Pound tanking - Taycan prices up?

[smoothound]

Pound is truly Tanking this morning - Wonder how quickly Porsche will respond. Will they honour/prioritise existing UK orders at the agreed prices?

Once you have a Taycan is its value set to increase as the price of new imported cars rise?

Interesting and worrying times

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[simcity]

After everything else that has gone wrong with this excruciatingly protracted order process…that would be the cherry on top. 🥲

 

[W1NGE]

Pound is truly Tanking this morning - Wonder how quickly Porsche will respond. Will they honour/prioritise existing UK orders at the agreed prices?

Once you have a Taycan is its value set to increase as the price of new imported cars rise?

Interesting and worrying times

Prior to the tanking pound there had been 2 price increases in the year.

Doubt this will lead to a further one just yet and the pound may bounce back but anything could happen (which means it probably will).

 

[_Brian_]

The Pound/Euro is still within historical norms and wouldn't expect VWG to react to this current exchange rate

 

[BigBob]

The Pound/Euro is still within historical norms and wouldn't expect VWG to react to this current exchange rate

Correct. If we were buying American cars you'd be right about a price rise, but not really so relevant for cars from Europe.

 

[TaycanHero]

Funnily enough I thought about this this morning, and here is someone sharing my brain.

However, I was not thinking in terms of GBP/EUR. I was thinking in terms of USD > EUR > GBP.

That is, VW group will be procuring vast amounts of materials priced in USD. The EUR has turned into a total piece of s*** like GBP, which means higher production costs.

For that reason, I am predicting/anticipating a 10% price rise to be announced Q1 next year on the back of a global recession. Bad news follows bad news. Porsche may as well take the pain sooner rather than later.

It means they can stave off another price rise until July 2023, which will be seemingly small in comparison - low single digits - to "encourage" customers to buy: only another £2,000!

That means, as one example, GTS ST base price goes up to near £113k. Almost £10k price rise in little over 12 months.

Used car prices inflate for that reason, but won't maintain their pre-recession valuations.

That said, Porsche and other major manufacturers would have anticipated this. They will have options/futures contracts on FX, so it might be fine for another year.

 

[BigBob]

I wonder if the price of Porkers will drop for our friends in the US for the same reason... I suspect not!

 

[smoothound]

At least the pound has recovered slightly since Far East trade opened - so the slide has slowed/stopped

Like I said - Interesting Times!

 

[Murph7355]

....
For that reason, I am predicting/anticipating a 10% price rise to be announced Q1 next year on the back of a global recession. Bad news follows bad news. Porsche may as well take the pain sooner rather than later.
....

Big price rise, recession, massive uncertainty on delivery timeframes (much of it, but not all of it, out of their control)...not the best recipe

They are lovely cars....but they're not rare, nor supercars, etc.

Way too many unknowns. Until I need to start scraping down the back of the sofa to find cash for the leccy meter, will keep my deposit in. But I've moved steadily down the odds of ever taking delivery.

 

[smartymarti]

anyone know how many turbo and turbo s taycan cross and sport turismos are allocated to a dealership as Teeside are telling me it’s just 1 each per year , and I find that utter bollocks , also I, lead to believe that allocations slots are released soon to the dealers for next year

 

[Fish Fingers]

My 2p (worthless I know )

They will be well hedged for currency fluctuations for a period of time.
Think of all the cars in all the different countries and associated currencies around the world that VAG have to deal with.

Some f/x moves will benefit them, others will not. And VAG are that huge they will act like their own bank.

Besides, as noted above GBP is relatively ok v EUR.
Its against the USD its toast.

So, I see more incremental increases over time for currency fluctuations.

My bigger concern would be factory gate costs (eg materials/gas!!) at the mother ship.
Its where all the cars are made (AFAIK?) unlike many other manufacturers with global production facilities.

Again these can be hedged for a period but eventually a rising tide will lift all boats.

And this I would see needing global price increases in excess of the <inflation rises we have had recently.

 

[simcity]

My bigger concern would be factory gate costs (eg materials/gas!!) at the mother ship.
Its where all the cars are made (AFAIK?) unlike many other manufacturers with global production facilities

Agree. I think the biggest existential threat currently is energy and in particular gas supply. If they bring in severe rationing that could lead to full production stoppages. Not just luxury cars but all manner of things. Not a good place to be.

 

[TaycanHero]

Big price rise, recession, massive uncertainty on delivery timeframes (much of it, but not all of it, out of their control)...not the best recipe

They are lovely cars....but they're not rare, nor supercars, etc.

Way too many unknowns. Until I need to start scraping down the back of the sofa to find cash for the leccy meter, will keep my deposit in. But I've moved steadily down the odds of ever taking delivery.

Agree. They are very nice cars, but nothing that special.

I too have no intentions of cancelling, really the only thing that would make that happen is if I decide working from the beach is something I want to do for 9 rather than 6 months of the year. Or if I move my life and business permanently abroad, which is becoming increasingly tempting based on where I see Western Civilisation heading now it's nearing the end of its cycle.

At that point, spending £100k on a car I use for a couple of months a year doesn't make much sense and I'd be more inclined to go back to ICE and get myself an F-Type V6 convertible for the months I am back in the UK. Please don't judge. I am reasonably young and would absolutely make the Jaguar brand seem young and cool again. Or something like that.

 

[Murph7355]

Agree. They are very nice cars, but nothing that special.

I too have no intentions of cancelling, really the only thing that would make that happen is if I decide working from the beach is something I want to do for 9 rather than 6 months of the year. Or if I move my life and business permanently abroad, which is becoming increasingly tempting based on where I see Western Civilisation heading now it's nearing the end of its cycle.

At that point, spending £100k on a car I use for a couple of months a year doesn't make much sense and I'd be more inclined to go back to ICE and get myself an F-Type V6 convertible for the months I am back in the UK. Please don't judge. I am reasonably young and would absolutely make the Jaguar brand seem young and cool again. Or something like that.

If you're getting an F-type it needs to be a V8 for full impact.

Where are you expecting to move to that isn't "Western civilisation"? I'm not entirely sure true alternatives are better...

Having just read that people have ordered a car in June and are getting it this year (albeit a 4S CT rather than a GTS) my patience with Porsche may not last as long as I thought.

 

[TaycanHero]

If you're getting an F-type it needs to be a V8 for full impact.

Where are you expecting to move to that isn't "Western civilisation"? I'm not entirely sure true alternatives are better...

Having just read that people have ordered a car in June and are getting it this year (albeit a 4S CT rather than a GTS) my patience with Porsche may not last as long as I thought.

V6 sounds better in my opinion - it's so obnoxious!

Pros and cons to everything. Still deciding, but business and personal finances based in the UAE, then majority/all clients located in the Middle East, Far East, possibly USA... Who can afford my fees and comfortable paying a UAE business.

My UK clients may have grievance paying a foreign entity, and I don't see sterling (or euros) recovering much against USD even in the medium term. Keep in mind the Cable has hit a new low roughly every 10 years since 1871. I think this month (and year, roughly 10 years) sets another baseline in that ongoing trend.

That means how much a business is prepared to pay is lower where living standards are lower, while regions with more growth will be happier paying top dollar for the services I provide.

China is the next world superpower. I anticipate the Far East and Middle East (and Russia) will see significantly higher growth, more opportunities and higher living standards where they are allied to that system. The West is an enemy of China, so won't be sharing in the spoils where, like every one before, its civilisation ends, before a new system rises from the hypothetical ashes.

You need only look at innovation and production to see where this is heading. While the West is arguing over gender neutral toilets, China is innovating technology to make the humble toilet obsolete.

I want to ride that business cycle up, hence there will be better places to relocate businesses and finances in the coming years, especially when thinking about income/taxation. And that is likely to be in the East this time and not in the West.

And that is why I might never see that GTS ST.

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