Porsche Launches New Sports Car and SUV Subscription Program

[PHC1]

Interesting business model. It is a pilot program so far and may expand depending on success. Wonder how it will work out for Porsche long term.


http://press.porsche.com/news/release.php?id=1050

[jdandy]

Serge.......Interesting business model. Strikes me as catering to a narrow customer base. I know if I were comfortable with $3000 monthly payments on a vehicle, I would prefer to be owning the vehicle. $36,500 the first year for what is essentially a lease program, albeit rapid exchange and service included, but that is still a healthy annual fee for the experience.

[Antonmb]

It is pricey, but when you consider it includes registration, insurance, and maintenance maybe it’s not quite as bad as it first appears. But of course you’re not building any equity. If I were younger (and wealthier) it would be a fun program for a year.

[PHC1]

It's an expensive proposition for sure but then again you don't build equity with a depreciating asset like a modern Porsche (limited editions excluded) or 99.9% of the new cars out there anyway. If you buy a loaded 911 Carrera S or similar, you'd lose quite a bit of money in 3 years time.

The only way to ease the financial pain is to hold on to them for a long, long time until they stop depreciating and beyond, at which point if you amortize over the years, it's not too bad. But we all know too well a preowned car like a Porsche better not have too many miles and it will be out of warranty so many owners just don't drive them too much.

Of course we all know when you have that much cash burning a hole in your pocket, people just can't resist a new toy in a few years time. I believe Porsche knows this all too well and the allure of driving all the different models as the mood strikes may just attract enough customers to keep this program viable.

The leases on Porsche are not cheap either. So one is paying a bit more for this program but you have access to 22 models as the mood strikes, no mileage limitations, Porsche covers vehicle registration and tax, insurance, detailing, and maintenance. Porsche Pilot allows its subscribers to order a 911 for curvaceous canyon driving and then switch to a Cayenne for a camping trip in the badlands.

To sign up, one has to have the income and credit score to support that kind of monthly bill and then pass a background check before they can hope to use the service.

[For The Love of Music]

Put your money in Audio, and use Uber, if available

[PHC1]

Originally Posted by jdandy

Serge.......Interesting business model. Strikes me as catering to a narrow customer base. I know if I were comfortable with $3000 monthly payments on a vehicle, I would prefer to be owning the vehicle. $36,500 the first year for what is essentially a lease program, albeit rapid exchange and service included, but that is still a healthy annual fee for the experience.

I hear you Dan, most people would want to own if paying $3k a month for a car is no problem. Then again if one buys a 911 Turbo S or similar, in 3 years time one is looking at depreciation that would almost be as much as this program costs in two years time and you are still driving the same car and now it is coming out of warranty. I personally have zero interest in this program, I've had my fun with these expensive toys to last me a lifetime.

[W9TR]

Interesting concept. If you trade cars every 3 years this may make financial sense given the accelerated depreciation cars face over that time period.

For Porsche, it also gives them a steady stream of well maintained vehicles of known provenance for the secondary market.

[nicoff]

Originally Posted by W9TR

Interesting concept. If you trade cars every 3 years this may make financial sense given the accelerated depreciation cars face over that time period.
.

You can lease a 911 for 3 years for MUCH less than $3k per month.
This can only make sense if comparing to a short term rental.
(But I bet that there will be restrictions on car availability and possibly how long you can keep any particular model.)

That said, If allowed, i would not mind “renting” a 911 for a month or two and taking it on a road trip.

[SCAudiophile]

3000 is a hell of a mortgage payment on a very nice house....

INSANE!

Great marketing...they tell you that you are saving yourself the suffering of paying depreciation etc....

By paying it for them on an asset they retain....

BRILLIANT!

[W9TR]

Over 3 year the depreciation of a new 911 would be about $36k, so that's $1000 of the $3000. Then you've got tax, say 6% of $120k, or another $200/mo. plus insurance at say $1200 a year or another $100 a month, and detailing, maintenance, etc. and you can ladder up to $1500 per month. I guess the remaining $1500/mo gets you the flexibility of having access to multiple car types. 911 for your daily commute, then an SUV for family weekend adventures. Still crazy expensive!