As some of you know, I am Italian and moved here.

I am totally shocked on the differences in prices between the US and Europe....A base Carrera S in the US is $96,400. The same car in Portugal is in USD $176,000, and that does not even include the Navigation, which is another $3,500 or more. In Italy, similar thing. Base Carrera S is in USD $139,125.

Now, I understand this is the Land of Hope and Dreams....But I don't understand how can Porsche make enough money....

Thank you for your input.

Ale

 

You're looking at the price with no VAT here in the US - toss in state + local taxes as appropriate here before even thinking of making the comparison. (5% here in VA, something like 13% in CA?) Then there are probably additional 'carbon tax' costs over in Europe, maybe some extra import duty, and then...

Yeah, there's also probably some amount of it just being cheaper dollar-to-euro anyway. But it's not as much as it looks - a lot of that difference is almost certainly being pocketed by governments.

Look at Australian prices if you want to see the opposite situation, btw!

 

It's all politics! I go to Europe and wonder how anyone can afford anything.

 

Hey wait till you come over to Australia if you think Europe is expensive

No seriously, every region has its positives and negatives. I wouldnt give up living in Australia for anything. I just wish we had a better tax system but that said and done when you have a land mass nearly the size of the US and only 10% of the population what does one expect. I always complain about the pricing of cars etc out here. For instance my 991S Cab is setting me back AUD$315K -> USD$328K vs USD$119K. Now do I earn that much more than the equivalent person in the US I hazard a guess not yet everything else out here is that magnitude higher in cost. Similar to housing costs. The value of Australian houses is nuts in comparison. I know what my place is worth here and I know what I can buy in the US for the same amount and it makes me cry. I recently spent 5 weeks in the US and could not believe how cheap everything was. Be it watches, clothes, shoes, eating out etc.......

When you have 200+ Million potential customers everyone is going to bust a gut to get your business. Out here Porsche sells on average 3-400 (maybe 500 at best) 911s a year how is a dealership meant to survive with these numbers? We just dont have the people willing but that said and done if the price was on par with the US I hazard a guess that number would jump substantially. Porsche rip our throats out and so does the government. My car is 2/3rds car 1/3rd taxes..........

So for us its - "suck it up princess, you want it you pay for it"

 

Ale, I moved here from Denmark almost 5 years ago where the price for a base carrera s with PDK but NO EXTRAS is bargin of $400,000!!! Needless to say that I feel like a kid in a candy store here

Btw I'm in DK right now celebrating the holidays with my family and a BMW 530 diesel from Hertz

Happy holidays!

 

The volume does not effect the price. They ship the cars from the factory and it would maybe cost $300 more per vehicle to ship to Australia. They make large volumes of RHD for Japan and UK anyway.
We have a socialist government with a population hooked on free handouts from the Government and you are paying for this when you buy your Porsche.
It is 2/3rd taxes and 1/3rd car - you got your math wrong.

Also, Dealership volume is not relevant to price - Melbourne Porsche dealer would sell around 1,000 vehicles per year - at a $5,000 profit per vehicle (before servicing dept.profit), that is $5,000,000 of profit.
More than enough to go around.
Australia used to be a great country but is now an overpriced ghetto that is becoming overcrowded and responding to every ratbag minority group such as GETUP that inflict great pain and financial damage on this country.

 

Hmmmm....

digger11 I have my invoice and I am more than capable in realizing that 223k car and 92k taxes is 2/3rds car and 1/3 tax.

The import duty is 5% which is in the car cost. The rest is gst, lct and stamp duty. I am not going to repeat everything I just went through over at rennlist but since your username indicates Aussie decent go into a dealership and do the exercise yourself.

Also PCM is a factory dealership not a franchise. 5mill for them is not enough when you look at what their payroll would be. How many mechanics, sales staff and management do they have? Let alone stock cost.

PCA is taking the **** out of us and they are realising it slowly. Hopefully not before they do irreparable damage to the brand out here.

 

Don't know if this belongs in this thread, but take a look at a Chevy Camero in the Netherlands:

euro 95295 (~$124K)
https://www.chevrolet.nl/modellen/camaro/

while a base 911 is euro 110000... ($143K)...

So not that far off... in the USA I can basically buy 4(!) Camero's for the price of 1 Porsche 911...

 

I agree that the gross margin on the cars would be about $5 million, however what about facility costs which are extreme for Porsche dealerships along with training, wages (say 70 people at about $75k per year average = $5.25 million alone) and all other costs? Dealer is hardly getting rich at this rate without good parts/service department revenue. Total investment in a dealership in a Porsche approved facility (and the factory tells you the standards and even what the building has to look like) costing something north of $10 to 15 million plus range which has to be amortized and also technically upgraded for new/additional equipment and staff training each time a new model is announced.

 

Hmmm, so I guess the bottom line is: 1) higher taxes, 2) high import duties and 3) different base car price in different markets (far beyond exchange rate variations).

I'd be curious to see how much of that higher car cost is Porsche just selling them into a market at a higher price vs. the dealer network padding... Really incredible, because when I compare USA to Europe, sure there are taxes, CO2 oddities, 'luxury' cash grabs, etc., but overall it seems to land within 10-20%(ish) difference by the time you adjust for all of that - even though you obviously end up paying more in Europe. But certainly nothing like the China or Australia style differences.

Now my understanding is that Australia is wealthier overall than the US (not looking for any political discourse, that's just what I've heard) thanks at least in part to mineral wealth, and so it would follow that the car might be priced higher in that market if wages are higher (even if it isn't exactly fair?).

 

But it's not a $223k car. It costs a fraction of that overseas.

 

Simple - the US government does not tax heavily on imports.

 

I am amazed at how the perception is that the high price in places like Australia is purely high taxes. I have provide my invoice for comparison and the taxes are high at 92k. It doesn't explain why's invoice has the car priced at $223k.

92k is the price I pay for living and consuming in Australia. I live with that. Not happy about it but that's the way it is. When the car is 223k though and I know that in the US they are retailing the cars under 100k it stinks of highway robbery. It doesn't cost that much more to transact here in Australia. When the 991 was release we copped a 27k increase in price. Why? Porsche cars Australia is making huge margins and the dealer network is crying about it. If the 223k came down by 50-60k it would make total sense given our currency strength. And what is all this crap about highest wealth per capita? Seriously? Especially coming from a US member. So you penalize Australia because at this point in time it has it's head above water? Lets reverse the current US fiscal position does it mean we but the coat of a 991 up by two fold?

Sorry about the rant.

 

The word you were missing in your simple and likely accurate statement is "yet". It is about to start taxing everything. And if it does not tax imports, it will tax us for owning it!