Negotiate before or after PPI?
07-12-2008, 01:13 PM
#1
Rennlist Member
Thread Starter
Negotiate before or after PPI?
Which way is best? If you negotiate before, it would have to be assuming a good PPI. If you negotiate after and the PPI perfect then you have no leverage and if its bad you have lots of leverage, but you probably wouldn't want the car anyway!
Inputs please!
leo
Inputs please!
leo
07-12-2008, 01:34 PM
#4
Three Wheelin'
Agree on a price contingent on a successful PPI. Make sure he is committed. When the PPI comes in you either 1) walk away, 2) try to negotiate a lower price 3) pay original agreed price.
07-12-2008, 03:45 PM
#5
Burning Brakes
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I have agreed on a price based on my own visual inspection and test drive, contingent on a "clean" PPI (clean being what you and the owner would deem a passing inspection). But be explicit of what you expect so the owner will know what to expect too.
07-13-2008, 01:45 PM
#6
Burning Brakes
When I bought my car, the seller's price was already "in the ballpark." So, rather than agree on a price before the PPI, I had the PPI done first. The inspection came back relatively clean, with about $1,000 in minor "issues" (including a scheduled service and valve adjustment). I told the seller I'd give him his asking price if he paid for the repairs on the items found in the PPI. He agreed and I bought the car.
07-13-2008, 04:45 PM
#7
Rennlist Member
The large majority of my customers that contracted me to do a PPI told the seller something like, "I can afford your car but I'd rather not talk price until I have the PPI results in hand." Most sellers found that reasonable, and it was a rare car that commanded full price. Some very large checks were written on the counter in my office, and I had to deal with some very furious sellers as well!
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07-13-2008, 06:06 PM
#8
Burning Brakes
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07-13-2008, 06:08 PM
#9
Nordschleife Master
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When I bought my car, the seller's price was already "in the ballpark." So, rather than agree on a price before the PPI, I had the PPI done first. The inspection came back relatively clean, with about $1,000 in minor "issues" (including a scheduled service and valve adjustment). I told the seller I'd give him his asking price if he paid for the repairs on the items found in the PPI. He agreed and I bought the car.
Scott who did you PPI? I've found an S that I want...
07-14-2008, 12:27 PM
#10
JrGordon, there are plenty of good shops in our region. 2 that come to mind are
Gameface Motorsports in La Habra and Autowerkes in Huntington Beach.
Plus, Vision Motorsports in Lake Forest/Laguna Hills and Hergesheimer in Lake Forest.
Tony
Plus, Vision Motorsports in Lake Forest/Laguna Hills and Hergesheimer in Lake Forest.
Tony
07-14-2008, 01:35 PM
#11
Pro
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Buying a Porsche today is a light years change from last year or the past 20 years. Striking the best deal and keeping as much of your money in your pocket as possible has always been the way of the wise buyer. However, in this radical monetary/markets earth quake, you may have to build a projected future World based upon unfolding events that seem to be on a daily basis. It does not take a crystal ball to see into our future.
The gloomy if not scary news does not mean you should not buy, maybe in a contrarian manner; the time to buy is close at hand. However, be aware that the sellers are in trouble, as is our banking system and our economy. Banks are tight on lending, so buyers have trouble getting the $. If you have cash or access, you are in a dominate position. Overall, non-necessity things are selling slowly. For us that are Porsche, low miles pick up, or house/property interested, this looks very good compared to the last few years. Few, if any, see values going up within any seeable time frame. Most agree that values will continue to decrease. Going against the trend is the way to make good investments; however, if today is too soon, you could loose 25% or more of your purchase value. Unfortunately, hind sight is the only way to pick market tops and bottoms.
Today’s news that the Feds are going to have to save Freddy Mac and Fanny May and the Feds closing Friday of Pasadena, Ca. IndyMac, combined with the melt down of the Monolines, and key investment bankers like Mer Lyn, Morgan, Citi, having to go out for capitol even to other countries, is disconcerting. Bad buzz about Downey in Ca. and the projection that about 150 banks will fail –today’s news- puts any seller in a position of needing a buyer that is not keeping up with the news.
I still think the P car is as good a place as any to spend non-needed money. However, the seller needs to be in the reality of today’s world. If not, there are other sellers, now and in the next year. As a buyer, be aware that you may not be able to sell your purchase if a cash crunch come into your life.
In a buying approach, you might mention that you want to wait a few days to watch the price of oil, the stock market, and the situation with the banking/loan institutions. This addresses problems that he may well be aware of and worried about--fear factor. Then, in a casual manner( after making a comment about a positive point of the car, color or whatever) ask if there is any wiggle room. Then you say nothing until he replies(very important). If he does not give a # but a response like -- make an offer, or what do you have in mind, do not propose an offer. Reply that you will give it some thought. If you go back, make him come up with a #. Then you can ppi and work down from there.
The gloomy if not scary news does not mean you should not buy, maybe in a contrarian manner; the time to buy is close at hand. However, be aware that the sellers are in trouble, as is our banking system and our economy. Banks are tight on lending, so buyers have trouble getting the $. If you have cash or access, you are in a dominate position. Overall, non-necessity things are selling slowly. For us that are Porsche, low miles pick up, or house/property interested, this looks very good compared to the last few years. Few, if any, see values going up within any seeable time frame. Most agree that values will continue to decrease. Going against the trend is the way to make good investments; however, if today is too soon, you could loose 25% or more of your purchase value. Unfortunately, hind sight is the only way to pick market tops and bottoms.
Today’s news that the Feds are going to have to save Freddy Mac and Fanny May and the Feds closing Friday of Pasadena, Ca. IndyMac, combined with the melt down of the Monolines, and key investment bankers like Mer Lyn, Morgan, Citi, having to go out for capitol even to other countries, is disconcerting. Bad buzz about Downey in Ca. and the projection that about 150 banks will fail –today’s news- puts any seller in a position of needing a buyer that is not keeping up with the news.
I still think the P car is as good a place as any to spend non-needed money. However, the seller needs to be in the reality of today’s world. If not, there are other sellers, now and in the next year. As a buyer, be aware that you may not be able to sell your purchase if a cash crunch come into your life.
In a buying approach, you might mention that you want to wait a few days to watch the price of oil, the stock market, and the situation with the banking/loan institutions. This addresses problems that he may well be aware of and worried about--fear factor. Then, in a casual manner( after making a comment about a positive point of the car, color or whatever) ask if there is any wiggle room. Then you say nothing until he replies(very important). If he does not give a # but a response like -- make an offer, or what do you have in mind, do not propose an offer. Reply that you will give it some thought. If you go back, make him come up with a #. Then you can ppi and work down from there.
07-14-2008, 05:51 PM
#12
Racer
Join Date: May 2007
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With my SC, I gave a number below asking price based on visual upside and underneith, and a driving test that included all 6 gears. We agreed on the price based on the results of the pending PPI. Adjustments would only go down if the PPI found any major issues.
End result: nothing untoward discovered in the PPI. Sold at original offer from me. Interestingly enough the seller suggested the PPI be done before I did (although I would have done one anyway).
Whether priced and offered before or after the PPI, the PPI is the final word on price, IMO.
End result: nothing untoward discovered in the PPI. Sold at original offer from me. Interestingly enough the seller suggested the PPI be done before I did (although I would have done one anyway).
Whether priced and offered before or after the PPI, the PPI is the final word on price, IMO.
07-14-2008, 07:55 PM
#14
Rennlist Member
Barry: Heckuva post! Thank you...
"Buyer": Leak down numbers can vary with the tester, engine temp, etc., but less than 10% per cylinder is the goal. Can't answer about compression - refer to the link below for why!
https://rennlist.com/forums/showthre...ter+Zimmermann
07-14-2008, 07:57 PM
#15
Rennlist Member
Thread Starter
Lets say PPI is decent, needs some maintance stuff, tires, brakes, valve adj. etc, Before you know it your at $1500. What would be the next best step? Should owner pay to have everything fixed or adjust the price of car $1500. Keep in mind we have an agreed price contingent on a successfull PPI.