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I just don't know if I'm financially ready for a 992?
Some background: I grew up quite poor so I have been frugal all my life.
Fortunately I do quite alright right now and make about ~$300k living in HCOL area. Currently have a small modest condo with very manageable mortgage due to covid rates. Eventually I would want to buy a bigger house with a dedicated garage for my car, but not sure when that will be with the current housing prices and rates.
I've been eyeing the 992 base for a while now, and ordering a new one with the specs I want would be ~$140k.
I can pay all cash for it, but that would deplete nearly all of my cash savings.
I could go for a CPO 992, but those are ~$110k and difficult to find the exact specs I want, not sure really worth the savings.
So essentially my options boil down to:
1) just get the new 992 and enjoy life
2) keep shopping around for a CPO one, never mind the specs and just enjoy the car + savings
3) wait a few more years and focus on getting a house with dedicated garage first
Sorry if these are dumb/ridiculous questions for an internet forum, don't really have any friends/family I can get these kind of advice from...
You have to figure out what works for you - but one of the keys things to rembember in life is to always buy in your comfort zone. Once you get out of that zone and over-extend, the joy of ownsership is lessened by the financial stress imposed.
I have owned Porsches since 1977, and and am financially conservative. I can tell you with great certainty that the joy of owning and driving a Porsche is not in the model you drive, but in the experience it gives you - the adventures - the drives - the people you meet. Your first track day, the first autocross, the first time you place top three in one of those auto crosses, the gimmick rallies you run in your car and the friends you make along the way. Do you need a 992 for that? No, you don't.
I owned a 2008 Boxster S for several years. I did not have the cash for a newer 997 and didn't want to finance a toy. Some looked down upon it, but who cares? I would eat many of those 911 owners alive on the Auto cross circuit or even track days in this machine. It was a wonderful car and I sometimes which I would have just kept it.
That car was fast, fun, handled like it was on rails and gave you everything Porsche other than the ego of being a flagship model. You don't have to spend $ 100K or more to have fun, a clean used Boxster or 996 will get you into the fold for under $ 40K. It will give you all those experiences easily. Ask yourself WHY you need a 992 and be honesnt with yourself. You may be far better off buying that. house with a garage and putting a older Porsche in garage, then buying a high end car that sits out in the weather. Get any Porsche, join PCA - and go to the Chapter Events. They don't care what you drive, and you'll have tons of fun, and make lots of memories.
The Real Key however, is to not put your money into cars at a young age. Put it into investments. Real Estate, Stock Market, that sort of thing. You can take $ 30K and turn that in $ 1 mil over time, and when you do that - you can buy whatever snazzy Porsche you want without ever leaving.your comfort zone.
You'll hear a lot of different opinions on what to finance and not finance. I wouldn't blow through your cash savings for a car. Even a 911 which is relatively easy to offload when you need cash. But also if you're trying to buy a house, depending on the price of course, don't mess with your DTI (debt to income) by getting a really large car loan. You make enough money so you should be fine but it also really depends on how you report it on your taxes. If you're W2 and you only have the condo payment and no other major payments or revolving debt then you're golden. The banks will give you the money you want for your car and your next house as well. The car will eat up 2000-2500 of your monthly expenditure leaving you around 8-9k for mortgage payments. That's based on a 49.9% DTI limit for your mortgage. Of course these are very rough numbers and I don't know all of your finances. If you're 1099 and you actually have a solid $25k in taxable income per month you will be fine also.
Options 1, 2, and 3 are all valid options tbh. What do you drive right now?
You'll hear a lot of different opinions on what to finance and not finance. I wouldn't blow through your cash savings for a car. Even a 911 which is relatively easy to offload when you need cash. But also if you're trying to buy a house, depending on the price of course, don't mess with your DTI (debt to income) by getting a really large car loan. You make enough money so you should be fine but it also really depends on how you report it on your taxes. If you're W2 and you only have the condo payment and no other major payments or revolving debt then you're golden. The banks will give you the money you want for your car and your next house as well. The car will eat up 2000-2500 of your monthly expenditure leaving you around 8-9k for mortgage payments. That's based on a 49.9% DTI limit for your mortgage. Of course these are very rough numbers and I don't know all of your finances. If you're 1099 and you actually have a solid $25k in taxable income per month you will be fine also.
Options 1, 2, and 3 are all valid options tbh. What do you drive right now?
Yeah that's a really good point. Even though I have the cash I'm definitely leaning towards financing if I do get it. Should that DTI be after tax or before tax income?
I currently have a BMW 335i, the most natural next car would probably be the new M3 or M4 instead, but really not liking BMW's latest designs. So trying to figure out if I should get a 911 instead
I probably would finance with enough cash down so that after tax etc and depreciation you can offload when you need it for a house..if needed to offload et all. Think about this way - once you get a bigger house, family etc owning a 911 might not fit the bill anymore until kids are old enough or you make enough money for house, family, family cars and 911. So, either do it now and enjoy until life changes or wait until life changes again (most here are on the second part of life cycles)
I’m probably the dumbest guy on this forum with the lowest income, and I can figure this out.
You’re telling me that you make 3 hunnit and have $110k cash and can’t figure it out?
LOL well looks you just found someone dumber than you
But yeah, i don't know; I've always just been really careful with money, and going to a 911 feels like a big jump
Yeah that's a really good point. Even though I have the cash I'm definitely leaning towards financing if I do get it. Should that DTI be after tax or before tax income?
I currently have a BMW 335i, the most natural next car would probably be the new M3 or M4 instead, but really not liking BMW's latest designs. So trying to figure out if I should get a 911 instead
I’m really cheap and really risk averse as it sounds you are. I never look at my income when determining if I can afford a large purchase. I look at net worth, and ask myself, how long can I live my current lifestyle if my income dropped to 0 Tomorrow? If that answer makes you comfortable, you can afford it.
I’m really cheap and really risk averse as it sounds you are. I never look at my income when determining if I can afford a large purchase. I look at net worth, and ask myself, how long can I live my current lifestyle if my income dropped to 0 Tomorrow? If that answer makes you comfortable, you can afford it.
Thank you, hmm, this is a very interesting take. I will have to think about it
You have to figure out what works for you - but one of the keys things to rembember in life is to always buy in your comfort zone. Once you get out of that zone and over-extend, the joy of ownsership is lessened by the financial stress imposed.
I have owned Porsches since 1977, and and am financially conservative. I can tell you with great certainty that the joy of owning and driving a Porsche is not in the model you drive, but in the experience it gives you - the adventures - the drives - the people you meet. Your first track day, the first autocross, the first time you place top three in one of those auto crosses, the gimmick rallies you run in your car and the friends you make along the way. Do you need a 992 for that? No, you don't.
I owned a 2008 Boxster S for several years. I did not have the cash for a newer 997 and didn't want to finance a toy. Some looked down upon it, but who cares? I would eat many of those 911 owners alive on the Auto cross circuit or even track days in this machine. It was a wonderful car and I sometimes which I would have just kept it.
That car was fast, fun, handled like it was on rails and gave you everything Porsche other than the ego of being a flagship model. You don't have to spend $ 100K or more to have fun, a clean used Boxster or 996 will get you into the fold for under $ 40K. It will give you all those experiences easily. Ask yourself WHY you need a 992 and be honesnt with yourself. You may be far better off buying that. house with a garage and putting a older Porsche in garage, then buying a high end car that sits out in the weather. Get any Porsche, join PCA - and go to the Chapter Events. They don't care what you drive, and you'll have tons of fun, and make lots of memories.
The Real Key however, is to not put your money into cars at a young age. Put it into investments. Real Estate, Stock Market, that sort of thing. You can take $ 30K and turn that in $ 1 mil over time, and when you do that - you can buy whatever snazzy Porsche you want without ever leaving.your comfort zone.
Sounds like you’ve done a good job securing your current financial position and now you want to push all of your cash into a 992 that you don’t even have a garage space for? Always secure a rainy day fund in liquid assets before pursuing frivolous purchases. Don’t blow all of your cash just because you can’t reach the next rung of the property ladder just yet - your earning power will increase, prices and rates are both variable, etc. I would stash a good chunk of that cash into something earning 5% interest and then take 40k to buy a fun car if you’re still inclined - 996, 997, 987, 981, FRS/BRZ, Miata, etc.
07-23-2023, 09:28 PM
I just don't know if I'm financially ready for a 992?
