Porsche is a luxury sports car brand known for making some of the world’s best sports cars. It’s flagship car, the Porsche 911, is widely regarded as one of the best sports car in the world.
But let’s be clear on one thing. Though it typically do not cost as much as Lamborghini or Ferrari, Porsche do not make affordable cars, even at its entry level.
Thanks to high COE prices in recent years, Singapore have been unofficially recognised as the most expensive country in the world to own a car. So how much does it cost to own one of the world’s most desirable sports car brand in the country where it’s most expensive to own a car?
We decided to choose the most “affordable” car that Porsche currently sells in Singapore – the Porsche Boxster.
To own a Porsche Boxster, you can either buy it brand new or get a pre-owned car. For this article, we will compare both the cost of a brand new car and a pre-owned car.
Cost Of Buying A Porsche Boxster
A brand new Porsche 718 Boxster (PDK 2.0) currently sells at $258,788 from Stuttgart Auto, Porsche authorised dealer in Singapore. This excludes COE. Once we include in the cost of a Category B COE, we can expect to spend about $316,000 to buy a brand new Porsche 718 Boxster.
If we were to opt for a pre-owned 10-year old Porsche Boxster 2.7A (2007), we can expect to pay about $116,000 based on a listing that we found on sgCarMart. So that’s a difference of about $200,000.
There are two common methods of calculating how much it cost to buy a car in Singapore. The first method is by looking at its purchase price, which is what we have done above. The other way would be to base it on a straight-line 10-year depreciation. This assumes that car owners were to deregister the vehicle after 10 years.
Here’s a look at the expected depreciation.
|Purchase Price (With COE)||PARF Value After 10 Years||Annual Depreciation|
|Porsche 718 Boxster (PDK 2.0)||$316,000||$49,162||$26,683|
|Porsche Boxster 2.7A (2007)||$116,000||$0||$11,600|
The table above shows a clear picture that buying a brand new Porsche would cost us much more than opting for a pre-owned car.
Other Costs Of Owing A Porsche
As anyone who ever owns a car in Singapore would already know, the purchase price is far from the only cost that we will be incurring. Here are some other cost areas for us to factor in.
# 1 Road Tax
The road tax of a new Porsche 718 Boxster (PDK 2.0) is $1,200 per year.
Road tax for vehicles over 10 years incurs an additional road tax surcharge.
|Age Of Vehicle||Annual Road Tax Surcharge|
|> 10 years old||10% of Road Tax|
|> 11 years old||20% of Road Tax|
|> 12 years old||30% of Road Tax|
|> 13 years old||40% of Road Tax|
|> 14 years old||50% of Road Tax|
|10-Year Average||40% of Road Tax|
That means our pre-owned Porsche Boxster 2.7A (2007), with an existing annual road tax of $2,018, will incur an average annual road tax cost of $2,825 (after surcharge) over the next 10 years.
Road Tax – $1,200 per year (New Porsche), $2,825 per year (pre-owned)
# 2 Insurance
Actual insurance cost depends on your driving history, years of experience, your No Claim Discount (NCD) and of course, the insurance company you buy it from. On average, you should expect to pay about $2,000 per year.
Insurance – $2,000 per year
# 3 Parking & Petrol
We will make an assumption here that a person who is rich enough to buy a Porsche is likely to be staying in a private property. As such, those living in private properties will not incur additional parking cost.
If you were to drive your Porsche to your office at the CBD, you should expect to pay about $200/month for season parking.
Petrol cost depends largely on how often you use your car. On average, if you were to pump once a week, you should spend about $400 per month.
Parking & Petrol – $600/month, $7,200 per year
# 4 Servicing & Parts Replacement
This is tricky to calculate. Performance cars need much more attention when it comes to maintenance and servicing.
Logically, brand new cars should cost less to maintain. At the same time, it also depends on how well maintain you want you car to be. If you are intending to own a Porsche, we suggest setting aside at least $2,000 per year on servicing and parts replacement. You may not need parts replacement every year, but when you do, it’s will easily cost you more than $2,000.
Servicing & Parts Replacement – $2,000 per year
Total Cost Of Owing A Porsche
Here’s the total cost of owning a Porsche Boxster in Singapore. Figures shown are annual cost
|Porsche 718 Boxster (PDK 2.0)||Porsche Boxster 2.7A (2007)|
|Annual Road Tax||$1,200||$2,825|
|Parking & Petrol||$7,200||$7,200|
|Servicing & Parts Replacement||$2,000||$2,000|
|Total Annual Cost||$37,083||$23,625|
|Total Cost Over 10 Years||$370,830||$236,250|
* Do note that our cost does not include interest. If you take a car loan, your actual cost will be higher.
Based on our calculation, you should expect to spend about $2,000 per month for a pre-owned Porsche Boxster 2.7A (2007) and about $3,000 each month if you prefer a brand new Porsche 718 Boxster (PDK 2.0).
Over a 10-year period, you will be spending about $236,000 for a pre-owned Porsche and a staggering $370,000 if you buy a brand new Porsche.
As the saying goes, if you need to calculate how much a Porsche would cost you, chances are that you really shouldn’t be buying one in the first place. But hey, there is no harm dreaming a little right?
Are you an existing Porsche owning? If you are, do share and discuss with us on the cost of your car ownership on our Facebook page. We would love to hear from you.
Considering Getting A New Credit Card?
SingSaver is running a special credit card promotion this month that gives you up to $150 in cash and $120 in cashback, on top of rewards from individual credit card companies. Offer is good until 31 May 2018.
Not sure which card is right for you? Check out the Complete Guide to Choosing Credit Cards in Singapore for a step-by-step walkthrough to help you make the best decision.
DollarsAndSense.sg is a website that aims to provide interesting, bite-sized financial articles which are relevant to the average Singaporean. Subscribe to our free e-newsletter to receive exclusive content not available on our website. Follow us as well on Instagram @DNSsingapore to get your daily dose of finance knowledge through photos.
Bonds and Fixed Income