Porsche Values

JamesThomas · 17 May 2005

A comment on another thread about 993 values caused me to wonder whether anyone has ever done any research on how old cars tend to be - when kept in a respectable condition - before they start appreciating again (excluding people speculating on prices immediately after initial launch, etc)?

I would have though that there is a 'rule of thumb' point (which maybe varies by 'type' of car - sports, supercar, family saloon, ...) at which cars become 'classics' and demand for good ones outstrips supply to the point that depreciation reverses and prices start rising.

Any ideas anyone??

To be honest, I'm not sure if this is a stupid though or not?! :?

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Maxy M · 17 May 2005

No rule of thumb, I reckon. Depends entirely on the car and its popularity. At the end of the day prices are determined by market forces, and supply/demand especially.

Porsches - at least the air-cooled ones - retain considerable appeal, so tend to hold their value relatively well. Partly (racing) heritage and all that.

I suspect there are fewer Hillman Imps around in the Uk than early 911s, but very few would give more than a tenner for one, or rather less than the 30K that a nice old 911S! OK, slight exaggeration, but forget rules of thumb...

IMHO...

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Robertb · 17 May 2005

I think it is a function of a few things;

1. Desirability (speaks for itself)

2. Value -an expensive car depreciates to a point where it seems good value, then people get interested, supporting or even forcing up prices.

3. Time- there may be a seminal car that when you were young you loved but could not afford. As you get older and your financial circumstances improve you can realise that dream. Hence cars of a certain age suddenly find buyers. This was particularly noticeable with the price of ferrari 328s. I reckon that this is helping 993s now.

The theory only holds with cars which are desirable in the first place of course!

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Maxy M · 17 May 2005

God, speeling mistales in earlier post...

Robert, I think your point 3 is the same as point 1 - OK, I'm being pernickety. But point 2 is well made. The 993 is a great case in point. Prices fell reasonably sharply initially - as with most cars, although performance in this regard varies enormously. But now the car is great VFM (sorry, value for money) - great drive, reliable, durable, looks good, parts available, reasonably low servicing/maintenance costs, ditto Insurance.* An affordable supercar! That all adds up to slow depreciation as well. Makes great economic sense.

Couple that with desirability, eg people like me that saw them when they first came out and said 'That's the best looking 911 yet. I want one some day', and you've got a classic.

*I'm not sure that all of this stuff applies to the 996. Prices are on the way down faster than 993s'...

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rob carty · 18 May 2005

Hi,

it seems to me the GT2 and GT3 996s are holding there value better than other 996 models! do you think this could be because they dont have the same type of problems? if so im a tad confused because most people have no idea of the problems 996s are supposed to have.

i think its more likely that when the 997 GT2 and GT3 come out prices will fall as they have now with the early 996s as people always tend to want the new model. (not including the 993 fan club)

agree??

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Mankster · 18 May 2005

Previous poster said:
Quote: Originally posted by rob carty on 18 May 2005

Hi,

it seems to me the GT2 and GT3 996s are holding there value better than other 996 models! do you think this could be because they dont have the same type of problems? if so im a tad confused because most people have no idea of the problems 996s are supposed to have.

i think its more likely that when the 997 GT2 and GT3 come out prices will fall as they have now with the early 996s as people always tend to want the new model. (not including the 993 fan club)

agree??

I think its a little different with 996's. Far more were sold, far more on the 2nd hand market, depreciation will be a little better than the eqivalent Merc/BMW (a lot of buyers for 996 are also have these other cars on their short list, so values won't be much higher. IMHO the majority of 996 buyers are not enthusiasts who frequent boards like this while most people after a 993 will be). GT2's and GT3 sold in small numbers to enthusiasts, so will hold their value far better.

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Maxy M · 18 May 2005

I haven't researched it but I think you can still lose a lot of money on a GT2. Not many sold, and I think that's because it's not very appealing. (Has a bit of a handling reputation too.) GT3 is real enthusiasts car with cachet and built in limited numbers, so holding value better.

996 Turbo also holding value better than 'cooking' models? Certainly GT3 and Turbo (especially) do it for me: no RMS or sudden failure problems...

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Hendo · 18 May 2005

Previous poster said:
Quote: Originally posted by Mankster on 18 May 2005

Previous poster said:

IMHO the majority of 996 buyers are not enthusiasts who frequent boards like this while most people after a 993 will be).

Click to expand...

Ahem, a slight contradiction if I may be so bold. With the 997 now out, 996 for all its apparent faults will find an enthusiasts following. For different reasons admittedly. I think the depreciation observations on standard 996 carrera 2 and 4 is spot on, but like previous models, 'S' ,turbos and GT versions having been produced in lesser numbers, will also hold a premium in years to come. A 996 owner is no less an enthusiast than a 993 owner.

If of course I've got it completely wrong, Admin? can we change the web address to 993uk.com - Just so I dont upset the elite mob rambling on about last of..........air cooled...........its an extension of my brain................I want to marry it etc etc etc etc

tiny rant over

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Martyn1 · 18 May 2005

Maxy M when you are going to reduce your signature, beautiful car that it is I find myself skipping threads with your comments in as its a pain to keep getting that signature.
...........................................................
Sorry Back on track

One consideration not mentioned is availability, and in the case of the 993 + 964 +SCs for example there is a lot of availability. But go back a bit more to a 911 S of 72-73 era and this availability factor really kicks in.

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Mankster · 18 May 2005

Previous poster said:
Quote: Originally posted by Hendo on 18 May 2005

Previous poster said:

Quote: Originally posted by Mankster on 18 May 2005

Previous poster said:

IMHO the majority of 996 buyers are not enthusiasts who frequent boards like this while most people after a 993 will be).

Click to expand...

Click to expand...

Ahem, a slight contradiction if I may be so bold. With the 997 now out, 996 for all its apparent faults will find an enthusiasts following. For different reasons admittedly. I think the depreciation observations on standard 996 carrera 2 and 4 is spot on, but like previous models, 'S' ,turbos and GT versions having been produced in lesser numbers, will also hold a premium in years to come. A 996 owner is no less an enthusiast than a 993 owner.

If of course I've got it completely wrong, Admin? can we change the web address to 993uk.com - Just so I dont upset the elite mob rambling on about last of..........air cooled...........its an extension of my brain................I want to marry it etc etc etc etc

tiny rant over

I think you missed my my point! 996's are great Porsches. Its just a supply and demand thing rather than the quality of the cars. What I meant was as so many more 996's were sold (more than any other 911 varient ) in the 7 or 8years it was available, proportionally there aren't as many enthusiasts to account for them all. So alot will go to those who also have the likes of an E46 M3 on their shortlist. 996 GT3 and Turbo's are great cars and I would have bought one could I have afforded it
.