Since the introduction of the 912 model in 1965, Porsche’s best selling models have always been their entry level positioned cars. For a number of years, the 912 outsold the 911, some years even at a rate of 2 to 1. The 914 was Porsche’s best selling model through the 1970s, that is until the introduction of the 924. Then, the 944 carried that theme through to the early 1990s. The Boxster sold and continues to sell gobs of units, in fact, some say it saved the company from insolvency. So a few weeks ago, when Detlev Von Platen said “Our entry model is our pre-owned program“, a few people thought he’d lost it, including our own Andrew Granieri.
It’s a good thing we have a whole bunch of writers here at FLATSIXES.com, because I’m going to provide the Dan Aykroyd opinion to Andrew’s Jane Curtin. Here it comes,
‘Point Counterpoint’. The following is a reflection of my opinion on why Porsche should NOT be offering a sub-Boxster sports car, and why their entry model strategy utilizing their pre-owned line-up is spot on.
The Boxster is still an entry level Porsche.
My 1997 Porsche Boxster was initially sold at a price of almost exactly $40,000 with very few options. Today’s base model Boxster has an MSRP of $51,400. If you were to extrapolate out the 1997’s MSRP in today’s dollars, you’d get a surprising $58,776. With the current value of the dollar versus the Euro, and the rate of inflation taken into consideration, buying a new Boxster today is about seven thousand dollars less expensive, and I’ll be the first to admit that you get a MUCH better car for that money outlay. Today’s Boxster is more powerful, more comfortable, more attractive (subjective) and more capable than that first 1997 model introduction. People who can afford a base Boxster will be impressed with its performance, and hopefully aspire to own a 911 or even a 918 in the future.
Does Porsche really need a sub-Boxster sports car?
Does it really make any business sense for Porsche to make a sports car at, say a $40,000 price point? With the Boxster priced only eleven-thousand dollars more, would a model in this price point be different enough to avoid sales cannibalization? What would a car at $40K be like? In order to maintain Porsche’s current levels of profitability on a model like that, they’d likely be forced to crib a lot of parts from its Volkswagen and Audi brother parts bins, which Porsche owners have always lamented. The car would have to be less powerful than a base Boxster, putting it somewhere around 200 horsepower. The car would have to be smaller and lighter, for sure. So now that we have an idea what this kind of car would be like, we have to consider what it would compete against. Lightweight sports cars with 200 horsepower? That sounds an awful lot like a Scion FRS/Subaru BRZ, and this hypothetical Porsche would certainly be compared directly against these cars, which start around $25,000. And that isn’t even to mention turbocharged front-wheel drive hot-hatches with even more power, like Volkswagen’s GTi, and Ford’s ST twins.
Is VW/Audi suppressing the sub-Boxster?
If you think about it, Porsche being an integral part of the Volkswagen and Audi group is an important piece of the equation. Consider for a second where a $40,000 Porsche sports car would sit in their corporate lineup. This pricepoint would place it in direct competition against Audi’s TT sports coupe, which starts right at $40,350. Surely the powers that be wouldn’t want that kind of corporate in-fighting going on, would they? And that’s to say nothing of Audi’s S3 Sport Sedan, which delivers near on 300 horsepower for that same price point (technically $41,100).
Pre-Owned Cars are a great way to buy into the Porsche lineup.
I’ve been a Porsche-holic for over a decade, and all of my Porsches have been used. There are a ton of great cars out there from Porsche’s history that can’t even be found in dealership showrooms anymore. If you’re looking for a cheaper, lighter, less-powerful sports car than Porsche’s current base model Boxster, maybe check out a 986 generation model. Boy are they inexpensive right now. They’ve reached the bottom of their depreciation curve, and they are still engaging and fun to drive. If you’re looking for something with a warranty and financing options, check out some of Porsche’s Certified Pre-Owned models. You can get a CPO 987 Cayman S for about thirty-five grand these days, which is excellent value considering it was over 60 grand brand new. Boxster S models can even be bought for a few thousand dollars less than their tin-top brothers.
When it comes right down to it, Porsche can hardly keep up with demand for their cars as it is, so do they really need to introduce yet another new model? It seems like they are doing a great job of that with their current lineup.
Other Porsche Blog Posts You Will Enjoy
4 Reasons The Porsche 918 Spyder Uses A Top Pipe Exhaust Design
Is Porsche’s New Entry Model Strategy A Huge Gamble?
Why Porsche Should Revive the Front Engine Sports Coupe
This POLO Engined 912 Out-911s The 911
Amelia Island Concours d’Elegance To Honor The Porsche 914
View Comments (15)
Agreed. Pre-owned is the entry level program as it is.
There are many Porschephiles, myself included, who would like a modern version of the original Speedster. That would be a basic, no frills, stripper that can be modified, upgraded with options, or driven as is.
Just like the original Porsche, the 356. Small, light, and fun. With an elemental connection to the driven environment. And it doesn't have to be topless, although that would make it cheaper.
This car would definitely be less expensive than the current run of Porsche sports cars. However, this concept flies in the face of Porsche's intended market, the well-heeled, who can afford a sports car in the $50K-plus range.I think that Porsche does not want to compete in the same market as the hot hatches because of its inherent attitude about that demographic.
Jus'sayin'
To call the pre-owned Porsche a "new" Porsche entry level strategy is a foolish play on words; i.e., there's nothing "new" about this. Fortunately, there always seems to be a good supply of well cared for used P-cars for sale.
Given Porsche's standard for lavish engineering content and German industry's high labor costs, I seriously doubt that Porsche could profitably offer an "under $50K" sports car. Wish it wasn't true, but that's the economic reality.
relinnuca
I respectfully disagree with the suggestion that a preowned Porsche is the better entry option for Porsche market penetration and profitability. I am the former owner of a pre-owned 1955 Porsche Continental - 356 which was bought in 1960 with 80,000 miles. Unfortunantely as a young man in my 20's I found this Porsche to be a delight and the beginning of my Porsche affection. On the negative side, it also was a never ending money pit. I did buy two new 911's in 1968 and 1987. I have owned or leased 15-20 new Lincolns, 10+ Buicks, one Chevrolet, one Oldsmobile, and one Ford. I currently have a 2007 Jaguar XK with 34000 miles, a 1998 Lincoln TownCar, and a 1984 Lincoln Mark VII.
At my age - 80 years old -- I do not have the need for another automobile. BUT, the report of a entry level Porsche 718 in 2016 that was priced in the low $40k's prompted to go to my local Porsche Dealer and place a deposit on a 718 -- I was number one on the wait list for a 718. Sadly this entry level Porsche 718 was ABANDONED..
A new Porsche today is beyond the reach of most auto buyers and auto fans. Only doctors, lawyers, two family income earners provide the financial resources for a Porsche,, and the very rich can afford a new Porsche. An entry level Porsche 718 or Cayman with a four cylinder engine with only the basic options could-and-would provide the Porsche experience to a much broader market for Porsche, at an entry price affordable by many young prospects.
I expect and hope that Porsche will introduce the Cayman with a turbo-charged flat-4 engine MSRP priced in the $40k's...A true Porsche base level entry model would provide Porsche Management with a much broader market penetration.This new entry-level model is reported to provide a possible solution to the never ending restrictions for emissions and increased gas mileage, protecting the high end Porsche market at much higher price and profit for Porsche. Also, it appears that the competition is now offering high mileage, high performance, smaller engines with turbo-charging, and high quality products int the $30,000-$40,000 range........... Porsche would be able to compete in this market at a slightly higher price providing Porsche the potential for a greater market and profit potential.
When I first heard that Porsche would not be producing the 718 and "Our pre-owned cars are our Entry Level cars." I was very disappointed. My first reaction was that Porsche gave up. A New entry level car is out of the question for me. A Porsche 3 to 5 years old is still out of my reach. Perhaps a 8-10 year old car.. I can afford to buy. But it will not be perfect. It will take more money to make me feel that the 20 or 30 grand I just paid on a car will be reliable and retain its value.
If Porsche is standing behind their Pre-owned Program why don't they go deeper into the model years? That would make me feel I'm getting a good used car for the money.
You can't really make an issue of value for the money, after all it what the consumer can afford. Buying a car that was 50 grand when new does say something about the car but, years later it is still a used car and traditionally an expense on top of the price of admission.
I say make the 718. Produce a couple thousand a year and price them between 25 and 30 grand. Everyone makes their money and Porsche will have a future Classic for their Pre-owned lots.
Comment on pre-owned Porsche......... in my earlier posting
1. Maintenance on a Porsche at best is expensive. A pre-owned Porsche can be a financial disaster unless you
perform the repair as a do-it-yourselfer. You must be a skilled and competent mechanic.
MY LESSON LEARNED.
In the 1960's my 1955 Porsche had a oil seal leak. Causing chatter in the clutch when engaged.
I bought a replacement generic clutch disk at 25% the cost of a genuine Porsche clutch disk.
The clutch still chattered........ in frustation I really pressed the clutch/transmission beyond reasonable limits....
yanking out 1st gear. Transmission was repaired by the dealer (I disassembled and assembled the gear cluster --
you do not have the tools for this repair the gear cluster) and a new genuine Porsche clutch disk installed...........
Problem solved... a smooth clutch and transmission.. and many dollars spent...........
BE CAREFUL with a used Porsche .. IT CAN BE EXPENSIVE.
I expect a four-cylinder Cayman or Boxster may be in the plans based on the various auto reports.
A MSRP for a bare-bone Porsche in the $40k's would be a perfect solution...... better than a pre-owned option.
The writer says one can buy a used CPO Cayman S for around $35K. I bought a 2011 Cayman S with low mileage in 2012 for $61K, a good deal no doubt since it was CPO and new was over $75K. However, all Porsches prior to 2009 had the potential for engine failure due to the intermediate shaft issue. Many folks, who know nothing about this, see pre 2009 cars going for cheap and jump to buy. I advised someone not long ago who had a bead on a pre 2009 car to stay away due to the IMS issue. Yes, you can buy a Cayman S for $35K but if you have to be able to live with the IMS possibility.
I also was disappointed when I learned that the 718 was not to be.
IMS is a much smaller problem than people think. It effects a little less than 1% of 987s. If you're really concerned about it, call LN Engineering and get a ceramic bearing that is guaranteed to last.
It's not some doom and gloom black rain cloud sitting over your M96/M97 engine ownership experience.
Bradley,
Which law says the 718 (this is the entry level car really discussed here) would be stuck with 200 hp? Georg Kacher reported it would be 280 hp. It's a four cylinder boxer engine based on the current flat six. Hence if you are putting this engine in the Boxster/Cayman, you are wasting space. At least a cylinder width worth in the length of the wheelbase. So there's room for a smaller car based around the four cylinder. The 718 would be about purity and the Boxster about luxury (as it already is).
So you are wrong.
This said, I just bought a used Cayman!
Erwin,
You've got me all wrong. I would LOVE for Porsche to build an entry level car. This post isn't about my feelings, it's about the business sense of building one. Why should Porsche have to build an entry level car if they are already working at near full capacity to supply the market with the cars they make now? Why undercut the Boxster or Cayman with a less expensive model when their profit on those two cars is high and they still sell like crazy?
You're also confused about the 718. It doesn't exist. Porsche never confirmed they were going to build such a thing. That four cylinder turbo engine? It doesn't exist yet either. They've mentioned it might enter production, but until that happens, I'm not going to hold my breath.
I'm not wrong. Actually, Porsche thinks I'm right.
Oh, and why would it compete against any Subaru? Because it's also powered by a flat four? Are you serious? The only competitors that come to mind are the Alfa 4C mainly and the Lotus Elise secondly. the 718 will ofcourse be the better all round proposition.
Porsche! You blew it with this decision. Some great products you brought to market were "entry" level attempts and they were spectacular. This is Porsche being lazy. A bunch of us at a local Porsche club were very excited about another turbo 4 coming back to market and smaller then the current Boxster. Went from extremely excited about the prospects to very disappointed. Time to rise to the occasion Porsche, not cower from it.
As someone who fits the stated second hand Porsche entry level buyer definition, having just under 2 years ago bought my first Porsche t the age of 48 , previously being unable to even think about buying one, I bagged myself an absolutely immaculate 2005 3.2S 987 27k miles, Boxster fully loaded with 19 inch wheels , xenon lights , Bose stereo etc fulll Porsche history for £17 k here in the Uk and it still blows my mind on every drive.......I can say that I would not want a 4 cylinder Porsche at that price even if I could afford one, with the choice of second hand cars that there is there really is something for everyone. My Boxster is now nearly 10 years old and the quality of very aspect drips from it , it is a totally beautiful creation that my wife and I enjoy at every opportunity. In my view a Porsche has to be a flat six . With decent Caymans around for just over £12k I the uk secondhand, why would you want anything less powerful, a Porsche sports car ( I do like cayenne and macan, if you want an SUV but they are not sports cars are they.) should be an aspirational car IMHO not a platform shared Audi or VW.....