alexb76

Hi guys,

Well, I know Porsche's always been for a certain income level, however, while looking at the latest prices coming out of Porsche, across all ranges, including even Cayenne, there's a certain price bump that is undeniable, specially if you get into optioning your car with stuff that even comes standard on KIA (like GPS?!)...

Hence, I am feeling like it's targeting a different demographic maybe, or just the fact of globalization make it possible to demand such premiums...

Like for instance, Porsche 911 Turbo is easily into 200K, which was chartered only for GT2 RS and very specialty cars in the past...

What do you guys think?

PTParks

I bought my 997.2 Carrera S new in '09 with a moderate option list that came out to a shade over $97K. The dealer knocked it down to $92K and gave me over book value for my ragged out '06 Corvette. I did not check to see what the price increase over a similar '08 model might have been. However, I agree that the prices of the new Carrera (all variations) seemed to have taken a significant leap over the 997.2. cars similarlly optioned out. There is a new Turbo S @ $199K at my dealer right now. An optioned Carrera S is over $125K. I certainly would not be in the market for a new Porsche today at those prices. Happily, I am not a fan of the new style. Unfortunately, the increased prices do not seem to have bolstered the street value of earlier models.

808c2s

My observation is that the pricing increase is in part due to the emerging China Market and their buying power.

Redline911

I think the option pricing is what got crazy. MSRP on a new S is $98,900. I think that's a lot of car for under $100k. But at $125k, no way. $2,120 for a Bose audio system is robbery. I bet the cost of that to Porsche is $200.

Gonzo911

Its due to the "Wealth Effect" that has been apparent for almost a year. Those with a lot of dough are feeling frisky. Just look at the luxury housing market, NetJets accounts and yes, luxury cars. Those areas of the economy are in good shape and the uber rich who have been very cautious since the financial meltdown are now spending due to pent up demand and of course, the robust financial markets.

Its a good sign for the upper strata of the economy and if Ronald Reagan was right, it should trickle down to us poor folks soon.

alexb76

Now, that's a pipe dream...

Kidding aside, I think the business case has been to upmarket Boxster/Cayman to cover the low range of Carrera, and then make 911s compete with luxury cars, PLUS sports cars of the past, hence all of the nanny options available! There was a C4S optioned at $184K not long ago, that was with pretty much most of the nanny options which are usually a few thousand per option.

Even with Cayenne, they upped the entry point to $63K vs. $50K of the past by getting rid of base Cayenne, and yet again options are ridiculously priced!

alexb76

Exactly if not lower! Also, all of the computerized crap, it's just a software upload in many cases, costing $0...

yabawdy

been a lot of money printed by central banks in the last five years reducing value of a dollar. when manufacturer's purchasing power goes down price increases get passed on to consumers.

problem is that middle-class incomes haven't risen and especially true in Vancouver...

alexb76

Unless you're a teacher ...

kcheves

I'm not a fan of Bose (and my car has it...) but the price paid by a consumer for an option like the Bose "upgrade" has to cover the recurring costs and profits for Porsche and all of it's downstream suppliers, plus the amortized development cost. There are material and labor differences between the standard and Bose systems, plus licensing costs to Bose, etc...

I suspect it is >>$200.

poparelly

Porsche emerges as world's most profitable carmaker

http://www.dw.de/porsche-emerges-as-...ker/a-16727077

alexb76

Nope, the cost of the overall system maybe more than $200, BUT the cost of the upgrade over the standard is NOT over $200... the standard stereo has components too that won't be used.

kcheves

Without cost data, this is pointless speculation.

WernerE

Of course. I have McIntosh, B&W gear and yes, Bose in the Porsche. Happy with all three -- it seems fashionable to knock Bose, for reasons that are lost on me. Did I think Bose was a "bargain" at $2k. Nope, but it sounds quite good inside a 911 amidst the cacophony of traffic noise.

Burmester at $5k should be subject to the same criticism that Bose is at $2k. The speaker materials of the former are superior to what Bose offers, as they should be at 2.5x the price.

SoCal C2S

Finally someone who understands that when the value of the dollar decreases, everything that is imported, which in the US is everything, goes up. The dollar is worth 30% less today than in 2008, so that $100k Carrera is now $130k.