Quote:
Originally Posted by thstone
What are those Porsche intangibles worth? The market determines the what buyers are willing to spend for the additional perceived value.
In the case of the base Corvette vs base Carrera 2, those Porsche intangibles are valued by buyers at $34,700. That is the price premium (aka Porsche tax) that Porsche buyers pay.
It takes a strong brand to command that kind of premium.
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True, and largely why they are amongst the most profitable (if not the most).
But many other brands also command big premiums and put out cars that are not remarkable in reliability or performance. Specifically luxury cars, ie Range Rover, Merc, etc.
My point being I think it has less to do with the actual car and more to do with how the deep-pocketed buyer perceives the brand or the status that comes with the owning of it. Porsche has slowly but surely been turned into a luxury brand.
Chevy and Dodge will never be luxury brands no matter how capable their sports cars become. They could blow out every Porsche by seconds on every track -- with every day streetability -- and will never enjoy the premium of a luxury brand. Porsche aren't selling 10X's as many cars in a given year because there are now 10X's as many sports car drivers as there were in the 993 days. There are now many more wealthy buyers and Porsche have learned to mass produce in a profitable way. A perfect matching of luxury seekers and efficient production.