Thread: BMW Value
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      12-27-2013, 04:03 AM   #54
swamp2
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Quote:
Originally Posted by varsity View Post
This is why Porsches cost more than BMWs. You're getting a car full of superior hard parts that the eyes don't see and drivers forget about because they're too busy driving rather than troubleshooting.
Let's not forget some additional fundamentals. Porsches cost more than BMWs (on any loosely competitive models) primarily because Porsche can and does charge more. It's really that simple.

I'm not saying that Porsche factory brakes aren't superior to BMWs. Nor am I saying that those brakes don't cost more. Porsche also enjoys THE highest margin in the industry. According to a German University study in 2013 in the first half of 2013, Porsche made an average profit of $22,405 USD per car or around 18.4% of the showroom price. One thing that helps keep the cost of a car like the 911 down compared to heavier cars is also simply that heavy cars are generally more expensive. There are obvious exceptions to this rule when very low production volumes and exotic materials come into play, however, the more raw materials in something the more it will cost. Lightweight Porsches save cost in this way and consequently enjoy more margin.
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