shizzle

Up here in Canada, we've been lucky to avoid the whole over MSRP BS in the US... Until now!

A friend looking for a 991.2 GT3 contacted the new factory owned dealership in Toronto to see if he could get an allocation (all other dealers have huge lists). The dealership got back to him with a purchase agreement with the following conditions:

1. Cannot sell for 2 years without selling back to dealer at "depreciated market value and not for profit". Value to be determined by Porsche Financial Services.

2. Also agree to place lien on vehicle for the first year or 5,000km. Which ever comes first.

I'm on the list with another dealer, and have been assured a car. But if they were to make me sign something like this, i'd head straight down to the McLaren dealer, or better yet, buy a McLaren or Ferrari from the US and import it!

The sad thing is this is a factory dealer. I bet it won't be long before the other non-factory dealers follow suit.

SmokinGTS

You need to list the dealers name so we can all avoid this stealership. I was in Calgary a week ago and went into the new dealership there, absolutely beautiful and seems to be a stand up dealership.

shizzle

Porsche North Toronto.

RealityGT

North Toronto? LoL!
Seems a bit extreme .. but I guess because new customer?
.1RS flipping escapade along with GT4 is likely the motivating factor for most dealers to do this.
He should just sign of on a right of first refusal.. I mean, if he wants to build a relationship and does intend to keep the car..

RealityGT

Ha! posted same time.. anyway..
The car is still MSRP... so while I see the ask a bit extreme, it's not Cali bad..

shizzle

^ Well, it's only MSRP if he keeps it. Otherwise, he'll take a pretty decent hit (assuming gt3 market stays where it is), and it won't stop dealerships from seriously marking them up. Worse if he decides to go for an RS after a while, and gets nailed on trade-in when he could do way better outside of this deal.

orthojoe

factory owned dealership? They have these in Canada? When will they start doing this in the US?
It seems like a solid way to prevent flipping?
This scenario would work out well for me since I keep my GT cars until the next cycle of GT cars arrive, which is about 2-3 years.

shizzle

^Yup. PAG owns this dealership. All the other Toronto area dealers are actually suing PAG over them opening their own store.

I agree for non-flippers it's a non-issue, but what if you decide to go from GT3 to an RS once it's released?

tstafford

I would have agreed to those terms to get my RS at MSRP.

RealityGT

I am sure if he took the time to build a relationship with the dealership they wouldn't ding him on an "upgrade".. and if he is leasing/financing through porsche, why not be happy with just breaking even?
Allow the dealership to make the extra on the market and they will appreciate it.

manitou202

If the terms for calculating the depreciated market value seem fair, I would have no problem signing an agreement like this. Most of us who want GT3's plan on keeping them for at least several years and have no intention of flipping them for a quick profit. If this is what it takes to stop this kind of behavior then I'm all for it.

RealityGT

I was told that a private company opened that dealership? where did you hear it was PAG?

shizzle

^Yup. PAG through Porsche Canada owns the dealership - http://www.newswire.ca/news-releases...543464642.html.

The scenario is a non-issue for people who keep their cars more than 2 years, but what happens to those who decide to move up to an RS? If they're going to this extreme, I highly doubt they'll cut a decent deal on trade-in. In principal, this is a BS move. Porsche should do more to ban exporters (a Canadian 911R was shipped pretty much right after delivery to the US, and for sale on Rennlist and Porsche hasn't done a thing about it yet). I agree flipping is a problem, but to me the better solution is to use ownership history, location and blacklists rather than these draconian measures.

orthojoe

That is awesome.

I'll bet the toronto area dealers are shi*tting their pants. NADA here in the US is fighting Telsa tooth and nail because they KNOW it is a death sentence for them if direct sales start taking hold.

If I go from GT3 to RS 12 months later, then I will gladly sell back to the dealer at a fair price to get an RS at MSRP. I never expect to make money or get all of my money back on a car. Ever. The car SHOULD depreciate. I'm going to not only drive it, but flog the hell out of it on track.

mehoff

I don't understand the outrage. I think this is a fantastic idea.

THIS IS A FANTASTIC IDEA!!!!

Completely eliminates the flipping idiocy. I understand that people like to get in and out of cars, but only 2 years...please. That's a non-issue.

Next we'll hear the "falling on hard times" argument, which precludes itself given the very high dollar entry.

If this was in place 1.5 years ago I'd still be a Porsche customer (late model).

Edit: for those concerned about upgrading to an RS, I see the logic. I also guarantee a stated trade-in value based on mileage and condition can be negotiated.