996 depreciation

[Zahoor Hussain]

Hi all

I'm looking at getting a 996 soon and have noticed that there are quite a few available at under 30 grand. I was talking to johnathan at Cridfords today who reckons that the prices have now stabilised and will remain at this lower level until next spring when they are likely to rise ! Apparently prices follow a seasonal trend and cars are cheaper in the autumn/winter months than in the spring/summer.

So is now a good time to buy a sub 30k 996 or are prices still heading south ? Where are prices likely to be a year or two from now ?

Thanks

Zahoor

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[Robertb]

Hi Zahoor, welcome!

Nice theory, not impossible, but unlikely I'd say given the high numbers of 996s about and some questionmarks over their longevity.

I'd say, bought well, you won't lose a packet on a low mileage 996 bought now for under £30k. Rising prices is too much to hope for I suspect. Price will be a function of condition and miles in two years. Make sure you buy a resaleable colour and spec if you are keen to preserve as much value as poss in the long run.

No question though, if you want to bag a bargain, now to Xmas and beyond is a good time.

Robert.


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[Darren Earl]

Hi Zahoor

I think it's unlikely the 996 prices will rise next spring (2006). As Robert has mentioned there are lots of 996's around which help to depress the prices. The sales manager at my local OPC informed me that Porsche car sales are a very seasonal thing, something which suprised me.

I was looking for a 993 at the time & he informed me that I'd be lucky to find one as people just don't sell in the winter as prices are way less (£5k) in the winter period.

I guess if you were lucky enough to find a good car for sale during the winter you'd have yourself a bargain, but I suspect that most owners would put their car away for 6 months and sell in the spring/summer to get a better price.

The depreciation of 996's was one of the major reason for choosing a 993 over a 996. When I was looking for a car in the £25k - £35k bracket I found there was a wider choice of 996's than 993's, which is once of the reasons I plumbed for a 993. I guess it's all down to supply & demand.

I'm not knocking the 996 (a v. nice car) but my gut feel is that depreciation will still be steeper on 996's than 993's from now onwards.

If your stuck on a 996 & you find a good car then chances are you'll save a few quid buying during the winter. Your problem may be actually find the right car during the next 6 months !

Good luck.


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[Zahoor Hussain]

Thanks Robert and Darren.

As I'd seen many 996's currently on sale I wondered whether sub £30k now might mean sub £25k in a couple of months time (however I'd probably put the current dip in prices down to "seasonal demand"). Hoping for a price increase next year might be asking for a bit too much!

I might as well start looking now then as it can take months to get the right one and by then it may well be spring where there will be more to choose from!

I've thought about the 993 as the prices have stabilised but the 996 has much more appeal (esp for my other half).

So with the potential "saving" of a couple of grand. What should I be looking for to reduce depreciation (aside from low mileage, service history, owners etc.)? Also is buying private (and getting an inspection done) fraught with danger ?

Thanks

Zahoor


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[Robertb]

I think you will, if not already see higher mile 996s below £24k, but I wuld not let the fear of losing money stop me buying a good car as it is likely to hold its value reasonably well, all other things being equal. However, I am certain that the weakening consumer demand generally has impacted on s/h car prices.

Buying privately? Definitely go for it. You will save loads, and my belief is that the sort of owner that sells a car privately is the sort of owner who loves their car and wants it to go to a good home, especially if bought through the Porsche Club mag.

A full inspection will cost around £200-£300 or you can even go for the OPC (official porsche centre) inspection which will allow you to buy an OPC warranty. More than likely an inspection will pay for itself as you will either avoid a howler, or it will give you a few bargaining points to knock a few £££ off.

I'd suggest
http://www.petermorgan.org.uk/
and
http://www.philipraby.co.uk/
as starting points for inspections. Both very well respected.

To minimise depreciation, think about what the next buyer will want and what will make your car desirable come resale time. Avoid doubtful colours (even if you like them) i.e. arena red and guards red, yellow, green, white. Spec wise, 3 spoke wheel, clear lights, 18 in wheels are always good. Buy as low mileage as you can as no matter what everyone says about Porsches, low mileage cars are easier to sell.


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[David Winch]

Hey Zahoor,

I know where you can pick up a v good 996 for a reasonable price, sub 30k. In a porsche garage in the south east, fpsh, v resaleable package (silver, black int, sports exhaust etc.) and serviced v recently.

let me know if you need more info.

thanks.


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[Zahoor Hussain]

Many Thanks Robert

Weaking consumer demand will have an impact on s/h prices as will new models coming out, but I'm sure there will always be a strong market for a 911!

Buying privately does appeal as I am now carless after selling mine to help with the house purchase. You can certainly glean more about the kind of car you're buying once you meet the owner ! Buying at a garages are like buying through estate agencies, they lack that implicit knowledge.

I'm tempted by the porsche warranty and may be swayed by an OPC test ( once I get an idea on price !). Thanks for the links.

Cheers also for your tips on spec ( didn't have the 3 spoke wheel on my list ), and as for the colour we'll probably go for a black one with savannah leather (until next week anyway !).

David please PM me the details of the car.

Thanks

Zahoor

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[Darren Earl]

Zahoor,

I'd second the points that Robert raised above. As Robert points out a lower mileage car will be easier to shift when you come to sell it, so will popular colours - silver (arctic/polar), black, dark blues. I'm not a big fan of Savannah leather, but each to their own.

Peter Morgan has a very good reputation and I found the buying guides he sells very very informative (well worth £12).

Buying privately will save you money but don't be dead set against dealers. OPC's and some of the bigger specialists (Paragon, Paul Stephens) will charge a premium. I bought my car from Shirley Garage near Coventry (www.shirleys-garage.co.uk) The proprietor has been in business about 30 years and I think he'd sold my car either once or twice in the past before I purchased it. His prices are very reasonable and there are other specialists who don't charge the earth for cars. At least with a dealer you've got a decent chance of some comeback and most offer a small warranty.

If I was buying privately I'd definately opt for an inspection. In my opinion the main things to get right are

• good condition

• FSH

• low mileage

• decent interior/exterior colour combo

18" wheels, clear lights, 3-spoke wheel can be updated later if needed, just make sure the price reflects the options. Some things can't be retro-fitted (e.g. PSM) so if you want things like this make sure the car has them as factory options.

Remember there's an abundance of choice out there so keep looking until you find one that you're 100% happy with.




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[Zahoor Hussain]

Darren

Thanks for your excellent suggestions.

As others have pointed out we seem to be a nation obsessed by mileage of our cars.

I'll definitely be ordering Peter Morgan's book on the 996!

Fair point about dealers, there are good uns and bad uns, and a good relationship with a dealer can be useful when you want to upgrade!

Definitely agree with all the options you highlight, they'll make it much easier come resale time. PSM would be a nice to have ( but I think could live with traction control ).

Cheers

Zahoor

Migration info. Legacy thread was 34480

 

[Simon Railton]

just a point but is the 996 a better buy than the 993? is it in fact a better car to drive is it going to dpereciate more? are the running costs higher?

I ve heard some pretty poor reports of the 996 as a car im selling reluctantly a 964 rs lieghtweight a very very nice low miles one and when ive recovered from buying a flat will be back in the market


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