Car loan rates pushing 7% and Nasdaq in correction, saying “no longer as hot” is putting it mildly. Suddenly not a lot of young kids with free money to pay these mark ups. I have always said this would come as I said I’ll remind greedy dealers when tables are turned the games they played. I am enjoying this so much - you have no idea. Wait till we are in 2024 as I think Fed has another 50 bps more in their bag of tricks. This monetary policy for 12-18 months and these stealer ships will be shedding staff and their greed will bite them in the ***.

I have recently come across a car that was on sale for $279 in June that was just sold for $219. That oughta hurt. Ouch!

Not all dealers are that way however. When times were good, some didnt become greedy and kept doing business the right way - which I am absolutely appreciative of. Unlike some members of ours here who are dealer principals selling GT allocations at $150k over - disgusting.

 

At first I started reading this and thought "oh man, here we go"...but actually I don't disagree with much of what you say here. You know it's funny, there's a certain Chicagoland dealer that laughed in my face when I offered $40k over on a new Agate grey GT3 in their showroom back in early 2022. I wanted the car. Then the SA called me later and said the car went for $120k over. What a pointless discussion that was.

Fast forward to early this year, that same car sat again on the showroom floor with about 5000 miles on it, wasn't even washed. Still asking +$65k over. I walked right past it and wanted nothing to do with it. I was just going to get free coffee and get back in my Turbo S later.

Integrity matters in the long run, whether folks want to believe it or not. S*hit could get real nasty in the next 12-18 months, and I'll be watching.

 

Not saying that we'll experience another Great Recession like we did in 2008-2010 but there is a chance things can go sideways because the Fed is known for breaking things.

 

Difference is that Porsche won't let 2008 happen again. It's why they always make less than the demand now. They learned their lesson the first time.

 

Porsche as in the mothership in PAG will be fine, these greedy dealers in America? Not so much, and they have had it coming. Bad karma will catch up to them. Its a mathematical certainty.

 

My dealer sells the GT cars at MSRP to repeat customers. They didn't go the ADM route because they want the MSRP customers to keep coming back to them when the buying frenzy is over. They have my loyalty.

 

So do a few dealers I work with. I was very clear in calling out that not all dealers are this way, in fact what these last 2-3 years did was to help everyone easily distinguish good ones from the bad ones.

 

I don't think of it in terms of 'good' or 'bad' dealers. MSRP to repeat customers versus ADM are just different business strategies. Since demand for Porsches is high and supply is carefully limited by Porsche, I suspect that dealers will do well long-term with either strategy.

 

Some people just wanna get to the front of the line. Absolutely nothing wrong with that.

 

Pretty much the US is the only market in the world which this happens as Porsche dealership and Franchise network everywhere else stops this behavior.

I think there is something very wrong with queue cutting but it's maybe just my culture vs the throw money at anything to get what you want culture America seems to foster.

 

Yes, other markets there is no in-your-face ADM...that doesn't mean there aren't other games afoot.

Lots of dealers in the US don't have ADM, try getting an RS as a first car in one of those.

 

The game is just played slightly differently in my country, the dealers still get their money for these GT and RS allocations.

 

Where are all these new GT4 RS allocations everyone is saying are just around the corner? It appears they are becoming slim pickings..

 

They will likely drop soon.

 

Ah yes, It appears the cycle is always early November for a round of allocations.