I’ve just received a press release from HPI, the car-check company, urging car buyers to factor in deprecation when buying a car. This is something I’ve long been saying, and argue that an older Porsche can work out less expensive than a modern saloon car, if you consider how much money the latter will lose in value.
Buy an older Porsche 911, such as a 964 or 993, and it should at least hold its value, if not go up (who can predict what will happen in future?). Even newer 911s, the 996 and 997, can be relatively depreciation-proof so long as you choose carefully. Sure, a two-year old 997 is going to lose money (but even then not as much as a brand-new one) but pay £30,000 on a 997 and you shouldn’t do too badly over three years. Spend £18,000 on a 996 today and, again, you won’t lose as much as you would spending the same amount on a brand-new ‘ordinary’ car.
The trick, of course, is to buy a good example in the first place, so you don’t get saddled with hefty bills to put things right. Porsches can be expensive to fix – don’t let anyone tell you otherwise!
I explain more about this way of thinking in my ebook.