Expect Large Price Increase
#1
Expect Large Price Increase
I was speaking with the Sales Manager @ my dealer today when I went to pick my license plates up. We had a lengthy discussion on Porsche, as he is a great car guy and also a friend.
Here are a couple of things we discussed that should be of interest:
- Porsche may possibly detune the Cayman before launch because the performance is almost on par with the 911 for $20k less. Porsche will need to keep some performance difference as the 911 will have a much larger profit margin.
- Expect a substantial price increase on the 997 & 997s for MY2006. Porsche has cut production on MY2005 and allocations are basically nonexistant. The feeling in the dealer network is that a large price increase is coming over the spring that will effect all late spring and summer allocations, as well as new orders.
- If you want a MY2004 Boxster S get a leftover now. The cars have basically been unsellable and the dealers are just trying to get them out of inventory. Most will gladly take a loss to stop paying floorplan.
- The new Boxster S is in very short supply, but the base car is breeding like rabbits. Readily available with substantial discounts.
- Discounts on all 997 models will be nonexistant do to short supply of base and S cars.
- For those thinking they are getting a MY2006 C4S, you are wrong. The all-wheel drive 997 cars will just be Carrerra 4 models as of now. Same body as the base cars. The cars will be C4 and CS4 (not C4S). The wider C4S will only appear after the Turbo from which its body will be based. Probably not until 2007.
I hope this info helps.
Here are a couple of things we discussed that should be of interest:
- Porsche may possibly detune the Cayman before launch because the performance is almost on par with the 911 for $20k less. Porsche will need to keep some performance difference as the 911 will have a much larger profit margin.
- Expect a substantial price increase on the 997 & 997s for MY2006. Porsche has cut production on MY2005 and allocations are basically nonexistant. The feeling in the dealer network is that a large price increase is coming over the spring that will effect all late spring and summer allocations, as well as new orders.
- If you want a MY2004 Boxster S get a leftover now. The cars have basically been unsellable and the dealers are just trying to get them out of inventory. Most will gladly take a loss to stop paying floorplan.
- The new Boxster S is in very short supply, but the base car is breeding like rabbits. Readily available with substantial discounts.
- Discounts on all 997 models will be nonexistant do to short supply of base and S cars.
- For those thinking they are getting a MY2006 C4S, you are wrong. The all-wheel drive 997 cars will just be Carrerra 4 models as of now. Same body as the base cars. The cars will be C4 and CS4 (not C4S). The wider C4S will only appear after the Turbo from which its body will be based. Probably not until 2007.
I hope this info helps.
#2
Good info. I would tend to agree with what you have heard. I don't think that Porsche will just increase the price on the 997, I think that they will make certain options mandatory, driving the base price up (to add differentiation from the lesser Cayman) and other options will be increased in price (at least that is what my dealer told me). I too, have been told that an all wheel drive version of the 997 is coming but with the current body until such time that a Turbo "wide-body" is released.
#3
sounds like the "turbo cabs are going to be very limited production and will only be built for one year" type dealer horsecrap to make something very common seem rare. further, with porsche's dollar hedging until 2007, i doubt seriously they'd be stupid enough to jack the price on something that is already being heavily discounted at a lower price. porsche doesn't cut production on anything unless they can't sell it - and even then they usually don't.
#5
Originally Posted by Sobe
I think they will ... I love this company but they are all about the maximum profit they can get away with these days .
#6
There are still plenty of 997S on dealer lots in many parts of the country.
Porsche cannot just behave as if their market exists in a vacuum, raising MSRP on 997's because of dollar weakness or whatever. Demand transcends all. Yes, some buyers' price inelasticity will mean they will still pony up for a 997S even with a price increase, but the margins thus realized will be at the expense of unit volume. There is unsold 997S inventory currently sitting under snowdrifts at dozens of dealers.
In travelling for work over just the last 3 months, I have spoken face to face with over 15 dealers in five states. The dealers ALWAYS start off with this business about how 997S are going above or at no less than MSRP because it's such a specialty car, limited production, etc, etc. Those are their talking points, and I would expect nothing less. The west coast is a hot market, but sufficient demand does not exist elsewhere to support a price increase.
Porsche cannot just behave as if their market exists in a vacuum, raising MSRP on 997's because of dollar weakness or whatever. Demand transcends all. Yes, some buyers' price inelasticity will mean they will still pony up for a 997S even with a price increase, but the margins thus realized will be at the expense of unit volume. There is unsold 997S inventory currently sitting under snowdrifts at dozens of dealers.
In travelling for work over just the last 3 months, I have spoken face to face with over 15 dealers in five states. The dealers ALWAYS start off with this business about how 997S are going above or at no less than MSRP because it's such a specialty car, limited production, etc, etc. Those are their talking points, and I would expect nothing less. The west coast is a hot market, but sufficient demand does not exist elsewhere to support a price increase.
#7
Porsche does have the exchange rate problem....and it is serious enough to effect profit on sales made to non-euro economies, particularly the USA. Raising prices and lowering supply is one very effective way of dealing with the problem.
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#11
A few thou$and more? No problem.
Originally Posted by Sobe
I think they will ... I love this company but they are all about the maximum profit they can get away with these days .
Considering how things are going, ahem..., elsewhere, this is still "the best" car you can get.
#12
Horse poop.
If they jack up the price so much, dealers will be sitting on inventory for years. They aren't stupid.
Dealer-speak vs plain english: "Mr. Customer, please tell all of your friends that we need more money to keep the lights on, and they should come buy something now. If they don't, well, it will be much more expensive next year."
B.S.
If they jack up the price so much, dealers will be sitting on inventory for years. They aren't stupid.
Dealer-speak vs plain english: "Mr. Customer, please tell all of your friends that we need more money to keep the lights on, and they should come buy something now. If they don't, well, it will be much more expensive next year."
B.S.
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Chief Plug Guy
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2022 GT3 Touring
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Eric
Chief Plug Guy
BumperPlugs.com
2022 GT3 Touring
2009 997 Turbo Cab
2018 M2 6sp
Gone but not forgotten
2004 C4S Cabriolet
1999 C2 Cab
#13
Originally Posted by ben in lj
yeah, but that they can't get away with it (already heavily discounting 997s) is precisely why they won't.
#14
Highly unlikely IMHO. The overall auto market is soft, regardless of the small allocations Porsche has. Competition is stronger from cars like the C6 and upcoming AM AMV8 and Z06. The trend in the auto world is offering more for less lately not the same for more. I'm guessing that Porsche is already pushing the price envelope of what people will pay with their current price points. The upper price point for the 997S in the US with options for many people is around the $90's, not low $100's. Many people would consider a lessor car or alternative brand if Porsche does increase prices.
If anything playing with the price like making some popular options standard while keeping the overall price points roughly the same would make sense IMHO. I also believe the model is so new, it's highly unlikely there will be many changes at all.
I have heard the addition of tire pressure sensors as an available option though.
If anything playing with the price like making some popular options standard while keeping the overall price points roughly the same would make sense IMHO. I also believe the model is so new, it's highly unlikely there will be many changes at all.
I have heard the addition of tire pressure sensors as an available option though.