PCA1983

I got an email from a MW dealer today offering free 'get out of your Porsche lease' up to 12 months early and up to $30k in payments forgiven for coming in and upgrading to a new Porsche.
With the Euro down to $1.12 today from $1.39 just over a year ago, and expected to plummet much more (Goldman Sachs projects the Euro to $1.00 by the end of this year, and possibly to $0.75 within the next few years), is Porsche on the verge of offering better incentives and possibly even better features in their 2016 models??
It is not their style to cut MSRP, but they have certainly been known to offer better deals in the past. I am old enough remember when the dollar was in one of its bull markets against the German Mark, and Porsche then offered special Club Sport models at special pricing and a 10% discount for factory delivery for any Porsche. I almost ordered a new 944 Turbo Club Sport for $26k and factory delivery, and wound up kicking myself for years afterwards for not going thru with the deal.
Curious about yalls' opinions...

mooty

i am sure PAG has currency hedges. so euro failing would have some but not a dramatic effect would be my wild guess.

ottobon100

Just using a 50,000 Euro figure because it is a nice round figure: Kind of amazing in that if the car cost E50,000 @ E1.39 it would convert/cost about $69,500 and at E1.12 E50,000 is about $56,500 or almost a $13,000 difference. So do you think Europeans are asked to pay another $13k or E11,500 for that car now that the Euro has dropped against the dollar? And, in the good old USA we only get a "minimal" cost reduction - maybe? I already know the answer. Some CEO somewhere is going to keep the difference. If I do get a new one all I know is the shift **** better be gold plated :-)

thomapa1

No - I believe they normalize global costs taking into account currency fluctuations and markets. I would not count on any significant discounts - especially when people WILL pay for the product in the first place (at a high cost)

PCA1983

But Europe is slow and expensive cars are a harder sell as economies drift into recession and deflation. We saw a lot of Gray Market brokers here in the early to mid 1980s who made a lot of money when the dollar was high and the German Mark was weak because we came out of recession sooner and faster. Brokers here would buy them wholesale in Europe where the economies were in recession, import then and sell them here cheaper than US dealers could and still make a profit. On a Porsche 930 Turbo or big S class Mercedes or big BMW, there was plenty of profit for the gray market brokers and 15-20% savings for the American buyer. I know because I bought one in '84 and got to know the broker in Boston fairly well. I saved 20% on a new Porsche. So, one way or the other, something will open if the Euro stays flat or even greater something may happen if the Euro goes down more. Entrepreneurialship is a hard thing to stop if there is a good profit to be made. It's going to happen easier and faster today because of the internet. Back in the 19080s it took a while for most people to be aware because you had to read it in print somewhere, to even have the slightest clue. I think there will be some kind of opportunities for bargain hunters. Just not sure how or in what form. It's a world market now and there is no stopping it.