Interesting conversation with my dealer GM about depreciatiom

After getting nausea from the depreciation of my 996 I was considering purchasing a 1 year old Turbo, trade my 996 in to stop the bleeding and order a 997 with the PDK gearbox in mid 2004 (he says it will be a 2005 model released in 2004). I test drove a turbo and it is nothing short of phenomenal BUT he told me that the TT would depreciate even more than my current 996. He also told me that my 996 had lost 5K in the last 3 months (showed me the black book of July and the black book of this month) and that there was no reason for that other than people not buying cars. Ge says that in March the value of 996s will go back up about 3500 to where they are today and to hold on to the 996 for now.... JM

This is exactly what I was asking about in my post 996 future pricing (deprc)

Thanks for the post! With talk of the 996 being the first "uncollectable" P-car, I was really starting to get worried. -Freddy

be glad you bought a 996 and not Lucent, JDSU, Cicso, PM, S, etc, etc, etc

How do you know I didn't I stuck with KO (my employer), HD (in the city) and did almost as bad as I did on the 996!!!

JM Sent you a private message Mike

Did I read it right? He claimed the 996 will appreciate $3500 next March? What is he smoking? We are near the end of the 996 cycle. The 997 is scheduled 2004. What do you think will happen to your car value next year? The problem with Porsche resale value in related to over production. Too many cars on the road all looking alike. People who do not know Porsche well could not tell a Boxster from a 996, TT, C4S and so on. <img src="graemlins/c.gif" border="0" alt="[ouch]" />

[quote]Originally posted by Nick: <strong>Did I read it right? He claimed the 996 will appreciate $3500 next March? What is he smoking? We are near the end of the 996 cycle. The 997 is scheduled 2004. What do you think will happen to your car value next year? The problem with Porsche resale value in related to over production. Too many cars on the road all looking alike. People who do not know Porsche well could not tell a Boxster from a 996, TT, C4S and so on. <img src="graemlins/c.gif" border="0" alt="[ouch]" /> </strong><hr></blockquote> Yes that is right, that is what he said. Instead of asking what he's smoking, why don't we all put this in a tickler file and check back with each other in March?

Porsche stuffed the dealer channel a bit recently into a soft market to make their numbers, making it worse. The economy probably will have lifted some by Spring, shaping up that way. Look at bright side, if everyone else is so tired of these cars we will all be able to upgrade to 3-year old TT's on the cheap. It's probably going to be a tough choice in 2004-05 whether to put a 996+$40,000 or whatever into a 997 or used 996TT.

He may be right about the 996 Twin Turbo, but I have to agree with Nick. To test the veracity of his advice, why don't you ask him for a "PUT", i.e. he agrees to buy your car for $3500.00 over the price he showed you today in writing irrespective of whether you buy another car...

No need for a put on this, just patience... I don't really care. If it goes up or down $3500 isn't going to change any of our worlds... JM

I'm not selling mine anyhow.... My 1 year old will get my TT when he turns 16, she'll be a "classic" by then

Perhaps leasing is the way to go. Ive been on the fence for a month on whether to purchase the car or lease it. IF the TT doesnt hold its value, then I might have to reconsider purchasing. Interesting post.... <img src="confused.gif" border="0">

"Thanks for the post! With talk of the 996 being the first "uncollectable" P-car, I was really starting to get worried. -Freddy" Why is the 996 "uncollectible"? Is it over production or is it poor design, poor quality, etc.? I am concerned now that I have a c4s on order.

In my opinion overproduction, under-reliability and designed obsolescence... It seems to me that Porsche is currently running on the fumes of the late 60's 70's and 80s successes. The nineties were pretty meager and it's high time to get back to racing, then to restrict production as does Ferrari (maybe 4 times more production than F but ni more). Where I live, I see at least 10 P cars a day!!! Didn't use to be like that JM

Wilam, I don't pretend to know what will happen to the 996 series in terms of long term value, but I think it's unfair to compare it to the "uncollectible" 74-77 series 911. I think that series car, perhaps from 75-77 had inherent problems with the motor; was underpowered; and terrible emissions control with the infamous thermal reactors. I don't believe that the 996 series, even with some of the problems associated with it will become "uncollectible for mechanical reasons. After all, the problems that are cropping up are all repairable and most of them will show up during the warranty period. I just don't think there is an inherent mechanical problem with the 996 series. The 1995-1998 993 series seems to be holding it's value because it's the last air-cooled engine and the "last of it's breed" in styling...yet the 993 is going through a rather serious (IMHO) TSB and now I believe a recall on a dangerous situation regarding deterioration of the wiring harness! Go figure. I just have this strange feeling that the 02/03 996's will hold their value better over time than the 99-01 because of the visual differentiation to the Boxster (which is also changing it's look in a few years) Production of the 996 in 03 and the 997 in the coming years will just increase and increase, and become more and more expensive. As this happens I believe the 996, especially the 02/03 values will stabilize. The question is...at what level. But what do I know.

I have been told the Boxster/996 is the first "disposable" Porsche from day one at the drawing board. Trans case cannot be cracked, have to be replaced. Engine designed to go about 100,000 roughly. After that expect to put $$$ into the car to keep it up to par. Now, maybe the guy was just trying to sell me an air cool, but it is what he said...

Appreciate $3500? No way.