BUY a new car or KEEP my existing one?
Posted by xxyanlixx@reddit | askcarguys | View on Reddit | 7 comments
I'm in a first world predicament, some might say. I own a 2015 3.6L Porsche Panamera. It breaks down once in awhile yes, but the repair cost is not terrible and acceptable. it still runs great when i use it. I maintain it well so the interior looks almost brand new. Lately, i've been having thoughts of replacing it with a brand new 2026 Cayenne. It will cost my own company (company will own it) 3.57% of its cash in the bank, which feels minisque.
I do not need to finance it so that's out of the question.
People from where I'm from say, the earlier you buy it, the longer you get to enjoy it. Obviously, I'm struggling with the question do i actually need it.
Wonder anyone can give me your two cents on my situation
originalusername7904@reddit
I very briefly considered this question myself a few years ago regarding my ‘14 535d. Great car and was paid off, but occasionally required expensive repairs
I went on the BMW website and built a new 540 with comparable features… After my trade in, the LEASE payment would have been ~$950/month. I didn’t even bother looking at the payment to finance
I still have the 535d, and I’ve been putting ~$1200 a month in savings and investments since it was paid off to cover any repairs and save for an eventual replacement… Even if it has a really bad year and needs $6k in repairs, that’s still $5k less than leasing the new 540 that really wasn’t much of an improvement anyway
As of last year I paid off my house and had enough in my car savings to buy a new one cash. Even though I wanted a new one and could easily afford it, I knew I’d regret spending so much money while the 535d is still a perfectly good car
originalusername7904@reddit
I did use half the savings to buy a used C7 Stingray M7, and it makes me way happier than a newer 5 series would have
Spend the money if it will really make you happy, but IMO a new Cayenne won’t do that until the Panamera has frequent enough problems to be a significant source of stress
Also, if the $2.5M cash is comfortably more than your company needs to cover cash flow needs you should really consider buying some index funds or other appreciating assets
FeelTall@reddit
I'm guessing you understand depreciation being a business owner?
If your business will own it, you might be able to take bonus depreciation (tax reporting wise vs your internal books) and accelerate the depreciation on it. This would decrease your AGI, thus less tax to pay. But trying to prove to the IRS/your tax guy that a $100k+ vehicle that isn't related to your business is a valid business purchase.
As for advice on whether to buy the new one or not....people buy cars with their hearts. If you want it and can afford it, just do it and live with/deal with the repercussions/ownership costs.
jmecheng@reddit
I would struggle to believe that anyone purchases a new/used Porsche because they need it...
That being said, if I could afford it, I would have one...
Homeskilletbiz@reddit
If you’re having your company buy you Porsches I think it’s you who should be giving us money, not us giving you our $0.02.
Renaissance-man-7979@reddit
Not a car question. Purely a finance question. Every one does it differently and I would find the cleanest cheapest 2024 within 250 miles for the thrill of the hunt. Finding great slightly used ones is like a game to me and I get a kick out of it.
FourCats44@reddit
What's the motivation to buy it?
If you aren't thinking "I want a new car" or "my current car breaks down so much I need a replacement" then it's just another expense, miniscule or not. From the sound of it, the only motivation is "I can afford to do it" which by the same logic you could buy an unholy amount of Freddos