One of the most popular luxury car brands on the market is Porsche.
The car company first started as a simple car design producer.
They produced designs for Volkswagen for a time.
However, the company wanted to push the boundaries of car design and started producing its own cars shortly after World War II.
You may wonder what makes Porsche cars so special that warrants the expensive price.
Here are 10 reasons Porsches are expensive.
Why Are Porsches So Expensive? (Top 10 Reasons)
One of the main reasons Porsches are so expensive is the sheer amount of customization that you can do to your car.
When building your car with Porsche’s model maker, you have several different areas where you can personalize and customize your car.
These subtle differences can ensure your car doesn’t look like anyone else’s.
In some cases, Porsche may even be willing to provide something for you that they don’t offer to anyone else.
Of course, you can expect to pay a high price for it.
The ability to customize your car makes Porsche cars more expensive because it spends more time in the factory.
Their workers have to add these details and make the adjustments as you choose them.
This might mean that your car remains on the line a bit longer than someone else’s.
Since it takes more time to make your car, you can expect Porsche to charge you accordingly.
It also means that they might have to import special materials or patterns solely for your car.
Since it costs them money to do this, they’ll also charge you extra to make up for the cost.
The result is a car that’s wholly unique to you.
Porsche is expensive because it gives you the chance to customize your car to a level few other carmakers do.
Customization, however, is always expensive.
2. Carbon-Fiber Chassis
Standard carmakers use steel to make their chassis.
Steel is a great option for cars because it’s sturdy and can hold a lot of weight.
There are a few problems with using steel or other types of metal as the basic material for a car’s chassis, however.
Steel is subject to corrosion, which means if the chassis becomes submerged in water or even just exposed to water, then it can rust.
The worst part is that the car owner may not even be aware of the rust until the vehicle starts to fall apart.
Steel frames are also very heavy.
While this might be ideal for some types of cars, it isn’t ideal for a performance-oriented car like Porsche.
That’s why Porsche doesn’t use metal for the chassis in their cars.
They use carbon-fiber-reinforced plastic instead.
CFRP, or carbon fiber, is lightweight but incredibly strong.
Its composite material only weighs around 3,043 pounds.
The lightweight nature allows the cars to move quickly on the track.
It’s set the standard for race cars and sports cars.
The problem with using carbon fiber for a car’s chassis is that it’s expensive.
Carbon fiber takes a very long time to make.
It isn’t as readily available for molding and use as steel or other types of metal.
Since it takes longer, a higher cost becomes associated with it.
In addition, it also increases the total time to complete the car’s production.
Porsche can only produce two cars a day per factory when using carbon fiber for their frames.
Because of this minimal number, the supply of cars dwindles while demand for them skyrockets.
Since there’s a limited supply, it allows the company to put a high price on their cars.
Carbon fiber is a great material for cars looking to make the most out of their performance.
Unfortunately, this automatically adds to the price of the car since it’s costlier to make and takes more time to finish the car’s production.
As a result, the price increases, and supply is unable to meet demand.
Porsche is expensive because of its use of carbon fiber.
3. Unique Braking System
Porsche spends a lot of money on its R&D department.
The car company understands that its customer base looks to them to deliver the best quality in terms of performance and handling.
Although they consistently delivered in the past, Porsche isn’t interested in resting on its laurels.
It wants to continue to set the standard.
One way they’ve done this is in their Carrera GT models with their ceramic composite brake system.
They call it the PCCB system.
This system is lighter than standard brakes in other cars—even other Porsches.
Despite its lightweight nature, it also has incredible response times.
The Carrera GT is able to drive at 100 MPH and then stop completely in just a few feet.
This sort of performance and quality doesn’t come cheap.
First, there are the expenses to the R&D department.
Their engineers need the materials and time to test out new technologies.
To ensure they remain industry leaders, Porsche spends a good amount of money on research and development.
Along with the materials they need, the engineers also need to run tests.
This means that the company has to produce cars with the new braking system just for a few tests.
They’ll never sell those cars and actually lose money because of the tests.
However, they also gain insightful information that allows their engineers to perfect their designs.
When the research is over and the design becomes approved, Porsche then has to invest in the materials on a larger scale.
If they’re expensive materials, which they likely are, then this adds even more to the cost of building that specific model.
Since it costs more to make it, the price of the model increases.
Porsche is expensive because of its unique braking system that delivers incredible stopping power and is lightweight.
Another reason Porsches are expensive is that they’re collectible.
Car collectors love getting their hands on a classic Porsche.
One of the most famous Porsche collectors is Jerry Seinfeld.
Although he keeps his collection private, he did transform a building into his own private garage with several levels in which to house all his Porsches.
The building even has a small living space where he can stay if he so wishes.
Seinfeld ended up selling 18 of his cars and earned a sizable paycheck of $22 million as a result.
There’s no question that certain models are more collectible than others.
The 911 model, for example, remains one of the most collectible Porsche cars ever.
Part of the reason that they’re collectible is that the cars hold onto their value.
Outside of the Porsche models designed for basic, luxury, everyday use, models made for performance and the track use the very best materials.
These materials see slower deterioration than other materials popularly used in cars.
Since they last longer, there’s a lot of interest in them.
Porsche also only ever produces a small amount of each model every year.
Some models are even discontinued entirely.
As a result, the only way that collectors can get their hands on other cars is by buying from one another.
Since there’s a lot of demand for a limited number of cars, it makes the collection piece worth a lot of money.
This also applies to collections that follow a certain theme.
Someone might collect only blue variants of the cars, for example.
Others may focus on cars once used as police cars.
Whatever the theme, it’s sure to generate a lot of value since it’s harder to find cars that go with that theme.
Like any other collectible, Porsches are expensive because collectors want to get their hands on them.
5. Magnesium Wheels
Another instance in which Porsche drives up its costs is by using magnesium to make its wheels.
Most cars use aluminum alloy to create their wheels.
Aluminum is cheap and light.
It also does better at resisting corrosion than other types of metal.
Porsche wanted something different, however.
They started using forged magnesium for their wheels instead.
The result was a wheel that was even more lightweight than aluminum.
Considering that Porsches are specifically designed for the track rather than everyday use, lighter wheels make all the difference in terms of performance.
Since it uses a material that is more expensive to harvest and process, its wheels are also considerably more expensive.
The added expenses add to the price tag of the car.
Magnesium isn’t the only thing that Porsche does to its wheels either.
It also installs technology that tells the driver whenever one of their wheels has low pressure.
This ensures that the driver knows when to pull over and receive service.
If that weren’t enough, the car also includes a tire-sealing kit.
If the car ends up springing a leak on the road or track, the driver can use the kit to seal the tire.
This removes the need to carry around a spare tire which can detract from the appearance of the car and add more weight to it.
Instead, the seal lasts for some time, allowing the driver to bring their car to a shop where the tire can be replaced.
These little details make owning a Porsche even more attractive.
However, they also come with more costs on the company’s behalf.
To offset the costs, the price of the car increases.
Porsches are expensive because of the materials and accessories they include with their wheels.
6. Complete Customer Service And Experience
Porsche knows that you’re spending a lot of money on their cars.
Because of that, they ensure that their customer service experience is top-notch.
They invest heavily into certain parts of their buying process and customer service interfaces to ensure your needs are always met.
One of the ways that they do this is to invite you to come to Germany to pick up your Porsche yourself.
Since they can only produce a small number of Porsches each day, the release of one is a big deal.
If you can afford it, then you can take a plane to Germany and head to one of the factories which produced your car.
The company might invite you to pass through the Porsche museum to better appreciate the kind of care and ingenuity that went into the making of your car.
They also recommend various tracks and roadways to test drive your Porsche after picking it up from the factory.
Once you return home, the company also assigns an agent to you.
The agent will follow up with you to determine your level of satisfaction with the car.
If you have any problems or grievances, then they help you take the necessary steps to see them resolved.
Porsche wants to ensure that every aspect of doing business with them is personal and unique.
The cost of putting all that effort into their customer service comes with a price.
Since they expect the best from their employees, they also pay them fair wages.
If an employee has to work longer to ensure your satisfaction, then they pay them accordingly.
By investing in their employees, they also invest in the quality of their customer service.
Porsche is expensive because of its investments in its customer service.
Porsche doesn’t only make cars.
The brand has since entered several other markets.
In each, they continue to present the sort of quality and luxury that one would expect from the brand.
Some of the products they also produce include:
- Sports equipment
- Blackberry phones
- Home Office Equipment
- Writing Utensils
- Pocket knives
Each item comes with the same sort of high-quality finish and materials that one would expect from the brand.
They also all incorporate the Porsche logo in some way.
These accessories tend to fetch a high price.
Like their cars, you’re also paying for the brand name and the quality it suggests.
Although these products exist separately from their cars, you can be sure that they impact the price of their cars, too.
If a certain product isn’t selling well, for example, then Porsche may try to cover the loss in profit by focusing on products that they know do sell—their cars.
The price of the car allows them to try out different markets without too much risk to their profits.
Porsches are expensive because the company likes to experiment with producing different goods in other markets.
When a car enthusiast thinks about luxury cars, Porsche cars tend to be at the top of the list.
Porsche is a German-based company.
Among car experts, many of the highest quality and luxury cars come from Germany.
Whether it’s Audi or Porsche, if it’s German-made, it’s going to be luxurious.
The problem with a luxury good, whether it’s a car, home, or other product, is that it’s always expensive.
That’s because makers of luxury goods actively choose to use the most expensive materials to make themselves stand out.
They invest in high-quality materials and processes to ensure the products last a long time and appeal to a certain household income demographic.
Luxury entails the knowledge that few are able to afford the price.
Those who buy luxury products sometimes do so because they want to stand apart from the crowd or establish their status.
Porsches allow them to do that.
When you’re driving one of the most expensive Porsche cars around, it says a lot about your wealth and status.
Porsche understands that people sometimes use their cars as a means to show off their wealth.
Since their target audience consists of those people, they’re able to put high price tags on their cars to attract them.
As with all luxury goods and services, its very essence as a luxury good drives up the price tag.
Porsches are expensive because they’re luxurious.
There’s a long waiting list to buy a Porsche.
Because the company can only produce so many a day, they’re unable to reach the high demand for their cars.
As such, they have a waiting list.
Certain people who pay extra money or high deposits can put their car ahead of the line.
This ensures that they’re able to get their car in a timely manner instead of having to wait several months for it.
The problem is that this adds to the total cost of the car.
Waiting can take anywhere from three to six months.
If you ordered a lot of custom specs for your car, then your wait could be even longer since it takes the factory longer to produce that type of customized car.
When certain models are in high demand, then your wait may also be longer.
Since more people are buying that specific model, it means the waitlist is longer.
You can sometimes get ahead of the line if you’re someone who buys a Porsche regularly.
They know who you are and may be able to do something special for you.
For first-time buyers, however, if you want to get ahead of the line, then you can expect to pay more for it.
Porsches are expensive because of their deposits and wait times.
No Porsche car is ever complete without the very best leather seats and interior.
Porsche leather is often in a class of its own.
It’s also why their cars tend to be more expensive.
Porsche gets its leather from Germany and Austria.
They have high standards set for the leather that they buy and use.
If something doesn’t match their standard, then they don’t use it.
This means that they sometimes have to buy more than they use.
In addition to the price of leather, which is on the higher side, they also handmake many of their finishing accessories.
Whether it’s the steering wheel or seat, many of the smaller details found in Porsche cars are all crafted by hand.
This also adds to the time it takes to complete a Porsche.
Since workers are actually designing and sewing and building parts by hand, they’re also paid more.
Porsches are expensive because they use pricey, high-quality, leather.
Workers also handcraft many of the accessories and sew the leather themselves.
Porsches are expensive because of the cost it takes to produce a car with excellent performance and handling.
They invest a lot of money in their R&D and materials to produce cars that set the standard for sports cars everywhere.
Since their materials are complex, many aspects of the car are handmade.
Thanks to its ability to hold onto its value and keep from deteriorating quickly, even old Porsches sell for an expensive amount on the secondhand market.