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New GT3/GT2RS Leads With/Without ADM

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Old 03-13-2019, 09:31 PM
  #4156  
joejenie
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Originally Posted by hf1


You’re confused. Franchise laws FORCE manufactirers to sell through dealers. Capitalism would be if/when anyone was free to sell to whoemever they want or directly to the highest bidder. A dealer getting 10 allocations (below market, at invoice) for himself, then attaching obscene adm’s to them thus creating fake scarcity is not capitalism — it’s crony capitalism at best, and (dealer) socialism at worst.
No, I'm not confused at all. You don't have to buy a Porsche. Plenty of other brands out there if you don't like their games. Just like there are other homebuilders if buyers don't like my games. Tesla is slowly proving the need of dealers. It's impossible to build an in house service set up for everyone everywhere and do it well. My prediction is Tesla caves at some point and will go with dealers too.
Old 03-13-2019, 09:41 PM
  #4157  
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Originally Posted by joejenie
No, I'm not confused at all. You don't have to buy a Porsche. Plenty of other brands out there if you don't like their games. Just like there are other homebuilders if buyers don't like my games. Tesla is slowly proving the need of dealers. It's impossible to build an in house service set up for everyone everywhere and do it well. My prediction is Tesla caves at some point and will go with dealers too.
Not to get off the topic, well I just did, but this will be interesting to watch. Or Tesla continues to sell a butt load without dealers and proves you don’t need them. Time will tell.
Old 03-13-2019, 09:49 PM
  #4158  
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Originally Posted by hf1


Why? Why wouldn’t the “relevant market price” be the $304k that the seller received? The seller was selling in the “market” just as much as the buyer was buying in it, no?
Buyer looking for a 2RS simply evaluates the various cars available and buys the one he/she likes at a price acceptable to them -- in this case $357k. Regardless of what you call it, the buyer's premium is known in advance and part of that "price". Seller chose to go the auction route, rather than other avenues, and turn over a big chunk to the house. The "market transaction price" was simply shared by the seller and the house. That's how I see it. Others might see it differently.
Old 03-13-2019, 09:54 PM
  #4159  
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Originally Posted by rick brooklyn
I don't get the point of auctioning current model cars. If that seller had posted the car at $325k firm here on rennlist he probably would have sold at that price within a week or two. What did the buyer and seller achieve by crossing at an auction aside from pissing money away.
Seller drank too much Kool Aide from the auction house and was expecting a bidding war that netted him $500k.
Old 03-13-2019, 10:29 PM
  #4160  
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Originally Posted by joejenie
No, I'm not confused at all. You don't have to buy a Porsche. Plenty of other brands out there if you don't like their games. Just like there are other homebuilders if buyers don't like my games. Tesla is slowly proving the need of dealers. It's impossible to build an in house service set up for everyone everywhere and do it well. My prediction is Tesla caves at some point and will go with dealers too.
You do understand that dealer franchise laws din’t only apply to Porsche, no? The “game” here is that a bunch of dealers have lobbied goons with guns to threaten manufacturers with force if they don’t exclusively sell their product through the dealer cartel. You are confused if you think that this has anything to do with capitalism or free markets.
Old 03-13-2019, 10:37 PM
  #4161  
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Originally Posted by hf1


You do understand that dealer franchise laws din’t only apply to Porsche, no? The “game” here is that a bunch of dealers have lobbied goons with guns to threaten manufacturers with force if they don’t exclusively sell their product through the dealer cartel. You are confused if you think that this has anything to do with capitalism or free markets.
Don't know why I'm still responding, but what the hell. Yes, I understand and yes, that part of the franchise laws can be detrimental. I get it. Even if you take that part of the law away, do you really see Porsche or other OEMs ruining their brands by letting anyone sell their cars? I don't see it. I don't see them going direct either. Can't service the customer. I think they are both in bed together and it is what it is. Porsche doesn't do anything about ADMs because they use it to tell the dealer no on trunk money for other poorly selling cars. Porsche in a round about way is getting benefits from the ADM.
Old 03-13-2019, 11:20 PM
  #4162  
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Originally Posted by joejenie
I don't see them going direct either.
They totally tried to go direct in the '80s, meaning factory-owned dealerships, and they got sued and they gave up.
Old 03-13-2019, 11:35 PM
  #4163  
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Originally Posted by joejenie
Even if you take that part of the law away, do you really see Porsche or other OEMs ruining their brands by letting anyone sell their cars? I don't see it.
There's one good way of finding out -- repeal franchise laws. Are you saying that franchise laws are "protecting" OEMs from ruining their brands? LOL.
Why would OEMs let "anyone" who would ruin their brands sell their cars? Why not just let them sell their cars however they want, just like producers of phones, carrots, and shoes do it?

Porsche tried to do just that in the 80's and the dealer lobby stopped it. Maybe Tesla will have better luck.
Old 03-13-2019, 11:45 PM
  #4164  
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Originally Posted by Avalon911
Buyer looking for a 2RS simply evaluates the various cars available and buys the one he/she likes at a price acceptable to them -- in this case $357k. Regardless of what you call it, the buyer's premium is known in advance and part of that "price". Seller chose to go the auction route, rather than other avenues, and turn over a big chunk to the house. The "market transaction price" was simply shared by the seller and the house. That's how I see it. Others might see it differently.
In the same way, the seller evaluates the various buyers available and sells to the one he likes at the price acceptable to him -- in this case $304k. Why is the price that's acceptable to the buyer more "relevant" than the price that's acceptable to the seller? There are buyers and sellers in a market, one doesn't go without the other.
Old 03-14-2019, 12:02 AM
  #4165  
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Originally Posted by hf1
In the same way, the seller evaluates the various buyers available and sells to the one he likes at the price acceptable to him -- in this case $304k. Why is the price that's acceptable to the buyer more "relevant" than the price that's acceptable to the seller? There are buyers and sellers in a market, one doesn't go without the other.
If a car was sold through consignment through a dealer at a 10 percent fee, what would you consider the “market” price to be in that case?
Old 03-14-2019, 12:03 AM
  #4166  
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Originally Posted by hf1
In the same way, the seller evaluates the various buyers available and sells to the one he likes at the price acceptable to him -- in this case $304k. Why is the price that's acceptable to the buyer more "relevant" than the price that's acceptable to the seller? There are buyers and sellers in a market, one doesn't go without the other.
Because you’re ignoring the 50k that was made by the auction. You think the buyer didn’t take the extra 12 percent into consideration while bidding? If there was no 12 percent premium to the buyer, you think the final price would still be 320k?
Old 03-14-2019, 01:29 AM
  #4167  
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Originally Posted by konaforever
If a car was sold through consignment through a dealer at a 10 percent fee, what would you consider the “market” price to be in that case?
Originally Posted by konaforever
Because you’re ignoring the 50k that was made by the auction. You think the buyer didn’t take the extra 12 percent into consideration while bidding? If there was no 12 percent premium to the buyer, you think the final price would still be 320k?
There are three quantities in every transaction:
1. The total price the buyer pays.
2. The net price the seller receives
3. Transaction costs = 1 - 2

Both 1 and 2 are equally relevant as market prices. 1 is acceptable to a buyer and 2 is acceptable to a seller. 2 is a data point reflecting a price at which a seller is willing to sell, just like 1 is a price at which a buyer is willing to buy.
Old 03-14-2019, 01:42 AM
  #4168  
usctrojanGT3
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I know this won't happen, but it'd be cool if Porsche sold cars direct like Tesla and then would deliver the cars to the local dealers (paying the dealers a fee for each delivery) and then the dealer would provide repair/service (it's this dept that pays the bills at dealers anyhow).

Riddle me this, why is it that Ferrari "encourages" their US dealers to sell their cars at MSRP and Porsche can't or won't?
Old 03-14-2019, 01:51 AM
  #4169  
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Originally Posted by usctrojanGT3
I know this won't happen, but it'd be cool if Porsche sold cars direct like Tesla and then would deliver the cars to the local dealers (paying the dealers a fee for each delivery) and then the dealer would provide repair/service (it's this dept that pays the bills at dealers anyhow).

Riddle me this, why is it that Ferrari "encourages" their US dealers to sell their cars at MSRP and Porsche can't or won't?
Yeah I'm not so sure about the ethics of Ferrari dealers. Every time I've been in a Ferrari dealership there's something about them that makes my skin crawl.
Old 03-14-2019, 01:52 AM
  #4170  
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Ferrari dealers play plenty of games - "sponsor our race team", "you must buy cars you don't want, before we allocate you something good". etc.


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