Recently, the collector Porsche market has been going absolutely wild, and nowhere is that more evident than the valuation of particularly clean examples of the 993-generation 911 Turbo and Turbo S. These are cars that, just a few short years ago, could be purchased for a fraction of their current values, so why the sudden shift? Is this inflationary price tag here to stay, or will the 993 bubble burst? Who better to ask than the expert?
We wanted to know what there was to know about the 993 Turbo market, so we gave a call to FLATSIXES.com sponsor, Willhoit Enterprises [the place we bought our 993 that our logo is modeled after]. Just a couple of years ago, the best 993 Turbos were eighty-thousand dollar cars, in fact I saw a few sell at around 60 grand in early 2012. Today, you’d be hard pressed to find one in decent condition at double that figure. Willhoit figures that this is just the tip of the iceberg, and that these cars are only going to continue gaining in value. Nice for the people who have them. Not so nice for those of us that want one. If you are in the market, you’d better buy quickly. They say that the best of the best 993 Turbos are going to be quarter million dollar cars come next spring. Seriously?
Why is the 993 Turbo such a hot commodity all of a sudden?
According to Willhoit, it’s the Porsche he’d most like to own for his own collection “without question“. Aside from his claims that they are gaining around twenty-thousand dollars in value per month, he states that the newer Porsche Turbo models may be faster, but lack the personality found in the 993’s aircooled version. In this market of skeptical investing, it is nice to have something tangible for your money. With the market the way it is, it is possible to buy a 993 Turbo, enjoy owning it and driving it, then sell it for a tidy profit in a year or often less.
There is something to that, certainly. I’ve been behind the wheel of a few 993 Turbos, and there is certainly nothing like that experience. It’s the surge of the turbochargers. It’s got that distinctive aircooled sound. It even smells a certain way, that hot smell. You know the one. That’s not to mention the absolute beauty that is the curved flanks of a 993 widebody. Sure, the all wheel drive system is still a bit primitive by today’s standards. Yeah, the interior is pretty familiar if you’ve spent your life around air cooled cars. The windshield shape dates all the way back to 1964. The switchgear is clicky and plasticky. None of that matters once you fire it up and get underway. Wait until its warmed up, then tromp on the throttle a few times and you’ll forgive all its trespasses. You’ve got 408 horsepower under your right foot. You’ve got a pretty darned good Getrag G64 transaxle to row through. You’ve got all wheel drive spinning 18X8 front and 18X10 rear iconic ‘Turbo Twist’ wheels. It’s an almost 20 year old car that sprints to 60 miles per hour in only 3.9 seconds. How could you go wrong? Of course this is an investment quality vehicle.
So back to the question at hand; Is this a bubble in the market, and is it going to burst any time soon?
Well, first, lets analyze the last couple of bubbles to burst, most notably the Muscle Car collector bubble of the early 2000s, and the Ferrari collector bubble following Enzo’s death in 1988. Both of these artificial market inflations were defined by a single similarity. Neither of those bubbles were driven by scarcity, only perceived scarcity. The muscle car market rise was initially driven by a certain level of scarcity, as people started looking for rarer and rarer option packages. A perfectly kept rare option car was all of a sudden worth an astronomical sum, and we witnessed million dollar Plymouth Hemi Cuda convertibles, but only in some weird color, with air conditioning, built on a Tuesday, with original tires still fitted and only 20 miles on the odometer. This then artificially inflated the value of the more pedestrian muscle cars. When people wizened up, the bottom fell out in a big way. Similarly, following Enzo Ferrari’s passing, a lot of market speculators when out and bought F-cars, this drove up prices for a little while, but then the economy took a dip, and a lot of collectors (most especially those in Japan) started dumping their cars and driving the prices back down. That bubble burst just a year or two after it rose, and by 1991 certainly, things had normalized again.
Is The 993 Market Heading For A Similar Crash?
Willhoit says no, and its all down to one simple sentence. Demand is continually outpacing supply. They simply aren’t making the 993 Turbo anymore, and there are new collectors wanting to buy the best 993s money can buy almost every day. People who have traditionally collected higher end cars, folks that are used to spending a million dollars for a car, are taking a serious look at the 993 Turbo as an investment now, and are unfazed by a pricetag only one quarter of that. Cars, especially ones as beautiful as Porsche’s 993, are now being accepted as true objects d’art, and hoarded as such. Any good private Porsche collection has at least one 993 Turbo these days, and the really good ones are becoming ever more difficult to acquire.
So What Options Do You Look For In A 993 Turbo?
Premium colors are always a solid choice. A personal favorite is the beautiful Arena Red, though Midnight Blue might be a close second. For the sake of rarity, finding a car in a paint-to-sample color seems to be the hot choice lately, especially anything in Mexico or Riviera Blue (It seems to be Seinfeld’s favorite Porsche color, after all). Lighter interior colors are generally preferred, but black tends to hide its age a bit better. Most people won’t be picky about the interior, though personally I’d avoid wood or carbon fiber trims if given the option, feeling them simply to be a bit dated. Willhoit says that the best one to look for is the 1997 model, as only 612 Turbos were imported to the US for that year according to PCNA. However, we also got 1297 turbos in 1996, and I certainly wouldn’t kick one of those out of my garage for being too common. One thing is for certain, if the 993 Turbo is speculated to hit a quarter million next spring, what will we see 993 Turbo S models going for? That’s a whole other post, don’t you think?
As with every investment, though, there is always risk. Mr. Warren Buffett, the renowned oracle of Omaha, once said “Be fearful when others are greedy, and greedy when others are fearful”. Whether that applies here is for you to decide. So let’s hear it, are you in the market for a 993 Turbo?
Other Porsche Blog Posts You Will Enjoy
The Evolution of Porsche Keys
Here’s A Video Explaining Exactly How To Convert Your Porsche 993′s Headlights To HID
Confirmed: A Porsche 911 Targa Reimagined By Singer Is On The Way!
Woman Buys Porsche. Totals It As She Drives Off Lot.
[Photos via Porsche, Willhoit Enterprises, Sloan Cars, and Excellence Magazine]
View Comments (40)
I generally agree with all of your analysis and certainly can't argue that the 993 and in particular the 993 Turbo is an incredible car. However I was wondering about Willhoit answer to why the 993 Turbo might not be headed for a crash similar to that seen with Ferraris and the Muscle Cars: "They simply aren't making the 993 Turbo anymore, ..." . Can't the same be said for the Ferraris and the Muscle Cars?
Georg,
I"m sure Brad will weigh in here as he's the one that spoke with Michael. However, I believe, from conversations we've had with him, that his statement is more of a broader statement regarding "air-cooled". In other words, the 993 are the last of a type that some "purists" believe to be "true" Porsches. So, combine the scarcity with the perception and the demand and that gets you closer to what Willhoit is alluding to.
Indeed, the sentiment is a general "They don't make Porsches like they used to".
While I personally don't believe that "the only good Porsche is an aircooled one", I certainly understand why some people feel that way. People lament the disappearance of a stick-shifted performance Porsches, the purist feel of a 993.
The fact is, with muscle cars and Ferraris, there were a number of prospectors that were looking to turn a buck on car sales. With the current 993 Turbo market, it's being driven by enthusiasts purchases. Not to mention the fact that the ultra-rare Turbo S is already sky high, and the standard Turbo is as close as mere mortals can get.
So much for that dream....sigh!!
I have a 993 turbo U.S. spec model for sale, 21k original miles on it and I am askig 140.000 USD for it. Not far from a dream.
Hi , I am responding to your Porsche 993 Turbo for sale. Can you tell me the condition of the car and color? Where are you located?
Thanks , Howard
It is a bubble--PERIOD. I have had 77 Porsches since buying my first one-a '556 1500S Continental coupe for $ 400.
Most of these Porsches going into this hot market are just ordinary daily drivers. The late entry buyers are going to just get creamed . This market and the price jacking are controlled by the hucksters and speculators.I'm sure all the "fog horn Leg horn" expert gurus will poop all over my comments as they pull more suckers into their webs of greed.
I can't imagine anyone will "poop all over your comments". The whole point of posts like these is to spark discussion. Everyone's entitled to their opinion. As the owner of both a '73 911 and a '97 993 C4S we're happy with the way pricing is going and would like to see it continue. Will it? It's anyone's guess, but we sure hope so (at least until we sell that is). :-)
You couldn't be more correct. It is a bubble, and anyone who is naive (not old enough to remember the last big one in 89) is going to get what is coming to them. You can't have a car culture full of people who are only interested in values and flipping. It didn't work last time and won't work this time. Case in point, all of the actual long-time enthusiasts who have unloaded their cars (and the low mileage cars for that matter). Everyone is getting the hell out of dodge because the prices are completely out of whack with reality. The newbies just don't realize it because they are blinded by greed. They can have all of our classics as far as I'm concerned. And we'll take there money from them like the fools that they are. We will buy the all back at a fraction of the sale price within just a few years. Why do you think all of these cars are for sale all of a sudden? Because they are so valuable? LOL . NO. The people who know the real values of these things all smell the crap in the air and the losers that are polluting the hobby. They can have it for a few years and lose their *sses. And Wilhoit is obviously old and wise enough to know better. But is either to stupid or greedy to act accordingly. He knows about the last bubble and to completely ignore it and say that 993 turbos are going to be 1 million dollars proves it. If he really believes that then why is he selling those things now for a quarter of that? Speculators, gotta love them. Like watching rats in a maze. They don't have a clue what they are doing.
How's that working out now two years later....seems like prices are a high as ever
Completely true, the 993 Turbo is truly a collectible car. Cars like that aren't produced anymore as the 993 is a pure sports car. The 993 has a beautiful iconic 911 shape and the car will continue apreciate until reaching its maximum value.
Actions speak louder than words.The HAGI P Index which measures the market for rare collectors'
Porsches advanced by 9.17 points (3.64%) to reach an index price of
261.35. Better prices were achieved for rare Porsche from most
periods. The HAGI P has gained by 24.15% so far this year and
87.03% over three years.
Historic Performance
Price (£)* % Change
Most recent 5 months
August 2014 252.18 3.35 %
July 2014 244.00 5.22 %
June 2014 231.89 7.66 %
May 2014 215.40 -3.77 %
April 2014 223.84 -4.70 %
Calendar periods
YTD 261.35 24.15 %
QoQ 231.89 12.70 %
YoY 201.38 29.78 %
3 Years 139.74 87.03
These calculations show Porsche value increase over three years. The 20 year chart confirms this many times over. These numbers are led by 2.7 RS and turbo cars with lesser models tracking closely. This is no bubble. this is solid investment.
The current buzz ref:Porsches, is ALL about prices and their rising. In the past 50 years of my Porsche ownership; the traditional talk was about the design, build quality,engineering, performance and overall driving pleasure which placed this brand head and shoulders above the other brands of sports or touring cars. Today it is all about how much my Porsche has increased in "value". I definitely see a newer breed of persons coming into the arena. In my unconsidered opinion, most seem to be more into the BRANDING than the superior engineering design and overal excellence of performance. This is good for Mother Porsche and her dealers. Bling is the easiet component to put out there!
I recall something (seeming related) said by the talking heads on business TV about the last stock market bubble-just before the inevitable crash:
"When the receptionist/secretarys in your office run out on their coffee break to ckeck the stock market prices; it's time to get out!"
PS- I have sold over 60 Porsches for more than I paid; proving to me the preservation of initial investment.Select carefully!
" Design, build quality,engineering, performance and overall driving pleasure which placed this brand head and shoulders above the other brands of sports or touring cars". That creates demand which drives prices up. You cant have one without the other. Porsche has created a brand which has attracted people who recognize quality and value of their cars. Be happy that a good thing is being recognized.
I very much enjoy reading flatsixes.com as it hits my inbox and have much respect for its creators and various writers.
I also understand it is a business and has advertisers to help defray the costs of running the website. But to have an advertiser who sells the very type of cars that are the topic of the value of said cars in the article just harms the credibility of flatsixes.com in my opinion. Why wouldn't Willhoit say the value of these cars will be approaching a quarter of a million dollars?
I enjoy reading these type of articles as I just recently sold my own 993 Carrera for far more than I paid for it, but I would prefer reading someone's opinion who is A. Not an advertiser of this website, and B. Someone who is not directly involved in selling the cars described in the article.
Otherwise, keep up the great work!
Erik S. aka Aktifspeed
Erik,
Thanks for your feedback. We appreciate you taking the time to read our site and to comment.
With that said, I'm a bit confused by part of your comment. What value would it be for someone that "is not directly involved in selling the cars described in the article" bring to the story? What authority would they have? Not trying to argue, just want to understand who else we could have approached for this story (sponsor or not).
Thanks!
PG,
I'm thinking someone like an automobile appraiser specializing in Porsches, an active Porsche collector, or another highly-respected freelance writer with a deep understanding of the market would be a more appropriate person to ask about market values. Values can either rise or fall; I could never believe an automobile salesperson is going to publicly state that the values of a car he or she sells might ever be falling. To me, reading about the 993 market from someone whose primary job is selling 993's (among other models) just takes away from the credibility of the story.
Erik S.
While I wouldn't kick a turbo out of my garage, I'm extremely happy and content with my 1 of 539 1995 C4 Coupe. Sure, she doesn't have the hips of a 1996 C4S or a Turbo, but she's a rare bird and has 29K on the odo.
I think the air-cooled market is getting a bit kooky. When I don't want to hop in my car and drive it for the heck of it for fear of "putting unnecessary miles" or *gasp* getting a rock chip or ding on it, what's the point? Now she sits in the garage for a trip to Cars n' Coffee once a month or so. I bought it to enjoy and now have guilt enjoying it.
LOL at bragging about your 29K on the ODO and then saying this, "When I don’t want to hop in my car and drive it for the heck of it for fear of “putting unnecessary miles” or *gasp* getting a rock chip or ding on it, what’s the point?"
Love the discussion of my absolutely favorite care to won and drive - '95 Carrera 4, with 105k, I put 95k on it and intend to keep doing it when it feels right. It is my third 911 and the one I will likely keep forever. The two subsequent Boxsters ('00 and '06) were/are daily drivers and fall into the "old man with a convertible" category (the man, not the car). I hope to never be without a Porsche, and the 993 style is the consummate car for me to love looking at and driving, and for whomever owns it when I can't!
It is hard to determine who doesn't have a vested interest in these cars to comment on value. The figures I posted above are from an independent body that tracks high end collectable automobiles for investment and true validity of the asset class. There are cars and then there are cars. These cars are assets equivalent to most other asset classes only over time they have done better. It doesn't matter the person commenting on these cars because the answer is that they have proven their worth. All air cooled 911 and 912 cars are rising in value because the demand is there. Will that demand stop? I think not.
All 993 models are going up in value, some just more than others. If production numbers are any criteria, then the C2S beats out the Turbo...same body, just not a Turbo. The 993 is best of both worlds: Reasonable creature comforts with that classic "old school" instrumentation and the sonorous melody of an air-cooled flat six.
by that logic, the C4 cab will be most valuable because it was the lowest production 993 (excluding GT and RS cars)
C4 has extra 150lbs of fat...C2 values will rule.
I think we need to determine that there is a difference between "prices" and "values". Mass produced robot production line cars built recently with many plastic parts,computers,electronic widgets just are in reality disposable/recycleable daily drivers to be consumed and recycled. Truely rare, unique autos of classic design, style and limited production numbers will never go out of demand. The underlying "value" will remain, AND the prices will go up and down with the economy and latest trends of what is all the rage of the day. I recently sold a '86 Carrera sun roof coupe in "special wishes" interior and paint. I also (regretably) sold a '55 Emory Special (Out law) with 4 cyl POLO 911 engine/901 5 spd.
The '86 Carrera is a better car in every way EXCEPT style and rarity. The '55 Emory Outlaw went for 5 times the very clean and pretty '86. Perhaps in the decades to come, as the older population dies off and a new generation of buyers come on board, no one will "get" the '55 Special but many will remember the torsion bar, air cooled 911 SC and mid 80s Carrera and therefore the prices- not values could reverse. Choose carefully my Porsche friends--IF you are in it for the pricing.