Thought I would get some advice on this board regarding depreciation of a 997 TT and a R8.

4 months ago, a friend and I went to a Porsche dealer to look at a 997 TT with about 15000 miles. The best deal we could have gotten was $115,000. Now 4 months later, Im look at the thread "sub-100k 997TT", there are numerous TTs for less than $92-96. Thats about $20,000 drop in only 4 months! I know the market is soft for these high end cars, but ... still...

On that same day we went to a Audi Dealer, the R8 was listed at $135,000 with 8000 miles with no room to negotiate. 4 months later, they are still selling it at that price. Not a penny off!, even though the market is extremely soft for these cars.

I know that cars are not investments, but how can you bare to take $20,000 hit in only a few months? If my friend who is in the market for a sports car should get a R8 instead and probably still sell it at MSRP after a year or two since the V10 wont come out till the end of 2009. OR at this current depreciation rate, wait until winter time and try to get $85000 on a 997 TT with 30,000 miles...

 

If you think that's a lot look at some of the Lambos selling brand new for $50K below MSRP.

 

if you are worried about depreciation and resale, then why not get an older used car? Keep the 997 til your grandkid asks what's that funny looking car in the garage...

 

If the R8 hasn't fallen it will, in this economy all prices across the board will be falling. Also if you increase the radius of your search I'm sure you'll find areas where that has already occurred.

Also I dont see the two cars as being very similar, I would first figure out which one I want, and then work on getting the best deal possible.

 

I have watched the R8 market closely for the past year. Last year people were paying above MSRP for non-ordered cars. Prices have now fallen to MSRP. Some Audi dealers are obstinate and would rather sit on inventory rather than budge a little on price to move the car.

The V10 R8 is coming soon and it will depress the prices of the V8 R8. If Audi follows their typical halo car trend, they will dump a bunch of V8's into the market just about the time everyone wants the V10. Owners will sell or trade their V8's and there will be a glut. Audi has traditionally had one of the worst depreciation curves of the German manufacturers. Look at the 2008 RS4's sitting on the dealers lots being discounted $10-14K off MSRP for one current example. Add in the terrible economy and the R8 will depreciate just like every other car.

 

I think both cars ' driving dynamic is the same considering both are AWD.

We searched on autotrader.com, there are many R8s in the 150s range and a 1-2 in the $125-130,000 range. I am sure people are still buying them at list price or else the price would be negotiable. So far, been to 2 dealers and non of them discount a penny. We even searched by national, and we couldnt find one for less than $125,000, which is still at MSRP (Base price $114,000). Majority of them are way over sticker.

From our analysis in the past 4 months, it looks like 997 will continue to fall, maybe in the 80s range once the winter comes. But then again the R8 is such a limited production car that it probably will not depreciation 20k in a few months. What do you guys think?

 

Not exactly......Some people are talking wholesale numbers like sub $100K cars...where others such as yourself are quoting $115K as a dealer retail number....clearly not an apples-to-apples comparision.

 

The Porsche market does not always sink further with time. Look at the 997S for instance . Eight months ago it dropped but then as inventory cleared awaiting the 09's the used market surged upward.

The decline in the 997 Turbo will fluctuate with time and right now its very weak . A 2000+ point stock market decline doesn't exactly spice up the Porsche buying . The gasoline price surge in recent years doesn't exactly add to a car friendly sales pitch either.

Production on the 07 coupe was high enough to have plenty of used inventory .

Pricing will boil down to the scarcity of used cars with low miles . Right now they are just too plentiful . Usually there are lapse periods where either the Turbo goes out of production OR in this case inventory may clear before the facelift . These factors could spike the price .

If one owns a Turbo --this is NOT the time to sell it . Hold on to it , keep the miles low , enjoy the car .

 

I disagree. The 997 is a rear engine layout and the R8 is a mid-engine layout. Both are AWD, but they handle differently.

 

I don't buy these cars for resale, I drive them because I enjoy them. IMHO, the Audi R8 is a poor man's Lamborghini- AWD, sharing some parts (depending on model), but without the punch and good looks of the Lambo. I would rather use that $140K or whatever you say the R8 is selling for now and buy a Gallardo.

-Gerry

07 GT3RS, 07 AWE tweaked 997 TT
12 previous 911s

 

997TT depreciation is a little better than a 1959 Edsel!!! However it is faster and better driving than the Edsel.

 

Im in your camp...

 

+1

What is the infatuation with the R8? Get the real thing...

 

Removing all emotion and passion for either brand … there’s a simple supply and demand factor. There’s still an ‘impulse purchase’ for the R8 and the low production numbers are keeping the price from dropping like the P-Car with so many, many more available over a multitude of production years. However, you’re not comparing what people ‘paid’, which was way over sticker for the R8 to the Porsche which was sold at sticker, or less. Then compare the prices on a spreadsheet based on percentage (not dollars) off ‘sticker’ and you’ll find your comparisons are monetarily closer than you originally thought. Now take into account the variable sticker prices you can find on the ‘same’ car. There’s not much you can ‘option’ on the R8 – yet with just a few options, you can add more than 30 percent to the ‘base price’. That will skew your numbers considerably and something you’re not putting into the equation. Most people, who’ve handsomely optioned their P-sleds, thereby adding tens of thousands of dollars, just aren’t selling them. These are personalized cars with more intrinsic value than you’ll ever find on a spreadsheet because they’re just not for sale. The same can not be said for the low option-list Audi.
As the +100K auto purchase for any brand becomes tighter with economic downturns, initially, you’ll find all resale depreciation falls equally off the ‘price paid new’ when compared as a percentage. In time, the desire for the brand, and brand image will keep the resale price buoyant and it will fall less than similarly priced competitors regardless of manufacturing volumes.
If you’re in this for ‘best-financial-case-scenario’ over the short term … objectively … I’d say, “go buy the Audi”, but if you’re following your passion AND you’re in it for the long haul financial return … go with the Porsche.
Now … putting emotion and passion back into the equation … go drive both for an extended drive. If you can still buy the R8 because it might resell better for you in a half year or so … you have already shortchanged your passion for a true motoring experience … and that … is a cost your passion will never recover from.
Hope this helps your perspective … Good luck in whatever choice you make.

 

I read the data here in differently than you do- I think the R8 is going to be the one that depreciates more in the future.

The market for sports cars is fickle- everyone wants the latest and greatest. Due to its relatively recent introduction, low production and lack of something newer/ better the audi is still the latest and greatest. The 997TT was the latest and greatest, but it's not any more- hence the drop you saw. Obviously there will always be something newer and faster, so at some point the market switches away from latest and greatest to value. The 997TT has already largely taken that hit, while the R8 hasn't but will. I'd say the car that's already discounted will depreciate less over the next few years.