Used Porsche Market Report – February 2017

As a Porsche market follower and long-time valuations expert (for want of a better word), I watch price trends and market activity and create used Porsche price analyses for Porsche dealer clients. This translates into market reports to help investment buyers and dealer purchasing, as well as informing my detailed online Porsche insurance valuations.

Here is my Porsche Market Report for February 2017, shared as part of the JZM Porsche newsletter. Sign up for the JZM Porsche newsletter and get the used Porsche market report delivered to your inbox every month. Contact me to arrange a professional consultation on the state of the current Porsche market.

The big news in Porsche circles during February was of course the Sothebys RM Auctions sale at Retromobile in Paris. More than £28 million pounds’ worth of cars were sold on the night, with many record prices for collectable 911s.

Surprise of the show was undoubtedly a 2004 Porsche 996 GT3 RS with less than 200 kms from new, which fetched a staggering £343,000 including premium. Other Porsches also fared well: one 993 Turbo S Cabriolet finishing at a jaw-dropping £1.1M including premium. A 959 Sport sold for £1.7M including premium and both 964RS models offered made just under £200k each including premium.

Some may say that auction results are pie-in-the-sky numbers which do not relate back to the retail market, but we disagree. These sales offer an important window into buyer mindset at the very top end of the market. They also contextualise the two-tier market that we often refer to in our market reports: high end collectors versus enthusiast owners.

JZM Porsche caters for both markets and sales often cross from one to the other. Many of our enthusiast customers are keen collectors with more than one Porsche, and many of our serious collectors with portfolios of ten or more cars always retain one or two models with average mileage, which can be driven guilt-free. Understanding the difference in perceived market value between a collectable Porsche and a driver’s car is where auctions can help. So what lessons can we take away from the RM Paris results?

The first and most important signpost was the continued rise of the 996. Four 996 models were offered on the night, with the GT3 RS and a 24,000-km GT2 Clubsport both beating their top estimates by some margin. The Mk1 GT3 Clubsport and higher mileage 996 Turbo S Cabriolet each achieved more than mid-estimate including premium.

The second point is that production levels remain critical to achieving the best prices. The 993 price was easier to understand when one considers that the 993 Turbo S Cabriolet is a very limited production model, with fewer than 15 examples manufactured. Compare this to production of the 1973 Carrera RS, where up to 100 times that number were originally manufactured (a ’73 RS Touring sold for £470k including premium on the night). Another low production model is the 964 Turbo S, a 23k-mile example of which was sold on the night for almost £790,000 including premium. JZM has sold a number of Turbo S models in the last twelve months and this price was a pleasant surprise for all of our owners.

The final point we take away from the latest RM sale is that, while air-cooled prices are holding up well, water-cooled prices are gathering pace, indicating a growing willingness among collectors to look to later models for stars of the future. The 996 GT3 and RS are good examples of this. Compare circa 600 996 GT3s produced to the 991 GT3, where up to 6,000 models may have been manufactured, and it is easy to see why collectors are snapping up early GT3s at this time.

Bringing these points into the retail market, one might reasonably wonder why some sellers are still asking twice the list price for used 991 GT3s when clearly the market is not going to stand that. Our activity in the modern GT3 market and occasional foray into other modern sports cars such as the Lamborghini Huracan LP610-4 recently sold and the Ferrari 458s we have handled means that we benefit from the input of a wide audience – not just the Porsche crowd. Having sold a number of 991 GT3s this month, we do not sense an appetite for overpriced GT3 stock and so carefully monitor our prices.

JZM Porsche Showroom Activity

January was a busy month at JZM Porsche, with 29 cars sold. February started somewhat quieter but, as the month progressed, enquiry levels increased and we were happy to welcome serious buyers to the showroom. The global nature of our business continued, with cars selling as far afield as Belgium and the Far East. Air-cooled was again at the forefront, with several air-cooled cars sold through February, including our 964 30-Jahre Anniversary car. JZM special projects have also been selling: one 964 hot rod with retrimmed interior, new KW suspension and some other tweaks was a very quick seller and we have another special 964 in build which we think will find a new home in short order.

Our success with 911 Turbos continues. Two very smart 997 Turbos (Coupe and Cabriolet) have just arrived in the showroom and we continue to bring in some fantastic 930s. The latest 930 in Black with original Tartan Recaro trim is just about to land and we have a couple of appointments lined up for that car.

The air-cooled market has not yet started properly, as it tends to coincide with the F1 calendar. Once that first race appears, the 2017 classic Porsche season will get going in style and we could see another record year for the early air-cooled models. Anyone in the market for an air-cooled Porsche would be well advised to be proactive and get enquiries moving early, while the weather is still a bit grey and things remain relatively quiet.

Porsche 996 Carrera Manual vs Tiptronic Prices

Just updated an insurance valuation for a regular customer who owns a nice low mileage Porsche 996 Targa Tiptronic. While Porsche 996 models have not seen the huge jumps of the air-cooled classic 911 models, 996 prices have crept up steadily over the last five years and values are now well and truly trending upwards. This makes an annual update to valuations more important than ever.

Porsche 996 Buyers Guide/Buying Tips

From a driver’s point of view, there is not much wrong with 996s. The early 3.4-litre models cover the 0-60 dash in just over 5 seconds, but those engines were troublesome, so Porsche replaced the 3.4 with a 3.6-litre engine in 2001. This engine also has a number of weak points, but it is undeniably more powerful and ideally the one to go for when considering a 996.

In 2002, the cars had a bit of a facelift to distance the styling from the visually similar Boxster. This was another successful upgrade. With the bigger engine and the more handsome front end on offer, most buyers will now be looking for post-2002 3.6 litre models, thus keeping values higher for later examples. That is not to say that early cars don’t have their charms, just that market demand supports higher prices for later cars (i.e. the so-called Mk II 996).

A few years ago, I came very close to buying a 2003 996 Carrera and often wish I had gone for it. Driving the car was a great experience. The big difference from early 911 (pre-’89) to 996 is the physical size of the later car, the increased creature comforts offered by the more modern example and the sweeter manual shift in the 996.

Some decisions are a no-brainer on 996. I think you want a 3.6-litre and also a facelift car, so the next big decision after that when buying a 996 is whether to go for manual or tiptronic transmission. I like Tiptronic – it is fitted to my Cayenne S and works beautifully – and if you spend a lot of time driving then Tiptronic is great. But for pure driving pleasure and for a better resale market, manual transmission is the winner.

Here’s the thing. Tiptronic can be shifted like a manual and it is a wonderful Porsche-patented invention, but sticking a fluid-filled torque converter between the engine and gearbox does blunt the experience. It feels wonderfully smooth when Alpine touring with the mrs or carrying the kids around, but when you’re on your own and looking for fun, a manual gearbox will do it better.

Nothign bores me more than those stupid people who dismiss a car they will never own or drive, on the basis that it does not come with a manual transmission, but even more irritating than their pointless remarks is that they are generally right. So the manual is what people want, plus there are bragging rights for those people who worry about what the other Porsche boys think. This puts demand higher for manual transmission and so the stick shifters carry a premium when comparing apples with apples.

Porsche 996 Manual vs Tiptronic Transmission prices

Porsche is not making any more 996s, so the supply of cars is limited. A Tiptronic-to-manual conversion is a hard thing to do (and ultimately not a great idea) so either you find what you like with a manual transmission, or you find it with Tiptronic. You will find it easier with Tip as those cars are in lower demand, and you will probably find it cheaper, too. So sometimes Tiptronic makes plenty of sense. Manual cars tend to have been driven harder and will show more wear. All of these things make a difference to value!

Anyone who tells you that the manual-to-tip price premium is a set number of a grand or two grand or five grand is talking from where the sun don’t shine. The price difference from manual transmission to Tiptronic in a Porsche 996 depends entirely on spec, condition, mileage and options. There is also the bodystyle to consider but that is another issue entirely.

A general indication on a £30k C2 Coupe in very good all-round condition and offered with sensible mileage is that Tiptronic should save circa £2k or so, but for some cars it could be twice that, for others it could be less. It really depends on what else the car has to offer and how many similar cars are available.

Contact us to discuss an agreed insurance valuation for your Porsche 996. Values cost just £35 and are accepted by all UK insurers. Our valuations are guaranteed independent, so no arguments later regarding conflict of opinions when your dealer or specialist values the car they sold you or look after for you!

All content © John Glynn 2017. No reproduction without prior agreement, even when credited.

Porsche 991 GT3 RS UK Price Trends (update Jan 2017)

I had an interesting conversation with a dealer friend a few days ago regarding the UK market for RHD Porsche 991 GT3 RS, which suggested that the days of six-figure markups for the latest 911 RS were over and done.

A nice RS had just arrived in stock and was offered to a number of prospects at well below the average market price. Some of his would-be buyers replied with claims of cars being offered behind closed doors for much less than the price my friend offered. Evidence went backwards and forwards until a much lower price was eventually agreed as the RS seller was keen to move on. The seller still cleared the best part of £45k profit out of the deal after paying the dealer’s fixed-price commission.

Average Market Prices for Porsche 991 GT3 RS

Average selling prices for 991 GT3 RS are not easy to calculate without access to accurate transaction data, but the average asking price is pretty straightforward. The premier classified ads site currently has 22 991 GT3 RS models on offer in the UK with prices from £195,000 to £289,995 (22 is not exactly what one might call rare). Average asking price for these cars is a heady £246,000.

This data does not tell the whole story. Amongst these 22 911s are cars with far more than delivery mileage – over 3,000 miles in some cases – and one zero-mileage LHD example. Stripping these cars out and confining data to just RHD cars with fewer than 400 miles on the clock reduces our sample to just twelve cars. Average asking price for these cars jumps to £252,270.

Cost New versus Average Price for 991 GT3 RS

A brand new Porsche 991 GT3 RS bought with no options will set you back £130,296 cost new from Porsche Cars Great Britain, but no one buys a standard RS. A sensible options package of decent paint (£1800), leather trim to the 918 seats (£2k), LED lights (£2k), Front Axle Lift (£2k), PCCB ceramic brakes (£6k), Sport Chrono (£1k) and PCM with Sound Package Plus and phone prep (approx £3k) adds the best part of £20k, which takes the cost new to £149,755.

This £150k list price is for a brand new car with 10 miles or less on delivery, built to your spec and you are the first owner in the log book. The only snag is you cannot order one new: production has been allocated to an oversubscribed list. However, it does indicate what the manufacturer believes their car should be priced at, given the cost to build and their standard margin.

Taking this £150k list price against today’s average UK asking price of £252,270, we see a premium of more than £100k for a car that’s already had one or more owners and may come with up to 400 miles on the clock. If you think that sounds pretty extreme, there is more than one story of a slot on the 991 GT3 RS waiting list being sold for as much as £200k over list at the height of the fever.

Porsche 991 GT3 RS Price Premiums Shrinking

I’ve not driven a 991 GT3 or an RS – these cars simply do not interest me as a driver – but I have looked at plenty up close. The overall impression is of a car that can get away with a £150k price tag, but not a hundred thousand pounds more than that. Lack of supply when the cars were newly-announced sent prices soaring, but now that the RS is two year-old technology and the demand from collectors has likely been satisfied, the low supply premiums are shrinking.

With prices of £190-195k rumoured for LHD cars sold under the radar, that puts the premium closer to £40k for a delivery mileage, one-owner 991 GT3 RS. No doubt some will insist these prices are not happening, but I do trust my source.

Porsche is not building any more 991 GT3 RSs, so the chances of these cars – even 10k-mile examples – selling for less than list price in the near future is unlikely, but exactly where over-list premiums will settle is uncertain for now. Will they drop much below £40k? That is possible: premiums usually keep coming down until there is a sudden injection of demand, or supply shrinks as the market soaks up everything available.

Common drivers behind increased demand include a screamingly low price (exchange rate changes for overseas RHD buyers) or a sudden influx of liquidity to the buyer pool, such as city bonuses, pension payouts, capital gains tax breaks or similar. It’s unlikely that a vote against Brexit in this Thursday’s referendum would cause RS prices circa £260k to suddenly look sensible if people are paying less than £200k elsewhere, but there would likely be a lift in demand for sensibly-priced desirable cars like the 991 GT3 RS if economic uncertainty was eased.

Given this prospect, sensible dealers might be considering a reprice right about now. £200k is still £50k profit on list for a well-specced example. Perhaps sellers are not paying attention to the rest of the market, or banking on a big hit to Sterling exchange rates on Thursday. That’s a pretty big gamble if there are only ten buyers out there and they all do deals tomorrow and Wednesday.

Update January 2017

Update in January 2017: one-owner RHD UK RS premiums are running at about £50k over list price inc the right options, which is in line with expectations voiced in our final paragraph above. There is still no sign of consistently sub-£200k Porsche 991 GT3 RS: a trend which many people have been expecting! Prices very steady at £210-£220k for cars that have been selling. Anything higher may be parked for a while.

Porsche Owners Up to 90% Under-Insured

The Telegraph reports that some Porsche owners are up to 90% under-insured.

“An index of the most valuable cars compiled by the Historic Automobile Group International has risen about 500% in the decade to December 2013. Ten years ago, a 1974 Ferrari 365 GTB/4 “Daytona” Coupé was worth approximately £76,000, for example. It is now worth nearer £450,000.

Gerry Bucke, general manager at Adrian Flux Insurance Services, said: “We reviewed our classic car portfolio, and noticed that a number of our customers had declared values that looked very low in today’s market.”

Porsche Values Increase by 1000% in 18 Years

The Telegraph spoke to one Porsche owner, Darren Campbell from Surrey. Darren bought a 1970 Porsche 911S some 18 years ago. he paid £8,000 but a recent insurance valuation put the car at a staggering £80,000: ten times his purchase price.

“I think if you’ve bought one of these quite recently you’re more likely to keep an eye on the market values, but if you’ve had it for as long as I have it’s easy to take your eye off the ball,” said Darren.

Under-Insurance could cost owners “Tens of Thousands of Pounds”

“Some of the cars have almost doubled in value since the owner’s last valuation,” said Gerry Bucke at Adrian Flux. “Under-insurance works on classic car insurance – where the premium is partly calculated based on the value – in a similar way to home insurance, so owners could end up only receiving a percentage of the car’s true value.”

“We suggest reviewing valuations every year. Otherwise, if the worst happens, you could lose anything from a couple of hundred pounds to tens of thousands.”

Get a Porsche Valuation

Porsche Valuations is the leading UK source of agreed insurance valuations for classic Porsche. All we need is some information on condition, a selection of photos and a phone conversation. The service costs £35 payable by bank transfer or Paypal. Visit our “Get a Valuation” page to start.

Modified Porsche 911 3.2 Carrera Sport Valuation

Spotted a familiar car at Tuthill Porsche yesterday: Simeon’s modified Porsche 911 3.2 Carrera hot rod.

Based on a 1985 chassis, this 911 is a great example of impact bumper upgradery. Now kitted out with Tuthill 6-pot brakes, EXE-TC suspension, Recaro trim and an engine transplant, the Carrera also runs a torquey 3.6-litre engine, rebuilt by Nick at Redtek to give 290bhp.

I first encountered Simeon’s car for its 2013 insurance valuation. Back then it was painted mid metallic blue, but it now wears a colour worthy of its sass. Somewhat reminiscent of Oli Wheeler’s Lime Green 3.2 update, last seen at Cameron Sports Cars down in Wiltshire, the big difference is Oli’s car (previously owned by Chris Harris) ran a stock engine, with Jenvey throttle bodies and an Omex ECU.

Insurance valuations for modified Porsche 911s can go a number of ways. Some 911s are modified in a way that adds to a likely selling price and also increases the replacement value: Simeon’s being one of these cars. But the value for insurance purposes is not always equal to total spend on the car.

Of course, other modified Porsches can sometimes be worth less than a nice condition original Porsche, but then life is not just about the value of objects. Sometimes it is better to do whatever floats your boat, and enjoy life rather than focusing on money.

Need an agreed insurance valuation for a UK classic Porsche? Visit our ‘Get a Valuation’ page.

Porsche Insurance Valuations for All Models

Market valuation insurance policies on classic cars are the wrong way to go. If someone steals your classic Porsche in impeccable condition tomorrow, a market value policy will create no end of hassle and may leave you seriously out of pocket. This is when you need an agreed value classic Porsche insurance policy with assistance from a UK valuation expert.

Porsche Insurance Valuations UK

Porsche valuation consultant, John Glynn, has clocked up almost thirty years in the motor industry, buying and selling cars for trade and retail. John also spent ten years as an Editor with Glass’s Guide in the UK valuing older cars, vintage classic vehicles and ‘modern classics’, for clients in the trade and the financial services industry.

“Always run an agreed value policy on your classic Porsche,” John insists. “It’s the easiest way to ensure you will be properly compensated should the worst ever happen. Never leave the total loss of a car worth tens of thousands of pounds open for debate. Always agree a value.”

John does agreed insurance valuations on classic Porsche cars that are accepted by every UK insurance company, even when an independent engineer’s inspection is required to begin with. Agreed valuations cost £35. Go to our ‘Get A Valuation‘ page to submit your details.

Don’t own a Porsche? We own, collect and issue insurance valuations for all makes and models of classic cars. Contact us for more information.

Mileage Adjusting Classic Porsche Values

Mileage is a thorny subject on Porsches. How hard do you hit a high-mileage Porsche versus something with average distance? Everyone has an opinion: mine comes from ten years creating and maintaining mileage tables for ‘normal’ cars, as Glass’s Guide Editor for Older Cars and Consumer Values. Glass’s is like the UK’s Kelly Blue Book, and traders here are very hot on mileage adjustments.

Glass’s don’t do mileage tables for Porsche cars and the like, as mileage adjusting prestige sports and supercars is a complex strategy requiring some research into history, maintenance, big money spent and condition at the point of sale. One can’t simply say “£1,000 off per ten thousand miles” as, on some Porsche cars, that would leave nothing.

A Porsche 911 acquaintance recently sold his much-loved Porsche 993 Carrera 2S with a terrific spec. I valued this Porsche car for insurance, which prompted the owner to review his priorities: a process which led to a private sale ad on Pistonheads, and the immediate sale to a very sharp buyer.

This 993 C2S was well up on the miles at just over 200,000, but had bills totalling tens of thousands of pounds. Everything worked, including the electric hardback seats and air con. A full service history showed an engine rebuild at 187k including RS flywheel and clutch, uprated cams, and a remap to 330 bhp with 300 torques.

At 192k, the transmission was rebuilt, with new pinion shaft bearings and a Porsche Motorsport four-plate LSD. At 197k miles, the body was redone; glass out, corrosion in the screen apertures corrected and a respray in proper Vesuvius. New windscreen, and wheels refurbed to match the paint.

At 200k, the suspension was gifted some KW Variant 3 dampers and springs, new rear control arms, front wishbone bushes, eccentric assemblies and bolts for camber adjustment. Taking all this into account while bearing the mileage in mind was quite a tricky process.

The adjusted sale price seemed a bargain for this car, which I valued rather higher for insurance. The seller is happy and I guess the new owner is too, but I wouldn’t want to have to replace that car with only the selling price to spend. Remember your insurance values – always agree when offered the chance, and watch that rising market!

Need an agreed insurance valuation for your classic UK Porsche? Go to our ‘Get a Valuation’ page.

Porsche 911 Carrera Club Sport Agreed Valuation

On a visit to Autofarm last week, Josh Sadler and I got talking about a Porsche 911 3.2 Carrera Club Sport he had sitting in the corner of a barn. It looked a smart car: totally standard in very good nick.

The Club Sport was owned by Porsche author, Gordon Wingrove, and was famously featured in one of the mags as an accident repair on one side a few years back. With just 27,000 miles on the clock, this is a special Club Sport. The model has its detractors, who love to point out it’s a basic Carrera 3.2 with a lighter interior and a blueprinted engine, but those who have driven one know there’s something else.

Josh has heard all the Club Sport knockers but, as he asks: “What else is there from the 1980s? This is it.” I reminded him of the 5-speed 930, but I agreed on the affordable/available 911 road car side. There’s plenty of front-engined Porsche stuff from that era, but they’re not rare-bird 911s and the SC RS and 959 hardly count.

Coincidentally, two days later I was asked to do an insurance valuation on a different Porsche 911 3.2 Club Sport, one I’ve seen a few times (I value a number of the UK Club Sport cars ). I had talked money with Josh and used that conversation as a reference for the valuation on this other 911 Club Sport.

What’s the forecast for Club Sport values? I think steady, trending slightly upwards to match the base model. There were only 53 RHD ‘Clubbies’ made for the UK and only 29 of those are estimated to survive (possible urban myth). Standard Carreras in the best condition are £30k+ now, but there are many hundreds of those cars. So a factory hot rod in tip top notch has to be worth substantially more than a regular 3.2 Carrera Coupe. Try replacing a Club Sport after total loss: that’s not going to be pleasant.

Classic Porsche 356 stolen at the Nurburgring

While visiting the Nürburging in Germany, the owner of this 1956 Porsche 356 woke to find his car had been stolen from outside the Hotel Hohe Acht. Two more 356 models were also stolen at the track on the same night. German Police have so far come up empty-handed but that is hardly a surprise: this was carried out by professionals and there will be a plan in place to get these things out of the area as soon as possible.

This particular car was a peach. The owner bought the car in 1970 and, working as a 356 spare parts manufacturer in Denmark, it has been with him for 40 years of a life in Porsche. A €15,000 reward was offered for any information leading to the safe return.

This is not the first 356 theft we’ve seen this year. Certainly classic Porsches are getting ever-easier to steal: a quick colour change and a few bits swapped (including chassis number) and no one would be any the wiser on what it once was. If you’re not using security on your classic, then fix that quickly.

I use a high-end steering lock and good alarm on mine  – plus other unnamed measures – which would slow any potential thieves down a bit. The agreed valuation for insurance purposes is also up to date! Remember to always keep your agreed insurance valuation up to date for total peace of mind. It does not add much to the premium but saves a huge amount of hassle in the long run.

European Porsche Values: Essen Techno Classica

Another year, another Essen Techno Classica as I visited Germany with a pair of fellow Porsche nuts. The 2014 show weather was gorgeous all the way through, prompting a half day sitting by the Rhine, watching the world go by rather than slogging around seventeen halls of old cars.

In three days, we ate enough pork to fill a 911 and drank enough beer to sink one. We drove there in a Saab diesel estate, which did all the European miles on one tank of fuel: impressive. Even more impressive was the amount of Merlot crammed into it on the way out of France.

There are always Porsches at Essen, but the number of classic Porsche cars on show in 2014 was lower than in previous years. Some very lovely 356s, a handful of pre-1968 911s and not as many impact bumper (IB) cars as two years ago. I spotted one or two 928s, but 924s and 944s were thin on the ground.

A good showing of Porsche 964 911s this year. A yellow 964 Speedster below was tucked in one hall: seemed like a sensible Essen price circa €120k but I didn’t study it too hard after finding a few details lacking. One Lemon Yellow Porsche 911 3.2 Speedster was a favourite car this trip: on the lottery wish list.

You’ll need a lottery win if rising IB Speedster prices keep at it. One of my travelling companions owns a 3.2 Speedster in black with less than 20k miles and full Porsche history. As a low-mileage narrow-body 3.2 Speedster recently sold for £250k at auction, he’s overdue an updated Porsche 911 agreed insurance valuation.

Life doesn’t get much better than a road trip into Germany with beer-loving friends. I highly advise you to follow my lead.