Nov 19, 2004 3:36:47 AM
- Peter H(Chicago)
- Newbie
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- Loc:
- Posts: 32, Gallery
- Registered on: Apr 15, 2002
Depreciation of the Porsche 996
On the Deutsches Porsche Board there has been an interesting discussion of what might account for the marked
depreciation of the 996, which is so atypical of the 911.
Factors which were brought up were the overproduction of the 996 relative to demand, perceived poor quality for the
price, growing competition in the limited sports car market, and the growing percentage of customers leasing rather than buying.
I think leasing may have substantially broadened the market
of the 911, and sports/luxury cars in general. What was once bought by the wealthy and hard core enthusiasts could now be bought by a much larger segment of the population.
The supply increased to meet this new demand. But instead of the "old time" buyer keeping their 911 for 7 years on average, it's now flipped for what's new and hot every 2 to 3 years. There may also be a change in the mentality of the buyer as well as the leaser. It seems that more and more people are turning over cars quicker, to get the latest style, latest technology and most hp. Or maybe as these cars get more complex, people feel that they are too costly out of warranty. But either way these factors create an overabundance of late model sports cars hitting the market every year, far outstripping demand.
I bought my 996's without a care for the depreciation. I plan on keeping them for as long as they thrill and challenge me. But the cost of depreciation will eventually catch up with me. So what will the future hold for the 997?
I envision it may not be that different from the 996!
Peter
04 GT3
01 996TT
depreciation of the 996, which is so atypical of the 911.
Factors which were brought up were the overproduction of the 996 relative to demand, perceived poor quality for the
price, growing competition in the limited sports car market, and the growing percentage of customers leasing rather than buying.
I think leasing may have substantially broadened the market
of the 911, and sports/luxury cars in general. What was once bought by the wealthy and hard core enthusiasts could now be bought by a much larger segment of the population.
The supply increased to meet this new demand. But instead of the "old time" buyer keeping their 911 for 7 years on average, it's now flipped for what's new and hot every 2 to 3 years. There may also be a change in the mentality of the buyer as well as the leaser. It seems that more and more people are turning over cars quicker, to get the latest style, latest technology and most hp. Or maybe as these cars get more complex, people feel that they are too costly out of warranty. But either way these factors create an overabundance of late model sports cars hitting the market every year, far outstripping demand.
I bought my 996's without a care for the depreciation. I plan on keeping them for as long as they thrill and challenge me. But the cost of depreciation will eventually catch up with me. So what will the future hold for the 997?
I envision it may not be that different from the 996!
Peter
04 GT3
01 996TT
.
