So is the slow housing market, bringing prices down on Porsche cars

[1973911s]

Lots of people were buying Porsche cars with home equity, or knowing that they had some crazy equity in there home.

With the real estate market slowing down, and some markets getting extra soft, are prices coming down on used say 1978 to 1989 Porsche 911's?

Thanks

[techweenie]

Sample size is pretty small on this, but I think the overall market is softer, both because of the direct effect of lesser equity and the indirect effect of a lot of talk about the negative impact on the economy as a whole. Don't forget, oil is on its way to $100 a barrel, and all economic news is interconnected.

The fall in the value of the dollar should have a positive effect on buying activity from outside the US. And that should offset weakness in our economy. Theoretically.

[Sunroof]

Plenty of buyers who have way too much cash on hand!! Its just how to get to this market. Porsche is a unique marque and will always attract buyers who do not worry about the state of housing or the value of the Euro to the dollar!
Granted their is a segment of the market that are at a stand still due to lowering housing values and less equity loans; however, collector car values still go up and proven to be sound investments. I would say that the 356's and longhoods will hold if not increase their value's only because of supply and demand. The SC's are popular as is the Carrera line (1984-1989), but all are plentiful and prices are all over the place on these. Condition is more of a driver for these cars these days.

Bob
1973.5T Sepia of course

[grudk]

My gut - I think we'll see some correction in collector car prices, but it depends on what happens with the dollar. If the FED keeps cutting and the dollar keeps tanking, there will be some (limited) overseas support for collector cars. Wealthy in US may even buy best cars as a hedge vs inflation. But this will apply to the MOST desired cars -- speedsters, RSRs, 906s, etc.. More common cars (Carreras, SCs) may take a mild hit, but not much, since they haven't appreciated much and are still 'affordable' to many. Will likely see more rapid depreciation on late-model cars, though. Some 'bargains' to be had there soon

[Zeke]

Pretty good observations so far. I don't see things taking off form here. Why?? Well, if more inventory becomes available, it will be a buyer's market. That should see some competition. We'll see by the time the Scottsdale auctions come around.

Also, see my thread on this forum about Frank's race cars for sale (2.4 mil). Is this the real deal? Why would HE sell now? Does he see a downturn?

[grudk]

Originally Posted by milt

Pretty good observations so far. I don't see things taking off form here. Why?? Well, if more inventory becomes available, it will be a buyer's market. That should see some competition. We'll see by the time the Scottsdale auctions come around.

Also, see my thread on this forum about Frank's race cars for sale (2.4 mil). Is this the real deal? Why would HE sell now? Does he see a downturn?

I've noticed some other long-held collections seem to be selling. Market top? Profit taking? Need the cash for real-estate losses? Hard to say...

Maybe a trend will emerge. Agree that Scottsdale will be interesting. I think muscle cars will be down further

[Komenda Fan]

I am pretty confident that we are seeing a softening in purchase prices, sometimes quite drastically. I don't know if sellers have caught on, just like the last downturn, some people seem confident that their car is some sort of retirement plan.

[the]

I don't think there is any softening in 78-89 prices, and I don't think there will be any significant softening. At least not for high quality examples (ones that are driven into the ground will always continue to go down in price until they hit "parts car" prices, i.e. around $5-6K).

For the 78-89 cars, you are basically looking at $10-$25,000 cars. It's just not a huge amount of money. The thing that will keep them fairly stable on the downside is inflation. That well maintained, nice Carrera that is $18,000 today will still be $18,000 (or close) 5 years from now, if it has been driven moderate miles and is maintained. But of course, that $18K five years from now isn't the same $18K it is today.

The effects of inflation alone will ensure that any good condition, nice driving SC or Carrera will ALWAYS be worth $12K or more.

[racer]

I am not so sure it is bringing prices down on genuine good to excellent condition cars.. But it is taking those cars longer to sell because fewer folks will cash in their equity for a car, now that they have so many other bills to pay off.

Collector car prices may also not be affected because anyone spending 50-300K for a car, more than likely isn't cashing out Home equity.. but selling a painting/house/boat instead. They are more insulated against the housing market downturn.

I think where you see the biggest hit is the $10K-30K priced cars. It seems nowadays, anyone with quick liquidity or cash in this range has slowed buying. They are hedging against further market downturns and know that an SC or Carrera isn't where there money should be.

Any softening in sale prices is due to sellers wanted to cash out quickly.. perhaps to pay off that very same equity loan taken to buy the car in the first place. They want to cut losses quickly and if a car doesn't sell in 1-3 weeks you see big price reductions.

[Bobboloo]

Originally Posted by milt

Pretty good observations so far. I don't see things taking off form here. Why?? Well, if more inventory becomes available, it will be a buyer's market. That should see some competition. We'll see by the time the Scottsdale auctions come around.

Also, see my thread on this forum about Frank's race cars for sale (2.4 mil). Is this the real deal? Why would HE sell now? Does he see a downturn?

I saw Franks' ad. Scary.

Even the well healed take a hit in a downturn. They usually have their money invested and when there is a hiccup like the one from the housing mess it has a domino effect. Those housing loans got re-packaged and sold from one bank to another. Banks over in Europe even took a hit from it.