Dealers having stock and selling for over list

[Sebbo]

I don't know that it is that PCNA doesn't care, but rather it is a self-correcting problem. If dealers irritate their customers enough, those customers will likely go elsewhere. I mean most of the dealer profit on an EV is up-front including options and dealer add-ons since there isn't much maintenance compared to an ICE car.

Almost all dealers are charging a lot more for anything used and adding ADMs where they can. Even mine is now charging a relatively modest $7500 ADM on Taycans although they kept their word and sold me mine at MSRP.

The OP is in the UK and it was my understanding that they aren't allowed to add ADMs so the only way to take advantage of the current market is to be able to sell them as used, is that correct?

That is correct, they have to sell at MSRP so to bypass that they take it for a spin for a few blocks then sell it as used for well over list.

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[Skilly]

That is correct, they have to sell at MSRP so to bypass that they take it for a spin for a few blocks then sell it as used for well over list.

This is the Rolex Market playing out in the car market because of Supply Chain issues.

The market is HEAVILY hampered with limited supply and abundance of demand (Rolex does this artificially) and then these products with the protective wrapper still intact go back into the market with a heavy uplift (with Rolex they call it the grey market). Ferrari understands this and well, we know what happens when they release products - if you aren't in the club, you aren't getting a car.

Do they care? Well, Rolex cares because it breeds a sub brand market and fakes can made that the demand eats up...turns out those fakes are so good its eroding the real brand, but I digress. Car brands don't suffer the same consequence so while they are probably studying this blip in history to optimize both pricing and supply chain, I don't think they care much about a resell market demanding a premium - its short lived and the brands need to survive.

Both are easily fixed with supply demands being met. And then the market corrects...my guess is that a few 'end of life' cars like the GT3/GT3RS or the V10s (R8/Huracan) will keep a lot of the gain, but otherwise prices will overcorrect in a year or so and we will be in a buyers market.

 

[WuffvonTrips]

If dealers didn't sell showroom cars above list price, chances are someone with little interest in ownership would snap them up with a view to quickly selling on at a profit for themselves. And for genuine prospective long-term owners, once they've sampled the riches of the configurator, would they be prepared, at this price range, to pay way over the odds for a car that doesn't closely match their desired spec?

 

[SolitaryMan]

It’s instances like this that make Mercedes’ attempts to move to an agency model look like the right thing for consumers.

 

[Skilly]

If dealers didn't sell showroom cars above list price, chances are someone with little interest in ownership would snap them up with a view to quickly selling on at a profit for themselves. And for genuine prospective long-term owners, once they've sampled the riches of the configurator, would they be prepared, at this price range, to pay way over the odds for a car that doesn't closely match their desired spec?

The market in the US is telling you that the answer is yes. In fact, its screaming it...and it looks like 2023 will be the same.

I have a deposit on a GT3RS for 2023 at MSRP (no ADM)....the GT3 2023 with 6 dealerships I checked in with had a list on average of 30 ppl deep for deposits for the same. Supply again will not meet demand, so paying way over will be the norm.

 

[WuffvonTrips]

The market in the US is telling you that the answer is yes. In fact, its screaming it...and it looks like 2023 will be the same.

I have a deposit on a GT3RS for 2023 at MSRP (no ADM)....the GT3 2023 with 6 dealerships I checked in with had a list on average of 30 ppl deep for deposits for the same. Supply again will not meet demand, so paying way over will be the norm.

I should have qualified my post as being from a UK perspective- I have the impression that even in normal times, US has a much greater proportion of new Porsches bought from stock than is the case in the UK.

 

[AlexR]

You have to think that all the salary sacrifice cars being delivered now will be on the used market in 2/3/4 years. Not great for residuals but hopefully the demand/supply ratio continues to hold.

 

[BigBob]

If dealers didn't sell showroom cars above list price, chances are someone with little interest in ownership would snap them up with a view to quickly selling on at a profit for themselves. And for genuine prospective long-term owners, once they've sampled the riches of the configurator, would they be prepared, at this price range, to pay way over the odds for a car that doesn't closely match their desired spec?

I think the point is perhaps, that if dealers weren't ordering cars for their own account to flip a few weeks or so later, then there would be a slightly shorter delivery time for their global customer base - as those cars would remain on the production line.

I'm sure there must be a few evil investment bankers on here who will tell you what would happen to them if they stepped in-front of a customer order and then sold the (financial instrument) for a higher price elsewhere. It wouldn't be considered sporting, that's for sure.

 

[WuffvonTrips]

I think the point is perhaps, that if dealers weren't ordering cars for their own account to flip a few weeks or so later, then there would be a slightly shorter delivery time for their global customer base - as those cars would remain on the production line.

Maybe some do- the Porsche UK website currently lists 8 out of 99 Taycans as both being registered this year and having less than 1,000 miles. But I assume that most want showroom cars to show prospective customers more real life examples than just the demonstrators...hence the tendency for them being extravagantly optioned.

 

[Midlifecrisis]

Maybe some do- the Porsche UK website currently lists 8 out of 99 Taycans as both being registered this year and having less than 1,000 miles. But I assume that most want showroom cars to show prospective customers more real life examples than just the demonstrators...hence the tendency for them being extravagantly optioned.

There is little point in a heavily optioned showroom car. Many of these features are things that you experience when driving, not in the showroom. I discovered why they option the demonstrators when I was driving one and discovered the ACC. I liked it enough to add it to my spec. And am glad that I did. I tried the Innodrive and didn't like that. By optioning these things we can try them on the demo cars - I hadn't really thought of it like that, but it turned out to be helpful when I was looking at spec.

 

[WuffvonTrips]

There is little point in a heavily optioned showroom car. Many of these features are things that you experience when driving, not in the showroom.

Quite a lot can be experienced without driving (e.g. deviated leather or stitching, but also unusual options like bike carrieror the extended B-pilar RaceTex trim). But anyway, I'm no apologist for dealers that might be playing the system, but I've just noticed that of those 8 vehicles registered in 2022 and having <1000 miles, 5 are noted as demonstrators that won't be sold before October at the earliest, and another is the unlucky Oak Green CT that one of our forum members sold back...so I don't think the issue is that significant in terms of customer order volumes though I appreciate how it p's people off.
PS Stockport are asking £150k for a GTS ST available from 20th June.

 

[TaycanHero]

Quite a lot can be experienced without driving (e.g. deviated leather or stitching, but also unusual options like bike carrieror the extended B-pilar RaceTex trim). But anyway, I'm no apologist for dealers that might be playing the system, but I've just noticed that of those 8 vehicles registered in 2022 and having <1000 miles, 5 are noted as demonstrators that won't be sold before October at the earliest, and another is the unlucky Oak Green CT that one of our forum members sold back...so I don't think the issue is that significant in terms of customer order volumes though I appreciate how it p's people off.
PS Stockport are asking £150k for a GTS ST available from 20th June.

I feel very special to have driven one of those five demonstrators and stunning it was. Cherry GTS saloon.

 

[Murph7355]

They'd be better, from a PR perspective, not advertising them. Selling a car on before customers have received theirs isn't a good look.

Anyone asking to buy can be handled privately. But ultimately, just keep the cars until you are a good chunk through customer orders.

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