Cost of ownership of buying a "fun" 3rd car (and keeping it for 20 years)

[PushingMyLuck]

A friend wants to buy a new Porsche as a weekend car, but he was having a hard time justifying the $800/mo lease for a car that might get driven 3000 miles a year. Of course, I advised him to just buy the car outright and keep it for 20 years. Isn't that how people do it? That got me to thinking about total cost of ownership of an exotic. I was thinking more about people who lease exotics (rappers) vs. enthusiasts who buy/own the car for many years. What is the best way to calculate this?

How about an example? 1993 Porsche 911 MSRP was $55k. 20 years later, trade in value today is about $20k. Netting out the sale price, you’re out $35k to own the car for 20 years. That’s about $100/month. Is that right?

Today, a late model Porsche 911 with 20k miles can be had for $50k. Basically a new car. Assuming you have the money, what is the cost of owning this car for 20 years? $50k "self-financed” over 20 years comes out to $275/mo. But, you’d still have a residual value of $15k-$20k.

Numbers might be off, but can you net that residual right off the top? So, you only take a $30k loan for 20 years at 3% = $166/mo. (The main flaw here is that I am ignoring the time value of money)

The general premise holds, regardless. Owning an exotic for 20 years is a fraction of the cost of leasing a new $800 exotic every few years.... The key to this analysis is that the 3rd weekend car barely gets driven. Many people own these cars for 20 years, since they are often the 3rd car, and see little use. Most 20 year old 911’s are lucky to have 100k miles on them.

If the desire is to enjoy a true driver’s car, it appear that it can be done very affordably. But, if the goal is conspicuous consumption to impress others with the latest/greatest, then this analysis doesn't apply.

Anyone done this type of analysis and have anything to add?

[Bill Douglas]

I couldn't lease an exotic. I would feel I was driving around in a "borrowed" car. Tell him to buy a '97 993.

[Heel n Toe]

Originally Posted by PushingMyLuck

1993 Porsche 911 MSRP was $55k. 20 years later, trade in value today is about $20k. Netting out the sale price, you’re out $25k to own the car for 20 years. That’s $104/month. Is that right?

Today, a late model Porsche 911 with 20k miles can be had for $50k. Basically a new car. Assuming you have the money, what is the cost of owning this car for 20 years? $50k "self-financed” over 20 years comes out to $275/mo. But, you’d still have a residual value of $15k-$20k.

Numbers might be off, but can you net that residual right off the top? So, you only take a $30k loan for 20 years at 3% = $166/mo. (The main flaw here is that I am ignoring the time value of money)

Those figures are probably about right, but remember there is maintenance and repairs. Maintenance you can probably predict fairly accurately, but repairs, not so much.

And then you have to calculate the insurance, which is also going to be higher for a Porsche.

And even higher for a new one.

Originally Posted by PushingMyLuck

If the desire is to enjoy a true driver’s car, it appear that it can be done very affordably. But, if the goal is conspicuous consumption to impress others with the latest/greatest, then this analysis doesn't apply.

Is your friend the former or the latter? To each his own, but if he's just trying to impress others, let him make his own decision because he's probably not going to listen to reason.

I'm trying not to use the phrase "d-bag" when referring to those who drive to impress, but am finding it difficult. Please forgive me for being so straightforward.

Good luck to your friend.

[onewhippedpuppy]

You are always going to lose your ass buying a newer car. It gets even worse when you consider depreciation, maintenance, insurance, etc. I would recommend buying something in the $20-40k range, which will yield a nice 996 or 997. Why? These $100k cars have by this point already lost 2/3 to 3/4 of their value, and the depreciation curve is starting to level off. Because they have lower book value they will be far cheaper to insure. As for maintenance, you can find a low mileage car that won't have much more than a brand new one.

Another option would be to go older and buy an SC or Carrera, which seem to be increasing in value, a 964 which are bargains right now, or the 993 that seem to have bottomed out at $30k. The older cars will require more maintenance but will all likely appreciate given time, and can be cheaply insured with a collector car policy.

[Crowbob]

I'm finding it difficult to swallow the idea that someone who is acquiring an exotic is not acquiring it to impress, at least in major part. A car is a car, but an exotic is a symbol. The exoticer the car the symbolicer it is.

Buyers of collectibles, on the other hand, seem to me to be motivated either for the fun of ownership and occasional driving or for speculation, or some mysterious combination of the two.

I would buy a 'fun' collectible but only if there was some reasonable likelihood of appreciation in value over time-because I'm cheap.

I would lease an new exotic to get chicks. I'd buy one to get poor.

Interesting discussion.

[LakeCleElum]

I bought my '73.5 Targa in 1990 for $8K......Even counting the money I've put into it, I could almost get double my money back.

Have him buy a classic of some sort, take care of it and enjoy.

[Porsche-O-Phile]

IMHO s lease is an overpriced rental.

And if you haven't figured it out by now, sports cars don't attract chicks, they attract overweight, balding, middle-aged, undersexed males.

[GH85Carrera]

I bought my 85 Carrera in 1995. I have not had a car payment in this millennium.

It is worth right about what I paid for it all those years ago. I have driven it 70,000 miles in 18 years so 3,800 miles a year. Not a ton but more than most owners of old 911s.

I have had immeasurable fun in the car. I have driven it to both coast and to the Upper Peninsula of Michigan. I have see deep triple digit speeds on the track at Charlotte Super-speedway, and the Rocky Mountain National Park. Over 20 National parks total. I have done over 100 autocrosses, several DEs and a lot of road trips.

I did not buy it as an investment. I really hope the prices of 1980s Carreras go up like the early long hoods. If they do great. If they don't that is OK. I will keep my sorted and very nice Carrera.

[scottmandue]

Originally Posted by Porsche-O-Phile

IMHO s lease is an overpriced rental.

And if you haven't figured it out by now, sports cars don't attract chicks, they attract overweight, balding, middle-aged, undersexed males.

Hey now! I resemble that remark!

Fortunately I don't have the funds for an exotic car.

To the OP, if he wants a "look at me" car point him at a Lamborghini

[Crowbob]

Oh jeebus, P-O-P.

Now you tell me this?

[biosurfer1]

Originally Posted by Crowbob

The exoticer the car the symbolicer it is.

That may be the quote of the year in my book.

[onewhippedpuppy]

Glen that is an awesome picture.

[porsche4life]

Matt, it's much cooler with a red car.

I've had my 944 for going on 9 years, I don't even want to say how upside down in it I am. But I've loved every minute of it, and have no intentions of selling it, so no worries!






Tell your buddy, that if it'll make him happy, jump in head first, and never look back.

[onewhippedpuppy]

Sorry Sid, needs a little more oversteer.

[porsche4life]

Take that up with the photog, as he snapped me on the entry, not the exit... I've usually got Glen beat in the sideways slide business.

[porsche4life]

...balding, middle-aged, undersexed males.

Speak for yourself there!

[ben parrish]

16 years--paid 16,800.00 for it--drove over 70,000 miles.
I do my own maintance but has been a dead reliable car.
Brakes and one clutch. A few sets of rims, 7 or so sets of tires, a few cosmetic changes, a few interior modifications...all in all a pretty cheap hobby considering the fun it brings.

[GH85Carrera]

Originally Posted by porsche4life

Matt, it's much cooler with a red car.

I've had my 944 for going on 9 years, I don't even want to say how upside down in it I am. But I've loved every minute of it, and have no intentions of selling it, so no worries!




Tell your buddy, that if it'll make him happy, jump in head first, and never look back.

I paid the photog for the RAW file of my car. It is a 72 MB file. I have a 24 inch wide print of that in my garage and at my office. I would make a bigger one but I don't have the wall space.

[LeeH]

I kept pretty good records on my last 911 - a '72 that had an '82 SC engine. I just made a dedicated account on Quicken and put all of my expenses into that category. I bought it in 2006, and sold it in 2010. Including the cost of rebuilding the engine (myself) the car cost me $4400 including everything except gas.

Of that $2200 was a front oil cooler installed by Patrick Motorsports and about $1800 for parts and machine work to rebuild the top end.

[Zeke]

OTOH, I leased and then bought out of the lease a 2 YO Boxster. I don't want to know what that has cost over the last 10 years. But, if it makes the wife happy....

I'm sure there are more expensive propositions.

At least that's the way I'm going to look at it.