Porsches’ prices post-Brexit
Discussion
The prices have remained stable (even dropped when spec changes are taken into account) BUT the pound has come down from 1.30 to the pound to 1.15 to the pound. SO Porsche prices have become much cheaper in the UK relative to elsewhere, This won't be maintained and prices will in the longer/medium/shorter term be aligned Europe wide reflecting exchane rates.
bcr5784 said:
The prices have remained stable (even dropped when spec changes are taken into account) BUT the pound has come down from 1.30 to the pound to 1.15 to the pound. SO Porsche prices have become much cheaper in the UK relative to elsewhere, This won't be maintained and prices will in the longer/medium/shorter term be aligned Europe wide reflecting exchane rates.
Very interesting reflection. I have been looking at buying a 718 Spyder or GT4 in the continent and the prices before tax are indeed higher at the current €/£ exchange rate. So if I understand from what you’re saying, in fact prices here were maintened at the nominal past £ value, whilst the revenue for Porsche in € has decreased as a consequence of the £ falling in value? This combined with higher tariffs it may indeed prompt a significant price correction?Steve Rance said:
Not a lot. I suspect that - being essentially broke - the EU needs our money as much as we need theirs. Especially now that we’ve married America
Yes, understood, I guess no country comes out winning... but someone must be, I guess? Coming back to the Porsche (and other EU manufacturers) sphere, lower tariffs on cars may negotiated in exchange of lower tariffs on our exports to balance trade?bcr5784 said:
The prices have remained stable (even dropped when spec changes are taken into account) BUT the pound has come down from 1.30 to the pound to 1.15 to the pound. SO Porsche prices have become much cheaper in the UK relative to elsewhere, This won't be maintained and prices will in the longer/medium/shorter term be aligned Europe wide reflecting exchane rates.
Umm! Wrong way around.As for prices. For a luxury good like this I imagine a larger determinant of the price is what the market is willing to tolerate rather than the cost of goods sold.
Especially with a significant proportion of profits coming from servicing and repairs post sale.
EU tariff barriers on non-EU cars is 10%.
If we have a WTO arrangement and mirror their tariffs post Brexit then that would add 10% to the cost of importing a Porsche to sell in the U.K. The manufacturer might swallow some of that and Porsche has an unusually fat margin for a car maker. The U.K. market it important to them as we buy a lot and with a spec/profit mix.
A free trade deal with America would see the price of Fords 5.0ltr V8 Mustangs fall by 10% as there would no longer be an EU tariff barrier in the way. So that’s a sub-£35k fully loaded warrantied 400bhp V8 for the price of a well spec’d BMW 320d. Interesting.
WWW
If we have a WTO arrangement and mirror their tariffs post Brexit then that would add 10% to the cost of importing a Porsche to sell in the U.K. The manufacturer might swallow some of that and Porsche has an unusually fat margin for a car maker. The U.K. market it important to them as we buy a lot and with a spec/profit mix.
A free trade deal with America would see the price of Fords 5.0ltr V8 Mustangs fall by 10% as there would no longer be an EU tariff barrier in the way. So that’s a sub-£35k fully loaded warrantied 400bhp V8 for the price of a well spec’d BMW 320d. Interesting.
WWW
Honeywell said:
A free trade deal with America would see the price of Fords 5.0ltr V8 Mustangs fall by 10% as there would no longer be an EU tariff barrier in the way. So that’s a sub-£35k fully loaded warrantied 400bhp V8 for the price of a well spec’d BMW 320d. Interesting.
It might or it might not. Market forces would dictate.Boxster_racer said:
I’m no expert, hence the question, but from a simplistic perspective:
Porsche is a German company producing their cars within the EU. Once the UK is no longer part of the EU, there are likely to be tariffs on imports, like luxury German vehicles?
Won't happen in my opinion....as in tax rises in import duty. It doesn't suit the UK or the EU. Our industry produces a lot of goods that get exported to the EU and the EU (Germany in particular) export a lot to the UK. The German car industry will be lobbying very hard as will the French car industry as well as many,many other industries and companies. Porsche is a German company producing their cars within the EU. Once the UK is no longer part of the EU, there are likely to be tariffs on imports, like luxury German vehicles?
Like any other long term or structural decision politicians delay until the last minute when they are forced to make a decision. Those delays are generally born out of either sheer incompetence (Global Financial Crisis being a prime example) or because politicians want to save face with their voters.
That's my opinion anyway.
Currency movements will be much more important but we've so far been insulated largely from that as far as the car industry is concerned. In other segments like say Luxury Goods where companies have much more pricing power FX related price rises have largely been passed on. .
bcr5784 said:
The prices have remained stable (even dropped when spec changes are taken into account) BUT the pound has come down from 1.30 to the pound to 1.15 to the pound. SO Porsche prices have become much cheaper in the UK relative to elsewhere, This won't be maintained and prices will in the longer/medium/shorter term be aligned Europe wide reflecting exchane rates.
It is interesting how prices have resisted the devaluation of the pound so far; its probable car tax changes have increased the total cost of the car more than rises in price.The bigger question is surely what happens to the economy after Brexit.
If it tanks and we go into a recession there will be fewer people buying new cars including Porsche.
The second hand Porsche values would likely drop as jobs are hit, people tighten their belts and their are less buyers.
Who knows.
Buy what you can afford and want to drive.
If it tanks and we go into a recession there will be fewer people buying new cars including Porsche.
The second hand Porsche values would likely drop as jobs are hit, people tighten their belts and their are less buyers.
Who knows.
Buy what you can afford and want to drive.
Edited by g7jhp on Saturday 9th June 16:23
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