One Year Later - G50 Market

[Sox Fan]

Almost exactly one year ago I purchased my first Porsche, an 89 Carrera coupe. Here is the thread I started where I asked for some advice from the group here:

May be buying my first 911 - need advice

The car had 39,000 miles and was in great condition and was only two hours away. I ended up paying $32,500. Feedback from most Porsche people said that price was high. As I studied the market at the time, it seemed like a fair price - perhaps I paid a premium of a grand or two.

At any rate, the car has been great. Reliable and fun as can be. No mechanical issues, does not leak a drop of oil, etc. Put 5,000 great miles on it this year before putting it into winter storage in early November.

Looking at some recent G50 coupes advertised for sale, I see cars with 80-100k miles with asking prices from 30-35 in some cases. Makes me feel much better about paying what at the time may have been a premium. Very interested to see where prices go this spring as the economy continues to improve and more of these cars get shipped overseas.

[TurboB]

Originally Posted by Sox Fan

Almost exactly one year ago I purchased my first Porsche, an 89 Carrera coupe. Here is the thread I started where I asked for some advice from the group here:

May be buying my first 911 - need advice

The car had 39,000 miles and was in great condition and was only two hours away. I ended up paying $32,500. Feedback from most Porsche people said that price was high. As I studied the market at the time, it seemed like a fair price - perhaps I paid a premium of a grand or two.

At any rate, the car has been great. Reliable and fun as can be. No mechanical issues, does not leak a drop of oil, etc. Put 5,000 great miles on it this year before putting it into winter storage in early November.

Looking at some recent G50 coupes advertised for sale, I see cars with 80-100k miles with asking prices from 30-35 in some cases. Makes me feel much better about paying what at the time may have been a premium. Very interested to see where prices go this spring as the economy continues to improve and more of these cars get shipped overseas.

Congrats! Sounds like you made a great move. It's good to hear the follow up. I hope that a year from now (soon) I have a similar story.

[techweenie]

Ha. Shows the value of ignoring the Peanut Gallery and going with your heart. Congrats!

[nixtfy]

Originally Posted by techweenie

Ha. Shows the value of ignoring the Peanut Gallery and going with your heart. Congrats!

I will have to remember this statement the next time I buy. I always look back at my cars after parking. This alone is worth paying the extra money.

[MrBonus]

Good for you. Searching for the "perfect deal" is an exercise in frustration that often will simply leave you without the car of your dreams.

[CountD]

Yea, I had to check the Peanut Gallery to see if I posted on your original post last year - to see what I said. I didn't, but this year another question came up like yours and told them to do it. Really, yours was cheaper than it was new, and it looks new, so to think of all the money you saved (based on inflation). Goes to show though buying something that you want and paying a premium (at the time) pays double - you got a car you have been loving all year and now you're ahead of the game.

[Sox Fan]

And I sincerely mean zero disrespect to the folks who said I was paying too much. I only share as one example of where the market was and where it is today.

When a market like this is moving up quickly, it seems that often the most knowledgeable folks are a bit behind the curve. Simply, I think, because their knowledge goes so far back and many long time owners probably haven't purchased a car in a while.

Human nature plays a role as well. We always hear about the crazy deals people got but people who may have paid more than the market are less likely to share that info for fear of looking like they got taken, etc. Thus, on-line discussions are often missing some important data.

[911 sc]

Great buy

[CountD]

Originally Posted by Sox Fan

When a market like this is moving up quickly, it seems that often the most knowledgeable folks are a bit behind the curve. Simply, I think, because their knowledge goes so far back and many long time owners probably haven't purchased a car in a while.

This is very true. Many questions were asked a year ago on this forum, and people said "I wouldn't pay $4K for that car, or that car isn't worth $6K." Times have changed very quickly.

[OceanVista]

Low miles 911s are incredibly hard to find. When you find one...buy it.

I did just that on our 89 Speedster. One of the most amazing cars I have ever driven let alone owned.

Happy New Year everyone and the best of everything for you and yours in 2014 +

Tim Harris

[triplenet]

I saw where I had responded to your initial post.
Since then, I followed my advice and purchased a '89 Carrera coupe from a Pelicanite.
It is red/black-not my favorite combo, but it was in such good condition and a fair price, it's now in our garage.
Now, I need the weather to straighten out so I can drive it!

[PushingMyLuck]

Doesn't mean the 80k-100k G50s are actually SELLING for $30k and up.
Most are selling in the high 20s.

[rw229]

Not much difference between 30ish k and high 20s, especially for a good car. If a few k are holding you back, you should save up or consider a different hobby.

Originally Posted by PushingMyLuck

Doesn't mean the 80k-100k G50s are actually SELLING for $30k and up.
Most are selling in the high 20s.

[Sox Fan]

Originally Posted by PushingMyLuck

Doesn't mean the 80k-100k G50s are actually SELLING for $30k and up.
Most are selling in the high 20s.

True but when I was shopping a year ago, those 80-100k G50 cars had asking prices between 24-28k. That is actually what I wanted to spend but stumbled on the low mileage one.

[va_alfa]

Originally Posted by PushingMyLuck

Doesn't mean the 80k-100k G50s are actually SELLING for $30k and up.
Most are selling in the high 20s.

Good to excellent G50's are selling for $30k +


Searching Auctions for Porsche 911 | Keith Martin's Collector Car Price Tracker

[biosurfer1]

For years I have kept up with Porsche market, mostly the 911 and 914 markets. I usually have a decent idea of what things cost but the 911 markets are out of control lately. When someone asks me what 19xx 911 might cost, I usually say I have no clue, it's been 2 weeks since I looked and that could mean being several $1000 off these days. I wonder if it's a bubble or not, seems impossible to sustain the upward movement.

[Photon]

I wonder if it's a bubble or not, seems impossible to sustain the upward movement.

Interesting question. Early 911s can exceed the cost of a new 991, so there's a lot of focus among Boomers and Gen-Xers who have wanted a 911 for years (or decades) on the relatively affordable SCs and G50s, which brings us back to the OP. So long as the stock market stays up and real estate continues its recovery, maybe people are feeling that they have delayed gratification long enough and that a few thousand bucks more or less really doesn't matter if that's what it takes to finally get a decent 911. The average fungible new disposa-car is now over $30,000 and depreciates over 50% by the time it's paid off, so the notion of spending $30+ on a classic car that's durable, fun to drive and holds it's value just adds fuel to the fire. Add in European buyers pulling cars out of the US and the supply continues to dwindle. Sustainable? Who knows, but the OP's rationale strikes me as sound. Well played, Sox Fan!

[OceanVista]

Bubble?
No.
Prices adjusting to where they should have been had there not been a recession. Same with real estate.
Add to this much of what has been mentioned:
1) International buyers. Not just the Europeans. Now, Asians.
2) Inflation. Once significant inflation hits there will be a rapid rise in hard assets. That is one of the reasons Wall Street has become the nations largest landlord. They are banking (literally) in single family house appreciation.
3) Move to hard assets as a store or wealth. All classes of 'collectibles' are on the rise.
4) Demographics. (Gen X and Baby Boomers overlap in their car desires)
5) Trendy. Old Porsches are and will become very trendy over the next 24-36 months. Trendy in the terms of people wanting to be seen in them who aren't your traditional old Porsche owner. Example: David Beckham owns a clone of McQueens 71S.
6) Ferrari investors are buying old 911s. If you go to the auctions (we do) speak with the guys looking for the $250k 67s...chances are he has a few classic Ferraris.

The list goes on.

No bubble.

[SilberUrS6]

Originally Posted by OceanVista

Bubble?
No.
Prices adjusting to where they should have been had there not been a recession. Same with real estate.
Add to this much of what has been mentioned:
1) International buyers. Not just the Europeans. Now, Asians.
2) Inflation. Once significant inflation hits there will be a rapid rise in hard assets. That is one of the reasons Wall Street has become the nations largest landlord. They are banking (literally) in single family house appreciation.
3) Move to hard assets as a store or wealth. All classes of 'collectibles' are on the rise.
4) Demographics. (Gen X and Baby Boomers overlap in their car desires)
5) Trendy. Old Porsches are and will become very trendy over the next 24-36 months. Trendy in the terms of people wanting to be seen in them who aren't your traditional old Porsche owner. Example: David Beckham owns a clone of McQueens 71S.
6) Ferrari investors are buying old 911s. If you go to the auctions (we do) speak with the guys looking for the $250k 67s...chances are he has a few classic Ferraris.

The list goes on.

No bubble.

My driver-quality '85 3.2 I bought in the mid-teens would now get low-twenties. I bought two years ago. If I ever do a top end, I can add $4k to the price, if the paint is shiny and the interior remains a 8.5/10 that it is now. I don't think the market will go down much. It will flatten this year, IMO, but not recede.

[PushingMyLuck]

The stock market is up 30% in 1 year.
This happened 5 times in the last 80 years.
That is driving this entire thing.
When the stock market corrects, you will see many buyers evaporate, and prices correct back down.