Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts

Sunday, June 2, 2019

Why The 993 Porsche 911 Is The Best Porsche Investment You Can Make

There is a sweet spot in the range and it isn't the 996.

Ah the Porsche 911, we have read endless reports of how this rear-engined icon has rocketed in value in recent years and that there are no more good value alternatives out there, save perhaps for the previously unloved water-cooled 996. In truth there is nothing much wrong with these cars, the facelifted 996 is an accomplished sportscar and from a purely financial standpoint they do make a strong case for themselves. But even if you have no issue with the looks or mechanical issues that affected the early cars, you know the one you really want is the 993.

Let us explain...

Compared to the 996, it has less power, still features parts carried over from the original 911 and the dashboard is clearly a product of an ergonomic madman. And yet, of all the 911s before or since, the 993 is the one that best embodies the essence of the brand. We won’t delve into the special edition cars like GT3s and RS models too much as these tend to have long since moved into the unaffordable category. It’s totally fine if you are skeptical, but keep reading, by the time you are done you too will see the light.

The first Porsche 911: 1963-1973

These early 'pre-impact bumper 'cars have gone up most in value in recent years. The demand for clean, unmodified examples has seen prices for even the most basic variants reach crazy heights. Now there's nothing wrong with a proper old-school 911 except that it is old. This is not the kind of car that you would take on a cross-country road trip regardless of what diehard owners say. They do immerse you into the driving experience like nothing else though, but seeing as you can spend well over $200,000 on a good one, the time to buy one was 10-years ago.

Porsche 911 Carrera: 1974-1989

The 911 was upgraded with new ‘impact’ bumpers in 1974. The change got about as much backlash as the announcement of water-cooling and turbocharging did and these cars used to be the affordable entry-point into the brand. Not anymore. Even the leaky Targa is now commanding big numbers. The best ones were the last Carrera 3.2 variants. With the G50 gearbox and over a decade of fettling, they offer the best impact bumper experience. Still, with most producing around 220 hp, they aren’t exactly quick. The Turbos are fast but they will spit you into the bushes and cost more than your house.

Porsche 911 (964): 1989-1993

The 964 was a big step up from the long-running Carrera. All-wheel-drive was introduced for the first time (developed first in the 959 supercar) and a Tiptronic automatic transmission was added too. The engine was upgraded with the 250-hp 3.6-liter flat-six enough to get you to 60 mph in 5.5 seconds. Good Carrera 2s and 4s start at $50,000, convertibles and Tiptronics are usually a bit cheaper. The 964 is a decent modern classic, its biggest issue is that it is priced too closely to the superior 993. Many also end up as retromods. That said, the Carrera RS is awesome but massively overpriced.

Porsche 911 (996 and 997): 1998-2012

The 996 has received a lot of attention lately. At first it was because issues with the IMS shaft and RMS seals had caused some catastrophic engine failures. Once this was resolved (and people realized the issue had been vastly overblown) the focus shifted instead to what great deals these cars can be. It is true that an early 996 can be found for as little as $15,000 but would you still buy one if it wasn’t so cheap? The 997 looked far better although under the skin things were much the same. The facelifted post-2009 997.2 models finally resolved the IMS/RMS issues but those models are still pricey and haven’t quite entered into the modern classic phase yet.

The Modern Era: Porsche 911 (991)

The latest 911s are from another planet when it comes to handling and performance. The turbocharged engines are lag free and provide huge lumps of torque at virtually any engine speed. The engine has slowly inched its way forward to improve handling while the front end displays none of that high-speed floating that was such a defining character of the older models. Prices start at around $85,000 and go up to $200,000 for the mental GT2 RS. The 991 R is impressive too but factor in the inevitable new-car depreciation and the 993 starts to make a whole lot more sense.

Back To The Porsche 911 (993): 1994-1998

So, to our preferred choice. Looks are a subjective thing but there is something just right about the 993’s proportions. It also has just the right amount of power to keep you entertained. Early cars had 268 hp which rose to 281 hp from 1996-on with the addition of the Variocam system. A new multilink rear suspension also further reduced any tail happy tendencies. Look hard enough and there are still some very decent, clean 993s out there for under $50,000. That’s half the price of a modern 911 and you can almost guarantee that in five-years’ time that situation will be reversed.

There may be cheaper, faster and more practical 911s out there but when taken as an overall package, the 993 is currently occupying that sweet spot that few classic cars achieve. It appeals to traditionalist air-cooled fans while still being modern enough to be desirable to younger car fans too. Turbo and RS models are targeted at wealthy collectors but the base Carrera, especially in RWD manual form is as sweet as ever. As an investment, driving tool and piece of automotive history, there surely can’t be anything else out there that can compete with the superb 993.


View the original article here

Wednesday, March 20, 2019

Importing A Euro-Spec Porsche 911 RS Was A Really Good Investment

Our stupid 25-year import law makes everything too expensive.

In the US, we cannot import a vehicle that was never sold here until it is 25 years old. In recent years, we have seen the R32 Nissan GT-R become federally legal in the US, and prices have doubled. In 2017, a lot of cars became eligible to be imported into the US, including the 964 generation Porsche 911 Carrera RS. This special edition Porsche was built in 1992, which means that it now meets the 25-year requirement. The floodgates have now opened, and we are starting to see several Carrera RS examples for sale in the US.

When we looked at the crop of cars that would be legal for import, we predicted that the Carrera RS would instantly turn into a collector's item in the US. This is a car for driving purists and 911 enthusiasts, which makes it highly desirable.

Unfortunately, now that the car is legal here, dealerships are taking advantage of the car's rare status in the US and are charging huge amounts for them. We did some searching, and we found a Ruby Star Red model for sale for a whopping $408,000. The car only has around 32,000 miles on the odometer, but this still seems like a large sum of money. The same dealership, Audi Fresno, has a second Carrera RS in a more tame shade of Polar Silver for a slightly more reasonable price of $365,000. So, could it just be the unique Ruby paint job that is making this car so much more expensive, or is it that stupid 25-year import law?

We thought that $365,000 still seemed like a bit much, considering that Porsche produced 1,992 examples in 1992 (based on the production figures for the 964 911). That is why we decided to see what these same cars were selling for in the UK, where they were sold originally in 1992. We found a Polar Silver model for as low as £130,000 and a Ruby Star Red with even fewer miles than the US car for £159,995. This means that you can buy a Carrera RS in the UK for around $176,000 to $217,000. We understand that importing a car to the US can be expensive and difficult, but these prices are insinuating that the process adds nearly $200,000 to the price of the car.

We still love the 964 Porsche 911 RS, but we aren't sure that it is worth the price, at least in the US. The RS used a modified version of the 3.6-liter M64 flat-six, producing 260 hp. The interior was stripped out in order to reduce weight. A stereo system was optional, but the car lacked power windows or seats, rear seats, air conditioning, cruise control and even sound deadening. All told, the RS was 345 pounds lighter than a US Carrera 2 model. As much as we'd love to own one of the cars, we think we'd save our money and just strip out a standard 964 and let the "collectors" spend their money on the Carrera RS.


View the original article here

Wednesday, January 30, 2019

Why The 993 Porsche 911 Is The Best Porsche Investment You Can Make

There is a sweet spot in the range and it isn't the 996.

Ah the Porsche 911, we have read endless reports of how this rear-engined icon has rocketed in value in recent years and that there are no more good value alternatives out there, save perhaps for the previously unloved water-cooled 996. In truth there is nothing much wrong with these cars, the facelifted 996 is an accomplished sportscar and from a purely financial standpoint they do make a strong case for themselves. But even if you have no issue with the looks or mechanical issues that affected the early cars, you know the one you really want is the 993.

Let us explain...

Compared to the 996, it has less power, still features parts carried over from the original 911 and the dashboard is clearly a product of an ergonomic madman. And yet, of all the 911s before or since, the 993 is the one that best embodies the essence of the brand. We won’t delve into the special edition cars like GT3s and RS models too much as these tend to have long since moved into the unaffordable category. It’s totally fine if you are skeptical, but keep reading, by the time you are done you too will see the light.

The first Porsche 911: 1963-1973

These early 'pre-impact bumper 'cars have gone up most in value in recent years. The demand for clean, unmodified examples has seen prices for even the most basic variants reach crazy heights. Now there's nothing wrong with a proper old-school 911 except that it is old. This is not the kind of car that you would take on a cross-country road trip regardless of what diehard owners say. They do immerse you into the driving experience like nothing else though, but seeing as you can spend well over $200,000 on a good one, the time to buy one was 10-years ago.

Porsche 911 Carrera: 1974-1989

The 911 was upgraded with new ‘impact’ bumpers in 1974. The change got about as much backlash as the announcement of water-cooling and turbocharging did and these cars used to be the affordable entry-point into the brand. Not anymore. Even the leaky Targa is now commanding big numbers. The best ones were the last Carrera 3.2 variants. With the G50 gearbox and over a decade of fettling, they offer the best impact bumper experience. Still, with most producing around 220 hp, they aren’t exactly quick. The Turbos are fast but they will spit you into the bushes and cost more than your house.

Porsche 911 (964): 1989-1993

The 964 was a big step up from the long-running Carrera. All-wheel-drive was introduced for the first time (developed first in the 959 supercar) and a Tiptronic automatic transmission was added too. The engine was upgraded with the 250-hp 3.6-liter flat-six enough to get you to 60 mph in 5.5 seconds. Good Carrera 2s and 4s start at $50,000, convertibles and Tiptronics are usually a bit cheaper. The 964 is a decent modern classic, its biggest issue is that it is priced too closely to the superior 993. Many also end up as retromods. That said, the Carrera RS is awesome but massively overpriced.

Porsche 911 (996 and 997): 1998-2012

The 996 has received a lot of attention lately. At first it was because issues with the IMS shaft and RMS seals had caused some catastrophic engine failures. Once this was resolved (and people realized the issue had been vastly overblown) the focus shifted instead to what great deals these cars can be. It is true that an early 996 can be found for as little as $15,000 but would you still buy one if it wasn’t so cheap? The 997 looked far better although under the skin things were much the same. The facelifted post-2009 997.2 models finally resolved the IMS/RMS issues but those models are still pricey and haven’t quite entered into the modern classic phase yet.

The Modern Era: Porsche 911 (991)

The latest 911s are from another planet when it comes to handling and performance. The turbocharged engines are lag free and provide huge lumps of torque at virtually any engine speed. The engine has slowly inched its way forward to improve handling while the front end displays none of that high-speed floating that was such a defining character of the older models. Prices start at around $85,000 and go up to $200,000 for the mental GT2 RS. The 991 R is impressive too but factor in the inevitable new-car depreciation and the 993 starts to make a whole lot more sense.

Back To The Porsche 911 (993): 1994-1998

So, to our preferred choice. Looks are a subjective thing but there is something just right about the 993’s proportions. It also has just the right amount of power to keep you entertained. Early cars had 268 hp which rose to 281 hp from 1996-on with the addition of the Variocam system. A new multilink rear suspension also further reduced any tail happy tendencies. Look hard enough and there are still some very decent, clean 993s out there for under $50,000. That’s half the price of a modern 911 and you can almost guarantee that in five-years’ time that situation will be reversed.

There may be cheaper, faster and more practical 911s out there but when taken as an overall package, the 993 is currently occupying that sweet spot that few classic cars achieve. It appeals to traditionalist air-cooled fans while still being modern enough to be desirable to younger car fans too. Turbo and RS models are targeted at wealthy collectors but the base Carrera, especially in RWD manual form is as sweet as ever. As an investment, driving tool and piece of automotive history, there surely can’t be anything else out there that can compete with the superb 993.


View the original article here

Tuesday, January 1, 2019

What’s The Better Investment? An Original Acura NSX Or The Stock Market?

Wait, classic NSX prices have increased by how much since 2013?

It was the supercar that changed supercars, namely those that came from the likes of Ferrari and Lamborghini. The original Acura NSX (or Honda NSX in overseas markets) debuted back in 1989 at the Chicago Auto Show and it forever changed the segment for the better. Honda was determined to build a supercar with Japanese quality and reliability and, above all, performance. It succeeded. The first generation NSX had an overall design inspired by the F-16 fighter jet and literally overnight forced its mainly Italian competition to start building interiors not equivalent to cardboard.

And despite the fact that Honda never sold more than 2,000 NSXs globally per year, it has remained popular – more popular than many ever could have imagined. A new Bloomberg report points out that the values for a classic NSX in mint condition have doubled since 2013 when one could be bought for a reasonable $42,700 on average. Today that figure has reached a $98,700 average. To put that into some perspective, today’s figure is a gain rate steadier and higher than the Dow Jones industrial average, according to Hagerty.com. There’s further proof these original NSXs are gaining a higher status among collectors.

Back in 2012, for example, only five units were offered at public auction. Just in the past year, there have been at least 20. The average auction price, as expected, also increased from about $40,000 in 2012 to $75,000 in 2017. As with any collector’s car, NSX auction prices will still vary. For example, a 1991 NSX was recently sold in Florida for $71,500.

However, a 1994 NSX with a single owner and just 183 miles on its clock was estimated at $135,000 to $165,000. The most expensive original NSX sold for $144,100 at auction back in 2016. Ironically, NSX prices have begun to slide this year. Why? Because their average values are now entering Ferrari territory. “A big part of the appeal of an NSX was its performance-per-dollar ratio, compared to its competitors, but at its current value that price difference has disappeared,” says Hagerty analyst Jonathon Klinger. Put it like this: back in 1990 a new Ferrari 348 cost about $100,000 while an NSX went for $60,000.

Today, the average value of an early ’90s 348 in good condition is about $57,000, while an NSX from that same period is $64,000. Later model NSXs, from 1997-2005, can be had today for around $85,000, while a Ferrari 360 costs on average $95,000.

“When you look at it from this standpoint, the slight pullback in value and market activity is a direct result of this now being in the same league—or higher—than the vehicles it once beat out from a price/performance standpoint,” Klinger said. “It’s a soft landing to where we can expect the NSX to stay for the next few years.” So if you’re in the market for an original NSX, here are a few tips: a coupe is typically worth more than a Targa, the 3.2-liter V6 often carries a 30 percent premium over the original 3.0-liter engines, and, of course, manuals are more valuable than automatics. Happy hunting.


View the original article here