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Fast Fred said:
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kkeating said:
Interesting thread and not at all off topic. How DO we afford these incredible cars... The accountants and money guys won't spend over 5% of their net worth on depreciating assets (our beloved cars); the exuberant car guy will spend most of their paycheck on a car and live in a trailer- where do you fit in? Cars, kids, college, retirement... I have probably spent more than I should on cars and my wife recently asked me if I died tomorrow, how would I feel about the $ I've spent on cars over the years. Since my family is taken care of, I think the money I've spent on cars is the best money I could have spent. The thrill, enjoyment, anticipation, adrenaline of owning some of the best cars in the world that most lust over and dream of even driving- can't be put in monetary terms. Only a car guy can understand this and it's the best money I have ever spent on Myself. No regerets. And today i put a deposit on the 997 TT. BTW, in some years, I've lost as much in the stock market as in my cars but I enjoyed the cars much more!
Now that's a good post ! You are a true car lover. I think the ones who only want to spend 5%, are not. They just buy a Porsche because it's a way of showing their wealth.
Totally agree with your comment on KKeatings post
Believe me, my job has a lot do with number crunching (or, to sound more sophisticated "financial engineering") but it NEVER NEVER would come to my mind to think of a Porsche purchase in terms of investment portfolio or asset classes
- I guess old Ferry would rotate in his grave hearing people talk of the top of the line 911 successor as a "depreciating asset"
Don't get me wrong - of course I'm aware that any car is a depreciating asset from an accounting point of view. For me psychologically it does not even belong into any asset category at all - it's not a capital expenditure, it's an expense - but an expense that you should be able to APPRECIATE each time you turn the ignition key. If you wouldn't be able to really feel this kind of - emotional - appreciation, then you're better off putting your extra money into a REAL asset (in terms of accounting) and get your smiles from the latest account slip (or, well, sometimes a stomach ulcer) - so far for the emotional part.
As for the financial advise:
I would not go so far to accuse somebody recommending to apply the "5%-rule" of not being able to enjoy his car like an enthusiast, but I'd say such rules (especially if using percentages instead of $$-numbers) are not for everybody:
I cannot speak of the US, but here in Germany the whole car-industry would run out of business, if all consumers would play to this rule. On the other hand I know quite some people whose garages would burst from all the CGTs Enzos etc. they would have to buy in order to come close to the 5%-rule at least. So basically it all depends on your individual financial situation and your individual concept of life.
Most important part of KKeating's post in this regard is "since my family is taken care of"
Once you feel that your family would not have to sacrify a single thing of their way of living even if your car would be totalled right after the pick up in Zuffenhausen (holy Ferry may beware) WITHOUT receiving one single cent from the insurance for whatever reason - then (and only then) go for whatever car you want. On the other hand if you finance the purchase always make sure, that the outstanding debt never exceeds the residiual value (think of high depreciation in the car's first and second year). Just in case your financial situation would go south quickly you don't want to fire-sale other assets or even worse further minimise your family's monthly income to cover the remaining debt from your car-purchase.
I guess these rules are rather simple and everybody making a couple of 100 k p.a. should be able to use an Excel-sheet for some basic computations.
Even if money is no object I could not imagine to buy a 997TT and a 997GT3 at the same time as they should be too similar in terms of the car's concept and my butt would fit only into one of these beauties at the same time anyway (would be a different story if discussing 997TT + Cayenne for example).