Would you finance an aircooled 911?

[FloydPink]

We all love these cars and we've all seen the prices skyrocket over the past few years because Porsche doesn't "make them like this anymore". I'm wondering, given the echo chamber prices of BaT or other auction sites, how many of you would finance an aircooled 911?

[MrBonus]

While someone can make a palatable argument that their liquid assets could outperform the interest on the note, there is something I don't like about financing a toy and I wouldn't do it.

[dwelle]

hard no...

[juanbenae]

you will have to pay a pretty high interest rate on a loan of that sort. not sure a lender would want to put their name on the title a car that old therefore it would be like personal loan rates. unless you pulled equity out of your home for a line of credit could bring down the interest rate and could be tax deductible.

[Matt Monson]

Originally Posted by juanbenae

you will have to pay a pretty high interest rate on a loan of that sort. not sure a lender would want to put their name on the title a car that old therefore it would be like personal loan rates. unless you pulled equity out of your home for a line of credit could bring down the interest rate and could be tax deductible.

Nah. They will write that loan. I see a bunch of guys on RL and FB talking about financing 964s and 993s. I get the impression they are way younger than you or I.

[ab1752]

No way. My younger self might take exception to that wisdom of the ages, however.

[Marine Blue]

I did when I bought my 964 Targa five years ago although to save on interest I refinanced my Spyder which was paid off. I have since sold the Targa and bought a 964 Coupe and my Spyder is paid off so now I have two of my dream Porshce’s both paid off.

Answer should be, if it’s not going to be a burden on finances, you’re knowledgeable with what you’re purchasing and not buying a car that is wildly overpriced and or will need lots of additional money to make it worth what you’re paying then why not?

[Patrick3000]

I have done this many times and it is simply not an issue. Terms are no different than any other loan, cheap money is still available.

[1979-930]

Finance; Hell no. I think of selling every year when I have to service them, pay registration and insurance.
Make money on cars... that's funny.

[crb07]

Wish I had financed a Carerra GT about ten or so years ago.

[Unobtanium-inc]

Nope, if you can't afford a Porsche, you can't afford a Porsche. If you have to finance it you'll probably not have the money to maintain it. Take it from a guy who financed a 911 at age 19....

---Adam

[Marine Blue]

Sometimes saving enough cash to buy doesn’t make sense if the market is moving faster than you can save which has been the case for aircooled Porsches for the past 10 years. If I waited until 2019 to buy my Targa I would have effectively paid at least $20k more and it would beg the question what would cost more, taking out a loan which had a 2.49 rate or $20K. I can tell you that the $20k is at least 10x more.

One caveat, as we are at a high point in the market if you do intend to take out a loan you better be ok with having a car that may be worth less than you owe. Nothing new really considering a new car loses immediate value (in a normal world) but still something to consider.

[Arbee]

Finance real estate. Don't finance collector cars, boats, motorcycles and other toys.

[Munky King]

Originally Posted by Arbee

Finance real estate. Don't finance collector cars, boats, motorcycles and other toys.

I agree. For the average guy like me, debt is the worst form of poverty.

Only do it if you must - house, own business or at a push a daily driver so you can work. After that, I wouldn’t put my family in debt for a selfish toy. Especially one that can blow up and end up worth pretty much 1/2 the value (major engine issue etc).

[Rawknees'Turbo]

I financed my 930 back about 2006 (when good ones cost mid $30K or so); I qualified for a signature loan from USAA due to having good credit (for about 2/3 the cost of the car - paid cash for the remainder) - don't remember what the interest rate was but it was decent. I then paid the loan off in about half the time frame specified by making double payments regularly. I don't have any regrets doing that and would do so again if I wanted to. BTW, I was early 40s at the time, if that makes any difference, and have always been responsible and cautious when it comes to spending.

[Matt Monson]

Originally Posted by Rawknees'Turbo

I financed my 930 back about 2006 (when good ones cost mid $30K or so); I qualified for a signature loan from USAA due to having good credit (for about 2/3 the cost of the car - paid cash for the remainder) - don't remember what the interest rate was but it was decent. I then paid the loan off in about half the time frame specified by making double payments regularly. I don't have any regrets doing that and would do so again if I wanted to. BTW, I was early 40s at the time, if that makes any difference, and have always been responsible and cautious when it comes to spending.

It’s a different world now, and the question is in the present tense. Would you finance your car today, at its current 6 figure value? That’s the question the thread has asked.

[Unobtanium-inc]

Originally Posted by Matt Monson

It’s a different world now, and the question is in the present tense. Would you finance your car today, at its current 6 figure value? That’s the question the thread has asked.

Kind of like grandparents telling recent college graduates they should "invest in a home"! Most cities this is a myth these days.

---Adam

[NYNick]

Having read several responses, I'm changing my vote from "no" to "maybe", with a few caveats.

First, if it's a new toy and you're new to the 911 world, absolutely not.
Second, if you can't afford to pay cash, absolutely not.
Third, if you're simply putting your cash to better use and can borrow at lower rates than you can make investing the cash, maybe yes. (I did this with my new BMW)
Fourth, if you're well heeled and you're just playing the car market, sure, go ahead.

I'm sure there are others, but financing an air cooled to get into the hobby is a bad idea.

[cabmandone]

Nope. But I don't borrow for any car purchase. I hate paying interest.

[Travisrt1985]

when I bought my 88 4 years ago I technically had the full amount in cash but opted to put 60% down and get a 40% bank loan. I've spent about $18,000 on the car over the last 4 years in maintenance/upgrades. I opted not to pay for the car in full as I wanted extra cash on hand to get the car fully sorted and had anticipated extra hidden costs. Maybe not ideal but to a 33 year old getting his first 911 that's the route I personally chose.