halfmonkey

I did a search for any threads with ADM in the title to specifically discuss ADM but didn't find any. I know there are a lot of threads that mention and ask about ADM but since I didn't find one that I thought this topic might fit into, I thought about starting this one to discuss. Mods, if you think this fits better in an existing thread, please feel free to merge.

(Flame suit on-just in case.) So we've seen lots of reports of people paying ADM on the most recent rounds of allocations and from people buying en route cars that dealers built or from people walking away from. Here's a thought. I don't work in the car selling business so I don't know the ins and outs of how the SA are paid but I would have to assume that the dealer/GM/SA are paid more for a more expensive car and less on a cheaper build.

So if you can follow my train of thought and let's have a discussion to help those out that are trying to purchase one still. We all know these cars are in demand. Dealers know they're in demand. Assumption is that dealers and SA get paid more on a more expensive car percentage wise. If you submit an order to build a stripper car say for $105k, do you think that the dealer/GM may be trying to hit a profit margin on each build and depending on how big your build is, maybe covering the difference with a markup?

I guess it would be interesting to see how much people are paying for mark up and what was the total cost of their build (MSRP - not including ADM). Wondering if an exercise like this may show a correlation of lower build specs to higher ADM?

If there does show to be a correlation, maybe if your dealer is tacking on an ADM, discuss it with them to say how about, I just increase my build cost and then you reduce the ADM? This way, at least you're spending more money and getting something out of it vs just paying ADM to fatten their pocket book for nothing. Think of it this way. I assume a dealer makes more money selling a car costing $150k vs one that costs $105k. Seeing that they have a limited number of Spyder/GT4/GTS 4.0 they can sell, they want to maximize their profits so maybe if you buy a car built out to $105k, they charge you an ADM to cover for the smaller profit vs someone that built a car costing $150k.

Wouldn't this explain why on many occasions, when you see a dealer spec car for the showroom, it's usually built with many options costing more than the average car of that model is selling for?

Bob Z.

Maybe, maybe not. SAs do not set prices obviously so discussing it with them usually doesn't amount to much. However, you can try anything you think might work but these days it is simply a supply and demand environment - more people want cars that are available so dealers are charging ADM. And when they hear of other dealers doing it they do the same.

halfmonkey

Totally agree on each of your points and of course, my thread is over simplifying the nature of ADM and negotiating but I'm just throwing out an idea that I haven't read before. If it helps somebody, then great and if nothing comes of it, well, no harm, no foul.

Zhao

I have no bloody idea how specifically Porsche works but here are my thoughts based off working at other dealers.

Heavily optioned cars get them brownie points with the manufacturer. If every GT3 you sold had 60g in options on it, Porsche would love that dealer and likely funnel them more GT3s. If all they sold was strippers they’d likely get less.

The dealer can also get brownie points for selling undesirable cars or cars that the manufacturer pumps out like crazy and has difficulty moving. To a lesser extent the same may be true for undesirable options.

ADM only gets brownie points with the GM, owner, sales staff as it’s pure profit for the dealer and they probably all get a piece of the pie on ADM.

So the dealer may value the short term ADM profits right now, or they may value increasing their profits in the long term by improving their rep with the manufacturer and getting more of the juicy models. Every dealer operates differently and probably has different goals at any given time. All you can do is try and see if they value big optioned out builds over an ADM now.

Dan Nagy

That’s an interesting tactic. I saw a list somewhere of what the dealers earn per option. A counter offer to a $10K ADM ask might be $5K ADM and $20K of options. Yep, I follow.

TXshaggy

Dealers don’t like poverty builds.

That’s why you see a lot of dealer spec builds that are quite high on options and PTS.

Think average on GT cars is almost $20K in options.

In the grand scheme of things dealers today can ask for ADM on top of healthy builds.

Dan Nagy

Lol, okay, now I know the term to use when describing my build: “It’s in excellent health.”

You are probably right, but still, I wouldn’t be embarrassed to ask about it.

2seats

I have a GT4 stripper. It was dumb luck. Because of past injuries I need a PDK and sofa seats. I happened to luck into a white GT4 the dealer had already ordered that only had PDK, 18 way seats, Bose, and fire extinguisher. I don’t know if I would have been able to exercise this much restraint if I were alllowed to order a car myself, but I’m so glad it worked out this way. The car is a super performance bargain.

ltfl09

Average ADM is usually 10k if they do ask one. However, if you have a great relationship with the dealer - say you bought like 5-10 cars from them over the years then you have bargaining power and can ask no ADM or at least 5k

2seats

Having been in many negotiations, I feel like if they ask for 10, you offer 5, they may say we will meet you half way 7500.

2seats

I also think if you’re a new customer and all you want is one hot car at msrp then you’re maybe at a disadvantage. Maybe offer to buy an optioned up Macan for your wife and a Taycan for your daily while working out the deal.

Alan C.

I picked up an ‘18’ manual GT3 in Lava Orange and Lava paint was the only option. The dealer required a non refundable deposit for the stripper. The guy backed out on delivery and I lucked into it. Most dealers don’t like strippers. My GT4 on order is at $130k which helped in the acquisition.

ExMB

ADM = ADM. Dealers don't care about what your build is. Yes, they make a higher % on options than base cars. Yes, they will want one to add options because of that. Dealers think about others, the general buyer. Just look at all the threads in here that want an opinion, etc. on a build. These builders / threads don't think about themselves. They think about what someone else wants to maximize their resell down the road.
This discussion is fruitless because dealers will do whatever they want.

nothingman

I worked with the GM at my dealership throughout my purchase as he was the only one available when I first walked in. After the Stop Sale and regular conjugal visits where I stopped in to see my car now and then, we got to talking about ADM and his perspective. He advised he wouldn't add an ADM, but he also wouldn't sell a car to an out-of-state purchaser just looking for an allocation. He said they focus on long term customer relationships where I would service the vehicle with them and give them first opportunity to buy the car back should I sell. He indicated if I ever wanted another GT car, these are the unwritten rules that would get me in their good graces for future purchases. This is my first Porsche, but it sounded a lot like my experience with Rolex playing the watch upgrade game.

servicemodel

The dealer told me there would be an ADM of 5k on my GTS allocation before I even gave them my build, making me think they probably don't care as much about your options. I assume they pocket the entire ADM which would likely dwarf whatever small percentage they get from options you pick. Just my 2 cents.