Porsche Price Inflation
10-27-2016, 10:18 AM
#16
Drifting
Average Mustang price in 1965 was $2,427. Adjusting for inflation, that equates to about $18,500. The cheapest 2016 Mustang has an MSRP of over $24k with the average MSRP over $30k. I'd say that's not far off of the trend line that the 911 has taken over that same amount of time.
But, I think your core argument is sound--Porsche (VW Group, actually) makes a ton of money on every Porsche they sell. The Net Profit on a Porsche is astronomical when compared to a Mustang or a Camry. Audi makes more money for VW than any other brand but on a per-car basis, Porsche is the clear leader. Bloomberg estimates Porsche nets over $23k per Porsche (average over the entire model lineup).
But, I think your core argument is sound--Porsche (VW Group, actually) makes a ton of money on every Porsche they sell. The Net Profit on a Porsche is astronomical when compared to a Mustang or a Camry. Audi makes more money for VW than any other brand but on a per-car basis, Porsche is the clear leader. Bloomberg estimates Porsche nets over $23k per Porsche (average over the entire model lineup).
10-27-2016, 10:36 AM
#17
http://www.bloomberg.com/news/articl...at-new-porsche
10-27-2016, 12:52 PM
#18
Three Wheelin'
Since they depreciate so quickly it's a non issue for me. Except for the fact of having to come to grips with the fact that I will likely never purchase one new and have the chance to spec the exact color combinations I want. Searching long enough worked ok so far for finding the right spec. I'm willing to lose the opportunity to spec it from the factory in order to save $60k+
10-27-2016, 01:23 PM
#19
The flips side to that coin is the Porsche deflation is just as bad as the inflation (sans GT cars), so it's a mathematical zero if you can wait a year or two and buy a low mileage pseudo new P car. I picked up my 997.2 (which is basically new at 12k miles) for roughly half of the original sticker.
I know I can only afford used ones and would not even think about dumping so much money in a new one (even if I had the money).
Yves
10-27-2016, 01:26 PM
#20
This is the article that states that, "based" on the annual report VW released in March of 2014.
http://www.bloomberg.com/news/articl...at-new-porsche
http://www.bloomberg.com/news/articl...at-new-porsche
Toyota for instance, gets barely to 1% per car. BMW is in the single digit profit margin. VW is also low single digit margin.
Yves
10-28-2016, 08:41 AM
#21
The biggest factor in the increase in the 911 pricing was the introduction of the Boxster/Cayman.
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
10-28-2016, 08:49 AM
#22
That is a tidy profit - good for Porsche. What stinks is they have no problem pushing out crap motors like the M96 at the same time.
10-28-2016, 09:19 AM
#23
The biggest factor in the increase in the 911 pricing was the introduction of the Boxster/Cayman.
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
In the past, the entry level Porsches ( 914, 924, 944) were very different in performance compared with the 911. The Boxster/Caymann are serious alternatives to the 911. Porsche can now continue to push the the 911 up-market while the mid-engined models will keep the sports cars out on the street in relatively larger numbers.
10-28-2016, 11:30 AM
#24
Rennlist Member
if you play the watch game just right, you end up either wearing watches for free or even making money. But you have to have the upfront money and have to be willing to wear a Rolex Daytona, which is completely the opposite of what I want. Give me a lesser known but equal quality automatic and i'd much rather wear that, because no body knows and assumes anything.
10-28-2016, 12:13 PM
#25
Pro
10-28-2016, 12:38 PM
#26
The biggest factor in the increase in the 911 pricing was the introduction of the Boxster/Cayman.
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
This allowed Porsche to move the 911 pricing up as they had a lower price 'mid range' offering that they could sell at the price points where the 911 used to sit.
This strategy was also incentivized by the fact that the Boxster/Cayman were more modern cars designed for manufacturing and Porsche made a higher profit on each one due to the lower labour content.
So you had a double whammy effect - 911's went up in price and Porsche were happy if they sold less because that meant that they sold more profitable units in their place.
Then they started selling SUV's and the world ended!!
And in hindsight Porsche may realize that they have made a mistake (too late) in that their halo car the 911 has been relegated to a niche market (which it is already) when less of their typical purchasers decide that it is beyond their reach or for the money Porsche is asking there are other competitive models that look to be a better option.
10-28-2016, 03:30 PM
#27
Instructor
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I bought my first M3 brand new off the lot. First and last time I ever purchased a sport/luxury car new. Though it didn't matter too much since I didn't get rid of the car until years later, the huge depreciation hit in the first two years bugged me to no end. I felt like such a jackass for having 'thrown away' so much money.
Since then, I've exclusively purchased 2 or 3 year old models for my fun cars, preferably with CPO coverage and low-ish miles. So much better...
11-03-2016, 03:52 PM
#28
Drifting
In my many years with my current employer (a bank), and previous jobs in sales, I found that the people who presented themselves as rich didn't have as much as their look would suggest when you saw their personal financial statements. The really, REALLY impressive PFSs came from people that you'd never think were multi-millionaires if you met them outside of a business setting.
11-03-2016, 04:18 PM
#29
The really, REALLY impressive PFSs came from people that you'd never think were multi-millionaires if you met them outside of a business setting.
11-03-2016, 07:12 PM
#30
Race Car
the 911 seems to be going up almost at an exponential rate (obviously this is a little hyperbole). When I see a "price as tested" at $148k with all the boxes checked, that is a bit crazy. The Germans sure know how to get you. I remember my dad got an SL55 in 2003 and it was $125k and a CD player was an "option". I mean, really?
The 911 started off as an upper middle class persons car they could drive if they saved all their pennies and prioritized correctly. Now there is no way to do this unless you go used. In some ways I am not a fan of what driving a Porsche represents, in fact my wife absolutely hates pretentious people (ironic, since I live in south OC and she is a fit blonde hair blue eyed california girl, but she is very humble and down to earth) and it almost got my 911 vetoed. Luckily I was able to win the battle in the end on this one.
The 911 started off as an upper middle class persons car they could drive if they saved all their pennies and prioritized correctly. Now there is no way to do this unless you go used. In some ways I am not a fan of what driving a Porsche represents, in fact my wife absolutely hates pretentious people (ironic, since I live in south OC and she is a fit blonde hair blue eyed california girl, but she is very humble and down to earth) and it almost got my 911 vetoed. Luckily I was able to win the battle in the end on this one.
Last edited by Para82; 11-04-2016 at 01:53 AM.