It’s also NOT what the OP is looking for. Perhaps @snowball can clarify, but I don’t think she is looking for a sports car…
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LOL - I’m not interested in Porsch (when we someday buy a new car). But the other 24 cars on the list are interesting. They all are significantly better on 5 year deprecation than average (39%).
Looks like the methodology listed uses “difference in average asking price for each vehicle between its MSRP and its used car pricing”, meaning that it exaggerates the depreciation of cars that were commonly sold new with large rebates or discounts off of MSRP.
For example (after inflation adjustments):
- $30,000 MSRP
- $25,000 actual selling price when new (after typical rebates and discounts)
- $15,000 used car price some years later
Is the depreciation 50% or 40% in this case? It is 50% in an MSRP-based depreciation calculation, but 40% if depreciation is based on the actual selling price when new.
Note that it also matters whether the used car price is dealer retail (ask), private party, or trade in (bid).
I provided a link to a depreciation “analysis” for the 25 best and 25 worst cars, in terms of depreciation. I mentioned the Porsche 911 because typically it’s the best or one of.
But there are 49 other cars listed in the link.
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I must be an outlier here. When we buy a car, we buy it and keep it for a LONG time. The last car was 12 years old. The one my husband replaced was almost 20 years old and we got that one used. Even my trusty van was well over 10 year old when I decided I didn’t need a van anymore.
So…depreciation isn’t the highest thing on my list. The likelihood of me selling or trading in a newer model car is…low. Our cars are so old when we get rid of them that we usually have to gently tell the dealer where we are buying that if they don’t take the old car, the deal to buy is off. I want a car that is comfortable, doesn’t break down frequently, has a good reliability record…things like that.
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It’s not just the Porsche 911. In general cars that are popular among collectors and/or have limited supply compared to demand often have little depreciation or appreciation. For example, the original Ford GT a had suggested retail price of $140k 20 years ago. Today a 20 year old for GT would sell for ~$500k. A few years ago it was closer to $700k. This is a tremendously faster rate of appreciation than inflation. I purchased a lightly used exotic ~15 years ago. If I sold it today, I’d get ~50% more than I paid, in spite of tripling miles and being in far worse condition.
I realize that this is not especially applicable to the OP. It sounds like she is not interested in collector or limited sale type cars, and prefers new to used. These types of cars almost always have steep depreciation, particularly in the first few years after buying new. This relates to why leasing for a few years, then getting something else new often has a worse financial return than buying and keeping it for longer periods.
Ford GT WAS a limited production supercar. Very few were made.
Porsche delivered 50,000 +/- 911’s in 2023 alone. The Porsche 911 is a mass production vehicle.
Car enthusiasts would not compare the two vehicles. But we’re off topic.
Our newest car is 2010. D18 bought herself a new car, but that’s not ours (DW and I).
There are ~25 variants of the 911 that compose that figure, which different degrees of production and supply. For example, 911 GT3s have similar production numbers to Ford GT . Some have reported as long as an 8 year waiting list to get a 911 GT3 from a dealership (without prior purchase history or special connections). It’s absolutely a limited supply vehicle, and many would call it a limited production supercar, like the Ford GT. With such a long waiting list to buy new, many turn to the secondary market, which impacts depreciation/appreciation. A 2019 GT3 would likely sell for far more today than the original dealer MSRP – a notable appreciation over the past 5 years, rather than depreciation.
Most other 911 models don’t have a comparable degree of limited supply, but that also don’t have a comparable degree of appreciation and instead often have depreciation. While depreciation is present, it is often not as steep as the car models the OP discussing for reasons that have been discussed (not just supply vs demand).
Please move the conversation about Porsches to PM as the OP has stated they are not in the market for that type of vehicle. Thank you!
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Back to my never say never on car purchase plans/options. One current new car option is a low 3 yr lease monthly price or a 0.9% finance rate. Normally loans are not considered by our family but time to consider scenarios- overall price, flexibility, resale, how long to own. *these possibilities are for same car, same price
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We typically buy cars new, drive for a very long time (though we don’t rack up the miles as much as some families). So depreciation has not been a huge consideration for us. But it is a nice perk if car holds its value, especially in situation like OP (or maybe us someday) when we want to try something different from what we’ve had.
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