James Grossman and the 911 Carrera S - Jack Eric Grossman

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4-Year 5-Year Trade-in Trade-in 911 versus Corvette Depreciation Analysis 2000 Chevrolet Corvette Both cars with 20,000 2000 Porsche 911 Coupe miles, in excellent condition 1999 Chevrolet Corvette Both cars with 45,000 1999 Porsche 911 Coupe miles, in excellent condition 1999 BMW 528i 2000 $45,000 $69,000 1999 $45,000 $69,000 $45,000 2004 $24,850 $41,000 Difference: 2004 $20,475 $36,025 Difference: $19,475 Depreciation, in $ $20,150 $28,000 $7,850 Depreciation, in $ $24,525 $32,975 $8,450 $25,525 Depreciation, in % 44.8% 40.6% 4.2% Depreciation, in % 54.5% 47.8% 6.7% 56.7% Private Party Private Party 2000 Chevrolet Corvette Both cars with 20,000 2000 Porsche 911 Coupe miles, in excellent condition 1999 Chevrolet Corvette Both cars with 45,000 1999 Porsche 911 Coupe miles, in excellent condition 1999 BMW 528i 2000 $45,000 $69,000 1999 $45,000 $69,000 $45,000 2004 $28,250 $46,600 Difference: 2004 $23,575 $41,425 Difference: $23,105 Depreciation, in $ $16,750 $22,400 $5,650 Depreciation, in $ $21,425 $27,575 $6,150 $21,895 Depreciation, in % 37.2% 32.5% 4.8% Depreciation, in % 47.6% 40.0% 7.6% 48.7% Retail Value Retail Value 2000 Chevrolet Corvette Both cars with 20,000 2000 Porsche 911 Coupe miles, in excellent condition 1999 Chevrolet Corvette Both cars with 45,000 1999 Porsche 911 Coupe miles, in excellent condition 1999 BMW 528i 2000 $45,000 $69,000 2000 $45,000 $69,000 $45,000 2004 $31,750 $52,400 Difference: 2004 $26,875 $47,800 Difference: $26,605 Depreciation, in $ $13,250 $16,600 $3,350 Depreciation, in $ $18,125 $21,200 $3,075 $18,395 Depreciation, in % 29.4% 24.1% 5.4% Depreciation, in % 40.3% 30.7% 9.6% 40.9% To compare the Corvette’s 50K pricetag to the Porsche’s 82K and say that the Porsche cost 32K more is an oversimplifi cation. More telling is to consider the Total Cost of Ownership, which vehicle’s economic value is based on how much it will cost to own compared to its purchase price. In a sense, ownership costs are “what you pay” and the purchase price is “what you get.” The less you pay for what you get the better off you are. This analysis of Kelly Blue Book Values shows that over the course of 5 years, the Corvette depreciates 7.6% more than the 911 and only costs $6,150 more to own (if both cars sold as private parties). That’s only $1,250 a year. If you were a dealership able to sell a car at its retail value, over the entire 5 years, it would have only cost $3,075 in depreciation to drive a 911 instead of a Corvette. Add to this the fact that a 2005 911 will become a more desirable used car because it will eventually be the most affordable 997 body style.
Closing Plea The Corvette is lauded as the sports car that can keep up with the best at a fraction of the price. If cars can be reduced to bar graphs and percentages, then sure. But you will be so much happier with the 911. My God, is it such a better car. Whether is the lightweight engine or celebrated weight-distribution, the 911’s is in an entirely different realm of automobile. No discerning driver will contest this. What is controversial is assigning a dollar amount to the extra je ne sais quoi that the 911 brings to driving. And that’s something you have to decide for yourself, but only after experiencing a thorough test drive. Hear the wheeze of the fl at-6 coming to life, smell the Michelin Pilot Sport N1s light up in back, and watch the spoiler deploy in your rearview as you breeze through 85mph. I respect that, with either car, we’re talking about a great deal of money. So, if nothing else, please take this 6-word mantra with you to the test drive: Consider cost of ownership, not MSRP. The 911 will NOT cost $40K more to drive than a Corvette. Less. Much less. I’ll end with the August 2004 Car: "The 911 is a special case and defi es the gravitational pull of depreciation. Most price guides get it very wrong, claiming a year-old 996 C4S should sell for £56k – but a trawl thorough the classifi eds soon fi nds a couple with a year’s worth of mileage, in at £64k. Curiously enough, that’s the price of a brand new one, but without the waiting list… Sum up: If you can then you must." Dad, I know you can.
Page 1 and 2: James Grossman and the 911 Carrera
Page 3 and 4: The Numbers Layout Rear engine, RWD
Page 5 and 6: In the Blood The 911 is hard to jus
Page 7: Pragmatics Fortunately, we live dur
Page 12: There is no substitute. Porsche owe

James Grossman and the 911 Carrera S - Jack Eric Grossman

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