How Rich Should You Be to Buy a New Porsche?
Вставка
- Опубліковано 26 сер 2024
- Want to buy a Porsche, but aren''t sure if it's a wise move? In this video, I'll tackle the question, "how rich should you be to buy a new Porsche?", and give you practical budgeting tips. See below for more videos and check out www.ecarguides... for Porsche maintenance DIY info.
Need Porsche help or purchase advice? Book a consultation with me. calendly.com/c...
- Porsche 911 Buyer's Guide Series: • ✪ Which 911 should you...
- Porsche 911 Ownership Videos - • Porsche 911 Ownership
- Car Discussions & Advice Videos: • Car Discussions & Advice
- Product Reviews & Tutorials: • Product Reviews
- Porsche Cayenne Turbo Ownership Videos: • Porsche Cayenne Turbo ...
- Car Detailing & Paint Care Videos: • Car Detailing & Paint ...
Subscribe to CarFanatic for weekly Porsche & sports car videos!
/ @carfanatic
Camera Equipment Used:
- GoPro Hero 4 Silver: amzn.to/2hXeulx
- Rode VideoMicro Mic: amzn.to/2hJWMkY
- GoPro Case + Mic Mount: amzn.to/2i4hWXA
- Basic Tripod: amzn.to/2hXace2
Need Porsche help or purchase advice? Book a consultation with me. calendly.com/carfanatic
Welp, I’m 16 got 1400$, time to start saving
Not worth saving up just for a Porsche
Try investing in a stock index.
If you save $1400.00 monthly, in 10 years (without interest) you'd have $168k. Start by buying a house first. Then the car in 10 years after that. You'll be set by 36.
Time to make more money 💴
Damm am 16 with 29$
So glad to see a channel that merges car enthusiasm with personal finance. Usually car videos disregard anything related to money (#yolo), while personal finance vids say everything but a beige corolla is irresponsible. The car enthusiast budget is a great guideline that balances our love for cars while maintaining fiscal responsibility. Keep doing these content!
facts bro
Spot on!
Bruh....why you hatin on the beige Corollas!! Don't be the leader of the Hater Nation!
(totally kidding)
Spot on brother, now I need some calculations for the 918 👀👀👀
so a person making 150K salary (before taxes) can really only afford a $60,000 car, that sounds about right.
Thanks for the feedback!
All depends on a lot of things……no kids. You can do alot more……oh and if your real guy…..stay away from gol d digger woman….now buying a Porsche will actually make that harder .
Well yeah, taxes, having to pay for necessities, food, bills, etc without knowing the real impact that can have on your payments would be very impacting
Was this comment meant to be sarcastic? Genuinely curious lol
@@RacksonRacksonRibss no, i was in the market for a cayman, but decided to buy a macan instead which is in my price range
I like how you incorporated a portion of the “wants” budget into the transportation cost. That does make a lot of sense
If the payment stresses you out, or stretches your expenses its too expensive
This guy is excellent at explaining finance ratio: personal expense - and suggesting first paying off all debts first. Excellent advice here and good approach to car buying for any brand.
Their goes my dream. 18' gt3 170k, 09' turbo 90k, 2014 R8 115k, 97' R33 80k. Hmmm. Im only at the 50k limit.
There are plenty of great cars for $50k. You could get a 981 Cayman S, which is a fantastic car, for under $50k. There's also the 997.2.
The math checks out for me! This will be my first 911 and the YOLO in me is like “just get the turbo” but I think I’m going to be more practical for my current situation and get a 997 CS instead!
Thanks for the info!
The thing is, it’s not that bad to buy a porche in cash cause porches, especially the 911’s and the cayman’s they hold their value and depreciate very little, for eg: a 2016 911 turbo has depreciated only about 5-10% and some low millage models even sell more than msrp which is nuts
thats just because of the market
@@dcerty1852 exactly and think this is not gonna to last forever.
@@jml9550 itll definetly cool off but nothing like before. only time will tell how theyll do long term because of this push for hybrid 911s
@@dcerty1852 unless we are looking at limited edition cars like the Carrera GT or 918 or GT3/4 series, all standard production Porsche depreciates. It may not depreciate like a M or AMG, but they all do to an certain extend.
I come back to watch this video often for motivation.
I like it and I pretty much agree with the numbers :) However, if you go for a 2nd hand car, like maybe 3 years old, you can get sooooooo much more bang for your buck :) (at least when prices come back down to a normal level).
Yeah that's the move
3 years old cars, are somethimes as much expensive as a new car, You have to buy at least 10 years old to be cheap
Good video. I bought a GT3 when i had twice the price of the car in cash. I paid the car outright. I've always felt that if you can't just pay it you probably can't afford it.
what do you do
I think this rule of thumb can kind of be bent for Porsche/Toyota/Lexus. Those cars have excellent residual value/ low depreciation, so it’s way safer to go out and buy a brand new Camry spending 35k than a used Benz/Bimmer @ 25k. Truly, I think you should base buying a dream car off your asset income (Rental homes, Stock/Crypto Gains, etc.)
That's a good point. I tend to be on the frugal side these days, so I can't see myself spending the same % despite earning more income. Related to your point, I bought my 2010 911 Carrera S for $52K in 2014 and it's worth more than that today even with the additional mileage!
@@CarFanatic Yeah I’d love to buy a Turbo S one day, but I’m overly cautious with my income. I make a pretty decent living at 22, but I can’t come to terms buying a 150k car even in 5 years when I know I can take that money and buy rentals or crypto.
If you don’t mind me asking, what career are you in? I am also 22
I saved my money and got a 2022 Boxter, 6 cylinder, 6 speed manual transmission. Convertible I love it and I’m not wealthy
How’s the maintenance been?
I was into cars and now I am not into cars anymore, but have a nice garage.
Cars probably for the best are becoming an appliance. Probably for the best.
it's about how much you are willing to keep up with the maintenance
I have 2 Porsche and the maintenance is not bad if you do your own work. Just like working on any other car. Porsche wants $500 for an oil change. I do it for $80. PDK fluid change same deal.
the bank didn't gave a loan to buy a new porsche because i work part time in MacDonald's
No need to be rich, I purchased 14 Cayenne hybrid for 24k, new was 114k, with 75k miles, drives strong, doesn’t make sense to buy new car, always buy used vehicles, now I’m looking for r an Audi S8 2015-16 for around 45k
Nice and smart move!
Yes. Let someone else pay for the depreciation. I make more than enough to buy new, but I have always owned used S-Classes. Even with all the repair costs I’m well below original MSRP.
Used has trade offs. You usually won't have a warranty (or as much) so you need to have money set aside for a major service. And take extra caution to do preventative maintenance.
Good luck spending another 30,000 on maintenance
Thank you so much for enlightening me with a realist idea and plan to purchase a Porsche! This really helped me a lot!
When you have enough money that it’s no worry at all to replace the windshield when a rock cracks it on the highway. If the maintenance and repair are a financial worry, then you can’t afford it.
If I can’t afford it in cash, I can’t afford it. It is a toy.
Depends on if you’re talking about a base boxster or a 918
I don't completely agree with the thought of "if you need a loan, you can't afford it". I have higher-end vehicles and loans on them. What I make sure of is the cash flow from my assets/investments, not W2 income, covers the payments. This way I can almost passively maintain the debt and if I want to pay it off, I have surplus from my earned income after maxing out tax deferred retirement, completely funded EF, childcare, education savings, etc to do it. I subscribe to the rich dad / poor dad philosophy.
I've had a friend that was worth over 4 Million and after some uninsured tourist lightly rear ended his porshe and damaged the rear bumper and a 14k bill to repair. He realised then that the car was even out of his class.
So with 3 kids I guess I’m stuck with my 2010 Camry for at least another 18 years.
Join the car club that allow you to have the exotic cars for a limited amount of times every year
I am on the same page!, I love the 718 convertible, with 2 babies, I will have to wait the same amount of time driving the same car LOL
Porsche will not take care of you after 30 years
@@Anwrimos23 I know, but in 30 years probably I will be too old to drive a Porsche convertible, enjoying life is also important
who cares just buy it YOLO
Always buy cars with cash! Last time I finance my car was 23 years ago when I was poor and bought 1994 Nissan Maxima!
Can loosen up that rule if you are child-free dual income couple and have tenants pay for your house’s mortgage.
Big up your chest RUDEBOY. Passive income
@@kalilinux8182 nice name
@@kalilinux8182 haha, yaadman spotted!
Depends on your priorities and what is really important to you. I have two 911s, a 1995 911 Carrera (993) and a 2015 911(991) Carrera 4 GTS. And all that on a tech's salary and I paid cash as I am too poor to give banks interest payments. And no, I do not have an overpriced iPhone or ridiculous monthly plan. Like I said, it's all about priorities. Now we won't get into my other five motorcycles.
agreed
Main thing my peeps, if you’re not buying it cash. Do the biggest down payment possible. The key is - what monthly payments are you comfortable with. Go from there.
Shaquille O’neal says reinvest 75 percent of what you make and out of the 25 percent, whatever you don’t need to cover living expenses, go ahead and use that to ball out.
In my honest opinion if you can finance your car for 3 years and pay no more than 25% of your income (after taxes) towards the annual payments for those years then it’s fine
I love cars and I typically spend more than every "recommended" budget on the market; typically I spend 35% of my monthly take-home on my cars. But that's also due to the fact I live with low COL(cheap rent) and I don't do much else; I don't go out, I don't travel (airfare/hotels), I don't barhop, I don't do much; my hobby is driving a nice car that I love, staying at home, and playing on my PC. Other people like to do other things so they suggest lower % for a car (Which, as stated in the video, most people use cars as a mode of transportation and nothing more).
So with my numbers, I could afford (roughly) 2.5x more car than the "suggested" income (after tax) suggests. If I made $150,000 after tax, I could in theory stretch a $200,000 car in my budget. As a plus side, a lot of these nicer high-end cars tend to keep their resale value well (especially during the pandemic due to chip shortages) meaning some people drive these 200k cars for free (Look at used 2021 911 Turbo S with 3-5k miles... they're going for 40-70k over sticker price! USED!)
You must be single and don’t have to treat a girl friend 😂
@@tet2mor282 this guy has no girl, just in video games
@@AGhostInTheMachine and his right hand 😂😂😂😂😂😂😂😂😂😂😂
@@tet2mor282 yeah that right hand is busy, as he's roaring down the road in that shiny car
and I still can't afford a 997.2 C2S... Great video D!
wait, 20k 996 turbo? please let me know where to find one!
Thanks Ben! You are correct about the 996 turbo. I didn't have a better picture of a 996 Carrera. My old manager sold his 2000 Carrera Cab tiptronic back on 2016 to this guy for $10k because he needed to make room for a 991. I think the guy he sold it to got a bargain.
Multiple porsche salesmen have told me that the NEW CAR average 911 buyer makes $800,000/yr, boxster/cayman makes $400,000/yr and cayenne is about $500,000-600,000 and macan is about $400,000/yr.
lmao, if that's the case then there would only ever be a handful of used cars a year - and they aren't buying a base S.
Not true
After my car expenses and living expenses I still have the equivalent of a $50k a year salary. You don’t need to be rich to afford a Porsche, these rules are nonsense.
But you are not accounting for opportunity cost
I would rather have a million than a used depreciated sports car
@@gerardoesquivel9919 I’ve met so many cool people and got mentorship from so many millionaires because of my car dude… also I ordered my car. So you’re wrong if you know how to use it, you can get more opportunities actually. Best $120,000 I’ve ever spent.
@@gerardoesquivel9919 some people are car enthusiasts
@@ScottLeonard 120k? Did you pay cash?
@@kevinsamson1693 unless you are schumacher, lewis, raikonen, you are not a car enthusiast, you are a pompous presumptious clown
30-50% of your pay for a car? 20% saving rate? Hmmm….America’s saving rate is in the negative especially for younger people
Gotta be flashy to get them hoes. No?
My rule is, if you think too much about the cost, then you propably can't afford it, As simple as that. You shouldn't buy such a luxury car, if you are not wealthy enough to not be stressed about the costs
Thanks for the very helpful info!🚗🚘👍
Just bought a new Porsche. I make 40k-50k a month. Got to the point where it doesn’t matter if the payment is 1000 or 2000. That’s when you buy a Porsche. When it makes no difference and 1000 feels like pocket change.
911 gt3 rs? Panamera? What Porsche ?
Rule of thumb for me is to never spend more than 6% of your yearly salary in car payments, I know the industry standard is now closer to 15%.
dde knows the 15/6/95 rule
Responsible justification and well delivered video.
A car payment should be no more than 10% of your monthly take home pay AND that is after putting at least 20% down and limiting your loan to 48 months, max!
It may sound like a horrible tip but pay cash is better… Porsche holds their values well
@@jackz4149 I am not sure about that, I have seen alot of 15 years old Porsche Cayenne selling for $3,000
Ya but, putting $20k down also drops the payment quite a bit. If you can't afford a large down payment, then you can't afford the car. If you can't afford $1,500+/yr. in maintenance and repairs, or $700+ for brakes or $1600+ for new tires, or can't afford buying different rear and front tires, then you can't afford the car. Also, the insurance is more than double the average for a general road car.
Do you still have your 911?
Hi John. Yes, I do. She's still running strong!
I can pay cash for 100 of them but don’t want one anymore. Funny how that works.
interesting that in the 50/30/20 rule 20% focuses on debt repayment - i would think that should be prioritized more considering the longer your debts are outstanding the more interest you're paying in the long run? And i'm not just talking financing a car i mean any other types of loans a person/couple may have (e.g. student loans)
The rule assumes you need to spend (no more than) 50% to survive and have a roof over your head. The 30% is wants, 20% is debt. I'd assume if you were in deep debt, you would simply have to sacrifice some the 30% (wants) to pay off debt faster.
AS SOON AS YOU CAN PAY CASH FOR THE CAR YOU HAVE ENOUGH MONEY - PLAN ON $5k /YR IN MAINTENANCE. i HAVE HAD 3. THEY COST MONEY TO MAINTAIN BUT THEY ARE THE BEST CAR I HAVE EVER OWNED OR DRIVEN - THE FUN FACTOR IS OVER THE TOP.
How timely. Just what I’ve asked myself.
great video I usually wouldn't trust a "car guy" on financial advise... but your points were valid
In reality, most people are simply gonna save up enough for a good down payment and just front month to month payments and sacrafice other spending like eating out, vacations, and other luxury lifestyle choices. Not saying that's the best way or only way, but that probably fits most Americans looking to buy an exotic like this.
Goofy
@@dubreil07 OK.
My garage currently sits Porsche, AMG, Audi and SL and I honestly have no idea how much exactly I spend. Maybe roughly, and this should be about it.
Yup people never estimate income after taxes. Taxes are important to consider I pay peoples yearly income in taxes alone every year and I don’t get income tax 😢 I’m lucky if I break even 😅
The question shouldn't be controversial at all. It's actually about as solid and realistic a question as anyone should be willing to ask themselves.
How much do I have to be earning, or be worth, to purchase a luxury car and not break my budget?
It depends what you want out of life. Some spend a fortune on their house. Some live in a small semi and love cars, so they have a 911 on the drive.
Hm. I’m a multimillionaire and lease a Jeep. I must be doing it wrong.
why would anybody buy a new car today? it is such a fail for so many reasons
Almost any car or truck is 60-90k im sure most people don't make that , for a toy smart to keep it the leverage way down used is the way to go for sure
When you understand all this, then a Porsche is not good enough for you! You can get a private jet.
😅 I’m just going to save up a few years.
Good indicator, thanks
This question could have been answered in a 30 seconds video. The old saying goes, if you have to ask, you can’t afford it!
I want to supply dr.u.g and buy Porsches
Not too many of us follow that rules..and so does dealers
Amazing video. Thanks
I make 240k annually and I leased a new base model bmw 3 series (43k MSRP)
Most people think $200k+ is a lot, but it all depends on your situation. When I lived in the Bay Area as a single filling taxpayer, 40 percent of that went to taxes. Then another $3k per month went to rent and utilities. Minus another $3k a month for food, entertainment, traveling, gas, etc. you are lucky to save another 2-3k per month.
My perspective now is, if you are going to buy a car, not only make sure it's in your budget, but try to find something that won't depreciate too much. I bought my 997 in 2014 for $52k and it's still worth around that much today.
Amazing stuff!
I earn 65k a year in uk , low bills , missus pays mortgage, I drive a 2005 Astra 😳
That's not what I want to hear...:)!! Joking, great video and should be helpful to a lot of people. My general rule: If you have the disposable income and your purchase won't stress your budget then go for it keeping in mind the possibility of bumps that could occur in the road that might change your situation!!
But CPO "used" and it's amazing how much car you get for way less than full price. Maintenance is ridiculously expensive so always get a CPO car. Unfortunately I speak from experience.
Off the subject, I have a 2010 Meteor gray CarerraS cabriolet, changed the stone guards to black, big impact for a small price, I would send picture but not sure how to get one to you
You can email me at carandtruckfanatic@gmail.com
What if I plan to sell it after 3 years? Shouldn’t that also been kept into consideration, specially for the 911, which loses value very slowly in comparison to other cars?
$186k…want a 911 but I still drive a 2013 S4 it’s nice not having debt I’ll buy my Florida retirement home which I plan to rent for the next 10 years and maybe a 2012-2013 R8
Lots of great info!!!
Great video 👌🏼
so just gonna exclude buying a Porsche but for me I wanna buy a BMW X6 XDrive40i (hopefully a X6 M50i) and with options it sits just under $80k and basically I have to find the perfect job that will satisfy me and make $138,667/yr... I'm never gonna hit that "suggested" amount. I'm studying to go into Cyber Security and I live in Virginia. The highest I ever seen salary wise is $123k/yr and that's for people with 7+ years of experience. I may be naïve, but I dont wanna wait 7 years just to get my first X6 and never really obtain the M50i version when nicely optioned is $100k. Any suggestions? because I truly wanna know and dont wanna window shop. I genuinely want to own that car when I first drove the 2023 model before they become hybrids.
I’d rather lease a Porsche not worth buying it. Just deal w gas and insurance and payments
great video man!!
Never purchase anything (other than your primary residence) with debt.
If you don't have the cash, you can't afford it.
And yes, I have a 911 Turbo, but I bought it 22 years old at a FRACTION of what it cost new, and I paid cash.
To add, it would be good to have multiple times the vehicle's price.
In my country all cars are 2-3 times more expensive.. So do the math. ;)
The problem with this type of mindset is that it’s solely based on percentages, which doesn’t scale well in the real world.
My income just went up 100% in the past year, but my living expenses only went up 10%
So based on these “rules” I’m not paying enough for my needs, and I would be spending too much on transportation.
A much better calculation in my opinion would be to calculate your needs (housing, utilities, food, clothing, etc..) per year, and subtract that from your annual income.
Then at that point, take half of what’s left and put that into savings and investments, and the other half is for pleasure (trips, cars, luxury items, etc…)
Sorry for hating so bad, but I work as a finance manager at a fortune 500 company making around $250k before tax, so seeing this bad advice just gives me chills.
Using your advice, I bring home $11k/mo after taxes and various distributions (Medical / Dental / IRA / 401k). The 15% rule on my net pay would limit me to $1650/mo for car expenses.
If I bought a new Porsche Cayman today at the lowest price in my area ($75000), I would end up with about $1300/mo for the payment using 20% down payment, 48 month approach. Now, add in insurance (I'm 32 with no accidents) - I'm at $243/mo for my insurance quote. Now add in an additional $227/mo for gas given I drive 12k miles a year and the car I'm looking at has 22 mpg combined. Total cost before maintenance or repairs is already $1770 - above the $1650 limit. Therefore, even at a quarter mil I can't afford the base model Porsche using this BS advice.
Using the same advice with the 30% rule, I'd have $3300/mo to dine out - but can't afford a base Porsche. That's like taking a vacation every month.
I think your doing the math wrong. Start with your after tax monthly income, which is before 401k contributions, then apply 15% for your monthly car budget. If you make $250k, I imagine your after tax income before any savings contributions is still over $150k per year. Let's say that's $13k per month, that's almost $2k per month you could spend on a car. Seems pretty reasonable to me. Me personally, I try to save at least 30% each month.
@@CarFanatic The reason why this is such bad advice - is because it's based on ratios. Those ratios become irrelevant at a certain income levels. When you're looking at affording a Honda and you are a college student, these ratios can be applied. Applying these personal finance ratios to people who make real money and can actually afford a Porsche is a whole different ballpark. The only thing that matters is if a person is able to save enough money for retirement, various funds, pay everyday bills and be happy. Ratios won't tell you that.
Really random question but I’m thinking of majoring in finance in college. Not going to a prestigious school so getting a job on Wall Street will be tough. Did you start on Wall Street or no?
@@therooster_ that's a hollywood myth that finance folks start on the street. plenty of firms that are not based on trading stocks, but focused on long term investment strategy, budgeting, etc. you will want to take as much as math / econ / acct as possible.
@@someguy4645 oh shit that’s good to hear. How many years of experience do you have?
UA-camrs need to stop asking people to like a video from the beginning. We haven’t even consumed the content yet. Let’s watch and enjoy it, we’d like it without being asked. Subscribing to the channel comes natural after liking, if we enjoy the content. My 2 cents
So I'm single and making 6 figures and I can't afford a base Macan.
Don't believe in these ridiculous finance rules made by non-finance people.
have more then one income streem to be able to buy a sports car. people that buy these kinds of cars is when money is not a problem. Also these cars have a lot of up keep its going to cost more then a normal car.
I don't consider myself rich. I have had four Porsches, the one I have now is the 718 Cayman GTS. I guess, it helps that I support D.I.N.K. (Double Income No Kids)!
“Porsche 911 it’s the best”
Correct answer is buy something you can pay cash for. Liability insurance only. Once you are completely out of debt and have at least $750,000 in cash, other than your fully funded retirement plan (at least 15% of your income) , the buy your car with cash without touching your $750,000 savings. You’re welcome
I would rather buy a bike and spend the money on travelling
Just put a bigger down payment to make higher end car more affordable and you’ll be ok
im unemployed but i got new cayenne coupe sticker price of 95000
Good content and analysis.
Thank you James!
A Porsche should be your 2nd or 3rd car inside your garage...
You don't have to be rich to rule my.........
What if we have grad school debt? I’m in physician assistant school and average income is $122K but debt will be $110K. I will graduate at 27
Definitely pay off your loans first. Unfortunately, $120k doesn't go a long way anymore. After taxes and payroll deductions, you're looking at $84k per year or $7k per month. Rent, living expenses, and your loan payments will eat up a good chunk and whatever you have left should go to savings. Once the loans are paid off you'll be in a better situation, but it will also be good to save and invest vs purchasing a depreciating asset. Hope this helps.
i spend about 2700 a month on 2 cars i couldn't imagine spending that for one and i make over net 500k per year. I could take that 3000 per month and buy 3 houses with it fix them up and instantly gain 200k in equity . buy a 4th do the same thing sell that home and buy the Porsche gt2rs keep it 6 month and sell it for a profit or break even not blowing one penny. If you can save make 6 months to a year in payments you will get the chance to own the car of your dream and spend less money then the person who bought the ford mustang.
What do you do for a living :)
I’m 26 and make 6 figures in NJ I know I can’t afford this 😞 Amg it is
ok. so i cannot buy a porche. I kinda knew it before watching this :))
You said many ways you can buy the car but you only mention two.
As a rule of thumb, if you have to work to get an expensive car, you can't afford it.