Additional dealer markups…??

[Archimedes]

I don't disagree; however, I dont give them a pass. In the system not being smart enough, they are still promoting it - its right from the porsche.com website.

The dealer is playing in a grey area game and activating the warranty...at that point Porsche doesnt have domain anymore - hence the AMD's being advertised. Ferrari is doing the same thing now too! Robbery.

They’re independent resellers, just like thousands of other businesses in hundreds of industries. And just like those, they price their product based on what they believe the market will bear. When demand is high, the price goes up. When demand goes down, the price goes down. MSRP is a meaningless number. Btw, when business was bad, did you demand to pay MSRP when Porsches could be had at big discounts? So ridiculous that people who gladly took discounts in bad times, whine like babies when the tables are turned.

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[Fish Fingers]

It would be nice to think that when supply chains return to normal, and if economic activity has plummeted / cost of living has made many people reconsider luxury purchases / recession is upon us / markets and crypto have continued to fall / the housing markets have slowed / etc etc

......... that people will look back on these threads and favour the dealers who looked after the customers instead of making a money grab in the current climate.

There will come a time when dealers will be struggling for business again.

 

[outie]

Marin used to be my dealer for years, they were bought out and new management are scum.

When did ownership change?

 

[Skilly]

They’re independent resellers, just like thousands of other businesses in hundreds of industries. And just like those, they price their product based on what they believe the market will bear. When demand is high, the price goes up. When demand goes down, the price goes down. MSRP is a meaningless number. Btw, when business was bad, did you demand to pay MSRP when Porsches could be had at big discounts? So ridiculous that people who gladly took discounts in bad times, whine like babies when the tables are turned.

MSRP is meaningless...uh, ok. SMH - why bother with that as a baseline? I guess Porsche execs have an dartboard in the boardroom to come up with the Monroney. In that case, why should Porsche let the dealers have the profit; why not just reprice?

Dealerships can do anything that they want within the 4 walls - it's a free market. Just like a buyer can pick and choose who they do business with. That said, Porsche's rule for a dealership is no ADVERTISED ADMs on new cars. It just is what it is and as such, the HQ shouldn't be promoting it....the grey area is activating the warranty; turning the car out as used and advertising whatever they think the market will tolerate. Fair game there. This is where allocations get messy because dealerships in a market like this will fill them all with names like "joe smith" and then do more of what is happening now. Not supposed to happen but it does.

With the brand comes rules, and integrity should follow. Really funny rant though -. As you lecture, Im curious what dealership you have seen the kind of gouging going on in the inverse by way of discount....(crickets). You have to go back to the 90s to talk about business "being bad" for Porsche - I barely had my license then, but I'm guessing that they weren't giving 30% discounts on cars to survive. Thanks for sharing the basic rules of supply and demand though

Fun fact - in 18 months that car will be worth 50% of the current ask and the rules you are ranting about will ensure it.

 

[kort]

I would think that the S in MSRP means SUGGESTED

 

[RAHRCR]

The dealerships that decided not to take advantage of customers should be recognized. My dealer is not doing ADM. Despite some of the challenges I‘ve had so far with tracking the build, at this point I would order from this dealer again.

I hope the people that are paying ADM are not financing. When the value of these cars comes back to normal (as with many other cars), there will be serious issues for the industry and those with debt to manage.

 

[hitmonlee]

I hope the people that are paying ADM are not financing. When the value of these cars comes back to normal (as with many other cars), there will be serious issues for the industry and those with debt to manage.

Depends on why they are financing. If they're stretching their budget then yes I'm with you 100%.

There're also people (myself included) that consider financing an investment. You invest your cash and hopefully get a higher return that the interest rate you get for your auto loan. Granted this may sound stupid with the current market but over the past few years it has been working well overall.

Well, hope I didn't just open a can of worms

 

[RAHRCR]

Depends on why they are financing. If they're stretching their budget then yes I'm with you 100%.

There're also people (myself included) that consider financing an investment. You invest your cash and hopefully get a higher return that the interest rate you get for your auto loan. Granted this may sound stupid with the current market but over the past few years it has been working well overall.

Well, hope I didn't just open a can of worms

I chuckle at this logic. It’s used often. In an attempt to leave the can closed, I wont go further. I wish everyone the best with their vehicles though.

 

[BigBob]

There're also people (myself included) that consider financing an investment.

I think i'd call it leverage, not an investment...

 

[Archimedes]

MSRP is meaningless...uh, ok. SMH - why bother with that as a baseline? I guess Porsche execs have an dartboard in the boardroom to come up with the Monroney. In that case, why should Porsche let the dealers have the profit; why not just reprice?

Dealerships can do anything that they want within the 4 walls - it's a free market. Just like a buyer can pick and choose who they do business with. That said, Porsche's rule for a dealership is no ADVERTISED ADMs on new cars. It just is what it is and as such, the HQ shouldn't be promoting it....the grey area is activating the warranty; turning the car out as used and advertising whatever they think the market will tolerate. Fair game there. This is where allocations get messy because dealerships in a market like this will fill them all with names like "joe smith" and then do more of what is happening now. Not supposed to happen but it does.

With the brand comes rules, and integrity should follow. Really funny rant though -. As you lecture, Im curious what dealership you have seen the kind of gouging going on in the inverse by way of discount....(crickets). You have to go back to the 90s to talk about business "being bad" for Porsche - I barely had my license then, but I'm guessing that they weren't giving 30% discounts on cars to survive. Thanks for sharing the basic rules of supply and demand though

Fun fact - in 18 months that car will be worth 50% of the current ask and the rules you are ranting about will ensure it.

Thanks for making my point!

BTW, please show me where "Porsche's rule for a dealership is no ADVERTISED ADMs on new cars" is documented? And also please tell me why you think the folks at PCNA have time to check every single add that gets scraped up to the Porsche Finder site.

 

[Archimedes]

I would think that the S in MSRP means SUGGESTED

Exactly. Folks seem to get that when cars are selling at a discount, but get collective amnesia when the market tightens and premiums are being asked.

 

[Archimedes]

It would be nice to think that when supply chains return to normal, and if economic activity has plummeted / cost of living has made many people reconsider luxury purchases / recession is upon us / markets and crypto have continued to fall / the housing markets have slowed / etc etc

......... that people will look back on these threads and favour the dealers who looked after the customers instead of making a money grab in the current climate.

There will come a time when dealers will be struggling for business again.

Yes, and you'll be demanding discounts, even from the 'good guy' dealers that you reference. And the 'bad guy' dealers will be selling all their cars at the same discount, with no shortage of buyers at the market price. The market doesn't care.

 

[Skilly]

Thanks for making my point!

BTW, please show me where "Porsche's rule for a dealership is no ADVERTISED ADMs on new cars" is documented? And also please tell me why you think the folks at PCNA have time to check every single add that gets scraped up to the Porsche Finder site.

One of those guys...just because you don't know about something doesn't make it not true. And your method for compensating on your lack of knowledge in this area is interesting. Shooting the messenger is your best move?

Your inability to understand (or not like) this isn't my problem. I can explain it to you, but I can't understand it for you -feel free to call PCNA yourself if it's something you feel is important.

And as for the scrape- it was in Porsche's configurator, not a Google search.

 

[Skilly]

Depends on why they are financing. If they're stretching their budget then yes I'm with you 100%.

There're also people (myself included) that consider financing an investment. You invest your cash and hopefully get a higher return that the interest rate you get for your auto loan. Granted this may sound stupid with the current market but over the past few years it has been working well overall.

Well, hope I didn't just open a can of worms

LTV is gonna be the underlying factor on a car that is $320K today with a lease (a lot of the new stuff is leased). The 3 year value is going to mean serious money down up front or giant monthly payments to get that final value back in line with what the market predicts.

I just leased a 2022 911 Turbo S for the 3rd stall in the garage. The 3 year payout value on the car was set at 175,000 by Porsche Financial. The car is a $237,000 build.

I paid MSRP, but they are going right now for between $300K and $340K. So, if you are paying current market prices, Porsche is predicting that this car is going to depreciate around $40K per year over the next 3. That is unprecedented.

 

[Leawood CT]

Those markups are unreal. Here's my story. It's a good thing we have two dealers in the Phoenix (Arizona USA) area …

In January 2022 (before Russia's invasion and Felicity Ace), I was all set to work Porsche North Scottsdale. But just as I was about to confirm, their SA (Sales Associate) told me that his management decided to add a $20,000 surcharge. To which I said, "let me think about it and get back to you."

I called Porsche Chandler and spoke with their SA, who said Porsche Chandler had no surcharge, a lower sales tax rate than Scottsdale, and an available allocation for a May 5 delivery. (He was also stunned at North Scottsdale's greed.) I gave him my code, he looked it over and had one suggestion, and I put down a deposit in late January.

I called North Scottsdale back and said sorry I took my business to a surcharge-free Porsche Chandler, which is only five miles further from my home than Porsche North Scottsdale anyway. The SA wasn't happy, but he understood, and then he continued to give me good advice on what to do next and what to watch out for.

My RWD just arrived at the port in San Diego, and I’ll be driving it soon!

I had the same experience with Porsche North Scottsdale. Big markup and absurdly low amount ($13k lower than other dealers) offered on a Panamera GTS I was going to trade in. I ended up getting my car from Euroclassics Porsche in Midlothian Virginia. They were great to work with and no mark up over MSRP or any other requirements.

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