Advice Needed: 2020 Taycan 4S

[mutanthands]

Wait a few years, you'll get a much better deal, and hopefully we'll have some idea as to where the current economic climate is going. Buying one for your 30th will also make it that bit more special

My own personal rule of thumb is if I can't afford to buy something cash several times over, I'll wait until I can. (property being the only exemption to this rule).

Also, you mention that you have no debt, are we to assume that you are already a homeowner and have paid off the mortgage? If so, well done at such a young age! If not, I think it's important to factor in potentially buying a home at some point, before splurging on a car.

Sponsored

 

[JS4S]

Isn't life too short?

I guess it all depends on your definition of short. When I was your age, (early 40's now) I saved, invested, and created passive income streams. I also still had plenty of fun with the modest funds that were left over.... Create a budget, stick to it, but make sure you budget in fun. Experiences are what you take with you, and what you will realize are the most important. Those don't have to cost anywhere near 2k per month. As Archimedes said, "just some old man wisdom"

 

[TaycanHero]

If you feel the car will improve your life or, as someone above so nicely articulated it, give you more rewarding experiences to look back on, then do it.

Life is short.

My philosophy is I would rather be rich young and poor old, than the other way around. I do invest (not in pensions for various reasons) and can comfortably pay for the Porsche in cash, but do I need the car? No.

A Renault Clio would be absolutely perfect for my needs and I can pick one up used for £16k. It's my #1 choice for a normal priced car that's easy and fun to drive.

That would give me £110k to spend on something else, like property or an investment.

However, sometimes you just want something in life and if you can, then do it. Your liability in year one will be 10% of the purchase price, which is the actual price should you sell it. This assumes you pay cash.

If you must finance it, then do not bother.

It's just dumb for not much gratification. If there is any, it will wane when the people around you no longer care about your Taycan. Then you've got another 2.5 years at 10% interest.

That money could be spent on a very nice holiday with the gf, renovating your home, growing your wealth, etc.

So my advice is:
- If paying cash, do it. Dump the car after two years before depreciation hits any harder. Keep the mileage under 20k. Scratch the itch. You'll probably get bored of it as you focus on life plans in your mid to late thirties.
- If financing, do not do it. Spend a much smaller portion on things that will give you good memories with other people. Invest it. Get the money working for you. In time when you have enough to pay cash, you know your decisions are paying off - quite literally.

 

[Archimedes]

This seems a bit disconnected from reality to be honest..

For many, yes, but not for savers/wealth builders. Excess spending on discretionary toys has a real cost. I’ve found that YOLO is a philosophy espoused mostly by people who live beyond their means.

 

[TaycanIncoming]

If you feel the car will improve your life or, as someone above so nicely articulated it, give you more rewarding experiences to look back on, then do it.

Life is short.

My philosophy is I would rather be rich young and poor old, than the other way around. I do invest (not in pensions for various reasons) and can comfortably pay for the Porsche in cash, but do I need the car? No.

A Renault Clio would be absolutely perfect for my needs and I can pick one up used for £16k. It's my #1 choice for a normal priced car that's easy and fun to drive.

That would give me £110k to spend on something else, like property or an investment.

However, sometimes you just want something in life and if you can, then do it. Your liability in year one will be 10% of the purchase price, which is the actual price should you sell it. This assumes you pay cash.

If you must finance it, then do not bother.

It's just dumb for not much gratification. If there is any, it will wane when the people around you no longer care about your Taycan. Then you've got another 2.5 years at 10% interest.

That money could be spent on a very nice holiday with the gf, renovating your home, growing your wealth, etc.

So my advice is:
- If paying cash, do it. Dump the car after two years before depreciation hits any harder. Keep the mileage under 20k. Scratch the itch. You'll probably get bored of it as you focus on life plans in your mid to late thirties.
- If financing, do not do it. Spend a much smaller portion on things that will give you good memories with other people. Invest it. Get the money working for you. In time when you have enough to pay cash, you know your decisions are paying off - quite literally.

I feel like I can get a better return than 6% per year on cash, which is why I would finance. Overall, the difference between financing and paying cash comes out to $4.5k interest for year 1, 3.5k innterest for year 2 etc.

 

[Dabz]

What I’m seeing is a load of 40something forum members advising no, and a 20something ready to splash out. Whether you take the advice is up to you (although, why ask if you’re as sure as you say you are).

For my 10 cents (another 40 something, paying cash for my taycan), i would focus on property above “only live once” depreciating purchases. It’ll set the groundwork for more “only live once” purchases in (not so) later life. As an example, I had the option at your age but invested instead. Now able to have whatever I want (holiday house & taycan this year, both in cash). Would I have preferred a couple years in a 100k car back then? Not as much as the rewards I have now

 

[TXSchnee]

I don't pay cash for vehicles (waste of money on a depreciating asset), I do put a huge down payment down and pay off in 1-3 years. The rule of thumb for financing is that the monthly payment should be no more than 10% of your net income. So even without any other debts, you are financing far too much. Take the advice of the "olds" (I am another 40 something member) and buy something fun that is within your price range. Make sure you have 8-12 months of salary saved up in a savings account, buy a house/condo and be smart about investing before spending 6 figures on any vehicle.

 

[Raphie]

You only live once, set yourself a budget and agree with yourself how to fund it:
- Current car trade in.
- Cash
- finance remainder if needed

I.e. needing a 60k loan at 8% is 4.800 interest a year, less if you can pay faster.
I think a ‘20 car might be a bit of a handfull, though estatics are the same these had loads of teething issues. Set yourself a budget and find an early MY21.
last tip - buy from Porsche or a Porsche partner. Don’t buy from a universal unlicensed garage, the car is too finicky. Should come with at least 1Y warranty, after that also think about Porsche approved, cheaper than paying for a heater.

 

[Redhot2474]

I feel like I can get a better return than 6% per year on cash, which is why I would finance. Overall, the difference between financing and paying cash comes out to $4.5k interest for year 1, 3.5k innterest for year 2 etc.

Exactly , I financed 100% last week @ 4.25 for 87 months, having cash on hand is king - by the way OP - make sure you calculated depreciation AND cost to finance , buy a Tesla model 3 Performance for 35k and buy the Taycan in a few years - also, make sure the purchase is not out of boredom

 

[mystermykee]

Bruh, its your money, enjoy it. Life is short. While planning for the future is key, if you are maxing your 401k then you are ahead of most people. I for one do not subscribe to the belief that only old people with grey hair are allowed to enjoy life.

While the smartest decision is to invest whatever disposable income you have when you are young, you have plenty of years ahead of you (hopefully) and if material items can bring you some joy, then go for it. And yes i said that, because the fact is nobody needs a Porsche. We can all get by driving Chevy Bolts or Toyota Priuses to get around and that would be a far more responsible use of money.

You have no kids, so you are responsible to nobody except yourself. If you feel like you want a car like this, and you're not hurting anyone by getting it, then go for it.

Agreed.

Do what makes you happy in the present, while not fcking yourself for the future (plenty of good advice here). If that time comes when you look back and making the decision to buy a Taycan screwed you, you might kick yourself for not making it worthwhile and getting a Turbo S

I’d like to enjoy the finer things in life here and there while I’m not crusty and fat.

 

[TaycanIncoming]

What I’m seeing is a load of 40something forum members advising no, and a 20something ready to splash out. Whether you take the advice is up to you (although, why ask if you’re as sure as you say you are).

For my 10 cents (another 40 something, paying cash for my taycan), i would focus on property above “only live once” depreciating purchases. It’ll set the groundwork for more “only live once” purchases in (not so) later life. As an example, I had the option at your age but invested instead. Now able to have whatever I want (holiday house & taycan this year, both in cash). Would I have preferred a couple years in a 100k car back then? Not as much as the rewards I have now

I don't pay cash for vehicles (waste of money on a depreciating asset), I do put a huge down payment down and pay off in 1-3 years. The rule of thumb for financing is that the monthly payment should be no more than 10% of your net income. So even without any other debts, you are financing far too much. Take the advice of the "olds" (I am another 40 something member) and buy something fun that is within your price range. Make sure you have 8-12 months of salary saved up in a savings account, buy a house/condo and be smart about investing before spending 6 figures on any vehicle.

You only live once, set yourself a budget and agree with yourself how to fund it:
- Current car trade in.
- Cash
- finance remainder if needed

I.e. needing a 60k loan at 8% is 4.800 interest a year, less if you can pay faster.
I think a ‘20 car might be a bit of a handfull, though estatics are the same these had loads of teething issues. Set yourself a budget and find an early MY21.
last tip - buy from Porsche or a Porsche partner. Don’t buy from a universal unlicensed garage, the car is too finicky. Should come with at least 1Y warranty, after that also think about Porsche approved, cheaper than paying for a heater.

Exactly , I financed 100% last week @ 4.25 for 87 months, having cash on hand is king - by the way OP - make sure you calculated depreciation AND cost to finance , buy a Tesla model 3 Performance for 35k and buy the Taycan in a few years - also, make sure the purchase is not out of boredom

Thank you all for your advice. I've decided to hold off on the purchase for at least a few years. I could definitely use some investing advice in terms of buying an investment property and how. So if any of you want to message me and share your story please feel free. Thanks again.

 

[Redhot2474]

Thank you all for your advice. I've decided to hold off on the purchase for at least a few years. I could definitely use some investing advice in terms of buying an investment property and how. So if any of you want to message me and share your story please feel free. Thanks again.

Great choice young man

 

[TaycanHero]

Very sensible and this decision will instead see you sitting in something much nicer in a couple of years time.

I too am coming round to the same decision! I quickly checked the price for a GTS ST if you sold it literally within a week of receiving it (motorway.co.uk).

Take £10-15k off the purchase price. Another forum member mentioned dealers are now looking for at least a 10% mark down so they can make a worthwhile profit.

Where I won't make much use of the car because of my intl living arrangements, it seems moronic to go ahead with the purchase for a "cost" that is in the five figures, not including the insurance and PPF (+£6k). So year one could cost as much as £20k with everything factored in.

I could buy a perfectly decent run around outright for the same money, and that I could drive into Europe and not care about. In the Taycan I would have a lot of anxiety doing the same thing! The insurance premium would go higher too.

I might instead wait for the Cayman EV, which would also time nicely with when I'd likely have found a country I want to settle. Or I can get myself a 911 or Cayman. Cancelling now actually gives me more choices next year and the year after.

The same is true of you!

 

[ben1]

Thank you all for your advice. I've decided to hold off on the purchase for at least a few years. I could definitely use some investing advice in terms of buying an investment property and how. So if any of you want to message me and share your story please feel free. Thanks again.

Good decision. You will be happy with it later.

Spending 35% of your income on a car would be a very bad idea.

At 27 you think, life is short. And you need to do everything today. But that is not the case.
Life is short if you want to build wealth: If you do not have rich parents and are not exceptionally lucky, you will need time to make money. (The same applies to relationship by the way: it takes time to have a family)
Life is long enough if you want to enjoy special experience or buy special items like luxury cars. You have time enough to do that later.

You can easily enjoy life much cheaper than buying a 100000-dollar-car.
At 27 you should focus on learning professional experience, finding a good partner, buying a property,...
Leave buying an expensive car for your 40'ties.

 

[TaycanHero]

Good decision. You will be happy with it later.

Spending 35% of your income on a car would be a very bad idea.

At 27 you think, life is short. And you need to do everything today. But that is not the case.
Life is short if you want to build wealth: If you do not have rich parents and are not exceptionally lucky, you will need time to make money. (The same applies to relationship by the way: it takes time to have a family)
Life is long enough if you want to enjoy special experience or buy special items like luxury cars. You have time enough to do that later.

You can easily enjoy life much cheaper than buying a 100000-dollar-car.
At 27 you should focus on learning professional experience, finding a good partner, buying a property,...
Leave buying an expensive car for your 40'ties.

Solid advice and that is looking increasingly likely as to my plans as well.

Spot on about time. We all want tomorrow today. One trait for people who get ahead in life is that they are patient.

Sponsored