Dealer ADM's pushed 80's Porsche to try the Tesla model
11-25-2017, 05:41 PM
#46
RL Community Team
Rennlist Member
Rennlist Member
Why would any of the multibrand dealers stop selling Porsche when they are already doing very well? You guys make it sound like the dealer €™s only source of profit are GT cars. That can €™t be true.
If Porsche pulls their GT allocations they won €™t make as much money. Dealer will want to avoid this. Selling cars at msrp still make money. Certainly more money than no allocations at all.
Porsche pulls allocations from dealers who are found selling cars to people who export to other countries.
If Porsche pulls their GT allocations they won €™t make as much money. Dealer will want to avoid this. Selling cars at msrp still make money. Certainly more money than no allocations at all.
Porsche pulls allocations from dealers who are found selling cars to people who export to other countries.
I think what's missing in that analysis is that most dealerships have little control over the number of total allocations a manufacturer provides them. And once PAG dishes out an allocation, it books that allocation as sold, even though the car may actually sit on a dealer lot for months before title is actually transferred to a customer. In other words PAG has "sold" the car to the dealer. What the dealer does with that "sold" car is up to to them. When those cars sit on dealer lots for over 30 days, or 60 days, or whatever, there's lots of pressure on a dealer to unload those cars. Which is why dealers with non-GT cars on the ground will bargain. With the on-the-ground inventory becomes too extreme, dealers will start to discount heavily, and sell even at a loss because "less loss" is always better than "more loss". This makes the entire brand image of Porsche look bad. This is why dealers get trunk money, rebates, etc. If a dealer has to sell enough cars below their cost, not only will it lead to dealers turning away from Porsche, but it indirectly trickles up to corporate HQ and tarnish the brand.
11-25-2017, 06:18 PM
#47
Nordschleife Master
Originally Posted by ipse dixit
Most dealers do not sell cars at MSRP. Ever buy a 911? Or a Panamera? Even a Macan nowadays can be had for under MSRP.
I think what's missing in that analysis is that most dealerships have little control over the number of total allocations a manufacturer provides them. And once PAG dishes out an allocation, it books that allocation as sold, even though the car may actually sit on a dealer lot for months before title is actually transferred to a customer. In other words PAG has "sold" the car to the dealer. What the dealer does with that "sold" car is up to to them. When those cars sit on dealer lots for over 30 days, or 60 days, or whatever, there's lots of pressure on a dealer to unload those cars. Which is why dealers with non-GT cars on the ground will bargain. With the on-the-ground inventory becomes too extreme, dealers will start to discount heavily, and sell even at a loss because "less loss" is always better than "more loss". This makes the entire brand image of Porsche look bad. This is why dealers get trunk money, rebates, etc. If a dealer has to sell enough cars below their cost, not only will it lead to dealers turning away from Porsche, but it indirectly trickles up to corporate HQ and tarnish the brand.
I think what's missing in that analysis is that most dealerships have little control over the number of total allocations a manufacturer provides them. And once PAG dishes out an allocation, it books that allocation as sold, even though the car may actually sit on a dealer lot for months before title is actually transferred to a customer. In other words PAG has "sold" the car to the dealer. What the dealer does with that "sold" car is up to to them. When those cars sit on dealer lots for over 30 days, or 60 days, or whatever, there's lots of pressure on a dealer to unload those cars. Which is why dealers with non-GT cars on the ground will bargain. With the on-the-ground inventory becomes too extreme, dealers will start to discount heavily, and sell even at a loss because "less loss" is always better than "more loss". This makes the entire brand image of Porsche look bad. This is why dealers get trunk money, rebates, etc. If a dealer has to sell enough cars below their cost, not only will it lead to dealers turning away from Porsche, but it indirectly trickles up to corporate HQ and tarnish the brand.
If they don’t like it, close up shop and let us order direct from Porsche. It would be a great day for consumers in general when that happens. I don’t give a **** about bargaining and playing a stupid game to get a below msrp discount on regular cars. Everyone pays the same. If you don’t like the price, don’t buy it. If the cars aren’t selling, they can put on a sale that everyone can take advantage of, just like everything else we buy. No more ripping off elderly people and those who don’t know any better.
11-25-2017, 06:30 PM
#48
Nordschleife Master
Originally Posted by Archimedes
First, itÂ’s not a matter of retaliating. ItÂ’s simply a matter of that dealer not being motivated to sell some of the less desirable cars. If IÂ’m not getting the good stuff, I probably wonÂ’t be so willing to order a bunch of 4 banger MacanÂ’s with no margins or bloated Panameras that sit on the lot for 9 months before being sold below sticker. IÂ’d reoptimize my inventory, likely to the detriment of Porsche A.G. in nterms if volumes.
Second, in the U.S. the manufacturer cannot legally dictate to the dealers how they price the cars. And if they attempt to do through punitive means they can be liable for damages.
But back to my original point. Porsche doesnÂ’t care and has no interest in upsetting the apple cart that is their big dealers. IÂ’m sure Porsche isnÂ’t losing any sleep over losing a customer like me and gaining some rich whale who has no trouble writing a $25k over check.