u7t2p7

With the Euro at an 11 year low against the dollar (1.10 to 1.00) and parity expected by summer, what impact will this have in the export market of US air cooled Porsches to Europe in general and 993's in specific? And what would be the hypothetical tipping point in making financial sense for Porsches to be re-imported back into the US?

destaccado

Probably a ways off. Based on prices on Autoscout there's really no financial incentive to import them and even if the euro and dollar were at parity I don't think there would be much profit margin if any. It is reaching the point where I'm considering buying a car in Germany to enjoy on their roads. Previously there would have been a huge premium to do this which seems to be almost completely wiped out.

I do think the dropping euro is why 993 prices have been flat the last 6 months or so.

ilko

My hope is that parts prices will go down.

As far as car exports, it has more to do with the strength of the European economy IMO. If Europeans are doing well it won't matter if Porsches are 10-20% more expensive than they were a year ago.

rlme36

Part prices are down, when you buy from Gert. Love that F/X rate.
But you guys already know this

chsu74

This

destaccado

Importing a car to Germany requires about 25% in taxes (19% VAT + an import fee); for this and other reasons, cars in Germany were recently priced at about that as a premium over US cars. Further, the US has/had a much larger supply of good condition older cars due to the climates where so many Porsches reside (Texas, So Cal, etc)...

Now that the Euro has dropped 20-25% -- prices in Germany are becoming pretty damn close to what the cars cost in America (based on Autoscout pricing). However, there's not much incentive to bring a car over here unless it's a car that simply isn't available in America like the Carrera RS.

Obviously parts are a great deal - like everything else right now. I just bought a Rolex Seadweller 4000 brand new for $7900 with the VAT refund - that's a $10,500 + sales tax watch at a Rolex dealer in America or $9000 on eBay. I didn't need it and haven't worn it yet but with a supposed 1 Feb price increase for Rolex in Germany and with an immediate $1000 profit it just made sense.

clubsport1

Prices of sought after Porsches in Europe have increased over the last few years.

With low rates, a depreciating currency and often favourable tax treatment, quite a few people appear to have put their money into cars. A safe-ish haven with added fun!

We didn't just arrive at the weakest Euro for 11 years, it has been well signalled and even a trend!

So although the € has depreciated, the cars are necessarily as cheap as they once were. Particularly the pre impact 911's.

NYC993

One thing to keep in mind is that Euro will be depreciating, which means asset prices should go up. So european prices of semi collectible cars (cars seen as assets) can further increase in price.

What's interesting is that Canadian 993 got 20% less expensive for Americans.

x50type

So although the € has depreciated, the cars are necessarily as cheap as they once were. Particularly the pre impact 911's.

Wish I knew what that meant!

NYC993

Air cooled 911s are already overpriced to the point where depreciating Euro makes little difference.

clubsport1

I thought I was posting clearly enough!

Basically, the Europeans faced with a depreciating currency, as in losing value in their pocket, decided they could not wait and wait until the nice Americans on Rennlist helped them out by buying their cheap Porsches from them.

Somehow they had the audacity to spend their Euros, on these cars which meant the prices subsequently increased before the "Euro at 11 year low" headlines hit the newstand.

M. Schneider

+1 Agreed. The currency hedge Porsche AG, make that Volkswagen AG, makes/takes of various markets it trades, has a freak'in long horizon.

M. Schneider

Crystal clear. +1

P.S., Now,,, ante up a Rennlist subscription ..... LoL.
All disclaimers apply.

TouringTeg

+1 The Cdn dollar has dropped about 10% in the last year versus usd. Now worth 80 cents usd and may drop further according to TD bank projections.

Easy to transport or drive it home. 2.5% duty if a Canadian car or pay zero duty if originally a US delivery car.

Aaron 993C2

I am in Germany and I can assure you that the prices here will remain high for the foreseeable future. Culturally, Germans take exceptionally good care of their cars and charge a premium for them. I saved quite a bit by ordering mine through the States.