A thought about Porsche pricing

[LukeManning]

The part that I don't understand about Porsche pricing is why they don't just raise the base prices and include all the little "nickel and dime" stuff that 99% of customers are going to want (but in some cases might just forget to spec). Porsches are expensive cars, everyone knows that and I doubt anyone is swayed in their decision to buy one because they're able to advertise a "low low staring price" of only $80k vs $85k for example.

I think one of the biggest things that is hard for people to understand (especially here in the US) is that Porsche at their core is still very much a German car brand. i.e. they make cars for the German market first and then every other market secondary...

BMW, Volkswagen, Mercedes, etc. are all now much more of an International and even American car brand than what Porsche is and because of this they have adopted a very American culture when it comes to manufacturing vehicles. Some of these companies even have the majority of their world car manufacturing now based in the US and not in Germany...

Porsche is very German in culture and because of this they tend to think of things that we might consider standard here in the US/Elsewhere as being rather frivolous options. To a German engineer having something like Ventilated Seats, Massage Seats, Heads Up Display, etc. as standard may just seem like unnecessary gimmicks that get in the way of what they actual are designing the car to do - Drive Amazing. This is why I believe Porsche has always made the best performing vehicles on the road, they focus on extra driving technology that makes the cars drive amazing (look at the brakes on a standard 911 Carrera versus something like a Jaguar F-Pace...)

Now I'm not German and I don't claim to know the German culture in and out, but it is something to think about. It's no different from brands like Ferrari that charge for such eccentricities as a $13,651 Italian leather luggage set...

I do agree Porsche should have more features as standard in certain markets and just charge extra for the car as base if they so deem it necessary - but that isn't the Porsche philosophy nowadays. They want you to be able to have or not have any option you do or do not want on the car, even if it's folding mirrors.

 

[chrisk]

You should also accept the cost of servicing a Porsche. It is probably not a big deal for the Taycan which does not need a lot of maintenance. But if you own an ICE Porsche, then it is ~$500 for the minor service (only oil change and visual inspections) and ~$2000 for the major service. Service price is dictated by the dealers but it follows the same philosophy as the purchase price.

 

[Wakesurfer]

First I would like to apologize if this comes off as a rant, it is not. It is just a little observation, which I’m sure many of you already understand.
I’ve been reading more and more about people complaining that Porsche charge for small things (folding mirrors, heated seats etc..) where on some cars within the price range they are standard.
I think people have to realize that when you see a Porsche “Starting at” price, it’s a bit of a marketing hook em price.
The reality is, Porsche is an expensive car, and it’s extremely customizable(relatively to meany companies who sell options in packages)
When the Etron GT was officially announced last month, many people felt it was too close in pricing to the equivalent trim of the Taycan (turbo- RS, GT- 4S) however in reality the Audi is about 20k cheaper like for like. When people say “it’s even standard on a Honda Civic” that’s not saying anything except that yes, now that civics are 25k-30k cars I would expect most bells and whistles to be included in the price.
So yes, Porsche is a luxury vehicle, and the reality of it all is that it is it a cheap car to buy and own, and if you want all the bells and whistles, well, then you gotta pay the price.
Would love to know other people’s take on this

One other point that I think a lot of the responders are hitting on. The base price for a 4S is $103, 800 and from a marketing perspective we, the consumer, process that as $100,000. And then as you go through the configurator you look at and add the options that appeal to you and quickly the price gets to the $135,000 range. Now, had the base price started out at $135,000, with a lot of standard features that are not in the $103,800 pricing, how likely would you be to investigate an actual purchase? I think a lot of buyers would say 'whoa' $135,000 for a base model.............after adding options I will be close to $150,000.............so maybe not for me and they move on to a different manufacturer. My personal thought is the base pricing perception of $103,800 gets a number of lookers in the door and once they start configuring their own model it's hard to get out of the door. And I don't see that as bad or sneaky - it is just the way that we as buyers react to pricing for an item like this. My little bitty pea brain thoughts anyhow.

 

[rich_r]

I think one of the biggest things that is hard for people to understand (especially here in the US) is that Porsche at their core is still very much a German car brand. i.e. they make cars for the German market first and then every other market secondary...

BMW, Volkswagen, Mercedes, etc. are all now much more of an International and even American car brand than what Porsche is and because of this they have adopted a very American culture when it comes to manufacturing vehicles. Some of these companies even have the majority of their world car manufacturing now based in the US and not in Germany...

Porsche is very German in culture and because of this they tend to think of things that we might consider standard here in the US/Elsewhere as being rather frivolous options. To a German engineer having something like Ventilated Seats, Massage Seats, Heads Up Display, etc. as standard may just seem like unnecessary gimmicks that get in the way of what they actual are designing the car to do - Drive Amazing. This is why I believe Porsche has always made the best performing vehicles on the road, they focus on extra driving technology that makes the cars drive amazing (look at the brakes on a standard 911 Carrera versus something like a Jaguar F-Pace...)

Now I'm not German and I don't claim to know the German culture in and out, but it is something to think about. It's no different from brands like Ferrari that charge for such eccentricities as a $13,651 Italian leather luggage set...

I do agree Porsche should have more features as standard in certain markets and just charge extra for the car as base if they so deem it necessary - but that isn't the Porsche philosophy nowadays. They want you to be able to have or not have any option you do or do not want on the car, even if it's folding mirrors.

Ha maybe so. I actually lived in Germany 20 years ago and at the time was interested in an e46 bmw 3 series. I remember going to the dealer and seeing cars with front power windows but manual rears. Base wheels with hubcaps, etc. I just need to get back into that mindset when looking at the Porsche configuration

 

[feye]

So yes, Porsche is a luxury vehicle, and the reality of it all is that it is it a cheap car to buy and own, and if you want all the bells and whistles, well, then you gotta pay the price.
Would love to know other people’s take on this

Well, when my wife buys a 5k handbag or my daughter a 2k skijacket she will only wear once for 1 week in her life, I also cannot comprehend it.

 

[feye]

Porsche is very German in culture and because of this they tend to think of things that we might consider standard here in the US/Elsewhere as being rather frivolous options.

IMHO this has nothing to do with German car culture.

In the Chinese market, I cannot order a Taycan with the standard speakers, they all came with Bose min. They do differentiate.

The problem with the US market is, the USD lost value over the DM/EURO over the last 60 years. What was once a very good market to sell into, is now a low margin market. In other words, cars in the US are too cheap.

 

[LukeManning]

IMHO this has nothing to do with German car culture.

In the Chinese market, I cannot order a Taycan with the standard speakers, they all came with Bose min. They do differentiate.

The problem with the US market is, the USD lost value over the DM/EURO over the last 60 years. What was once a very good market to sell into, is now a low margin market. In other words, cars in the US are too cheap.

Porsche has a very different mindset when it comes to the Chinese market - but again I do believe they still consider options that the Chinese market demands to be rather frivolous.... but they understand that the Chinese market expects a certain level of luxury that they can charge $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ for.

 

[rich_r]

Porsche has a very different mindset when it comes to the Chinese market - but again I do believe they still consider options that the Chinese market demands to be rather frivolous.... but they understand that the Chinese market expects a certain level of luxury that they can charge $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ for.

Yeah I think you're both right. The US is one of the most competitive car markets with the tightest profit margins while China is one of the most lucrative. I haven't looked at pricing but my guess is that Porshes sell for 2 or 3x what the go for in the US?

 

[Mouse House]

Complaining about the price of Porsche options is a bit like walking in to the American Bar at the Savoy and saying you can get a drink cheaper at Wetherspoons.

Having said that, it pisses me off that they don't even paint the wing mirrors as standard. Unpainted plastic really has no place on a car costing that much.

 

[jvincent]

When the Etron GT was officially announced last month, many people felt it was too close in pricing to the equivalent trim of the Taycan (turbo- RS, GT- 4S) however in reality the Audi is about 20k cheaper like for like.

I also have an e-tron GT on order. Configuring that car in the US is truly infuriating. Any way I spec the car I'll end up not getting things I want, settling for things that I don't love, and being saddled with things I don't need. This is decidedly NOT the way to sell a $120K vehicle.

Porsche knows how to sell luxury vehicles and I do not begrudge them their profitability. It might not be cheap, but you can get exactly what you want and make the car yours and yours alone. IMHO, that is worth the premium.

 

[SeattleYates]

If you don't want to pay the high price of Porsche options, there's a simple solution. Just buy a 1-year-old model with 5-10K miles and the most of the options you want. You'll often get an almost new car for about the price of a brand-new base model. IOW, the cost of those options come off the resale value pretty quickly.

You're paying an extra 10%+ for the privilege of getting a brand spanking new car with exactly the options you want.

Our last Porsche was a 2-year old Panamera Turbo that I bought with ~15K miles, and it was FAR cheaper than a brand new one...and I got the "fairly new" Turbo for less than a new 4S would cost.

With the Taycan Turbo, I'll pay the extra for a factory-ordered 2021, rather than get a barely-used 2020 one because: (a) I don't like buying the very first model year of any car - they always have bugs that need to get worked out; and (b) by the time I sell it, part of that difference will be made up (on resale) by the newer model year.

 

[rich_r]

If you don't want to pay the high price of Porsche options, there's a simple solution. Just buy a 1-year-old model with 5-10K miles and the most of the options you want. You'll often get an almost new car for about the price of a brand-new base model. IOW, the cost of those options come off the resale value pretty quickly.

You're paying an extra 10%+ for the privilege of getting a brand spanking new car with exactly the options you want.

Our last Porsche was a 2-year old Panamera Turbo that I bought with ~15K miles, and it was FAR cheaper than a brand new one...and I got the "fairly new" Turbo for less than a new 4S would cost.

With the Taycan Turbo, I'll pay the extra for a factory-ordered 2021, rather than get a barely-used 2020 one because: (a) I don't like buying the very first model year of any car - they always have bugs that need to get worked out; and (b) by the time I sell it, part of that difference will be made up (on resale) by the newer model year.

one thing I’ve noticed, though, I’d that total cost of ownership is “sticky”. If you play around with edmunds total cost of ownership tool, it’s interesting to see how the total cost (they use 5 years/75k) is similar for brand new cars vs 3 year old ones. Basically the higher maintenance abd repair costs post warranty make up for the slightly lower depreciation. Plus I also get the sense that mildly used cars sold my dealers are relatively over priced.

 

[SeattleYates]

...I also get the sense that mildly used cars sold my dealers are relatively over priced.

Yes, there's no doubt that buying from the owner can result in a significantly better deal than via a dealership. Buying a car still under factory warranty takes much of the risk out of doing that. Plus, with a one-owner car, you can sometimes get a sense of how hard they might have driven it...

 

[rich_r]

Yes, there's no doubt that buying from the owner can result in a significantly better deal than via a dealership. Buying a car still under factory warranty takes much of the risk out of doing that. Plus, with a one-owner car, you can sometimes get a sense of how hard they might have driven it...

For sure. My point was more around the cost savings aspect of buying new vs lightly used. For example, take a look at Edmund's projected costs for a 2020 panamera vs a 2018 model. While there is roughly a 25k a price difference, the difference in total ownership cost over 75k is only about 10k. And I bet that 10k shrinks even further when you factor in markup when buying through a dealer (along with added hassle of not potentially not being able to find the exact car you want)
https://www.edmunds.com/porsche/panamera/2020/cost-to-own/?style=401838715
https://www.edmunds.com/porsche/panamera/2018/cost-to-own/?style=401710401

 

[TayTaySD]

If you want a reliable nice ride, buy a Hyundai, if you want more street cred buy a Lexus/Corvette, even more buy a Porsche, top of the heap Ferrari/McLaren/Lambo and it continues up from there. Money is the only reason Porsche is more exclusive. All of this is based upon price and cost to own, simple. My neighborhood is full of Teslas, not a single Taycan besides mine (yet). You can read lots of professional reviews that will say something like "$300k Supercar Studly has an entertainment system, rattles and difficult to use that we would not find acceptable in a $30k car. One of my mega millionare friends got rid of his Ferrari, partially because he was tired of $1,000 services for simple things like oil changes, he felt stupid every 6 months.