New Porsche prices sky rocket

[Larry C]

…and there are still missing options such as deviated stitching, at least on the 718 configurator

[Tom_N]

I wonder if some of this is an attempt to try and tamp out ADM's (or at least excessively high ones) by pricing the cars higher, in turn boosting dealer margins significantly. Just a guess and no idea how well it would work anyway, especially in certain hotspots of the country such as Southern CA.

Interesting theory, working only if the invoice prices didn't rise too, or at least didn't rise to the same %. Or is it a profit boost for PAG? It would be great to see invoice columns in the OPs table.

[blueline]

I wonder if some of this is an attempt to try and tamp out ADM's (or at least excessively high ones) by pricing the cars higher, in turn boosting dealer margins significantly. Just a guess and no idea how well it would work anyway, especially in certain hotspots of the country such as Southern CA.

Interesting theory, working only if the invoice prices didn't rise too, or at least didn't rise to the same %. Or is it a profit boost for PAG? It would be great to see invoice columns in the OPs table.

Regarding invoice prices, you are absolutely on the money. We can all rest assured that invoice prices will rise the most out of the increases. I was only kind of ruminating on the thought that maybe Porsche would share some of the bounty w/dealers as a way to discourage ADM's.

In the latest issue of Panorama (March '23) starting on p36, Porsche Board of Regents Chairman Mike Sullivan did say that Porsche wants their dealers to "sell for as close to MSRP as possible", referring to Porsche's special cars. He said that dealers who do so are being rewarded, but he stopped there - no details, kind of vague.

He said Porsche's normal cars (SUV's mostly) are selling in a normal manner, meaning savvy or payment-conscious customers are negotiating for pricing less than MSRP.

On the other hand, Sullivan also said that about half of the Porsche dealers in the U.S. are selling special cars for over MSRP. The good news to me in that sentence is the fact that about half of the dealers are not selling for over MSRP, especially for their steady and reliable repeat customers.

One thing I do know is that dealers are getting punished (lost allocations and other) for any of their customers who beg or otherwise get an allocation for a special car and then turn around and sell it for big bucks on the secondary market. Apparently, that is highly irritating to Porsche.

[audi4t]

The current price demand relationship of Porsche vehicles should be a Harvard Business School case study.

We are told capitalism benefits everyone since it provides optimum allocation of resources - which is true unless we don't like it

In Georgia we have two Porsche dealers both in Atlanta - I just checked their web sites - one has zero new 911's the other theoretically has four (one in inventory three in transit). In reality I think they are all presold.

MSRP for the lowest price model is around $163k the highest price is around $288k. In the current market we can be fairly certain these cars will sell at or higher than MSRP.

I don't see any incentive at the moment for Porsche to increase supply (which may depress prices) when in this market nearly every 911 they produce is presold.

(BTW I see there is only one Toyota Supra available for sale in Georgia and that has an ADM - so Porsche demand and supply is not unique).

Demand for Porsches at the price points they touch is strong, but finite.

I would assume that the finance guys at Porsche have a pretty good handle on how they can optimize revenue and profits.

[Bill in Bama]

I went to their configurator page today and can confirm pretty large price increases. I "built" a 718 GTS 4.0 and while I didn't calculate the amount of increase, it's significant. Also, the cost of delivery at Atlanta or L A venues is now $2000. That's a 300% increase from the $500 my '21 718 cost two years ago.

[Larry C]

My 2022 CGTS would be around $12,000-$15,000 more than I paid and several options such as the PDLS+ and deviated stitching aren't available. All of us Porsche owners are very fortunate.

[blueline]

I went to their configurator page today and can confirm pretty large price increases. I "built" a 718 GTS 4.0 and while I didn't calculate the amount of increase, it's significant. Also, the cost of delivery at Atlanta or L A venues is now $2000. That's a 300% increase from the $500 my '21 718 cost two years ago.

Shipping costs are not getting cheaper and we're also paying for the massive insurance costs of roro's that's spiked to unimaginable levels due to several (four as I recall) sunken car-carrying ships of the past several years. I would imagine all vehicles being imported to North America (and elsewhere) are facing huge delivery fee increases.

[blueline]

No more GT4

It's discontinued for MY 2024 per the Drive which Porsche affirmed. I rec a text this morning from the dealer alerting me to the same news.

"Porsche confirmed the news to The Drive on Thursday. Not only will the GT4 bow out for the 2024 model year but also the 718 T and Spyder models are going away too."

"Prices for pretty much every car in the 718 lineup have also gone up—by a large margin in some cases...GT4 RS prices have been increased by $12,900, for instance. The cost of the base Cayman has increased by $4,900."

https://www.thedrive.com/news/porsche-c ... 718-lineup



Another 718 price graphic:

2024 718 price increases as of 2023-03-30.jpg (218.97 KiB) Viewed 1182 times

[Tom_N]

Porsche vehicles have entered into the realm of Veblen goods, where demand continue to rise, seemingly paradoxically, as prices rise. The concept of Veblen goods isn't new.