How do you think demand is on the 991?
#17
02-28-2012, 12:39 PM
Don't get me wrong. As I have stated before, I like the car and am in the market for one. It's just that not many have the money to buy in LA, which will drive down the price of the 991 (at least in LA).
#19
02-28-2012, 01:49 PM
ChuckJ
#20
02-28-2012, 02:40 PM
Hey Sap. It isn't a powder keg. Let me explain what is going on in California.
First of all, there are a lot of differences between California and Texas. Besides the ethnic breakdown, the largest difference I would say is taxes. In Texas, taxes are minimal, which is good for businesses. But taxes are extremely high on the wealthy and corporations in California since class warfare is a hot topic here. So, corporations eventually started to move out of California to Arizona, Texas, or other neighboring states because the cost of business is lower there and taxes are significantly lower. There is a mass efflux of companies out of California, and this results in fewer jobs and less taxes collected from the corporations that would have been here, which created a huge deficit in our budget. How do we fix this deficit in California? We propose more taxes on the wealthy. This starts the vicious downward spiral all over again. Currently, people are tossing around the idea of the millionaire’s tax, which would require those making more than a million to pay more in taxes.
How does this affect Porsche’s sales? I would argue that it affects it indirectly. Higher taxes for corporations in California means corporations pull out of California and fewer high paying jobs, and thus there is a shrinking pool of people who will buy.
Also, another aspect that stirs the pot is that many people in California lost a lot of money during the housing bubble. Yes, I understand almost everyone who bought a house during the housing bubble lost money, but I believe Californians lost more than people in other states. For example, it isn’t uncommon for people in the San Fernando Valley to buy a house for 1.5 million during the peak of the housing bubble when their house is now only worth 600,000 to 700,000. YMMV. People almost lost a million on property values alone, and I highly doubt these people will be going out to buy a new 991 at a 120k a pop when they probably already have a 997 sitting in their garage. Thank God I didn’t buy a house during the housing bubble, which is why I am sitting pretty right now. But that is another discussion for another day.
However, people are pessimistic because they lost a lot of money and are not getting high paying jobs, which is why I don’t think people are buying the 991’s left and right. I smell discounts on 991.1’s coming in the near future for California, which could mean a bigger discount for me.
Texas is obviously doing better, which is probably why demand for 991’s is so high.
Anyways Sap, I hope this gives you a better understanding and contextualizes the challenges that California faces. And to add insult to injury, we spend more money on our criminals (40k) than we spend on our students (30k) per year. No wonder so many people feel like the Californian dream is dying.
First of all, there are a lot of differences between California and Texas. Besides the ethnic breakdown, the largest difference I would say is taxes. In Texas, taxes are minimal, which is good for businesses. But taxes are extremely high on the wealthy and corporations in California since class warfare is a hot topic here. So, corporations eventually started to move out of California to Arizona, Texas, or other neighboring states because the cost of business is lower there and taxes are significantly lower. There is a mass efflux of companies out of California, and this results in fewer jobs and less taxes collected from the corporations that would have been here, which created a huge deficit in our budget. How do we fix this deficit in California? We propose more taxes on the wealthy. This starts the vicious downward spiral all over again. Currently, people are tossing around the idea of the millionaire’s tax, which would require those making more than a million to pay more in taxes.
How does this affect Porsche’s sales? I would argue that it affects it indirectly. Higher taxes for corporations in California means corporations pull out of California and fewer high paying jobs, and thus there is a shrinking pool of people who will buy.
Also, another aspect that stirs the pot is that many people in California lost a lot of money during the housing bubble. Yes, I understand almost everyone who bought a house during the housing bubble lost money, but I believe Californians lost more than people in other states. For example, it isn’t uncommon for people in the San Fernando Valley to buy a house for 1.5 million during the peak of the housing bubble when their house is now only worth 600,000 to 700,000. YMMV. People almost lost a million on property values alone, and I highly doubt these people will be going out to buy a new 991 at a 120k a pop when they probably already have a 997 sitting in their garage. Thank God I didn’t buy a house during the housing bubble, which is why I am sitting pretty right now. But that is another discussion for another day.
However, people are pessimistic because they lost a lot of money and are not getting high paying jobs, which is why I don’t think people are buying the 991’s left and right. I smell discounts on 991.1’s coming in the near future for California, which could mean a bigger discount for me.
Texas is obviously doing better, which is probably why demand for 991’s is so high.
Anyways Sap, I hope this gives you a better understanding and contextualizes the challenges that California faces. And to add insult to injury, we spend more money on our criminals (40k) than we spend on our students (30k) per year. No wonder so many people feel like the Californian dream is dying.
"There are differences in the mentalities of states too."
That could be interpreted in a manner similar to your response. However, it could also be interpreted other ways. Coming from Jersey, we tend to get a bit sensitive about stuff like this.
#22
02-28-2012, 02:49 PM
Is a 15% increase impressive considering the pent-up demand for the new model? i'm not so sure. let's see how the numbers trend over the rest of the year.
#23
02-28-2012, 02:51 PM
And they said more than 1500 911s were sold so the 997 is still going strong also.
#24
02-28-2012, 02:52 PM
Considering the 991 wasn't available in January, I would say it is. Did I miss something?
#25
02-28-2012, 03:07 PM
Not many people in LA that have the money to buy one? I have to laugh at that because I don't believe it. LA county has so many millionaires its not funny. I can't believe you can say that with a straight face. :P
Last edited by No.92; 02-28-2012 at 03:12 PM.
#26
02-28-2012, 03:07 PM
I believe the report was for worldwide deliveries. It is on the Porsche website under press releases.
#27
02-28-2012, 03:13 PM
Fair point, but it certainly wasn't available everywhere. As such, I don't think January's numbers are that easy to interpret. June-August will be a lot more telling.
#28
02-28-2012, 03:24 PM
I agree there are a lot of millionaires here in LA, but the number/pool of millionaires who are willing to buy a 120k 991 as of TODAY on Feb 28, 2012 is shrinking, which I stated in my lengthier post. Do you not agree with me, especially compared to where we were in 2006?
Last edited by Inglorious; 02-28-2012 at 03:33 PM.
#29
02-28-2012, 05:08 PM
I was just boiling my post down to its basic points because I didn't want to sound like I hate the 991.
I agree there are a lot of millionaires here in LA, but the number/pool of millionaires who are willing to buy a 120k 991 as of TODAY on Feb 28, 2012 is shrinking, which I stated in my lengthier post. Do you not agree with me, especially compared to where we were in 2006?
I agree there are a lot of millionaires here in LA, but the number/pool of millionaires who are willing to buy a 120k 991 as of TODAY on Feb 28, 2012 is shrinking, which I stated in my lengthier post. Do you not agree with me, especially compared to where we were in 2006?
Last edited by No.92; 02-28-2012 at 05:11 PM.
#30
02-28-2012, 05:09 PM
Demand seems high and one would expect it to be given so many changes/enhancements.
I've found purchase price will vary state to state and dealer to dealer in the same city. IMO...there is always a better deal to be had just depends on the effort, if that's important to you.
If I were interested in the 991 I would get one now. Next year they'll be talking about future enhancements/models and so on. It never ends...
I've found purchase price will vary state to state and dealer to dealer in the same city. IMO...there is always a better deal to be had just depends on the effort, if that's important to you.
If I were interested in the 991 I would get one now. Next year they'll be talking about future enhancements/models and so on. It never ends...