This makes sense to me.

 

Hey I don't make anywhere near 200k and I'm 30 and pulled off a 991 C2S no issue. I don't go out drinking and eating out all the time, I don't have credit card debt, and I definitely don't go shopping constantly at luxury goods stores. I spend a lot on bicycle related items and have about 2200 in monthly obligations. It's fine if you make less but know how to manage your money to allow for the things you really want.

 

I just bought a mint condition 997 C2 with 16k miles literally perfect in every respect for 38,000. To me this is all the car I need to keep me happy. I have no need to blow $150,000 on a brand new one that will depreciate down to $70,000 in a few years. To each his / her own. I also have a 08 Cayenne TT for my daily commute.


I can honestly say this. When people are dying I do not think anyone who has ever owned a Porsche would say that he regretted buying a Porsche - only maybe James Dean - R.I.P.

 

that is very extremely cheap for a low mile, perfect condition 997

 

yes I think it was a great deal indeed. I would have preferred a "S" version. But when I ran a cross this particular car I could not pass it by. It is on the slow side for my tastes. But. Nothing I have ever owned comes close to the precision driving feel of this 997. It is really a joy to drive. Previously I have had an NSX, a 91 BMW M5 and a Sl600. Porsche is really the best machine I have ever had the pleasure to drive. I out a new set of pilot sports on it and it is like driving a go cart. My theory is that we all have to drive around might as well drive around in something that makes the experience a huge adventure and leaves you with a giant smile on your face.

 

My personal number is .655.


I only get to take home .655 cents for every dollar I make.


So I would need to make exactly $229007 to buy a $150,000 GTS. Also this wouldn't leave any money to fill the gas tank up after it runs out of gas. So $200,000 a year is nowhere close to "own" the Porsche (even living in NC like I do).


Please clarify if you own it or have a 5 or 6 year note on it and which year and model you have to actually compare apples to apples.

 

"84 MONTH LOAN AT 6.5% INTEREST, YOU CAN'T AFFORD NOT TO BUY IT!" - half of America.

 

What I don't get is why internet folks act is if most pay cash for cars 100% of purchase price at time of purchase... My Ferrari buddies ask me.... "whats the delta" on whatever car I buy. I look at them as if they are dense, and say.... do you really think in your bubble most people actually pay cash for cars?


Just ranting, but my answer is paying for a used P car isn't tough, but how many have the unforeseen cash to maintain them if something major goes wrong. if you don't...pass. imo, then you cant afford it.

 

How about up to 60 months at 1.74% interest - on a 2005MY - at that offer I really couldn't not buy it. Meanwhile, people are spending the same money on brand new Mustangs and watching them depreciate like laptops.

I personally didn't have the full sum sitting in my bank account when I financed my car. But I know plenty of folks who do and still wouldn't pay cash for a car. Having an "oh-$#!t" fund for these cars is paramount, however.

Also, working in the auto industry, being able to turn your own wrenches, and being friends with an independent Porsche/Audi master tech is a big help in my situation. The service that my Audi is currently going through would cost the lay man about $10k at the dealership; I'm getting it done for about $3k (with some of the labor done myself and some by my indy tech). I got a nice break on the IMS bearing upgrade on the 911, too.

Admittedly I spend too great a portion of my income on my cars, but I would do that whether I drove a Maserati or a Miata. I actually spent more money on my Subaru plus modifications than my 911 cost, and the result was significantly less overall car than the Porsche offers for less money.

 

What you say is correct but still it depends.

Here is an example for everyone.

At 200k per year let's say after tax you have between 100-120k. No one is paying taxes higher than 50%. If you are, you are in the minority and I don't care, you are an outlier and don't count.

Let's use the GTS example at 150k. No one is paying full price (if you are, then you aren't savy enough with money and shouldn't get this car in the first place). So GTS goes for around 6-8% off. So then let's say after taxes out the door you are paying around 150k for the car.
Now you can either finance or lease it. Let's go with finance. Interest rates are around 2-3%. So at 2.5% interest, 60 months, 6% tax rate, 5k down, your payment would be around 2500 per month. If you lease it is even less.
Each month after taxes you are making between 8.3k-10k per month. So this GTS is roughly 25-30% of your monthly income.

If you are single and renting say a one bed room, in my area on the east coast, a one bedroom in a nice area is around 2500 per month. So in total you are spending 5k per month in expenses. You have another 5k left over for other smaller expenses and whatever else you want to do.

So a single person in my area (which is one of the most expensive in the country) can easily afford this car and pay themselves at least 2-3k per month.

Now if you have a family, and have kids, I wouldn't do this. But chances are if you have a family, you have a significant other making at least 50k or more a year to add to your income. She definitely at 50k is not paying a high tax rate, (maybe 40% max) so that is another 2500 in your pocket. That alone is your car payment. Now you have 7500 a month to spend on your mortgage and kids. The wife can drive a cheap BMW 2 series lease at 200 per month . If you don't have kids, it is even easier to afford it. Let's say you have a wife and have expenses of 5k per month including a mortgage. You got another 7500 each month to do with what you will. 2500 can go to the car, and 5k goes to the bank, or take half of that and spend it.

 

Ok so you are saying if you are single, no dependants, make 200k a year, and rent a 1-bedroom apartment (!) -and- are willing to spend 25%-30% of your income on a car (co-incidently this is the same % as most banks will tell you to spend in a mortgage) then you can afford a new GTS.

I guess I can't argue with the math. But I'd certainly argue with how realistic and wise this fictional character is. The first thing most people do when they make $200k a year is buy real estate, not rent a 1-bedroom apartment. And this person is never getting "rich" cause between renting, living expenses, and car depreciation most of their (substantial) income is evaporating every month. You further agree that if you have a family, then you'd need another 50k in income to afford a GTS. So I think you are saying the same thing as many of us ... $200k is not enough for most of us (how many single, apartment dwelling big earners are there out there?) to afford a GTS.

Frankly, I lost interest in this thread when somebody said they bought their first Porsche while earning $40k annually -and- another educated us on how to be thrifty with our spending while stating his monthly fixed costs were $2200 (he clearly doesn't have kids and must be living in his parents basement given his car payment + insurance would be more than this).

Personally my family income has been around $300k for more than a decade. I have a house, a cottage, 2 kids and a very thrifty wife (think Ebineezer Scrooge with a nice booty) and I bought a 2nd hand 997.2 for just over $50k. I own my cars and they comprise less than 3% of my net worth. I certainly don't feel "rich" enough to drop $150k on a car.

And I guess that is what I've learned from this thread... And what many, including me, have expressed... That what you think you can afford for a luxury item such as a Porsche depends entirely on your priorities (and your degree of nuttiness).

 

The last part is the most true. It all depends on your degree of nuttiness lol. I mean hey rent in my area is high. Some people do have a mortgage for 2500 a month. You can get a nice condo for 350k in my area for that mortgage with 20% down.

In the midwest 350k buys a house. I hate renting, I see it as money in the trash. But someone people don't mind it. I got a condo the day I could, the porsche came after.

Again the 20-30% of your income should be on mortgage is all subjective language. Everyone is different. If you are able to predict your expenses consistently and have ample savings, it's fine to go over. I like to keep 1 year of expenses in savings. Some people say 6 months, me personally is 1 year.

 

Used "exotic" for $100k maybe betting on the fact that it may appreciate in value or you hope to lose a minimal amount on total cost during ownership while "living it up" But brand new and $150k? Depreciation is something hard for me to swallow.

Then again, making $200k and living in rural areas where a beautiful home costs $200k is a bit different as your disposable income is much higher than someone who has to use $200k for a downpayment.

Max out retirement
Invest additional money (10-15%)
Have an eight month emergency fund
buy whatever you want

Some people are content renting year to year so they will hope that their wages at least parallel rent increases.

Some people are also content with never achieving more than they currently have as long as their current lifestyle can remain the same.

 

That was me, and I thought I said - first 911... Wasn't my first Porsche, certainly wasn't my last.
Lots of variables and priorities. It is also why these questions are practically impossible to answer (especially for strangers). Sometimes people just want external validation for a choice they've already made.

 

If you're referencing my post (I think you are) then quit being judgmental. I gave that number not to infer to someone like you that I'm eating meatloaf in mom's basement while driving an ostentatious vehicle in my spare time, but rather to say that if you have your ducks in a row and are wise with your money, you can buy one of these cars while making less than 200k.


I don't have a car payment, I pay for insurance in full every six months, I own a $450k home, and I have no other bills outside of the normal stuff like cell phone, health insurance, utilities, etc. This is why my monthly bills are ~$2200.


Your major (and faulty) assumption here is that everyone has a car payment.