nyca

They are making record profits, the dealers too. They have learned from the Ferrari model, that if you constrain supply just enough at the margin of demand, prices can go sky high and inventories to zero. You only get back to a real free market when new entrants come into it and compete - and unless China gets into cars in a big way, that's not going to happen. The established players are operating like a cartel for now.

chamilka

In my local dealership, most new Carreras have 30k adjusted market price over MSRP.

nyca

Broncos are selling for $15K over MSRP in NJ. And people are paying it. $5K over for a Forester.

centaur

Residential real estate, houses, condos, here in South Florida are being listed for hundreds of thousands more than what they were selling for 18 months ago. Fortunately the banks are caving in many of these deals. It is common to see listings go from "pending" back to active. We have hit the peak and cominng down the other side of the bubble now. New cars are in the same realm of stupidity.

Maverick787

You’re spot on many see this as only a Porsche problem and it’s not. The same people complaining about high car prices will sell their home well over market if they can take advantage of the market. (It’s no different than cars) Also I’ve seen homes in my neighborhood fall out of contract because of the inflated prices ……ummm how do you say 2008, and yes it all fell. Buy at the bubble we all know what happens to bubbles. I keep hearing Porsche profits are high look at there last report was 15.5%, and if you read the report revenue was up clearly they produced move cars and the margin increased .5%. It’s a good margin in the car business, but not in the same league as many Fortune 500 companies. There’s no conspiracy everything is high as salaries continue to rise …….buying any asset now you will pay over.
https://newsroom.porsche.com/en_US/2...021-26247.html

Maverick787

I agree with you on prices being high but that’s the same for a Kia right? Profits are up .5% …….and volume is up Taycans going through the roof. When you look at profits you need to really look at a 3 to 5 years trend to see the drivers were, was it new sales or cost reduction both can drive profits. There’s no constraint in cars YoY production is actually up, but you can argue they can’t meet the demand which is a constraint in capacity. Try buying chicken wings in your local market shelves aren’t full. Porsche is not the boogie man no more than your local market the numbers are just bigger. The more you build doesn’t always a profit ….can’t run a large business on over time, and it will lead into more hiring and facility cost. When it goes down you’re stuck with the people and facility. Europe is not like the US you just can’t lay off workers large payout penalties. When I use to work we had to lay off some workers in Japan, and we were stuck with still paying their salaries until they found new work and there’s no time limit. Just think lots of variables in this Covid world which is the matrix.

Shambler

Same car with a new dealer owner and new price. Keep raising the price to encourage a buyer? Merely, $199,444 now.
https://www.autotrader.com/cars-for-...ngId=626305001

leaf345

wow!

malba2366

It will normalize in the mainstream of the market because some automakers will start increasing production as soon as they can to improve sales...the only way to maintain the current status quo is for the automakers to form a cartel and artificially limit output (which is illegal in most cases). With a car like the 911, Porsche could decide to limit production to get rid of the need for discounting. If a serious recession occurs then it will return back to the big discounting and lots full of cars pretty quickly.

dhirm5

There's a major difference between today and 2008, though people do like to make that comparison. 2008's financial crisis was due to subprime lending. People trading pure garbage mortgages taken by people who couldn't afford them bundled up rated as AAA and sold to nearly everyone including banks. It was a spectacular mess. There's nothing like that today. Today's prices are caused by supply chain issues, still recovering from covid, and people re-evaluating how they want to live going forward, having lived through covid.

One thing that stands out for me re 2008 - everyone likes to say they don't know who to blame. Seems pretty easy to me - go after the f*ckers that rated that garbage AAA.

CodyBigdog

I was at my dealership last week, and the only new 911’s on the lot were cars that were waiting prep and picked up by the buyer. He said that he’s selling about the same number of cars that he sold before the pandemic, with the difference between now and then, being everything they get is already spoken for, so there is no unsold inventory on the lot. May not be every dealerships situation, but that is mine. So, put your money down and be prepared to wait, and wait…

tomingrassia

Maybe the tide is turning.

After a 9 month wait,I received my allocation for a Targa4S with an August delivery. Signed contract for MSRP.
PNFYFWA7 IS MY BUILD CODE.