Porsche Price Inflation
10-26-2016, 03:32 PM
#1
RL Community Team
Rennlist Member
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Thread Starter
Porsche Price Inflation
http://jalopnik.com/5953080/how-infl...favorite-cars/
The article above is from 2012 and denotes the following:
Porsche 911
Price in 1965: $6,370
Price with inflation in today's (2012) dollars: $46,795
Price new in 2012: $82,100
My data:
Price new in 2016 $84,300
The data above shows that in 2012, Porsche have about doubled in price taking inflation into consideration. You may say that the technology is increased so it is a different car. Well..... Mustangs are about the same price and Camrys have actually come down a bit and all have had big advances in underlying technologies. Further, as is well known in mass production, more production equals less cost per unit and Porsche is certainly selling way way more cars than it ever did.
Anyone have a trend line on a base 911 over time?
Inflation calculator: http://www.bls.gov/data/inflation_calculator.htm
Peace
Bruce in Philly
The article above is from 2012 and denotes the following:
Porsche 911
Price in 1965: $6,370
Price with inflation in today's (2012) dollars: $46,795
Price new in 2012: $82,100
My data:
Price new in 2016 $84,300
The data above shows that in 2012, Porsche have about doubled in price taking inflation into consideration. You may say that the technology is increased so it is a different car. Well..... Mustangs are about the same price and Camrys have actually come down a bit and all have had big advances in underlying technologies. Further, as is well known in mass production, more production equals less cost per unit and Porsche is certainly selling way way more cars than it ever did.
Anyone have a trend line on a base 911 over time?
Inflation calculator: http://www.bls.gov/data/inflation_calculator.htm
Peace
Bruce in Philly
10-26-2016, 03:58 PM
#4
Pro
What the market will bear.....
10-26-2016, 04:02 PM
#6
Porsches haven't become more expensive, our currency is simply worth much less, thanks to government printing and printing and printing. Money (currency) has to go somewhere. Porsches, French wine, vintage shotguns, Ferraris, all inflated thanks to central banks.
Last edited by Leica 993; 10-26-2016 at 04:30 PM.
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10-26-2016, 04:32 PM
#8
10-26-2016, 05:23 PM
#10
Just a single data point but around this time in 2002 I bought an E-Class, and base MSRP was around $48K. Currently for a 2017 it's around $54K. OTOH the MSRP for a base C2 when mine was built around this time in 2004 was around $69K. MSRP for a base 2017 is over $90K.
I daresay both Merc and Porsche have equally incorporated technology advances. Both are made in Germany, so international currency fluctuations would apply to both. Both are targeted to the upscale luxury market, and whereas Porsche sells in smaller volume, that volume has at least remained level since 2005, it hasn't dropped back to air-cooled days. Porsche has also, since the late 90s, cut costs by sharing many parts across several platforms.
I'm not an economist, but it does seem to me the "charge what the market will bear" philosophy might be in operation here
I'm not complaining mind you, as the upshot has been to buoy second-hand values of the 997.
I daresay both Merc and Porsche have equally incorporated technology advances. Both are made in Germany, so international currency fluctuations would apply to both. Both are targeted to the upscale luxury market, and whereas Porsche sells in smaller volume, that volume has at least remained level since 2005, it hasn't dropped back to air-cooled days. Porsche has also, since the late 90s, cut costs by sharing many parts across several platforms.
I'm not an economist, but it does seem to me the "charge what the market will bear" philosophy might be in operation here
I'm not complaining mind you, as the upshot has been to buoy second-hand values of the 997.
10-26-2016, 05:43 PM
#11
10-26-2016, 06:16 PM
#12
The other side of that coin if course is that fact that a lot of the value remains. This topic gets brought up on a lot of watch forums too.
I've bought and sold many watches that I've kept from 1 to 10 years and have either broken even or made money on almost all.
To that end - the used Porsche market tends to support a lot in terms of resale value where other brands don't.
Resell a used Camaro after 5 years vs a 997 and see the difference.
Resell a Rolex after 5 years vs a Tag and see the difference.
Just my two cents..........
I've bought and sold many watches that I've kept from 1 to 10 years and have either broken even or made money on almost all.
To that end - the used Porsche market tends to support a lot in terms of resale value where other brands don't.
Resell a used Camaro after 5 years vs a 997 and see the difference.
Resell a Rolex after 5 years vs a Tag and see the difference.
Just my two cents..........
10-26-2016, 06:45 PM
#13
Rennlist Member
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.
10-26-2016, 06:48 PM
#14
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.
10-26-2016, 07:02 PM
#15
Rennlist Member
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.