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Well, buy low sell high, I guess now would not be the time to buy the stocks.
Unless you think they'll still climb and you can take the risk.
Thinking about why the cars sell :
core product (still not sure how that ties in with the Cayenne though),
continuous respect for customers,
unchanged design icon
and a fantastic racing heritage.
What other car company can say that?
Personally, they -visually!- bore me to death and I would not buy one if it would save my life, but I can certainly understand why they are the most successful car company in history.
Unless you think they'll still climb and you can take the risk.
Thinking about why the cars sell :
core product (still not sure how that ties in with the Cayenne though),
continuous respect for customers,
unchanged design icon
and a fantastic racing heritage.
What other car company can say that?
Personally, they -visually!- bore me to death and I would not buy one if it would save my life, but I can certainly understand why they are the most successful car company in history.
kayc said:
A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..
I though residual value was excellent? Porsche has done very well, each of their new cars have been successful and they seem to be very good at making sports cars/SUV’s. However as they expand into new market segments I expect growth will ultimately decline (basically as they become more mainstream they will encounter all sorts of new problems that they don’t currently have to deal with, such as only having one brand name and I believe this is why they are slowly buying VW).
I like the way Porsche structure their product lines, they have 4 core products (Cayenne, 911’s, Cayman and Boxster…although cleverly the Cayman and Boxster are very closer to each other enabling parts sharing) and their showpiece super car the CGT (though this has little financial impact overall so may well be sold at a loss). They are being clever with their future products and parts sharing as well between the Cayenne and Panamera. Each of their product lines seems to have enough difference that they aren’t treading on their own toes between models (I always thought TVR’s models where too close, they wanted each car to be the best that it could be instead of creating a distinctive model range but this was possibly because they all relied on the same speed 6 engine?).
madras said:
kayc said:
[quote=off_again]A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..
Buy a GT3 then, or another specialist porsche
speedy_thrills said:
I though residual value was excellent?
you obviously dont own a 996 gt2!
speedy_thrills said:
they will encounter all sorts of new problems that they don’t currently have to deal with, such as only having one brand name
expansion means greater production of cheaper cars and the last thing they want to do is devalue the porsche brand. the most obvious problem being that high margin porsches can swallow high german labour costs, cheaper cars cant so easily. VAG is an expansion into eastern europe.
speedy_thrills said:
I like the way Porsche structure their product lines, they have 4 core products (Cayenne, 911’s, Cayman and Boxster…although cleverly the Cayman and Boxster are very closer to each other enabling parts sharing)
nothing clever about that. all car companies do it
speedy_thrills said:
and their showpiece super car the CGT (though this has little financial impact overall so may well be sold at a loss).
they were supposedly made at a profit
speedy_thrills said:
They are being clever with their future products and parts sharing as well between the Cayenne and Panamera. Each of their product lines seems to have enough difference that they aren’t treading on their own toes between models
again nothing very clever about that. VAG are the masters of this, check out the audi, vw, skoda product lines
kayc said:
madras said:
kayc said:
[quote=off_again]A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..
Buy a GT3 then, or another specialist porsche
...grab a bargain while you can then?
kayc said:
madras said:
kayc said:
[quote=off_again]A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..
Buy a GT3 then, or another specialist porsche
I was referring to you "run of the mill" comment. but now you mention it...
A GT3 is always going to worth something (i reckon about 1/3 of it's inflation adjusted new price - see 964RS and 993 turbo for examples of this, using RPI). A 1991 (same age as 964RS) bmw 3 series or other run of the mill car is now only worth about 2% of it inflation adjusted new price. (even a standard 964 is about 1/6, the bmw is a 1/50!)
so i do not consider the GT3 to be a run of the mill car is terms of driving experience or loss of value.
you seem to think that new cars shouldn't depreciate - they always have and they always will. it's only very very rare models/examples that do not. Just because it's not one of these doesn't make it "run of the mill"
kayc said:
A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..
certainly not as good as it was but still above average v other marques
eg looking at 996TT, 2002 cars going for around £50k, original price £95k if I include £5k options
that's 53% retained after 4 years, 50% after 3 years is judged to be good
Well done Porsche!!!
Why can't TVR do this???
Anyway,
As impressive as these figure first seem to be £14,000 profit on your "average" £50,000 Porsche equates to 28% margin. Now take off dealer's commisions, and remember the parts are higher margin than the cars and your probably nearer a realised margin of 20%.
I work with a lot of Automotive suppliers and they all have projected margins of 30% (allthough rarely realised) in order to pay off development costs.
Either way its still great news for fans of German sportscars.
Why can't TVR do this???
Anyway,
As impressive as these figure first seem to be £14,000 profit on your "average" £50,000 Porsche equates to 28% margin. Now take off dealer's commisions, and remember the parts are higher margin than the cars and your probably nearer a realised margin of 20%.
I work with a lot of Automotive suppliers and they all have projected margins of 30% (allthough rarely realised) in order to pay off development costs.
Either way its still great news for fans of German sportscars.
kurtiejjj said:
Should buy some shares in Porsche now they're handing out big dividends. And sell them on before sales will drop in the following years (logical of course, that's the whole point of the share market 
)
Surely VW? I mean if Porsche keep increasing their stake in the company eventually they will have an impact on management, product quality etc. They already have a successful management arm that could help turn VW.)
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