Porsche Rakes in $17,250 on Every Car It Sells

Matt Posky
by Matt Posky

While still exclusive, Porsche is gradually becoming a more populous and profitable brand. It delivered 238,000 vehicles last year and posted an operating profit of $4.1 billion — a 14-percent increase over 2015’s accounting.

A little back-of-the-envelope math places the per-car profit at roughly $17,250. As a premium automaker, you’d expect it to rake it in on every vehicle sold. However, Porsche doesn’t limit production to the same extent that Ferrari does in order to maintain artificially high prices. And it absolutely decimates other premium brands that offer exclusivity at a higher volume. BMW and Mercedes-Benz both hover at around $5,000 in profit per car.

Porsche seems to have struck an ideal balance. While its per-car profit was actually higher a few years ago — $23,000 in 2013 — it wasn’t making quite as much money overall. At the time, Bentley pulled in roughly 21 grand per unit and sold fewer vehicles overall. Since then, Porsche has shifted some of its focus downmarket, introduced the Macan, expanded its volume, increased income, and still managed to maintain a sweet profit margin on every vehicle sold.

How did it manage that? Basically, the same way Ford wrangles its F-150.

Ford typically brings in $10-14K on every truck it sells — much more than its average passenger vehicle. Like F-Series buyers, Porsche owners are extremely loyal to the brand and are more than happy to spend more to option out their chosen model. Both companies can sell at volume, keep prices up, and maintain a cult-like following because people love what they are buying. Special edition F-Series are marked up thousands of dollars for what is basically some additional badging, chrome details, and higher quality leather.

The same goes for Porsche’s most affordable model, the Macan. According to Bloomberg, the majority of shoppers don’t settle anywhere near its base $47,500 trim. The base crossover comes in either black or white and the second you even consider silver or blue, it’s another $700. Want red? That’s $3,120, and custom colors will more than double that fee.

That’s just the tip of the spear. You could easily tack on ten grand by simply fiddling with the seats and wheels, regardless of the model or trim you’re interested in. Porsche’s optional extras are endless, desirable, and none of them are cheap. Extras on the more expensive models come at an even higher premium. Similar options on a Panamera or Cayenne will run roughly 10 percent more than they would on a Macan, and it just goes up from there.

It’s unsettlingly rewarding to waste an hour on the company’s website, choosing a vehicle and then morphing it into something that expresses your own distinct sensibilities. By the time you’ve decided that you want a metallic black Macan Turbo with RS rims, a beige interior, and the panoramic sunroof, you’ll be staring $82,690 in the face — and the worst part is, you’ll still want the car.

[Image: Porsche]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Dal20402 Dal20402 on Mar 21, 2017

    Lots of people at the top of the income and wealth spectrums have lots of money. They use it to distinguish themselves from the people further down. A Porsche with leather air vents and $8k carbon brakes is an awfully good way to do that.

    • S2k Chris S2k Chris on Mar 21, 2017

      Funny you say that, I think of it the other way around. In most places with a lot of money, a Porsche is not particularly flashy, so you can buy one and still be relatively low key about it, and (almost) no one knows if you have a $99k base one or a $200k loaded up one. I think that has some appeal.

  • Big Al from Oz Big Al from Oz on Mar 21, 2017

    Porsche does not "wangle" its profits in a similar fashion as Ford's F-150. This statement is inane and not well thought out. What gives the F-150 its greatest advantage is the restriction placed on competitive vehicles. Imports to be precise. Without these constraints on imported pickups you would see a decline in Ford's F-150 profits. Porsche operates in an freer market with no limits placed on competitors.

    • See 3 previous
    • DenverMike DenverMike on Mar 22, 2017

      @DenverMike Too *chicken* to answer? Scamper off into the bush?? Again??? How the internet signal there? Ever been kicked by a 'Roo??

  • Analoggrotto TTAC is full of drug addicts with short memories. Just beside this article is another very beautiful article about how the EV9 was internationally voted by a renowned board of automotive experts who are no doubt highly educated, wealthy and affluent; the best vehicle in entire world. That's planet earth for you numbskulls. Let me repeat: the best vehicle in the world is the Kia EV9. Voted, and sealed, and if you try to deny it Fanny Willis is ready to prosecute you; but she will send her boyfriend instead because she is busy.
  • MaintenanceCosts Our Bolt is not going away for a while but if I had to predict today what would replace it, I'd predict an EX30. It checks every box for my wife.
  • Ajla Both Biden and Trump are on record caring ~0% what the WTO says and the US government isn't bound by WTO rulings.
  • Honda1 The FJB Inflation Reduction Act will end up causing more inflation down the road, fact! Go ahead and flame me libbies, get back to me in a few years!
  • Cprescott Fisker is another brand that Heir Yutz has killed.
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