- How does inflation affect car sales?
- But Porsche sales are stronger than ever in the United States
- What Porsche models are best-sellers?
Porsche is known for producing high-quality, high-performance cars. And despite inflation, the luxury automaker’s car sales are stronger than ever in the United States. Why is that, and which Porsche models are selling the best?
How does inflation affect car sales?
From @SPGMobility: The Fed's recent interest rate increases to curb inflation have quickly cascaded to the auto industry. The average interest rate on a new vehicle loan rose to 4.8% in May 2022, its highest rate since pre-pandemic March 2020 (5.3%): https://t.co/zSwpPtGWdW pic.twitter.com/aWBGKboFUZ
— S&P Global (@SPGlobal) September 6, 2022
Inflation is the rising costs of goods and services affecting everything from medical care to food to automobiles. According to Investopedia, several factors cause inflation. They include the devaluing of the dollar, the rise in production costs, and, in the case of cars, supply shortages and the demand for goods.
With the shortage of semiconductor chips and other materials, the production of newer vehicles slowed drastically. But the demand for cars remained and even increased over previous years.
Because production couldn’t meet customers’ needs, shoppers wanting to buy a car went to the used market to find one.
However, used-car demand was so strong that people were willing to pay above and beyond the original price to get the model they wanted. That drove the cost of vehicles even higher in the used-car market.
The problem happens when the dollar’s value goes down, which means you have to earn more money to maintain the lifestyle you had before the rising inflation. And obtaining a car loan becomes more difficult, affecting car sales.
But Porsche sales are stronger than ever in the United States
The Porsche logo on a Cayenne SUV’s hubcap | Sean Gallup/Getty Images
Actually, Porsche sales are doing well despite inflation. According to GoodCarBadCar, the German automaker sold over 69,000 units in 2021. That’s about three times the sales Porsche saw in 2010, when it sold just over 21,000 units. As of the third quarter of 2022, the company has sold over 49,000 units.
The brand has a large market in the United States. Porsche models appeal to wealthy, die-hard fans and retirees with large sums of money. In addition, these vehicles offer dependable performance and the prestige of high-quality German engineering at a relatively affordable price.
What finally pushed Porsche over the 50,000-vehicles-sold mark in 2019 was its decision to build SUVs at the height of the vehicle’s popularity. Many Americans want a sports car’s performance but a family hauler’s utility.
What Porsche models are best-sellers?
This is the new Porsche Cayenne GTS, and it has a V8 again. New sports SUV returns to eight cylinders, and of course, many horsepowers → https://t.co/GombbQ0Tba pic.twitter.com/SKOmqlusFC
— Top Gear (@BBC_TopGear) June 12, 2020
The company’s best-sellers are the Cayenne midsize SUV, Macan compact SUV, and Panamera executive car.
The Cayenne is the largest among the automaker’s passenger vehicles. It comes in standard and coupe body styles. The range-topping Turbo GT boasts a twin-turbocharged 4.0-liter V8 engine harnessing 631 hp and 626 lb-ft of torque. It can also tow 7,716 pounds.
Another popular Porsche model is the Macan. This small SUV isn’t quite as big as the Cayenne, but it packs a punch. The base model has a 2.0-liter turbocharged four-cylinder producing 261 hp. Buyers can upgrade to a 2.9-liter V6 producing 375 hp.
The Panamera’s top trim is the Turbo S E-Hybrid Executive, starting at just over $200,000. That price includes a twin-turbocharged 4.0-liter V8 paired with an electric motor. Expect 690 hp and 641 lb-ft of torque, resulting in a 3.1-second 0–60-mph acceleration time.
Inflation is high and could rise even higher. In the meantime, automakers might see a lag in sales. But rising prices haven’t seemed to have affected Porsche.
Keyword: U.S. Porsche Sales Are Better Than Ever Despite Inflation