Depreciation Rate for 991
Hold onto it for 20 years and you could see "appreciation" and maybe be back to your original purchase price! Imagine that! The loss curve will have bottomed out after 10-15 yrs and start turning positive after that.
*all speculation.
Being the last NA 911, it's a strong possibility!
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I tried this approach on a Porsche once and paid more in post-warranty repairs than I would have paid in depreciation, had I traded earlier, not to mention the hassle. Never again, at least for a daily driver. When the warranty expires, it's gone.
Last edited by vangulik42; Jan 27, 2015 at 08:44 PM.
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More in repairs than depreciation? What does that mean? You paid more in repairs than what the total value of the car was? I kept my 987 Cayman 3 years past the end of its warranty and it was economically far smarter than trading it in for a new car and staring the whole depreciation cycle all over again. Of course eventually I wanted a 991, but had I held on to the Cayman I would be miles ahead economically speaking. I think people get rid of cars 'because it's costing too much too maintain' way, way, way too soon before it's actually economically wrong to hold on to it. It's more of an emotional thing. But if you don't mind driving an older car I think it's always smarter just to keep it maintained then to buy new all over again. A friend of mine drives a hateful little 15 year old Toyota Echo that he has to put a few hundred bucks into each year to keep it running, but that's still far cheaper than to go out and buy a new $17,000 Echo.
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My Experience:
1987 Porsche 944S purchased new in summer of 87. Driven 7 years, 70K miles, as a Daily Driver.
Warranty Period: 50% Depreciation, No Major Repair Costs.
Post-Warranty Period: Additional 25% Depreciation, 29% Major Repair Costs, Total Cost of ownership during this period 54%, plus a lot of grief.
All % Costs based on original purchase price. "By the book" dealer maintenance throughout the entire 7 year ownership period.
I know that was then and this is now, and a 944s is not a 911, but I have been around Porsches, mostly 911s, since the mid 1960's and some things never change, either with time, or between Porsche models.
Keeping an out-of-warranty Porsche as a Daily Driver is a gamble, some win, some lose. Actually, approximately 17% of my Major Repair Costs occurred in 1994, while I was waiting for delivery of a new 1995 968 as a replacement. If I had traded-in the 944S 6 months earlier, keeping it post-warranty would have paid-off nicely. Having been bitten once, however, I am not about to gamble again.
1987 Porsche 944S purchased new in summer of 87. Driven 7 years, 70K miles, as a Daily Driver.
Warranty Period: 50% Depreciation, No Major Repair Costs.
Post-Warranty Period: Additional 25% Depreciation, 29% Major Repair Costs, Total Cost of ownership during this period 54%, plus a lot of grief.
All % Costs based on original purchase price. "By the book" dealer maintenance throughout the entire 7 year ownership period.
I know that was then and this is now, and a 944s is not a 911, but I have been around Porsches, mostly 911s, since the mid 1960's and some things never change, either with time, or between Porsche models.
Keeping an out-of-warranty Porsche as a Daily Driver is a gamble, some win, some lose. Actually, approximately 17% of my Major Repair Costs occurred in 1994, while I was waiting for delivery of a new 1995 968 as a replacement. If I had traded-in the 944S 6 months earlier, keeping it post-warranty would have paid-off nicely. Having been bitten once, however, I am not about to gamble again.
Last edited by vangulik42; Jan 28, 2015 at 02:13 PM.
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Sticker price is a factor too. The higher the option list, the faster the depreciation is on some of those. For example, ceramic brakes return practically nothing at resale. Sport Chrono will have an almost full return as an option cost.
A lot of variables! External market variables too that could be unforeseen.
One thing for certain, a new 911 depreciates like a sinking rock.
A lot of variables! External market variables too that could be unforeseen.
One thing for certain, a new 911 depreciates like a sinking rock.
My BMW 650 Cab (2012) depreciated 60% in 30 months. Talk about the rock?
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End of the day, if you are buying the car with depreciation in mind, might as well buy used. If you are buying new, get it exactly you want it with all option boxes ticked and keep it beyond warranty period...that's my personal logic and opinion. I never buy used though ...
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End of the day, if you are buying the car with depreciation in mind, might as well buy used. If you are buying new, get it exactly you want it with all option boxes ticked and keep it beyond warranty period...that's my personal logic and opinion. I never buy used though ...
Of my 61 cars to date 65% were bought new and of my 14 Porsche's 78% were bought new. Prefer new Porsche's so I can get exactly what I want with no compromise. Yes I often wait a long time for delivery. My Macan Turbo took 8 1/2 months to get the options I wanted! Yes I suffer depreciation but the whole car thing is my hobby and I have no kids to leave my money to. Having a new car every two years or so is my "schtick"
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As a percentage of depreciation, it will be less and less every year. Hold onto it for 20 years and you could see "appreciation" and maybe be back to your original purchase price! Imagine that! The loss curve will have bottomed out after 10-15 yrs and start turning positive after that. *all speculation. Being the last NA 911, it's a strong possibility!
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2016 $75k
2017 $60k
2018 $45-50K
2019 $35-$40k
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You think a $100,000 car is going to lose $65,000 in value in 3 years? 
I think it should do a little better than that.
The lease residuals are quite a bit higher. Up around $50K.
I think it should do a little better than that.
The lease residuals are quite a bit higher. Up around $50K.
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Depreciation was quite high:
2014 991 S Coupe
$110K MSRP
17.5k miles
16.5 months
~12.8k miles/year
Sold for $83k
That's depreciation of roughly $19.6k per year or $1.636k per month.
2014 991 S Coupe
$110K MSRP
17.5k miles
16.5 months
~12.8k miles/year
Sold for $83k
That's depreciation of roughly $19.6k per year or $1.636k per month.
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Right, but your not paying MSRP for the car, right? So the depreciation isn't quite that bad.
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ChuckJ