I will admit to being a bit out of my depth with newer Porsche values. I’m deeply involved with classic cars, so depreciation in modern cars simply doesn’t come up for me often. Thankfully the folks at JP&Co. released a handy video charting the depreciation of water-cooled 911 Carreras. The video covers the relationship between age, mileage, and even options on the value of a used 911 Carrera.
While the depreciation curve looks more or less like you’d expect (see the chart below), several other factors are taken into consideration. Porsche’s legendary option list appears to add very little to the value of a used 911, for example. Though this may be a sticking point for sellers, this can mean getting very good value from a highly optioned car.
The video notes a 17.5% depreciation hit in a 911’s first year, followed by another 11.5% after the second year. After that the curve generally flattens out. The earliest water cooled Porsches are currently at or around the bottom of their depreciation curve.
Classic 911 values are currently all over the place, and even total project cars are commanding high prices. It is good to see that modern 911 values are more predictable, which should help putting prospective Porsche-philes behind the wheel.
View Comments (14)
With some tender loving care and repairs, there is definitely money to be made in older models ... very informative post, thanks!
I get the concept of depreciation, especially when you're running a business and your assets are there to help you run your business. There's a value you can attach to that.
But my problem with depreciation on cars is that there's no way to factor in the enjoyment you get out of the car. I can say a $100,000 Porsche is now worth $50,000, but unlike the value that business assets added to my business, where do I book the pleasure I got?
If a car is bought as an investment or for basic transportation, then sure. I don't own my Porsche for either of those, so I just forget about depreciation and drive the hell out of the car, maintaining it as carefully as I possibly can.
You don't have a "goodwill" line item on your Porsche's balance sheet? :-)
Will you do the same analysis on Caymans?
Thanks for this! i have been running projections like this for 10+ years because i love the data behind what model years and features sell for what. Example: what about 2009 997.2s, PDK equipped, 4wd vs 2008s or earlier 997.1's, non-PDK automatic, 4s models? oh hell yeah - i have been waist deep in that analysis. I would want to check into your sample size on the 2012.5 vehicles? that might have caused the anomaly in the data. Also you could deepen this by checking sold-only cars on eBay, or private vs. dealer sales, but then, you'd be a nerd like me.
Hey, Pat,
Thanks for reading and taking the time to comment. Would you be willing to share your analysis. We would love to look at it and see how we might be able to present it to our readers. You can use the contact page to get in touch.
I do not think there is a monetary value that can be applied to the pleasure derived. Logically I should have spent $100,000 on a rental property and leased a Kia for "only $99 a month", but what fun is that if you love driving a cool car? Different strokes for different folks.
I find it remarkable how logarithmic that curve appears to be. I wonder if Pat from Glenview would care to present his data graphically for us; t'would be interesting, I tell ya!
=rds
What does a "bad" carfax report (extensive front end damage but perfectly repaired ) do to a 10 year old Porsche ?
Pete, I guess it depends on what you mean by "do". Does it affect its potential resale value? Sure. By how much? Tough to say. Depends on how extensive the damage was, how good the repairs are and how transparent the seller is with information. The more transparent (do you have pictures of the damage? and pictures of the repair process?) the better off you are. Also, what type of Porsche are we talking about? If it's a mass produced version with no collectability (outside of being a Porsche) and there are many non damaged versions available, that carfax report is most likely going to have a more negative impact as there will be a large number of other, non damaged cars to choose from...
Thanks: Just curious because I had $25,000 damage to the front end - 2006 911S with 40,000 miles - NOT my fault and the GM at the Porsche dealer told me at least $10,000 diminished value because of what the carfax report will now say
Does your policy offer "diminished value" coverage? Might be something to look into...
I would have expected a much bigger drop from the 2009 to 2008 as 2009 was the year they fixed the IMS problem and in the midst of the recession, there were a lot fewer 2009, 2010 and 2011s sold. I'm not 100% on this data.
Thx for the info. Im close to closing on a used 911, and would appreciate feedback on price. Its a 2014 with 24k miles and i am paying $54k
Options
Sport chrono
Extended warranty till 2020
Sunroof
Clear bra
F&R sensors
Feedback?