X-TNSIV

Based on the news published today, I'm curious how the President's proposed 25% tariffs on EU cars will impact future demand for GT cars...

I believe it will have some immediate impact on the cars "ordered" and not yet delivered (at the time the tariffs will go into effect). I recall reading a thread somewhere that many people who have cars "on order" or that have an allocation will have to pass...

Will delivered cars increase in value? remain the same? Other thoughts?

Drifting

robmypro

white6speed

It it were to happen, which many think it is doubtful the tax would be due when the car hits US shores regardless of whether someone had paid in full or not.

GT3

X-TNSIV

Well that was short lived excitement for today... LOL

CAlexio

Is the question who will be affected by the tariffs? Let me see, what have we learned from history about protectionism as a policy?

Oh.. just 1000 words and all that Jazz...

rsierra

Another win for Trump

syswizard

All I know is that since the announcement, used Porsche prices have gone up and there are few cars for sale.

TwinTurbo420

Yes! My situation as well.
I'm about to order a 911. I will put down a deposit. (Non-refundable) If a tariff goes into effect b4 I take delivery, will it apply to me?

Someone here posted "Yes" but, I cannot find anything that definitively answers this, one way or the other, with any tariff, on any product.
With washing machines, due to the steel tariff, I read that LG plans to raise their prices. I don't think a person pays for an LG washer on Monday, it is due to be delivered Wednesday from the warehouse & tariff goes into effect Tuesday & they are stuck with a surcharge at delivery on Wednesday.

A lot can happen is several months re tariff on cars. Most likely is it never happens but it can happen in September & be gone by October. Which is bad for those who have delivery in September!

I would be OK with a refundable deposit in the case of a tariff b4 delivery but, don't think dealer will put that in writing.

GTS01

To begin with, you cannot pay for a car until an invoice is generated. The invoice is generated once it leaves Emden, to my knowledge.

Were a tariff being imposed, there are several scenarios:

1. Porsche says orders placed as of a certain date will not pay the tariff, and after that date the tariff is applied.
2. Porsche decides to "distribute" the tariff across all cars rather than apply it at 100% on the high-end GTS and GT cars.
3. Porsche decides to pass the entire tariff to the customer.
4. Porsche decides to eat the tariffs, expecting things to settle down in the outyear.

I do not think you would see a "tariff" line item. You would most likely see the configurator at the Porsche site nudge up the base prices for their cars.

I doubt a tariff would be immediately passed on to the consumer by Porsche as it would create quite an inventory of US prepped and undelivered cars for non-delivery. With that said, I have a 2019 911 Carrera GTS being built on September 21, and hell or high water, I am taking delivery of the car. Do I want to pay a $39,000 increase in the cost of the car from the tariff? Of course not, but I am at a time in my life where the joy of ownership exceeds any concerns over the cost of the Porsche.

I am not alone in this thought. My dealership has a lot of orders outstanding with Porsche, and I was told by my Brand Ambassador that not one individual has stated he/she would not take delivery of a car, if the tariff were imposed. A tariff would make the Porsche even more exclusive, and I believe you would see more cash for your cars during trade or resale.

Regardless, I refuse to live my life around this nonsense. It's not a dress rehearsal.

syswizard

Indeed, and this will also affect the price of used Porsches.
In fact I think this is already happening.....in anticipation of tariffs.

GTS01

Trump administration and EU build momentum toward hashing out a trade deal (See Link Below.)

I was basically responding to a possible crazy Ivan, which I believe is highly unlikely given the unanimous backlash the Commerce Department received from nearly 1,200 businesses and manufacturers. The trade discussions with the EU are moving ahead at full steam, with a second visit to Washington being scheduled later this month.

You can read about progress here: https://www.cnbc.com/2018/08/09/us-e...agreement.html

The EU and US are going to need to play nice here. Europe sells are large piece of their auto-pie to the US, and US consumers, who have historically purchased imports, are not going to turnover their key fobs for American-made cars. We all know Porsches have outstanding residual value, and many far exceed the owner's expectations over time. Either way, the 911 GTS is an excellent place to park some cash in today's unpredictable environment. The demand for these cars among true enthusiasts can only grow over time.

TwinTurbo420

I also doubt there will actually be tariffs imposed on Porsches but, it is not impossible. In no way is it "nonsense," however.
Even if most buyers are financially able to pony up an additional 25% when they take delivery (And I doubt most buyers are able to do that) That does not mean they would. Regardless of what your SA tells you they said.
What people say vs. do... is different, especially when it is about money.

Thanks for the link to the hopeful article re trade talks.

TwinTurbo420

Trump may impose tariffs on imported cars from next week: report
BUSINESS NEWSNOVEMBER 27, 2018

"BERLIN (Reuters) - European auto stocks extended losses on Tuesday after a German magazine reported that U.S. President Donald Trump could impose tariffs on imported cars from next week.

Wirtschaftswoche cited “EU sources” as saying a U.S. Department of Commerce investigation report was on Trump’s desk, adding: “Trump will possibly decide on tariffs as early as next week after the G20 meeting in Buenos Aires.”
It cited the sources as saying the report recommended a 25 percent customs duty on car imports from all countries except Canada and Mexico."

https://www.reuters.com/article/us-u...-idUSKCN1NW1OF

And I have a non refundable deposit & expect delivery in ~ 1 month.

I hope this does not happen & if it does, I hope cars already "sold" but not yet delivered/PIF will be exempt.