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      11-07-2012, 02:56 PM   #28
Second Lieutenant

Drives: 2009 Red GTR
Join Date: Feb 2008
Location: Boston, MA

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Originally Posted by Wolfinwolfsclothing View Post

People complain about Porsche's prices but fact of the matter is, they are highly customizable cars and you can go nuts with what they can do in terms of options. If you dont add 10K worth of carbon fiber and items that are insane, their cars dont equate to astronomical in price. You can get a new 991S for ~110k, which is a great deal for what you get.
Porsche does make great cars, but they also have quite large margins. They don't have one of the highest if not the highest profit margins out there without good reason. People are willing to pay these margins, but that doesn't mean it's great value.

Below from WSJ:

"Operating profit margins of around 20% are pretty much unheard of in the auto industry’s recent history. Volume car makers often eke out profit margins around 2%-3%, maybe around 5% or 6% if things are going well. Big luxury-car makers such as Mercedes-Benz and Audi currently reap between 9% and 13% margins (watch out for BMW earnings Tuesday)

Porsche’s margins have roared ahead in recent years, helped by a streamlined production system and strong pricing power. But maintaining profit margins of around 20% will become increasingly difficult, the closer Porsche gets to achieving its target of doubling annual sales to 200,000 cars by 2018."