Quote:
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.
Quote:
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.
