars, it's actually holding pretty well. the thing you need to consider is that the primary market for those cars is the new car market and they sell to people who can buy them like a pair of socks, they would rather pay $20k over sticker for the newest/baddest status ride than have last year's news. That new Audi will be the hot car for the next couple months here, then cool down.

A 5 year-old 996 turbo w/ some miles that just went out of warranty and just lost the last of its *new car smell* is worth half of a new one. Only Ferraris and other low production exotics defy this, and usually only with super-low miles.

I would disagree that eBay is not the best indication of value. I think it is. It's the only place where you can see actual trading prices, somewhere like Autotrader is worthless with all of the dreamer sellers and no indication if anything is selling and for how much.

[artplumber]

OTOH, the depreciation eventually stops.....

[RallyJon]

Originally posted by artplumber
OTOH, the depreciation eventually stops.....

That's true with all Porsches. The core Porsche market (as opposed to the capricious, style conscious new Porsche market) removes the excesses that new Porsches come with--huge profit margins, latest greatest bling markup--and what you have left is a fairly stable value that represents the true intrinsic value of the car. From that point, the value adjusts much more slowly, relating more to mileage and condition than age.

[Christien]

I think the release of the 997 also plays into it. All of a sudden, as Denis said, the 996 is last year's news. A lot of people jumped ship to the 997, so the market got flooded with 996s, and consequently prices dropped. Now people who were considering boxsters are able to afford 996s. I saw a 99 advertised yesterday for I think $29K. NA, no fancy stuff, but still, under $30K? Top-end 3.2s are selling for more than that sometimes!

[Jay H]

Remember when the 993 Twin Turbo's came out? Used ones were holding their value insanely well. They barely dropped in price! It took a while before they came below $90k or so.

I think production numbers come into play as well. Porsche didn't seem to make that many Turbos in years past (only two years of production on the 993 Turbo, '94 3.6's are rare, '91-'92 cars weren't built in huge numbers, etc). Now, 996 Turbo's are plentiful and the new 997 Turbo is out without much waiting between models (996 to 997). So, supply exceeds demand and pricing reflects that verses years past.

The 996 Turbo wasn't the old insane animal that Turbos used to be. I've not driven one, but several people I've talked to that have had decent seat time in them (and are familiar with older Turbos) state that while very quick, they could be used daily with little trouble or stress. More GT in feel than raw sports car. Maybe that affects what the used enthusiast market thinks of the car as well. The GT3 was always the more raw car and maybe enthusiats that have $65k to blow on a car may just pass up the "cushy" Turbo and go for something more raw...

In my area near my work, I used to routinely see a woman in her 60's driving a silver (did they all come in silver??) 996 Turbo around in town at 25 mph. I'm sure it was an automatic and was bought for status, not performance.

Jay
84 3.2, 90 964

[the]

Porsche Turbos, and Porsches in general, used to be special cars. People used to yearn for them and dream about having one for years while they worked to save up the money to buy one.

Now they are just mass-produced, churned out cars which are not that different than many other sports cars. And those that really want one just clip the "LOW LOW DOWN!!!!!" coupon out of the Sunday paper and go to the dealership to lease a Porsche for a few hundred a month.

They've become widespread appliances, so the values don't hold up any more.

[john walker's workshop]

"what's this old world coming to? things just ain't the same". water in a porsche?

[jyl]

$63K - geez, I'm over 40 and only this year passed $60K cumulatively spent on car purchases during my lifetime.

For $63K, the thing better go up in value. I wouldn't spend that except on a true collector/investment car. Unless/until I'm about 4X richer.

[K. Roman]

I bought a 996 Turbo recently, and have been enjoying every minute of it. The thing is dumb-fast, and beautiful to look at especially the side air intakes, the width of the car and all the modern amenities. Water cooled yes, but it's still a Porsche and is one of the best cars on the road for the price.

[CurtEgerer]

High-end electronically-controlled modern cars have become disposable. Depreciation increases exponentially as they approach the end of the warranty. Once they're off warranty, it's like passing a hot potato around - you take it. No you take. No YOU take it!

[pwd72s]

Originally posted by john walker's workshop
"what's this old world coming to? things just ain't the same". water in a porsche?

The lottery thread here...even if I won megamillions, I wouldn't visit a Porsche dealership. NOTHING made by Porsche today interests me.

[artplumber]

Moral of the story: Let someone else pay a car's depreciation.

[Porsche-O-Phile]

Depreciation on vehicles has gotten ridiculous. The principle is making us such a throwaway society on everything from cars to appliances to computers it'd even make manufacturers of Chinese rubber dog schit blush with embarrassment.

Pay twice as much for something two years newer? Hell no.

[Christien]

Originally posted by artplumber
Moral of the story: Let someone else pay a car's depreciation.

Amen, brother! I can't ever picture myself buying any car new, fun toy or appliance car.

[Jay H]

Originally posted by Porsche-O-Phile
Depreciation on vehicles has gotten ridiculous.

You ain't kiddin'...

My sister is thinking about getting a new car. However, to trade up 4 years and 38,000 miles (only!) on her domestic car is an absolute joke. These dealers won't discount much and her trade is worth essentially nothing.

Does everyone just buy on monthly payment alone and no one is paying attention to the true numbers of what it costs to trade up on a car? These dealers (of all makes) must be making a mint because 90% of the dealers (domestic AND foreign) around me are building beautiful new buildings with shiny new showrooms. That all costs money, so they must be making money hand over fist...

[Christien]

My father in law works for Ford as a manager at the plant where they build Crown Vics. He says Ford makes something to the tune of $7K CDN per vehicle sold. That's almost 1/4 of the purchase price!

[legion]

Originally posted by Jay H
Does everyone just buy on monthly payment alone and no one is paying attention to the true numbers of what it costs to trade up on a car?

Yes.

If you can afford the "latest and greatest" in your monthly budget, why bother to look at what it is really costing you?

[Type911]

Originally posted by the
Porsche Turbos, and Porsches in general, used to be special cars.

Now they are just mass-produced, churned out cars which are not that different than many other sports cars. And those that really want one just clip the "LOW LOW DOWN!!!!!" coupon out of the Sunday paper and go to the dealership to lease a Porsche for a few hundred a month.

I keep looking for that coupon you are talking about. Sure it wasn't for a Hyundai lease? I'd lease a 997 GT3 for a few hundred a month. Now that would be different. Sign me up

[Jay H]

Originally posted by legion
If you can afford the "latest and greatest" in your monthly budget, why bother to look at what it is really costing you...

Agreed. If your current car costs $419 per month and you can get into a new one for $429 per month, that's all that counts. No one looks at the "to boot" price, interest rate, loan time period, trade in value, etc.

"What does it cost me this month" is all that counts.