Porsche 911 Carrera
Buying a new Porsche 911 is the dream of many a sports car enthusiast. The problem most have in affording one is that they are quite expensive.
A base Porsche 911 Carrera currently starts at $91,100. However, if you start adding options the price of the car can quickly cost $115,000.
So, just how long would it take to save up enough money to pay cash for a new $115,000 Porsche 911 Carrera?
Of course the answer to this question largely depends on your income. So, let’s say that you make $120,000 a year. Now that is a lot of money in many places, but just a little above the poverty level in San Francisco. For this exercise, we’ll use some round numbers of expenses and income.
Below is a rundown of sample monthly expenses to give us some rough numbers to deal with. Your actual expenses and income may be higher or lower.
Rent or Mortgage: $2,000
Food and Miscellaneous Expenses: $1,000
Internet / Cellphone / TV: $300
Charitable Giving / Tithe: $800
Credit Card Debt payments: $600
Monthly net take home pay (after taxes and other paycheck deductions): $7,150
Amount left to put towards a car each month: $1,050.
Now these numbers are very rough estimates an they could be more or less depending on your income, state and what you spend money on.
Based on these numbers it would take you 110 months (just over 9 years) to save up $115,000. Of course to purchase the car we would need more to pay the tax and license fees in your state. Depending on the state this could add another $15,000 or more to the price of the car. Coming up with a full $130,000 would take 124 months (a little over 10 years), based on this budget.
Of course if you have a similar budget, but no credit card debt you could put an additional $600 away each month. Perhaps for a shot time you also decide to only put $300 a month in savings to help get the 911 quicker.
This would give you $1,950 a month to put away for the sports car. It would then take only 67 months (5 and a half years) to have all the cash.
Looking at this and all of the sudden a used 911 or a new 718 Cayman or Boxster start to look a lot more appealing. With either of these paths you can get enough to pay cash for the car much quicker. The used car route is a good way as older models can be had for less than half of a new one, depending on the year, condition and mileage. A used 996 generation 911 can be as low as $15,000 for running higher mileage examples. Even a good 2012 991 (the last generation without turbocharging of the Carrera and Carrera S) with a little bit higher mileage can be found for under $50,000 and there are a ton of good examples available for under $70,000.
Of course you can finance a new 911 and get it sooner, but then you are paying interest, costing you more over the life of the loan. A lease can further reduce the monthly payment, but you don’t own the car at the end of the contract (although, you can purchase at a depreciated price).
The point here is if the price of the car is roughly the amount of your yearly salary, it is better to look for less expensive options.
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