My Porsche Fund

[CoSo]

So apologies for anyone not interested in yawn inducing topics like "financial responsibility" and "long term delayed gratification". This post is heavily skewed towards the "Enthusiasm" spectrum of the "Ownership and Enthusiasm" subforum.

In my introduction post a couple of months back one thing I mentioned was that I was keen to save up for, eventually, a Porsche Cayman GT4. I've been told by members here that my price range might be rather optimistic however, so I've changed my long term target to a Cayman GTS, or various base model 911s along the way.

Now not being particularly financially well endowed, I'm in a quandary over whether to eat into my other savings/investments, or just to save outright from my income source. So to be a good little millennial and to practice financial prudence, I thought I'd do the latter, with the option to trigger purchases if any significant bargains can be found over this time frame out of current savings + financing + sale of current car + whatever I've saved up in this fund.

So, since my sign up, I've become a Financial Member of PFA, and have started budgeting towards my first P car. Here's the first steps, to date November '16. Wish me luck!

[KGB]

Good work.  Keep the dream alive, never give up, and it will happen!

[tazzieman]

Never...have...children

But goals are there to be kicked. Commitment generally wins!

[Dreamr]

Your Toyota 86 poses an interesting dilema for you .....

It needs to be sold now in order to give you maxium effectiveness towards your goal.

Now I know I am looking at this with a 50 year old mind but if you are serious and committed, it needs to go for 2 reasons ....

1. It is constantly devaluing in price ..... time and k's driven will keep you further from your goal for a longer time period as when you eventually sell you will get less money for it meaning you will need to work harder to make it up.

2. If it is under finance, the above applies along with the money you need to spend to repay the bank along with the interest you are paying.

There are plenty of $5 - $10k cars out there that will fill the void perfectly in the meantime and really won't go down much further in value, limiting your losses. It is very possible to buy a 2010 model something for under $10k so still a modern car.

We have always encouraged our kids to save for what they want in life, and our 15 year old just bought his first car .... a 944. It isn't easy seeing everyone else driving these schmick cars and wishing it was you ..... but I look at them and hope they haven't sold a kidney in order to have a nice car (and believe me, some of them have)

Keep your eye on the prize and one day you will tell people ..... I didn't have to sell a kidney to buy this .....

[Grimmy]

Goal Setting is certainly the way to achieve your ...... well Goal !!

Setting the Goal is the first step however its the distractions along the way that will have the greatest impact on the achievement of the goal so STAY FOCUSED on the goal and it will be achieved.

The 86 is a great car, fantastic price but lacks a little in absolute performance so don't be distracted to sink further funds into it as the cost of the upgrades will never be recouped.

Best of luck with your journey the fruit at the end is worth the wait!

[CoSo]

Your Toyota 86 poses an interesting dilema for you .....

It needs to be sold now in order to give you maxium effectiveness towards your goal.

Now I know I am looking at this with a 50 year old mind but if you are serious and committed, it needs to go for 2 reasons ....

1. It is constantly devaluing in price ..... time and k's driven will keep you further from your goal for a longer time period as when you eventually sell you will get less money for it meaning you will need to work harder to make it up.

2. If it is under finance, the above applies along with the money you need to spend to repay the bank along with the interest you are paying.

There are plenty of $5 - $10k cars out there that will fill the void perfectly in the meantime and really won't go down much further in value, limiting your losses. It is very possible to buy a 2010 model something for under $10k so still a modern car.

We have always encouraged our kids to save for what they want in life, and our 15 year old just bought his first car .... a 944. It isn't easy seeing everyone else driving these schmick cars and wishing it was you ..... but I look at them and hope they haven't sold a kidney in order to have a nice car (and believe me, some of them have)

Keep your eye on the prize and one day you will tell people ..... I didn't have to sell a kidney to buy this .....

Yes in retrospect I would have not bought the 86 and just saved up for a Porsche Cayman. On the other hand I'll have experienced enjoying what is effectively a discount sports car for the past 3 years and can keep it until I'm ready for the next step, whether that's soon or in 10 years time. Luckily it is fully paid off so its sale would just go straight into the fund.

Only thing is if I sell it now basically I'd have taken the biggest depreciation hit instead of averaging it over the life of the car...

[911sies]

Yes in retrospect I would have not bought the 86 and just saved up for a Porsche Cayman. On the other hand I'll have experienced enjoying what is effectively a discount sports car for the past 3 years and can keep it until I'm ready for the next step, whether that's soon or in 10 years time. Luckily it is fully paid off so its sale would just go straight into the fund.

Only thing is if I sell it now basically I'd have taken the biggest depreciation hit instead of averaging it over the life of the car...

Depreciation is the price of entry to enthusiasm, or at least it can be. Point in question: I was in the same boat as you and deciding how much debt I was willing to take on for a 911. That was in mid 2014 and the so-called bubble was starting to inflate for 964's (my intended weapon of choice)

I spotted a white 930 Turbo (actually in my suburb), with a "For sale" sticker on it. Saw a guy driving it around with his son. Looked it up on Carsales and I think it was up for $79k.  and had a recent rebuild on the motor. Out of my range, I thought, but kept checking every couple of days. The car hung around for a couple of months and dropped by a couple of thousand before selling. Guess what it would go for now!. 

I guess my point is, that you do need to sprinkle some common sense on a car buying decision, but my philosophy is that I would rather not be sitting back in my dribbling years, and wondering what it would've been like to get my dream car. That car turned out to be a Cayman and I've not regretted a dollar of debt.  

[tazzieman]

I would rather not be sitting back in my dribbling years, 

Ah! The dribbling years! Look after your health,  & spectators will be salivating at your weapon of choice 
 

 

 

[Jason E]

Never...have...children

Tassie is right absolutely here.

I have a few more pearls of wisdom from a man who had saved & slaved for years to sock away 3 figures toward his dream cars etc.........then I got married.

So later I sold my MX5 & I started looking for a 911.  Nothing flash.  Just a daily driver that I could love.

Then my wife said, "I'm pregnant".  (I love my boy, he's great, but he shit's a lot sooooo......).

Later I started looking for the more realistic front engined cars.............

Then I accidentally made eye contact with my wife when she said, "Lets build a house"............... (I literally should have just run from the house & come back after she'd forgotten).

Last night my wife gave me some brochures from a Pool & Spa company that she likes...............

I think I can now afford a 1992 Daihatsu Charade, 4 speed, 2 door coupe with a wing on the back........living the dream.......

 

[itsujack]

Yes in retrospect I would have not bought the 86 and just saved up for a Porsche Cayman. On the other hand I'll have experienced enjoying what is effectively a discount sports car for the past 3 years and can keep it until I'm ready for the next step, whether that's soon or in 10 years time. Luckily it is fully paid off so its sale would just go straight into the fund.

Only thing is if I sell it now basically I'd have taken the biggest depreciation hit instead of averaging it over the life of the car...

Or if you're super smart (i.e. not me) and manage to pick the right Porsche at the right time in it's depreciation cycle (think what's happened to 930's, 964's and at your current price range 968CS and even 914's lately) you could ride the model wave on several cars up to your eventual GT4! I hear 986 Boxster's are turning

That said, the wave could also pound your head into the sand... stick to your plan!

[KGB]

Have children and earn more wonga.

[TINGY]

If you want money skip kids........and women.

Seriously, or make sure you got a cracking job that pays shitloads of money, or you wait 20-40 yrs like the rest of us.

[Stew F]

Never...have...children

 

I normally don't say lol, but what the hell. Lol.

I'd rather have my kids than a Porsche, I think. I'll get back to you on that.  

@CoSo, you could always sell your 86 (sweet car to drive by the way - pity they don't have a turbo) and buy a 924, 944 or similar in the meantime, and have money to put towards your savings.  At least it gets you into a Porsche, and you'll have bucket loads of fun in it and mixing with other Porsche owners.   And I'm sure some of the Melbourne guys would be happy to take you out on an SMT.  I've heard that they're pretty good people, contrary to popular belief.  

Good luck.

[turboT]

The Boxster depreciation curve...that would be playing a long game  

Ever thought of importing? Your $3k isn't going to get you anything, but with 97% saving still to go you could be an honory member by the time  you get a GT4. A smart investment might help you leap frog. A bit of wheeler dealering might help you grow your cash.  You could probably land a reasonable 912 for $25k. Some muppet is trying to get $115k for theirs right now. Surely an easy way to double your money...

 

[D2000]

@CoSo, you could always sell your 86 (sweet car to drive by the way - pity they don't have a turbo) and buy a 924, 944 or similar in the meantime, and have money to put towards your savings.  At least it gets you into a Porsche, and you'll have bucket loads of fun in it and mixing with other Porsche owners.   And I'm sure some of the Melbourne guys would be happy to take you out on an SMT.  I've heard that they're pretty good people, contrary to popular belief.  

Why don't you buy @james p's 924 Turbo?  $10,500 will still leave you with some cash from the sale of your 86

http://porscheforum.com.au/topic/9994-1980-924-turbo/

 

[tazzieman]

I normally don't say lol, but what the hell. Lol.

I'd rather have my kids than a Porsche, I think. I'll get back to you on that.  

Well of course , being a father of 3, but once you go down the road of an excellent mortgage and an excellent education for the kids and everything else that a Porschephile & spouse considers excellent , well generally there will have to be some compromises! Though I'll admit , you don't have to pay private school fees or indeed invest in a stacker or yacht.

[edgy]

The Boxster depreciation curve...that would be playing a long game  

Ever thought of importing? Your $3k isn't going to get you anything, but with 97% saving still to go you could be an honory member by the time  you get a GT4. A smart investment might help you leap frog. A bit of wheeler dealering might help you grow your cash.  You could probably land a reasonable 912 for $25k. Some muppet is trying to get $115k for theirs right now. Surely an easy way to double your money...

 

this is another angle to consider ^^ 

leaving cash in the bank can be a huge missed opportunity. 

It is better to have your money working for you, rather than sitting in the bank, making money for the bank. 

100k over a long term will be much better invested if done so wisely. 

[hugh]

So your budgeting on average 1k per month? Have you not considered finance as you should be able to get into pre-owned Cayman for that sort of coin? 

I'm all for goals but the world may not even exist in 2027. 

[CoSo]

Why don't you buy @james p's 924 Turbo?  $10,500 will still leave you with some cash from the sale of your 86

http://porscheforum.com.au/topic/9994-1980-924-turbo/

 

Haven't really thought about buying the older models, except perhaps a 928 or more unrealistically a pre-89 Carrera. I'm not really in it for the investment side of things. Although that would be a bonus I'm more after peace of mind, more modern amenities and a great driving experience, so I've been concentrating on the 996+ generation and Caymans. But purely as an interim car I probably should consider the earlier non 911s...

this is another angle to consider ^^ 

leaving cash in the bank can be a huge missed opportunity. 

It is better to have your money working for you, rather than sitting in the bank, making money for the bank. 

100k over a long term will be much better invested if done so wisely. 

Yeah I agree. The Porsche budget is independent of the account it sits in, so it gets rolled up with whatever investment or savings I'll be doing. 

So your budgeting on average 1k per month? Have you not considered finance as you should be able to get into pre-owned Cayman for that sort of coin? 

I'm all for goals but the world may not even exist in 2027. 

Yep currently budgeting $1,000 a month. Financing a Cayman, or alternative Porsche is an option, which I listed in my notes. But a quick check sees 13% interest rates on cars older than 8 years and most don't seem to finance vehicles around 10 years old anyway. 

I have been keeping a keen eye out for cars I would buy and I can always dig into other savings and sell some shares if need be... but the intention wasn't to use up money earmarked for other savings or investments. On the other hand if there was a near guaranteed money maker I probably should! 

My crystal ball is basically opaque as it pertains to future Porsche prices...

[TINGY]

I normally don't say lol, but what the hell. Lol.

I'd rather have my kids than a Porsche, I think. I'll get back to you on that.  

 

Stew, I would not change a thing, i have 2 boys and 3 grandkids and cannot imagine what life would be like without them.

I'm just suggesting that tongue in cheek, and let's face it, it's probably not too far wrong if you want money in a short amount of time without borrowing.

I could have had a Porsche years ago but we kept going into debt to buy houses, looking after my family was more important than cars at the time.

[ANF]

Sounds like a good plan. I could have bought a Porsche many times over in years gone by but my priorities were very much elsewhere and there are always setbacks in life!

Trading a child for a Porsche, Never!! Kids are so much more than any car could ever be! I am fortunate that I wanted what many believe to be a "lesser" Porsche, pity fool them!! Many are realising now that any P car is a great car!

If you want to save for your dream car, go for it. There will be many (many, many!) different views on here and out there as well of what you should do, you have a plan/ goal which is way in front of most! I think a lot of us waited too long to get our dream machines! It is so much sweater after a little bit of "hardship"

What ever you end up with and how ever long it takes it will put a smile on your dial

[LeeM]

  I'm 50, no kids, a missus thats been hanging around for 11 years or so, a dog (more like my child really) and a mortgage. I got lucky prior to the price increases (explosion) and it's paid off for me with my 911, though if I could rewind 20 years knowing what I know now (values aside here, as I don't really care about that too much) I'd have just got the loan that was approved back then for a 944, and paid more than the minimum monthly loan payments off the principle to reduce the interest.

 In all honesty here, if I was the sensible type, I'd sell my car, buy a couple more Porsche's of lesser value, and pay off a decent chunk of our mortgage, though I'm not that way inclined, so I'll just enjoy my 40 year dream as I am, and keep paying off the house.

 You're only young once mate, and even though I've never had much cash, I've had a helluva life doing whatever I wanted to do. No regrets, though I do wish I'd just bought that Porsche when I had the chance all those years ago.

 All the best with your Porsche goals however you choose to do it, as once you get it, you know you've earned it

[ANF]

Yep currently budgeting $1,000 a month. Financing a Cayman, or alternative Porsche is an option, which I listed in my notes. But a quick check sees 13% interest rates on cars older than 8 years and most don't seem to finance vehicles around 10 years old anyway. 

 

Don't Porsche offer loans to purchase P cars that is much lower than that? I think you can buy anywhere from memory as long as they check the car out?

[911sies]

 

Yep currently budgeting $1,000 a month. Financing a Cayman, or alternative Porsche is an option, which I listed in my notes. But a quick check sees 13% interest rates on cars older than 8 years and most don't seem to finance vehicles around 10 years old anyway. 

 

 I haven't looked into it for two years, but I had no issues on getting finance for my 2006 Cayman. It was over 8 years old when I got it. Interest rate was about 7%. I had a healthy deposit, which may have made a difference. My repayments were less than the $1,000 you mention. 

Without that finance help, I would not have been able to buy it. Given that life can throw a few surprises our way, not all of them pleasant, I took the plunge and am glad I did. If I need reminding of why I took on debt for a depreciating asset, I just open the garage door.

That is not sensible financial advice, but Porsches aren't about being sensible.That's why we love them. 

[edgy]

Don't Porsche offer loans to purchase P cars that is much lower than that? I think you can buy anywhere from memory as long as they check the car out?

They won't touch gnarly imports and outlaws, but an Aussie delivered Porsche in good order is easily done. Hell, they will finance a 356 if you want to. 

It really comes down to the individuals scenario as to what makes sense, but there's a saying; if it appreciates, buy it! If it depreciates, lease it!