Is the bubble about to burst?
Discussion
Bubble won't burst until we see Central Bank interest rates becoming positive again.
For reference, European Central Bank lowered its deposit rate to -0.4% in March.
Fuels low interest rates, meaning cheap cash to buy that dream car. Rising asset prices generate a greater % return than most investments (bonds, cash in the bank, etc), so we get more investors driving the market.
Watch some of it fall away when cash is more expensive and returns are better elsewhere.
For reference, European Central Bank lowered its deposit rate to -0.4% in March.
Fuels low interest rates, meaning cheap cash to buy that dream car. Rising asset prices generate a greater % return than most investments (bonds, cash in the bank, etc), so we get more investors driving the market.
Watch some of it fall away when cash is more expensive and returns are better elsewhere.
GT4P said:
anonymous said:
[redacted]
Have you not also got to add on taxes of country of build/origin? Also there is the importers profit ie PGB.At a quess I would say a £75k inc vat car porsche gb is buying in at circa £55k pre vat and build costs are most likely circa £30-35k
One-off flagship specially editions will always take up a disproportionate amount of time, consideration, and development with very few models to spread any r&d over. I would bet my house that regardless of how dodgy your accounting is, using any remotely reasonable allocated based costing they are loss making.
Take £100 of R&D divide that by average production numbers, then divide it by gt3' what is the difference in cost per car??
swimd said:
Don't forget that a small profit margin for Porsche may still be a giant profit margin compared to the industry average.
Absolutely true. I work in logisitics which is an industry with painfully low margins, if any....Oh to work in the pharmaceutical industry where the risks and profits are staggeringly huge....
The last numbers I saw where 23K dollars as the average profit per car across the Porsche range versus 5000 for Audi and 850 for Volkswagen. Bentley are about 20K. The Cayenne is particularly profitable not just because it has a good margin (shared components) but because it simply sells in such quantities. As does the Macan now. Traditionally Porsche made far greater margins on the GT's and Turbo where they could charge a huge premium and add options on top to the wealthier buyers when in reality the majority of the costs and components were pretty much the same as the entry models. Typically a 7% margin on Carrera's but above 30% and even 40% on the top of the range cars.If you take a modern 911 Carrera and Turbo, there is a laughable price gap. The Carrera is 76K, the Turbo S 146K. Easy to see where the margin is.
Looks like the bubble is well and truly intact - 3 impact bumpers with asking prices between £K82 - £K 96 sold recently , one was a HK car. 
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Considering the inflation,a standard brand new 993 C2 would have been £106.245 today! (comparing to 1996 prices, for c2 coupe, which was just over 60k)
The good used ones -sort of- around 50k nowadays, so I do not think there is a massive bubble. (Judging by what is available at the moment?)
The good used ones -sort of- around 50k nowadays, so I do not think there is a massive bubble. (Judging by what is available at the moment?)
pork911 said:
Pop! Doesn't matter though since so many owners claimed not to care about values 
I am one of those, I bought the car value up or down does not matter.Just got back from my fourth trip in the car from lemans24.
It was great time. It's the smile it puts on your face that counts.
Edited by SEE YA on Friday 24th June 09:55
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