Issue with selling my GTS Targa 4 to Porsche dealer and ordering a Taycan 4s

thomas ficho

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Hi all
I am new to the forum but trying to place an order for a Taycan 4s, 2023. My dealer here in Chicago does not yet have their allocation and not sure when Porsche will authorize an order- Pretty frustrating for a 100-billion-dollar company.
I have owned 13 911's over my 72 years, and currently have a spectacular 2019 GTS Targa 4- truly the most phenomenal car I have ever owned.
My Porsche dealership reached out that they are looking to buy it for a price about 10% other than its sticker 3 years ago.
I have decided to switch to the Taycan- I had 1 for 24 hours and it was indeed impressive.
Here is the issue;
In Illinois, I can get a full sales tax credit towards a new car purchase. But the Porsche dealership wants my car asap so they can sell it. But they want to hold the 160-170K interest-free for the 3-6 months until the new one is delivered and don't know how to get the balance of 10-20 K back to me.
Meanwhile, I lose the opportunity cost of 160K.
ANyone has been in this circumstance and how was it resolved?
Thomas Ficho
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RAHRCR

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That is unheard of. If they want the car (and the title), you should have the cash in hand. You can put down a deposit for the Taycan as most of us have and wait for allocation/production. This proposal would cause me to go to another dealership for sure.
 

jlee504

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I have the same problem. I don’t even have a problem giving my dealer my car first. It’s the tax credit it has to simultaneous it can’t be staggered.
 

pnw-ev-nerd

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That's outrageous. Trade in a time of delivery, or sell privately for a high enough price to offset the tax break.

They're the one that's hurting for inventory, so you're the one with the leverage here. Don't fall for that crap.

But, be realistic about how long it will take just to secure an allocation. I waited a year, and waiting at least another half a year for delivery.
 

nickmdp

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6 months is probably what you'll get if you happen to be super lucky. I put down money in September and am just now looking at delivery in June/July.

If someone told me right now that it took 12-18 months to delivery, I wouldn't question it, and it's insane that a dealer might ask you to sell your current car without even an allocation yet. As it stands right now, I wouldn't even trade in my existing vehicle now for a car that should be here in the next ~4 weeks due to all the stop sales that I've seen going around.
 


thecoloradokid

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No allocation? I wouldn't even entertain a conversation with them since allocations are very hard to come by and not provided on a publicly made available rotation.

If you want to move faster, I would survey all the Porsche dealerships within a 1,000 miles of you to see if anyone has one available now, or if they can confirm they have coming very soon. Honestly, you could be looking at a 12 month to 18 month delivery window at the soonest, so why sell them your car now?

Kind of odd how the car business has evolved in these weird times - now they are pressuring you to SELL them your car, as opposed to them pressuring you to BUY one of their cars!
 

Jhenson29

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It’s the tax credit it has to simultaneous it can’t be staggered
As I understand it, IL has an advanced tax credit so the trade in can be up to 9 months before vehicle purchase. Not sure what OP’s options are if that isn’t met though.

OP, I wouldn’t (personally) worry about the opportunity cost of the 160k if it means saving around 8% in sales tax (I don’t know what your sales tax is, just throwing out a number).

If there’a a difference owed due to trade in being higher, I would expect to receive that at time of trade in.

I agree with others about a concern for no allocation though.
 
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Archimedes

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It’s not that unusual. I’ve heard of multiple Rennlisters doing this in the last year. And I thought you had 6-12 months to buy and still got the credit in most of the States that allow credits.
 

22gts

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Similar situation happened to me.
I early traded in my beloved audi rs7 towards a cayenne hybrid, that the dealer had an allocation for. Trade in happened in january 22, build lock in march, and The delivery was scheduled for end of June 22. The trade in tax advantage was only applicable if the dealer held onto the equity during this time.

They would not put it in escrow and I would not earn interest on the money during that time. It was about 80k in equity. They resold "my" rs7 in 4 days.

Well, at build lock time in mid march, lock was pushed back to mid April. Then in mid April, the build lock date and schedule was removed from their system, but the allocation still existed. They couldnt tell me anything besides to wait and they will get it scheduled. I pried for more information and found out (from another dealer) that cayenne hybrids were to no longer be produced for 22 and I'd have to wait until early 23 for delivery. And the color I wanted was removed, as well as a few other options. The base price increased, therefor my sale price increased. Dealer wouldn't honor the original price since it was based on a lower msrp.

I changed direction and found my taycan at a different dealer. To my surprise, they were "sister" dealers and my trade in equity was able to be transferred to the new dealer and sales tax trade in advantage was able to maintained.


Anyway, lesson is....don't trade in early. Dealer has no control over scheduling. Seems like you have a good relationship with your porsche dealer(s), but unfortunately with the state of the world and constant supply chain issues, your local relationship means little. Sorry.
 

TaycanHero

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In the UK we have two big online vendors:

https://www.webuyanycar.com/
https://motorway.co.uk/

Though I have not used them, they are very highly rated and basically guarantee a sale, where any car dealer can bid on your car. It's kind of like eBay and so long as your description is accurate, the closing price is what you are paid.

Does the US not have anything similar? Surely you would get a far better price selling nationally to any dealer, than being beholden to your Porsche dealership who will obviously pay a pittance as that is not their core trade.

It also means you are not at the mercy of them effectively confiscating your money for X months.
 

RingoDingo

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In the UK we have two big online vendors:

https://www.webuyanycar.com/
https://motorway.co.uk/

Though I have not used them, they are very highly rated and basically guarantee a sale, where any car dealer can bid on your car. It's kind of like eBay and so long as your description is accurate, the closing price is what you are paid.

Does the US not have anything similar? Surely you would get a far better price selling nationally to any dealer, than being beholden to your Porsche dealership who will obviously pay a pittance as that is not their core trade.

It also means you are not at the mercy of them effectively confiscating your money for X months.
one of the advantages dealers have negotiated for themselves here in the US is that if you trade in a car when you buy a new one, you only pay sales tax on the delta between the trade and the new car. So if someone (like OP) trades in a car of equal value to the Taycan, he’ll pay no sales tax… which on a $160k car can mean savings of around $11k vs buying new and selling private or to another dealer. It’s stupid, but thank the dealer lobby.
 

Bella

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one of the advantages dealers have negotiated for themselves here in the US is that if you trade in a car when you buy a new one, you only pay sales tax on the delta between the trade and the new car. So if someone (like OP) trades in a car of equal value to the Taycan, he’ll pay no sales tax… which on a $160k car can mean savings of around $11k vs buying new and selling private or to another dealer. It’s stupid, but thank the dealer lobby.
If you live in a State that allows that. For example Ca doesn’t allow this. Tax is only based on the new Car.
 

RingoDingo

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If you live in a State that allows that. For example Ca doesn’t allow this. Tax is only based on the new Car.
Of course. Was meant as a general statement as to OP’s probable motivation rather than a blanket statement of fact. Here in Texas, it does apply, which means advantage dealers.
 

raharris

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one of the advantages dealers have negotiated for themselves here in the US is that if you trade in a car when you buy a new one, you only pay sales tax on the delta between the trade and the new car. So if someone (like OP) trades in a car of equal value to the Taycan, he’ll pay no sales tax… which on a $160k car can mean savings of around $11k vs buying new and selling private or to another dealer. It’s stupid, but thank the dealer lobby.
In Ohio, I believe they don't have to keep the full amount - just a value equivalent to what a deposit would be.
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