Porsche 911 price drop

Top 5 reasons why Porsche 911 prices will drop in 2021

Porsche 911 price drop is inevitable in 2021. In the last two years, the price of used Porsche 911 has almost doubled. This is especially the case with the 996 and 997 models of the Porsche 911. Though the price of cars have increased across the entire automotive industry, the price of Porsche 911s have sky rocketed much more than many other competitors. There are many contributions to the increase in price over the past two to three years. Pandemic played a major role in the price shake up of used cars. Following are the top 5 reasons for Porsche 911 price drop.

Porsche 911 price drop
Am employee stands in front of a Porsche 911 sports car on display at its dealership during a news conference in Seoul, South Korea, June 16, 2020. Picture taken June 16, 2020. REUTERS/Kim Hong-Ji

The major factors that pandemic helped to increase in prices are (a) empty roads (b) extra time and money due to work-from-home and cut in commuting cost (c) Decrease in interest rate. I am referring only to the class of people whose job and income are not affected by the pandemic. As an individual and as a community, we are taking many steps to support those are affected by the Pandemic.

Porsche 911 price drop

Top 5 reasons why the prices of Porsche 911 will go down. Especially the 996 and 997 models.

1. The Pandemic is over

As stated before, the pandemic has created more opportunities to non-affected middle class car enthusiasts.  Interest rate for car financing has also dropped during the pandemic. Now that the end is in sight for the pandemic, things are getting back to normal. And so is the price of used cars. Especially prices for cars like Porsche 911 996 which has more than doubled in a year. People are starting to go back to work. This means that there are more cars in the road and no thrill driving anymore. People have to spend money and time on commuting. People have less money to spend on otherwise good to spend expenses like sports cars and pleasure driving.

Phone credit: Porsche Newsroom

Moreover, the shuffle in economy and the return to normal needs more investments in more stable alternatives. This means that people will try to look at things that can give them money to invest. Supercars or sports cars may not be the medium to invest. But they are now acting as the means to sell and raise money for investment. This means that there will be more cars in the market. This will reduce the demand and eventually the price.

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2. Better alternatives for the same price

Imagine buying a 22 year old used Porsche 911 996 for 35,000 dollars.  Imagine again using the same price to buy a recent make of Mustang, Camaro or Hellcat. These are relatively new cars. They are less than 5 years old with the latest tech on them. Power and performance are also much better than the 20 year old Porsche 911 996.

Porsche 911 price drop

Also, comfort, perks and features you get with these new vehicles definitely supersedes the value a 20+ year old used Porsche 911. Not every Porsche enthusiast will agree to it. But you will know its value when you try to secure a loan.

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3. Value for money

This is a controversial topic. The price of Porsche 911 is very high because there is demand. The demand is created mainly in the last two years because of various events mentioned above. Also Porsche 911 cars are every where. These are not exclusive cars. They are mass produced and widely available everywhere.

The resale value of used Porsche 911 996 is not as good as some of the other sportscars or performance cars that are out there. Other factor to consider is the design issue. Two years ago, everybody hated the 911 996 “running egg” nose design. Even Porsche enthusiasts hated it. But when the pandemic came in, along with the help of some YouTube influences, the design has grown over us. There are many chances that with everything going back to normal, the design element will bite us back too.

4. Finance and Loan nightmare

Now, let us address the big elephant in the room. Most of the Porsche 911 996 out there are more than 20 years old. Banks and finance institutions don’t provide Car loan for cars over 20 years old. Even if they provide, they are provided at a very high cost. In countries like Australia, the only option to apply for a 20+ year car loan is to go with a Personal loan. These loans are tremendously expensive.

Porsche 911 price drop

Interest rates for personal loans are very expensive too. Also, Banks see these cars as depreciating asset instead of an investment. So the chances of using these cars as collateral is also very less.

5. Maintenance nightmare

I don’t want to bring the topic of IMS bearing into this conversation. Porsches are relative cheaper to maintain when compared to Ferraris and Lamborghinis. But, having said that, Porsches are not cheaper to maintain for a normal middle class family.

Compared to the maintenance prices of similarly priced performance cars like Mustang, Camaro and Hellcat. These are relatively new cars and their maintenance is covered by Manufacturer warranty.

Conslusion

There are a lot of Porsche enthusiasts who still would love to buy any Porsche 911. They don’t care about the five reasons mentioned above. They are pure Porsche fans. I am also a Porsche fan. I love the way these cars drive. This is the only car model that has evolved to perfection over the past half century. It is an absolute pleasure to drive a Porsche. Its rear engine design is one of the best in the performance car world. While it may not be bad to say that the prices are going to drop. It might give opportunities for more people to get into the Porsche ownership experience. End of the Day, it all boils down to one thing.

LIVE YOUR DREAM.

FOLLOW YOUR PASSION.

DO WHAT YOU LOVE AND LOVE WHAT YOU DO.

10 comments

  1. Jim de Ford

    You are only discussing one model. IMS issue. Look newer for high reliability without this. Especially newer 911s 2017 up. This car does not compete with the Camaro buyer. If you drive one compare to at least a later model Corvette. The Turbo car is far different from non Turbo. These newer gens have it all. If you drive one you will not want to drive anything else!

  2. ONeal Davidson

    Ummm. The cost of a used 996 is how much?
    Lack of research is showing!

  3. Avery Dunn

    The 911 is my favorite 🤩 sports car since I can remember beginning loving vehicles The whale tale Porsche as I remember calling it. I’ve also fallen in love with the Panamera 😍 Simply put (l’m a HUGE Porsche FAN)!❤️💪🏿😊

  4. Nirmal Princely

    Hi ONeal, As per my discussion with the author, the price is based on Australian market.

  5. Nirmal Princely

    It is my favourite car too. The author has based this article based on the Australian market. Australian market is completely different compared to rest of the world. Atleast, in terms of pricing, finance and availability.

  6. Scott A Reichard

    Been shopping in the midwest of usa and 996 base prices went from 16 to 18 k 2 years ago to 28 to 34 k now in late fall 2021. The 997 also went up but when pandemic prices and chip shortage used cars go back to mostly normal the 997 will go back to its depreciation curve. As soon as I can buy a 997 base manual coupe for 28 to 30 k miles with no accidents and a good pre purchase inspection I will buy one. That might happen over the 2022 winter or might happen in the next 2 years. I will buy when the price gets to where I think is reasonable. There has been a car shortage but that will even out soon.. luxury suv’s and off road trucks and family suv’s and sports cars cant all stay inflated forever. The overpriced cars will not sell as well and sellers trying for high prices from 2 years earlier will have a car in the garage , not money. How long do you want to insure and maintain a 20 year old porsche that you prefer to have sold?? My guess is the 2022 winter will see some price dropping and a year from then the winter of 2023 there will be a lot of cheaper 19 to 24 year old porsche 911’s for sale. Also many people by then will want to consider an electric car.

  7. joseph Abdo

    Good article but he got away wrong porshe’s been skyrocketing for the last 18 months it’s unbelievable I am to 2019 GT three I sold it after 13 months of ownership because I needed something that was a little less race car spec, I made $3800 in one year driving that car and I thought I want that same car is going for 35,000 over what I paid for it a year later. i just bought a 2019 carrera T msrp 113k i paid 115 this week. porshe is appreciatung because of pandemic influences and supply and demnad. not too mention its a fantastic brand today.

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