The $NZ1.79 million Porsche Cayenne

Second in series The Real value of Money
Last week we looked at a cup of coffee
We worked out that not drinking a cup of coffee a day could cut $60,000 off the value of your mortgage over 20 years
Today Here at Continental Car Services
This new one behind me cost $260,000
The prices for the Porsche Cayenne range from NZ$128,000 for the 3.6 litre V6 to $260,000 for the 4.8 litre turbo V8.
It goes from 0 to 100 kmh in 5 seconds.
The V6 takes a full 3 seconds more to get there. It costs $44,000 for each second you save.
It must feel great to get to 100 kmhs in such a short period of time.
But is it worth $260,000
What else could I buy with that?
Is it a good investment decision?
With $210,000 I could buy this three bedroom renovated villa on 800 square metres of land in Gore in Southland.
I could rent it out for $130 a week, which would equal a pre-tax yield of about 3.2%

It's true you could sleep in a Cayenne with the seats down. But the bathroom and cooking thing is not a goer
Although it is amazing what you can do with a cigarette lighter
So I could buy a house
Or I could invest it in the ASB at 9% for a year. ASB is the bank with the highest one year rate right now.
On a 39% marginal tax rate that's a post tax return of 5.5%.
You could invest in National Bank's new cash PIE call account at 8.1%, which means 39% taxpayers only pay 30%. That means the effective return is 5.7%.
Using that rate, over the 20 year life of a Porsche Cayenne that 260,000 would build into NZ$810,768.58.
At 9.7% it end up at NZ$1,795,219.89
After four years 382,650.43 at 9.7
But spending NZ$260,000 and then selling it after 4 years for $100,000 leaves me with.
Over 4 years that decision would cost $282,000 in depreciation and opportunity cost. That's $1,358 a week.
And we thought the $4 cup of coffee was expensive.

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[Martiaali]

If you happen to have a couple of million extra in your pocket and really really want a Porsche Cayenne, why would you buy an extra house instead or invest the money to have even more extra money? This video makes absolutely no sense what so ever. Money is an ever degrading asset. You shoul use it as you please, as long as it has any value.

[c0c0asauce]

just spend your money the way you want so that you can live your life they way you want to theres no point in denying your self all the luxuries in life so you can buy something and enjoy it for the last 5 years of your life

[epak27]

you're*

[CTPAYC2323]

All Correct, but in my opinion the right way is to have a fat bank and investments accounts, buy a house, and THEN you go and buy a Porsche. As simple as that. Sure it's a stupid thing to go buy luxury car if you don't have a house and passive income.

[Cnoddings]

ignorant American? HA! At least I know the difference between "With" and "Worth". Your a stupid "Twat" Mr. georgewTWAT

[georgewtwat]

because youre an ignorant American. Cars are more expensive in NZ (taxation and import duties) and the New Zealand dollar is with less than the US dollar. Its a Video from NZ not the centre of the universe - America.

[Cnoddings]

$260,000??? This is a waste of a video because even a fully loaded porsche cayenne TURBO doesn't even reach $130k... Unless im missing something, your information is wrong