Used Car Business Development

An Evolving Used Car Market Could Make Life Challenging For Porsche Owners!,,,,,, 

Let’s be honest the used car market and the associated values for specialist cars has made little or no sense over the last 18 months, until that is, you understand the “Drivers” effecting prices during this period. 

Now markets are driven by many things, sentiment and confidence aligned to supply and demand, being just some of the “Drivers” and in truth I predicted (like many) that prices for all commodities would drop during the beginning of the pandemic. However, what no one could have known and/or predicted at that time was that the Government were going to effectively suspend market forces for 18 months; then pump that market full of free cash. 

This appears to have been a political decision akin to those made during the financial crisis and sadly (I predict) will only make the inevitable losses for some owners harder to bear, as the market realigns and returns to normal. Government interventions in markets and attempts to control market forces never end well! 

Now I don’t think we will ever see all these market forces forming within the market again and sadly, for those who purchased in this market and at the associated prices, the inevitable correction in prices will probably be difficult to stomach. Out of all the markets I operate within, in many ways the Porsche market has been the most interesting and difficult to fathom, so much so that I now wonder how this will now play out for some Porsche owners. 

As with any marque, one with a specialised pedigree, history and scarcity of production, running alongside more volume based models, there will be winners and losers depending on the car you own and/or are trying to sell. 

With dealers (both franchised and independent specialists) experiencing slowing sales volumes and enquiry levels during 2022, (on all stock other than the most desirable and scarce), I predict they will soon become the disposal bottleneck for Porsche stock. This will reduce liquidity in the market and make selling a delicate process requiring expertise, discretion and skill. 

The 911 market though has always stood alone from the rest of the Porsche market (in terms of demand and therefore values) and I predict that this will remain so; albeit cars lacking in specification, the right colour combination and of average condition and mileage will see prices soften a little. 

However the other models (Cayman, Boxster, Macan, Panamera and Cayenne), I think the crazy days of paying list price or close to list price for 2 year old cars are over. In reality there is plenty of stock like this within the Porsche network and at reputable independent specialists, but with customers now reticent (for a whole raft of reasons) to pay the current eye wateringly high prices, many dealers will soon not be buying until their current stock holding has been washed through the business. 

This will prove to be a very challenging and highly skilled process for the retailers (more on this later), with retailing to customers the only disposal method. With the inevitable lack of liquidity that will follow within the Porsche network effectively making the trade disposal of overage stock impossible (unless at eye wateringly high losses), this will leave a shortage of funds available within the Porsche market. This lack of liquidity will leave those owners needing and/or wanting to sell their car in a tight spot; that of either selling now (at the inevitably reduced prices and/or for a big loss) or holding on to their asset gambling that the market and therefore prices, will rise again. 

Personally I think this will be unlikely for the Cayman, Boxster, Macan, Panamera and Cayenne market because, albeit for different financial and economic reasons. I think this market will become very similar to the market we navigated just after the financial crisis; one where cars struggled to find buyers with the money to spend, even if the owners themselves were reconciled to the lower offers they had received. This just leaves the Taycan; a car retailing in a market that gives me the shudders. I will not use this post to articulate entirely my fears for the values electric cars, especially very expensive and specialised high performance versions. 

This sector of the used car market is yet to play out, (in terms of used car demand), and I’m not convinced that there is long term demand in the numbers required, to keep prices high. We shall have to see how the market evolves but I certainly wouldn’t be buying one. 

In truth the right Porsche with the right specification may still find a buyer, provided owners have the skill and expertise to navigate these market conditions; this though is very unlikely! In truth the market in the UK is not set up to support the owners of specialised used cars and Porsche is no exception. 

With manufacturers giving up on used car retailing and developing the professionals required to succeed in the used car market, it has cast owners of their product adrift and struggling to find the expertise required. 

The algorithm based on-line companies are also of little use to the owners of specialised used car product – like Porsche; We-Buy-Any-Car, Cazoo etc. A valuation algorithm is just a tech based valuation tool devoid of any experience and enough data to navigate the nuances involved in the valuation of specialist cars. That said though the irony is that for those with cars with base/low levels of specifications and less than perfect service records, (those that the Porsche network and independent specialists won’t purchase), the on-line purchasing platforms can the best route for disposal for these cars and their owners. 

But be quick, I have analysed the companies concerned and commented in articles written for my Used Car Business Development Blog, articles such as; Cazoo?,,,,, As A Used Car Business It’s Mad As A Box Of Frogs! With losses mounting the associated companies are bound to re-engineer their valuations algorithms and soon, probably closing this route of disposal. 

So where to turn for Porsche owners looking for the right expertise and experience, that required to facilitate in the immediate liquidation of their car; a process requiring skill, expertise, the utmost discretion and excellence in execution. 

Well with unrivalled experience in liquidating specialist cars and contacts base within the Porsche community, (both franchised dealers and the most knowledgeable Porsche specialists), you could contact me for a market consultation. I am not going to promise you for one moment that I work with every car that is offered, or with every owner that contacts me. 

In truth I choose to advise and help everyone but only work actively with 10% of the owners who contact me; and their associated cars. Offering immediate cash purchase, (should circumstances dictate), or the facility to act as your trusted conduit to the market, returning the best return for your Porsche, I am the ultimate solution provider for those looking to dispose of their Porsche. 

Please feel free to reach out to me directly via LinkedIn should you wish to arrange a consultation call.