Help me buy an overpriced European sports car.

October 17, 2005 7:24 AM

Self-indulgence! Here's the low-down, I drove a Porsche Boxster and found my calling in life. I'll be either out of this country or Manhattan in 1.5 years so if I get a car now I'll definitely be selling it in under two years. Help figure out the best way to pay for this...

I guess what I want is somewhat comparable to a lease (which incidently, I don't want to do). I'm in college right now and due to extenuating circumstances am living at home so I now have rent, food and student loan money for my own pleasure. I realize that financially, this is the least prudent thing I can do (though Porsche's keep their value pretty well).

So with all this in mind (deferred student loans used for a terrible purpose) what's the best way to go about this where I can get the lowest payments possible and come out more or less even at the end of next year?

At least in my area it looks like one with 30,000 years can be had for around $25,000. It also looks like Porsche's depcreciate moreso on their mileage than years alone -- and I plan on using this as my second weekend car. This would put a ~$3000 difference between buying it and selling it (could I be too optimistic?). So I think you guys get what I'm trying to do, help me cleverly finance this so that I may not sulk at home.

posted by geoff. to travel & transportation (12 comments total)

Have you looked into leasing? If you are going to sell in two years anyway, why bother eating the depreciation?
posted by Pollomacho at 7:28 AM on October 17, 2005

I know this hardly answers your question, but if you're on a budget and must have a mid-engined Porsche, have you considered a 914? They can be had for quite a bit less than a Boxster, will maintain or appreciate in value over the course of your ownership (unlike a new car), they're easy to work on and maintain yourself, and are hands down one of the most fun cars there is to drive, period.

Just a thought...
posted by saladin at 7:30 AM on October 17, 2005

I was looking into leasing but I didn't think it was a very good deal. The Boxster leases at $600, the same as the Cayenne. I was expecting/hoping I'd get away with this at $400/mo with the used car. I guess if that's not possible leasing is possbile.
posted by geoff. at 7:34 AM on October 17, 2005

geoff: "At least in my area it looks like one with 30,000 years can be had for around $25,000."

If you're gonna be getting an Upper Paleolithic era car, you're gonna need to check the gaskets really carefully...
posted by benzo8 at 7:49 AM on October 17, 2005

Swapalease or one of its competitors is probably the most cost-effective solution for your problem. If you don't like leases, you have to buy. Debt or equity. That's all there is.

And a 951 is a much better ride.
posted by Kwantsar at 7:52 AM on October 17, 2005

Fucking Christ almighty. That's like 5th time that I didn't mean to press "Mark as Best Answer", now no one will come to the thread. Argh.
posted by geoff. at 7:55 AM on October 17, 2005

I suggest asking PPBB for advice on your purchase.

I'm real confused as to what you want, that isn't purchasing or leasing... You could always try for a low-interest six year auto loan, then pay it off when you sell it in 1.5 years.
posted by I Love Tacos at 8:08 AM on October 17, 2005

Well, I still checked.

You might look for a "buy-back" auto loan. The money flow is similar to a lease, but it's a loan, so you legally own the car. Basically, the bank loans you the full value of the car, but you have a "balloon" payment at the end of the loan period equal to the expected depreciated value of the car. So the loan payments only covers interest and the amount of depreciation.

The only place I know of that has these kinds of loans is the Royal Bank in Canada, but there might be some lender in the US that provides them.
posted by GuyZero at 8:10 AM on October 17, 2005

Sorry I guess I should clarify, I was just wondering if anyone had experience and what worked out for them. As in financially what would be the least amount of money lost, seeing as how I know the end date of when I no longer need it. Like the buy-back loan that GuyZero mentioned.
posted by geoff. at 8:16 AM on October 17, 2005

I would just say this: be careful what you do with your loan money, since certain loan money may only be legally used for school expenses.

And, you say it isn't prudent: it really, really isn't. If you could just not take student loans, you'd be so much better off. Then you could own a Porche (or whatever your next calling is) outright soon.
posted by dpx.mfx at 9:20 AM on October 17, 2005

How much would it cost to rent one every weekend that you wanted to use it for driving?
posted by xo at 10:22 AM on October 17, 2005

If you are a college age male there are a couple things to consider:

a) Insurance is going to run you something like $3000 or $4000 a year - more if you live somewhere where car insurance is expensive, like California, New York, or New Jersey.

The reason insurance is so expensive is also worth considering: it's because there's a significant chance you'll wreck the thing. If I were a 19 year old man who really wanted to make an informed financial decision about buying a Boxster, I would assume that the car would be destroyed in an accident before the end of the 1.5 year period. Maybe you'll beat the odds, but I wouldn't count on it - if you were the kind of prudent, safe driver who beat the odds, you'd probably be more excited about buying a Volvo, or using your student loans for their intended purpose.

If you can't tell, I think this is a very bad idea that you will regret for years to come, if you survive it.

I also think that if you buy a $25K car and will need to flip it quick in 2 years before leaving the country, you'll be lucky to get $18K out of it. And that's assuming that it was in the appropriate condition to be worth $25K when you bought it. If it's not - if it needs the onboard computer fixed, or it blew a gasket or threw a rod and needs a ring job or a rebore, or if the convertible top motor needs repairing - there is absolutely no limit to the amount of money you can spend on it to get it into salable condition. Repairing a Porsche is an activity generally underwritten by practicing surgeons, not kids on student loans.
posted by ikkyu2 at 12:27 PM on October 17, 2005