Notices
991 GT3, GT3RS, GT2RS and 911R 2012-2019
Sponsored by:
Sponsored by:

ADMs and Sales Tax

Thread Tools
 
Search this Thread
 
Old 10-19-2017, 06:56 PM
  #16  
mchrono
Three Wheelin'
 
mchrono's Avatar
 
Join Date: Jul 2017
Posts: 1,265
Received 413 Likes on 257 Posts
Default

We have to remember that the OP is in California, where essentially everything is taxed. Cars are taxed at full sales price every time they are sold, even to subsequent owners. The state can wind up collecting perhaps 50% of the car's value during it's lifetime. There is no tax credit for trade-in either. Highly doubtful that OP will be able to avoid tax on the ADM, but please post update when you actually complete your .2 purchase!
Old 10-19-2017, 07:05 PM
  #17  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by STG
ADM isn €™t a service. It €™s the selling price of the car. Pay up, it €™s only money. You €™re in deep enough as is. What €™s an extra couple grand?
Haha - you just answered your own question: a couple extra grand is a couple of extra grand! I've never paid a markup before, so I'm not well-versed in the mechanics of it, hence my prodding on strategies. The way I see it is that there's no harm in asking a question if it turns up a way to save enough money to pay for a luxury weekend getaway in the new GT3!

Originally Posted by [i
If anyone wants to talk me out of my ADM with a mid-2018 delivery slot at MSRP, PM me!

What on earth does that mean?? You don't have an MSRP slot with an ADM attached to it. Or is this a veiled flip advertisement?
Sorry for the confusion; I'm certainly not trying to flip my already-marked-up allocation. That would be silly! It was my tongue-and-cheek way of saying "if anyone has a lead on an MSRP allocation without ADM attached, lemme know and I'll ditch my current one in a heartbeat." Unfortunately, out of the 30+ dealers I've called, the best I've been able to find is a five-figure markup.

Thanks again for the answers all! Late April can't come soon enough!!!

Cheers,

Kevin
Old 10-19-2017, 07:13 PM
  #18  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by mchrono
We have to remember that the OP is in California, where essentially everything is taxed. Cars are taxed at full sales price every time they are sold, even to subsequent owners. The state can wind up collecting perhaps 50% of the car's value during it's lifetime. There is no tax credit for trade-in either. Highly doubtful that OP will be able to avoid tax on the ADM, but please post update when you actually complete your .2 purchase!
One of the many financial penalties of living in California, it seems. Good thing real estate is cheap here to offset...

Will definitely post actively here where the .2 comes! Very excited to join the community and share in Porsche-related passion with y'all.
Old 10-19-2017, 07:26 PM
  #19  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by STG
ADM isn't a service. It's the selling price of the car. Pay up, it's only money. You're in deep enough as is. What's an extra couple grand?
Haha - I think you just answered your own question: a couple of grand is a couple of grand! I've never paid a dealer markup before, hence me asking questions about spend optimization strategies. The way I see it, if there's a legit way to save a few grand and put it towards a luxury weekend getaway in the GT3, why not?!?

Originally Posted by STG
Anyone wants to talk me out of my ADM with a mid-2018 delivery slot at MSRP, PM me!
What on earth does that mean?? You don't have an @MSRP slot with an ADM attached to it. It's not called an MSRP slot then. Or is this a veiled flip advertisement?
Sorry for any confusion; I'm certainly not trying to flip an already-marked-up allocation. That would be silly! That was my tongue-in-cheek way of saying "if anyone has a lead on an @MSRP allocation, let me know and I'll ditch my +ADM one quicker than you can blink an eye." Sadly, out of the 30+ dealers I've contacted, the best I've been able to find on my own is a low-five-figure markup. I'm hoping that there are smarter and more well-connected people than me here, just waiting for the chance to do a good deed for a fellow car nut. Haha!

Either way, I can't wait to have this fantastic machine in my garage. After having done wheel-to-wheel racing for 6+ years, and my work schedule forcing me into a racing hiatus for the past 3-4 years, I'm excited to have a machine for the street that approaches that same level of excitement on a daily basis!!!

Last edited by kbGT; 10-19-2017 at 07:42 PM.
Old 10-19-2017, 07:28 PM
  #20  
STG
Race Director
 
STG's Avatar
 
Join Date: Nov 2014
Location: FL
Posts: 13,800
Likes: 0
Received 193 Likes on 137 Posts
Default

^

Good luck. It will be an amazing car.

The chances of an MSRP allocation dropping out of the sky is slim to none. I think $10K-$15K for a configurable allocation seems to be the ADM going rate?
Old 10-19-2017, 07:40 PM
  #21  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by STG
^

Good luck. It will be an amazing car.

The chances of an MSRP allocation dropping out of the sky is slim to none. I think $10K-$15K for a configurable allocation seems to be the ADM going rate?
Seems like that's the *very* low end of the ADM market by now. Based on my personal experiences calling around, and what I'm seeing in various RL threads that beat the ADM topic to death, it seems like most slots are going for $20k at the low end, and $80k(!!!!) at the high end. Pretty nuts. Capitalism at its best, I suppose...
Old 10-19-2017, 10:37 PM
  #22  
nxfedlt1
Rennlist Member
 
nxfedlt1's Avatar
 
Join Date: Nov 2014
Location: HI - TX - FL
Posts: 1,217
Received 28 Likes on 20 Posts
Default

Originally Posted by kbaillie
Seems like that's the *very* low end of the ADM market by now. Based on my personal experiences calling around, and what I'm seeing in various RL threads that beat the ADM topic to death, it seems like most slots are going for $20k at the low end, and $80k(!!!!) at the high end. Pretty nuts. Capitalism at its best, I suppose...
80? uh... no. I think 20 is the high end based on the dealers with availability at that. We are still talking about the GT3 right and not another car?
Old 10-19-2017, 11:20 PM
  #23  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by nxfedlt1
80? uh... no. I think 20 is the high end based on the dealers with availability at that. We are still talking about the GT3 right and not another car?
Yes. That was not a typo. I had a sales person at a Bay Area-based dealership try to sell me a 2018 991.2 GT3 January build for $80,000 USD over MSRP. At first, I thought he'd said eighteen thousand, and he corrected me to eighty thousand when I first parroted his offer back to him. Just insane!

Most dealers I spoke with on the phone either said they were sold out (all non-ADM dealers were) and the vast majority of them (probably another 7 of the 30 I called) were $20k at the low end and most commonly $30-35k. I also had dealers try to tell me that a PDK allocation would be $20k, and a manual $30k...even though they come from the same damn pool of allocations! This was as of 2 weeks ago. If you have better luck than I, please let me know whom with!

Cheers,

Kevin
Old 10-19-2017, 11:35 PM
  #24  
WernerE
Three Wheelin'
 
WernerE's Avatar
 
Join Date: Jul 2014
Posts: 1,677
Received 263 Likes on 141 Posts
Default

Sorry, but ADMs are taxable in California (see below):

Are services subject to sales tax in California?

California does not generally collect sales taxes on services. However, services which are "inseparable from the sale of a physical product" (such as setup of a purchased machine) and fabrication/assembly services (services which create tangible personal property) are considered taxable.

Too, any dealer would be crazy to deliver a car without collecting sales tax on the ADM, because under audit the Board of Equalization will collect from the dealer, not the customer.
Old 10-20-2017, 01:38 PM
  #25  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by WernerE
Sorry, but ADMs are taxable in California (see below):

Are services subject to sales tax in California?

California does not generally collect sales taxes on services. However, services which are "inseparable from the sale of a physical product" (such as setup of a purchased machine) and fabrication/assembly services (services which create tangible personal property) are considered taxable.

Too, any dealer would be crazy to deliver a car without collecting sales tax on the ADM, because under audit the Board of Equalization will collect from the dealer, not the customer.
Well, there ya have it! Clear as day, and totally makes sense. Appreciate the answer.
Old 10-20-2017, 01:51 PM
  #26  
CAlexio
Race Director
 
CAlexio's Avatar
 
Join Date: May 2013
Location: Hypercar Invitational
Posts: 10,232
Received 1,963 Likes on 915 Posts
Default

Originally Posted by mchrono
We have to remember that the OP is in California, where essentially everything is taxed. Cars are taxed at full sales price every time they are sold, even to subsequent owners. The state can wind up collecting perhaps 50% of the car's value during it's lifetime. There is no tax credit for trade-in either. Highly doubtful that OP will be able to avoid tax on the ADM, but please post update when you actually complete your .2 purchase!
Which is one of the reasons I’m always surprised at how often people change cars here.. we just pay taxes over and Over on cars. I used to change cars frequently when j lived east coast, now just the idea of changing my mind on a car makes me shudder
Old 10-20-2017, 04:17 PM
  #27  
BillNye
Racer
 
BillNye's Avatar
 
Join Date: May 2017
Location: pseudoscience
Posts: 378
Likes: 0
Received 6 Likes on 5 Posts
Default

Originally Posted by mchrono
We have to remember that the OP is in California, where essentially everything is taxed. Cars are taxed at full sales price every time they are sold, even to subsequent owners. The state can wind up collecting perhaps 50% of the car's value during it's lifetime. There is no tax credit for trade-in either. Highly doubtful that OP will be able to avoid tax on the ADM, but please post update when you actually complete your .2 purchase!
Don't feel too badly. Michigan is the same way. And yearly plate renewals are based on the original MSRP (post 198x).
Old 10-20-2017, 05:55 PM
  #28  
996SPECticle
Pro
 
996SPECticle's Avatar
 
Join Date: Oct 2015
Posts: 523
Received 6 Likes on 6 Posts
Default

I almost see how the dealer could benefit unless you had satchels of cash or trades, but they could help if they wanted.This stuff is so easy at the lesser $$$ and dealer level, the %'s once @ GT3
Old 12-04-2017, 11:49 PM
  #29  
kbGT
Advanced
Thread Starter
 
kbGT's Avatar
 
Join Date: Oct 2017
Location: San Francisco Bay Area
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Default

Problem solved. Just scored an abandoned customer-spec'ed GT3 for end-of-month delivery at MSRP! Damn near the exact spec I was custom ordering. Woohoo!!!

You'll see me proudly posting snazzy pics of my ADM-free Carmine Red GT3 (6MT, buckets, PCCB) on my birthday (NYE) as I drive it up PCH. Can't wait!!!

Now, I just can't decide whether keeping the Carmine Red (6MT, buckets, PCCB) GT4 in the garage as well is massive overkill...I sure know what the wife thinks....

Cheers,

Kevin

Last edited by kbGT; 12-05-2017 at 01:31 PM.
Old 12-05-2017, 12:03 AM
  #30  
Billy Wyatt
Burning Brakes
 
Billy Wyatt's Avatar
 
Join Date: Jun 2006
Location: Scottsdale,AZ
Posts: 878
Received 29 Likes on 15 Posts
Default

Originally Posted by LexVan
Four little words:

Montana
L
L
C
So funny there we 3 ENZO's at Scottsdale Cars and Coffee this weekend and all had MONTANA plates.


Quick Reply: ADMs and Sales Tax



All times are GMT -3. The time now is 06:21 PM.