Cost of ownership of buying a "fun" 3rd car (and keeping it for 20 years)

A friend wants to buy a new Porsche as a weekend car, but he was having a hard time justifying the $800/mo lease for a car that might get driven 3000 miles a year. Of course, I advised him to just buy the car outright and keep it for 20 years. Isn't that how people do it? That got me to thinking about total cost of ownership of an exotic. I was thinking more about people who lease exotics (rappers) vs. enthusiasts who buy/own the car for many years. What is the best way to calculate this? How about an example? 1993 Porsche 911 MSRP was $55k. 20 years later, trade in value today is about $20k. Netting out the sale price, you’re out $35k to own the car for 20 years. That’s about $100/month. Is that right? Today, a late model Porsche 911 with 20k miles can be had for $50k. Basically a new car. Assuming you have the money, what is the cost of owning this car for 20 years? $50k "self-financed” over 20 years comes out to $275/mo. But, you’d still have a residual value of $15k-$20k. Numbers might be off, but can you net that residual right off the top? So, you only take a $30k loan for 20 years at 3% = $166/mo. (The main flaw here is that I am ignoring the time value of money) The general premise holds, regardless. Owning an exotic for 20 years is a fraction of the cost of leasing a new $800 exotic every few years.... The key to this analysis is that the 3rd weekend car barely gets driven. Many people own these cars for 20 years, since they are often the 3rd car, and see little use. Most 20 year old 911’s are lucky to have 100k miles on them. If the desire is to enjoy a true driver’s car, it appear that it can be done very affordably. But, if the goal is conspicuous consumption to impress others with the latest/greatest, then this analysis doesn't apply. Anyone done this type of analysis and have anything to add?

Buying a car is very rarely a good "investment" unless you get one of the few cars that will actually appreciate over time. (for example, an E30 M3 only a few years ago would've been a sound investment) What you are talking about makes good sense, and I'm sure it's how many people look at it. I never will buy a brand new car. It just makes very little financial sense with the huge depreciation it will see the first few years. I love buying cars that have somewhat flattened out, so I get to drive the car for a few years pretty much cost free. All I pay for is maintenence, modifications (if any), gas, and insurance. When it comes time to sell, I make the $ back I initially paid for the car, or very close to it. Another reason I get to do this, is the fact that I don't keep cars for long. I have been going through a cycle of buying a car, doing a bunch of preventative maintenence on it, doing a few tasteful modifications to it, maybe do some autocross, not long after I normally get bored with it, or want to try something else. I'm only 25 years old, and I've owned 10 different vehicles (not including motorcycles) since I was 16. I think the longest was my previous E36 M3 that I kept for over 2 years, but that was mainly because it was a long project. It seems once I am content with how the car is, and am happy with it... I usually sell it not long after. If there is nothing to fix, or make better... I seem to lose interest. Keeping a car long term like you mention makes a lot of sense though. At least the $ you dump into maintenence is for you to enjoy down the road, rather than just the next guy that buys it.

While I didn't agonize over the numbers, I acquired my 996 for half the original purchase price w/ 25k miles on the clock. Bought it outright and I've put 5k mi/yr on it since. So far, it's been very reliable w/ one annual oil change and 2 A/C recharges. Next year I'll pay for the 60k maintenance but aside from mods (suspension, wheels, OEM wing, etc.) the car has been very affordable and reliable. Aside from Rennlisters, most folks who see the car think it's a (relatively) new model - especially w/ the LED tail lights and interior lights. I've not calculated my monthly costs, but it sure has been an affordable journey thus far.

I have never understood why people make payments on a weekend car... most likely because I am not wealthy.. How I have been able to have 3rd and 4th cars that are purely for joy is by paying cash and buying CPO or used. I save, save and save. Its tough but if I can do it with 4 kids and a wife who is a stay at home mom, anyone can do it with the right discipline. now do I have exotics? nope... but I do have cars I have always wanted. I guess TETO

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AND you live in Hawaii. I hate you!

My thought is that MOST people lease personal vehicles because they can't afford the payment through regular financing. Therefore, they are likely in a car they normally can't afford. I do have friends, however, that seem to have endless buckets of money and lease an "exotic" for a couple pf years, dump it and get another. They also seem to go though girlfriends in the same fashion (I wonder if there is a connection). It all depends on what you want out of the experience. Ill tell you, for me, there is no better feeling than knowing that the cars in your driveway are paid for ! I have a family beater 2006 Kia Sorrento with 180K KMs on it, paid for long ago, and she will have to blow up before i get another.

I personally am on these forums to research buying a 1980s SC/Carerra 3.2, but my friend would be someone who feels more comfortable with a modern car. In fact, the newer, the better, for the typical consumer. 964: 1989-1994 993: 1993-1998 996: 1998-2005 997: 2004-2012 964, 993, 996.....They all seem to be within the same ballpark price, for various reasons. For a non-purist/non-DIY guy, which model is the best bet? I think my friend can find a car like the 996 for $30,000. Is there an article or link that compares these 4 models? Pros and cons? For example, the 996 gets a scathingly negative overall review here: http://www.thetruthaboutcars.com/201...e-911-996-3-4/ Or an article with common failures, like this one: • Rear main oil seals: Just like the Boxster, the 996 suffers from leaky rear main oil-seals. And, just like the Boxster, it’s a �20 replacement part with �500 labour, due to accessibility issues. It can make sense to swap the clutch at the same time. • Intermediate shafts: Another niggle shared with the Boxster is intermediate-shaft bearing failure. The bearing goes and the shaft can wobble. When it does that, the pistons and valves have a punch-up. It’s a �7-8k fix. • Radiators:The radiators in the nose are made from very thin aluminium, which can corrode and is susceptible to stone chips, with consequences for both the engine’s coolant supply and the air-con. • Sat-nav: Don’t pay extra for a car with the optional sat-nav – it’s so dated these days that it’s nicer to have a car without it. Don’t you have the app on your iPhone 5? Used cars: how to buy a second-hand Porsche 996 | Road Testing Reviews | Car Magazine Online Lastly, thanks for all the helful responses. I am just making a VERY rough calculation. I didn't include costs like maintenance. I was not implying owning a sports car is cheap, just that it may be more affordable than people assume, in light of a few factors (Buy used, buy outright, own the car for a long period of time, realize a significant resale value) instead of assuming you need to pay $1200/mo to lease to get into one of these.

Buy the best Porsche you can afford, drive it as much as possible and spend as much as you possibly can to Drive and maintain the Porsche

I know your friend can find a 996 for $30k, he will have to barter the price up though. 996's may have faults but there's a lot to like. The steering is superb, the car is lighter and smaller than some later versions, it has lots of power, the heat works on a cold day, the windows work nearly all the time, it has lots of air bags, the ac uses 134a, the cabin has a bit of elbow room, rust is not a big problem, parts may be pricey but they are available. For some people the plusses outweigh the minuses. The air cooled cars have the iconic look but give up creature comforts and outright speed and their mechanicals aren't perfect either. Using an air cooled car for a daily driver can be a real commitment. There is a car for everyone. If you want to make money on your investment, a car is not the starting point. The car market is volatile and the few cars that appear to be a good investment are very expensive and need to live in climate control garages.