How much to afford a 911 GT3?

I'm curious to hear from others, at what point in my life can I expect to be able to afford a Porsche 911 GT3. I am working in private credit, I plan to have a lengthy career in investing.

Let's say a solid GT3 costs maybe 300-400k over the next decade (I may be undershooting here). Would it make sense to start saving for one, or should I just wait to buy one with a short-term loan when my income can support it. What is the typical path to owning a very expensive car? Obviously there is significant nuance, but maybe some general guidance from those who have been able to afford a car in the price range would be helpful!

 

Ah, the dream of owning a Porsche 911 GT3, a symbol of both speed and luxury! Based on the most helpful WSO content and insights from the finance community, here's a bit of guidance on how you might navigate towards owning such an exquisite machine.

  1. Income Considerations: First off, working in private credit and planning a lengthy career in investing is a solid foundation. High finance careers can indeed pave the way to affording luxury cars like the Porsche 911 GT3. However, it's crucial to remember that your income should not only cover the car's cost but also insurance, maintenance, and any unexpected expenses that come with high-end vehicles.

  2. Saving vs. Financing:

    • Saving: This approach is more conservative. It involves setting aside a portion of your income over time to purchase the car outright. This method avoids interest payments and can give you a sense of financial security. However, it requires patience and discipline, as it might take several years to save up enough, especially if the price is in the 300-400k range.
    • Short-term Loan: If your income can comfortably cover the monthly payments, a short-term loan could be a viable option. This allows you to enjoy the car sooner rather than later. However, consider the interest rates and ensure that the loan payments won't impede other financial goals or investments.
  3. Typical Path to Ownership:

    • Career Progression: As you advance in your career, your income is likely to increase, making it easier to allocate funds for luxury purchases.
    • Invest Wisely: Given your background in investing, leveraging your skills to grow your wealth can be a strategic way to afford a Porsche 911 GT3. Smart investments can provide the necessary funds without solely relying on your income.
    • Budgeting and Saving: Regularly setting aside money into a dedicated "car fund" can help you accumulate the necessary capital. This could be a mix of bonuses, a portion of your salary, or returns from investments.
  4. General Guidance:

    • Prioritize Financial Stability: Ensure your financial bases are covered, including emergency funds, retirement savings, and any debt management, before allocating a significant amount towards a luxury car.
    • Consider Depreciation: High-end cars like the Porsche 911 GT3 can depreciate. Some prefer to buy slightly used models to save money.
    • Insurance and Maintenance: High-performance cars come with higher insurance premiums and maintenance costs. Factor these into your budget.

In essence, the path to owning a Porsche 911 GT3 involves a mix of career success, financial planning, and personal priorities. Whether you choose to save and pay in cash or finance the purchase, ensure it aligns with your overall financial health and goals. Remember, owning such a car is not just about the purchase price but also about being able to enjoy it without financial strain.

Sources: Porsche 911 vroom, Buying Nice Cars as An Analyst, https://www.wallstreetoasis.com/forum/investing/tesla-q1-earnings-call?customgpt=1, Tesla Q1 Earnings Call

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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I was very close to purchasing a 911 turbo s. My logic is if I’m spending $200k for a 911, don’t settle. That was my dream car as a kid due to Need For Speed, and I can not just buy one, but actually afford it.

I don’t make much - around $175k a year, but I have a lot of assets (net worth around $3M). Yes, I could afford it, but I just couldn’t justify spending that much. Call it $300k. Spend $100k on say a nice Alfa Romeo or something cheaper and leave that $200k in the market for 30 years. I’m looking at $5m+ easy. I would like to be making enough and have enough to wear $5M isn’t a concern, but that’s absurd thinking. $5M is an insane amount of money.

For me, I decided against it and purchased a cheaper car.

Also think about recurring maintenance. If you plan on keeping longer than 3 years, that’ll be costly, but the thing with the 911 is that it holds value EXTREMELY WELL. You could actually turn a profit selling it used in 2-3 years, and in that case the only issue is if you have the current capital to buy. Factor in hypothetical market gains of 10% and losing around $40k there after taxes, but that’s worth it to drive a GT3 in my opinion

 

To begin with, the $200k starting point is wrong. Should be $300k.

Secondly, 15% for 30 years should be right around $5M. Is 15% aggressive? Yes. How do I have a $3M net worth at 26? By being aggressive.

I’ll be the first to tell someone to be conservative and that a bonus means nothing unless it’s in your checking account, but now that I have a safety net, I’ve found that “manifesting” bullshit actually helps. Having a positive mindset is easy when you’re rich, but it has drastically changed my life.

 

This is accurate for the GT3 RS but I had zero issues getting 2 separate dealerships to work with me (they had 2/3 allocations respectively).

But thing is getting one without markup. Used can be just as expensive for GT3 in the current market.

I love the GT3 Touring and ideally would have a GT3 Touring and 911 Turbo S, but after driving both knew I would regret getting the GT3. Leaves you wanting the RS (never driven) and it’s a completely different animal than the Turbo S.

718 GT4 RS is actually the favorite car I’ve ever driven. It’s fast as shit and the handling is next level. I am by no means a professional driver but was able to push it far harder than I was initially comfortable with. Instructor was telling me to stop letting off the gas even at 85 in the turns. Amazing experience

 
bigdieselexpress

This is accurate for the GT3 RS but I had zero issues getting 2 separate dealerships to work with me (they had 2/3 allocations respectively).

But thing is getting one without markup. Used can be just as expensive for GT3 in the current market.

I love the GT3 Touring and ideally would have a GT3 Touring and 911 Turbo S, but after driving both knew I would regret getting the GT3. Leaves you wanting the RS (never driven) and it’s a completely different animal than the Turbo S.

718 GT4 RS is actually the favorite car I’ve ever driven. It’s fast as shit and the handling is next level. I am by no means a professional driver but was able to push it far harder than I was initially comfortable with. Instructor was telling me to stop letting off the gas even at 85 in the turns. Amazing experience

You did the Porsche experience right? 

I plan on test driving a few of their models this way.  However, I would also consider Ferrari or McLaren too.  

 

I'm a massive car guy, but I wouldn't allocate more than 10% of my NW to a car. If I were you, I'd only buy it if my NW is over $2.5-3 million or if my after tax bonus was ever over 2x the price of the car. Anything less than that and you're better off buying an M2 and putting the rest into investments.

 

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