Why Are Porsches So Expensive?

[@AM-uk7jv]

I'm speaking of NEW Porsches in this comment only. I think that at the lower end of the price range, Porsches have horrendous value considering that the competition in the $60-$100k price range offer more for the same or less money, objectively speaking. Especially the SUVs. There are just so many cars in that price range to choose from, and all comparable trims to the Porsches usually have more power and more standard equipment for less money. Subjectively, a Porsche is a Porsche and no other car manufacturer can give a driver that feeling. Whether or not its worth an extra $10-$15k over competition while having a less objective spec sheet and standard equipment is at the buyer's discretion. However, while the spec sheet is lacking, the cars in that $60-$100k price range often perform much better than what the spec sheets suggest. The 718s are in a weird position though. One one hand, they are 2 door sportscars and there are a lot of them in that price range even if they don't directly compete in the same segment. On the other hand, they're the ONLY mid-engine sportscars in that price range, so driving dynamics are inherently better than the competition. Value oriented sportscar shoppers would buy a MKV Supra or C8 Corvette over a Cayman or Cayman S. And it would be incredibly hard to convince them to go the Porsche route, simply based on the price to spec sheet ratio. And if I need a daily SUV that's also sporty, I'll buy a Mazda for half the price. At the higher end of the price range(let's assume MSRP only purchases), Porsches offer excellent value in for the money in terms of performance and punching well above their price range. I.E. A $250k Turbo S would objectively out-accelerate any car in its price range and even those that are double or triple the cost. A GT3, despite having much less power, would beat the 'entry level' Ferrari 296 GTB and Lambo Huracan on track times alone, despite costing 10s of thousands less. Not everyone can afford GT cars for MSRP, let alone MSRP + markup, so people would buy the less expensive, worse value trims. However.... Resale value taken in to account, only the sportscars hold their value well. 911s and the Boxsters/Caymans. So that should soften the blow of the very high initial purchase. 911s and 718 Caymans hold their value so incredibly well that even with the 'less valuable' lesser trims, one wouldn't lose much money when it comes time to sell. It makes paying the high initial purchase price a bit more palpable, especially if you're thinking about the long term. Most other sportscars(or sporty cars or sports coupe or sports sedan) out there will depreciate like bricks after a number of years. The cool thing about Porsche is that while they are very expensive, they are still aspirational cars that people can actually purchase. If all you can afford is a base 718 for $70k, then that's fine. It's still a Porsche and it performs like one despite being at the low end of the price range. In a few years, you can sell it for 80-90% of what you bought it for if you were smart about options. TLDR; Porsche SUVs are outclassed and are overpriced. Don't buy them. Porsche sportscars that aren't GT cars have very high initial purchase cost giving the illusion of bad value, but they hold their value so incredibly well. GT cars are just the best value sportscars money can buy, as long as you get one for MSRP.

[@JAYREAD]

Outstanding post. Thank you. Pinned.

[@victoria19853]

Great post. I agreed with you that only the 911s and boxers/caymans hold their value but I would argue that’s only up to a certain point depending on trim level and mileage and how many cars did Porsche produced and I’am only referring to where I’am located in the United States GT2 and GT3 and turbo and GT4 and may I add Carrera GT cars hold their value great do to the fact that they are very limited production cars and only if they are driven with less than a 1000 miles a year or less in my opinion the more they are driven the more they tank in value(depreciate) I seen 911s GT3 weissach package but that odometer is reading less than 5000 miles for a car that’s got a few years into its life about 5-15 years old. You can’t compare a base 911 base model (997.2) with 70000 miles on the odometer that sells for about 60000-72000 dollars used vs. a gt3 with 5000 miles on the odometer at 280000 dollars used. As far as boxers/caymans they don’t hold their value as people like to pretend they do in fact they loose their value quite quickly unless is a gt4. Regarding the Carrera GT that’s a car in its own class

[@tomingrassiaimages8776]

The 911 gts does not have 379hp. It has about 460. 911 S has 444hp.

[@JAYREAD]

Yes, thanks. Typo! My mistake!

[@martingregory5955]

My wife and myself also feel special when in our Porsche, I doubt it would be the same in a Honda. There is its value.

[@JAYREAD]

Exactly! Much agree! Same with my old and seemingly valueless Boxster!

[@williamjackson5357]

EXACTLY 🏎

[@CDN296]

Unless its an NSX

[@roybrown4944]

Only because it's cost more

[@daleyboy34]

Agree 100 % on you’re rationale for Cayenne and Macan purchasing. For the sports car buyer, I think you could have gone further with your explanation. 🙂 It’s all well and good looking at figures on a spreadsheet but this would rationally make a Porsche look like bad value. However, sports cars are really bought on feel. There is the tactile feel on one level but an much deeper emotional response too in how the car makes you feel to drive and own it. That’s really what you’re paying for. Coupled with perceived value of brand heritage and racing pedigree and they look good value. 🙂

[@JAYREAD]

Spot on! Agreed on all fronts. Perhaps we’ll do another video just to extend the point a bit further and also look at used values to see if their hold their value any better than the competition. Stick around!

[@andrewbrown5636]

I’ve owned most of the high performance variants of Audi, BMW and Mercedes’. Lost a ton of money on them all. Since I went to Porsche 5 years ago I’ve lost zero in depreciation. Brand recognition is a lot higher as well. If Porsche is Rolex, BMW, Merc and Audi is Omega/ Breitling at best

[@JAYREAD]

You’ve lost nothing?! Really?! What cars did you buy? Omega owner here. The equivalent Rolex isn’t as good. Just saying!

[@andrewbrown5636]

@@JAYREAD hi Jay, 981, which I sold for more than I payed, 718S traded in same again for a 991.2. My M6 used to lose about £5-£7k every six months at one point! Could never go back. Also you have the Porsche Clubs and meet-ups etc . Maybe Porsche is Vacheron Constantin for build quality..one of my other favourite brands.

[@philipgardner-uz5ne]

Breitling navitimer/no porsche,watch equivalent 😊

[@pmgsussex]

I can only comment on the UK situation. Probably across all ranges Porsche cost more to buy than competitors but annual depreciation much lower so overall running cost same or lower even allowing for high OPC service costs

[@JAYREAD]

Good point. There might be a video worth doing there to see if their used values justifies the overpriced MSRP.

[@andresmattos7541]

That is false only special models hold their value plus maintaining a porsche is very very costly a silly oil change costs about 400 USD.

[@pjs12464]

Price in one thing but resell is the true determination of cost

[@BeePee1503]

I was thinking the same but apart from a select few 911 models, can’t see the resell values closing the (considerable) gap.

[@JAYREAD]

Let’s see. Video incoming!

[@williamjackson5357]

Let’s look at it from the view of driving, controlling, looking at such a beautiful car in your garage and knowing you own it, you are affording it. And after all, resale value is academic if you plan on keeping your Porsche 🏎

[@len333p]

As I read more Boxster reviews I find it interesting that quite a few people are now appreciating a lack of tech and back to basics simplistic driving pleasure. Car manufacturers seem to be adding software as a way of adding value. When I drive my 981BS what makes me smile is the chassis, the precise steering and handling, the gearbox, response and natural sound from the engine. I get that there is clever tech in the PDK but it adds to the driving thrill. Back to basics for me. Good review Jay.

[@JAYREAD]

Cheers Barrie! I’m with you!

[@adamkhan7736]

I don't have the means to compare newer Porsches to other brands. However, I am fortunate to have a 1988 Porsche 928S4 and a 2007 Audi A8 W12 D3. Two main areas where the Audi betters the 928. Acceleration and it's loaded up to the hilt even without options. The 928 steers sharper/quicker. Has more feedback through everything. Brakes better. More comfortable seats. Better driving position. The list goes on.. The A8 is a lovely car but the 928 (with exception of straight line speed) just does everything else with more balance and synchronicity.

[@JAYREAD]

Nice combo! Ian;t it interesting that the Audi is also nearly 20 years newer and still doesn’t best the 928 in everything?

[@adamkhan7736]

True. I don't want to be too harsh on the Audi. 450bhp. It's the quickest thing I've ever driven. With it's 4 wheel drive no issues in bad weather. It's fun. However, from my experience with the 928 they seem to be the best at harmonizing all the machinery.

[@DrTommyDDS]

If you're comparing specs, you've missed the point. The Cayenne can take on mad corners. There's zero wind noise driving at 90 mph. It doesn't bounce up and down like a spring on a bump. The list goes on and on.

[@JAYREAD]

Hi Tom, honestly, I have driven most of the competitors and they are just the same. In fact, some are even better. There’s very little difference in outright ability when looked as a whole proposition.

[@depicomzeroaltijota2]

Jay, I think the driving pleasure, general quality and long term value are much better in Porsche than in competition.

[@JAYREAD]

I think so too!

[@asianfilmfan1]

Boxster is so much fun to drive. Porsche is more reliable & stylish than BMW

[@daggidding4478]

Interesting comparison, Jay. But it only focuses on the numbers; price, horsepower etc. In my opinion the most important one is driving pleasure and in that department Porsche is second to none. I had a BMW Z4 3.0 I and I loved that car, but my current Carrera 4s is a different league.

[@JAYREAD]

You’re right!

[@markjames8160]

Jay, this was a really good video overview. As the saying goes, “Porsche, there is no substitute”. With VAG planning to float part of the Porsche brand in the public markets, it will be interesting to see how the company changes. The wait lists and the limited supply of the more special cars may give way to the reality of the public market demand of growing earnings and margin every quarter. One interesting approach would be to look at the values of the P cars and what you deem nearest competitors 3, 5, and 10 years after new. P cars, because of limited supply, and solid engineering reputation, really do retain their value in the out years, with slower depreciation curves than many mainstream manufacturers. Really enjoyed the thought piece.

[@JAYREAD]

I think I’m going to do that video, Mark. It’s certainly a topic that makes you think. It needs to be developed a bit further, doesn’t it? It’s coming!

[@guss2099]

I’ve never been happier in a car than when I’m in my 987 Boxster S. I am looking at the moment to get my next Porsche. Even if is a lemon, if I can avoid it, I’ll never drive anything else! Porsches are not for anyone, they are for those who love driving and love themselves. 🤘🏼🤘🏼🤘🏼

[@JAYREAD]

❤️❤️

[@Phil99six]

From the base Carrera to the GT2RS the Porsche 911 has no competition. There isn’t another vehicle being produced with a flat six engine sitting behind the rear axle. Porsche has been doing that for almost 60 years! The rest of the range? The 718s are nice but meh to the rest.

[@zyzlol]

You can have anything you want, except a manual transmission in the base model 911

[@JAYREAD]

The base Carrera prevents you from having vector torque control too. That’s often why people suggest going for the S.

[@askiff1415]

I bought my 911 second hand simply because I was not prepared to wait 18months (from a Porsche main dealer) minimum for a brand new one. My second hand Carrera 4S in Forest Green has appreciated in value since I bought it. I’m happy so far. On another note I’ve driven Macan and Cayenne as courtesy cars from the main dealer, now I’m not interested in an SUV but both are incredibly well put together and very comfortable. They have good engines and good economy relative. I was surprised at the time of the relatively low entry price of the Macan.

[@JAYREAD]

In the next video, we will look at whether new 911’s depreciate less than other manufacturers’ cars. That should round out the discussion. The SUVs are perfectly good cars but don’t deserve the premium they get IMO. Each to their own though!

[@askiff1415]

@@JAYREAD I agree, personally I think most SUVs are overpriced as evidenced by the amazing prices you can pay for a 2/3 year old model. Same can’t be said for second hand 911’s.

[@MadelnMachines]

Depreciation has only made the opposition even more tempting - that BMW 850i X Drive Convertible that is currently available for £117,000 new is starting from £58,000 with only 20,000 and 3 years old. Whilst we're on convertible v8s the mustang is considerably cheaper than both and there's the F Type.

[@JAYREAD]

Yup! Agree! We’ll look at this in my best video! Stay tuned!

[@brucefromaz7708]

Porches do not need the higher HP when they have the engines over the rear wheels. They older Porches don't depreciate as much as the competition.

[@philipgardner-uz5ne]

To drive/fiat coupe,turbo/alpine a610,maybe a z4,forget the price,how does it drive.+(i have been in ferraris&alambo

[@chiarascuro]

Love your videos keep it up!

[@JAYREAD]

Thanks chap! I will!

[@FFE-js2zp]

The 928 was a good car.

[@roninsc]

Well thought out and presented.

[@JAYREAD]

Thanks Ron!

[@MikiLund]

Would still choose a Porsche…

[@JAYREAD]

Even a Macan? 911, I get it but a Cayenne? Nope. Not for me.

[@hawkinsjd11]

I would have spec'd the toyota supra against the cayman

[@SuperTommyi]

Jay, could you do one on the Porsch competitors from the 1980's and 1990's. Let's say something like 928 S4 vs? or the Boxer vs? Don't forget the 944 or the 968.

[@JAYREAD]

Good thinking! So you’re saying I should buy a 1985 Jaguar XJS to go with my 928? YES. Good idea! Lol!

[@SuperTommyi]

@@JAYREAD I had a beautiful 1996 XJS convertible. I got hit by 3 different cars one early February morning on the freeway in Las Vegas NV. The beautiful Jaguar was totaled but it was big enough and strong enough to save my life. I loved that car, but I have 1988 928 S4 now.

[@JAYREAD]

@@SuperTommyi Poor Jag!

[@tonymanning3218]

Like the perspective no don’t do a numbers rationalization

[@MichaelIp]

Can't really compare a Z4 or TTS to a 718. The mid engine balance and subsequent handling blows the other two out of the water.

[@JAYREAD]

You’re right of course but some people don’t care about that unbelievably.

[@MichaelIp]

@@JAYREAD But I suppose it's one of those things that is hard to quantify on paper. My neighbor has a Dodge Charger RT that cost half the price of my 718 Cayman. On paper the Charger has 370 hp to my Cayman's 300. He doesn't understand why my car costs double his. But if he were to drive my Cayman, he'd know. I won't be wrapping my car around a tree going around a corner like his car would. Suspension and handling is very difficult to explain unless you experience it first hand.

[@mrh6577]

I would compare the cayman against a Lotus? Can’t remember the name of the new lotus, There closer in layout and price.

[@JAYREAD]

Good point. Emira, is it?

[@mrh6577]

@@JAYREAD I’ve just checked, it is the Emira and it’s similar BHP, although to be fair I’m not sure if you can even buy it yet?

[@JAYREAD]

@@mrh6577 very compelling competitor. Has the pedigree that a BMW doesn’t have too. Much better looking in my opinion.

[@aboyandhisdog]

Stellar video, Jay! I wonder if the premium we pay for a Porsche will come back to us when we sell the car? Any thoughts on that?

[@JAYREAD]

I’m already researching that for my next video, Tom. Hopefully we will know next Saturday!

[@TheLambo123254]

great take

[@JAYREAD]

Thank you!

[@paulcorter1997]

Try taking the BMW on a 10 day vacation for two people. The Boxster Frunk and Trunk holds a lot of luggage. It is more travel worthy.

[@JAYREAD]

I’m just about to drive my Boxster 13 hours down from CT to NC so we’ll see. That’s the video after next!

[@williamjackson5357]

Just drove my Cayman Base from Charleston SC to OrlandoFla, then to Myrtle Beach SC. The storage areas gobbled up my wife’s and my luggage and the ride was as comfortable, oh, and the sound of the flat 6, without the PSE, which is on order was like music to me🏎

[@tonymanning3218]

Jay - can you comment on the 911 992 Targa GTS.

[@tonymanning3218]

And it’s value. Good or bad?

[@JAYREAD]

Hi Tony! We’ll do 992s in the new year. They’re still a bit new at the moment to be too wise about their value. Stay tuned! We’ll get there!

[@tonymanning3218]

@@JAYREAD thanks Jay. I have a Shark Blue 911 Targa 4GTS ordered. No allocation yet. Expect Q22023 for allocation. Of course the car is high cost and hoping for high value. Excited

[@madfemurfast]

They are expensive as the are superbly engineered, they have great aesthetics, the performance is unparalleled. But the most important reason, they are expensive because there are suckers like me that are willing to entertain paying that much money for the car...

[@JAYREAD]

Hahaha!

[@charan.4591]

Jay, thanks for the details but you did not really explain why Porsche is expensive.

[@JAYREAD]

It was a rhetorical question based on comparing Porsches with their competitors.

[@ianrodneylazarus]

no discussion of residual or resale value makes this exercise incomplete.

[@JAYREAD]

You’ve just blown my mind with a double negative there! 🤯

[@tekis0]

I can only fantasize about a used Porsche...

[@JAYREAD]

Buy one TODAY!

[@NewCastleIndiana]

Corvette

[@JAYREAD]

You’re right actually!

[@NewCastleIndiana]

@@JAYREAD it’s a tough value proposition to beat. I ended up buying a used MX-5 myself.

[@JAYREAD]

@@NewCastleIndiana An ever tougher proposition to beat!

[@isaiasgonzalez1919]

Porsche are very reliable

[@BeePee1503]

That’s an unexpected eye opener. I have always suspected that Porsche were just a bit more expensive but didn’t realize how over-priced they really are. Apart from the 911 GT range (there is no alternative to these), I would never buy any Porsche new from the dealer. As you pointed out there are vastly better options from other makes. Personally I am only interested in older 911 and Boxters. For the other models, one should really apply the cold, analytical,spreadsheet approach. Great one Jay…awesome.

[@JAYREAD]

Thanks Bhinesh. Yes, I am the same as you. Think I might do another video seeing if they hold their value as well as others. That might be the redeeming aspect maybe.

[@williamjackson5357]

Porsches are not overpriced, you get what you pay for, probably unaffordable for many. Certain intangibles about owning such vehicles can’t be displayed on a spreadsheet 🏎

[@roybrown4944]

I'm sure Toyota is good quality too

[@JAYREAD]

You are? Camry man?

[@zcmdzpp127]

No really car enthusiast compare cars like this…

[@JAYREAD]

True although it’s harmless. The next video will look at depreciation. Stick around for that because that’s more relevant to enthusiasts.

[@MiegmaishMenas]

This is a weird video if I’m honest. Why are we not comparing cayman to Jaguar XF for instance, likewise the 911 turbo with simple versions of Astons, Continental GTs, etc,? I’m pretty sure those cars are cross-shopped more that the 8 series.

[@MiegmaishMenas]

And the GT3 theoreticaly is also cross-shopped with super stripped down superleggeras from Aston, some Lambos, Bentleys etc.

[@JAYREAD]

Fair points! Perhaps I’ll do another one. The Jaguar F Type really isn’t much of a competitor to the 911. They don’t even do it in V8 form any more and I’m not sure anyone looking for a 911 would consider one. Also Aston, Lamborghini, Bentley are in another league pricewise. I don’t think you’re wrong at all but just saying why I went that direction in a fairly short video. I just went with what I thought were the obvious competitors. Perhaps next time, we’ll do it the way you suggest.

[@willyuan1]

once you add options it’ll be even more overpriced by $30k lol, it’s laughable

[@JAYREAD]

Wait till you see the prices of Ferrari, Lamborghini, Aston Martin, Rolls, Bentley etc! Then you’ll see that Porsche make the best sports cars in the world MUCH more affordably than anyone else!

[@brianbruno1716]

911 GTS has 480 HP, not 379

[@JAYREAD]

Yes, I carried it over from the previous title in error. My apologies.

[@jimmykucera8627]

All the other cars are Porsche wannabes… 😂

[@JAYREAD]

911 competitors, I think you are spot on. Macan though? Hmm.

[@paully8031]

@@JAYREAD Love my Macan as a family car, best SUV by a country mile.

[@andresmattos7541]

Title should have been said why Porsches are so overpriced?

[@JAYREAD]

I think it’s true to say some of them actually are overpriced and trade on Porsche’s heritage in the 911. I’m not sure that’s true for all models but, my God, I think it’s true on some of them like the Macan and Cayenne.

[@mr.nobody673]

Porsche is overpriced. You will not find a more hardcore Porshe-phile than me but ...lets be honest...technology has left Porsche behind. They have become the German Corvette but overpriced. Same body style, same boxter tech and about a million for sale. Porsche is like a 1980's "Limited Edition" comic book...overprinted. Lots of people will get stuck holding overpriced 1990's cars while the rest of the world makes better, newer and more exciting cars.

[@JAYREAD]

That’s why I bought a car from 1985. #alwaysthinking 😉