Another interesting tidbit my dealer told me. (the head honcho at the store) He said they must return any 'buy-backs' to PCNA. They cannot keep them and resell once the engine is replaced. He was hopeful they would be offered to dealers in an auction format so they could be resold, but had no other details.

I say - send them to Birmingham for use by the PSDS! I'd sign up for sure!

 

Trainwreck

 

Very interesting! Why would PCNA want them and not allow the dealer to sell them? What will PCNA do with the cars? I very much doubt they would turn these cars over to the Porsche driving school.

 

Mikein CA: My wife's S4 just went in for service. Must be our wife's fault.

 

I'm sure of it....

 

If that's true probably going to the country with the mostest ie China. They can sell those cars 4times the price and recoup the costs plus more and make out like a bandit. Mike

 

Did you guys say that PCNA isn't putting the $2k comp in writing? Does anyone know how they plan to pay that? My dealer says he has nothing to do with it...and he expects me to write the full check when I show up for delivery in November, for my May car.

I still cannot believe how badly Porsche is managing this situation and me, as a customer. If I managed my own business or customers in a manner anything close to this badly, I wouldn't be able to stay in my business for very long.

 

It's true. We pay for the car in full. Upon confirmation of the sale, we notify PCNA and they will then send us the comp check and certification documents for the new engine directly.

 

Great. Thanks for making us pay completely unnecessary tax

 

Agreed. Having the comp calculated as a net discount to purchase price would have been so much better.

 

You nailed it! Dealerships charge Porsche a significant amount of markup for warranty parts. As most know, we all get "discounts" when we buy parts out of warranty and they still make money. The markup is huge. That is the main (if not sole) reason, in my opinion (AKA fact on Rennlist) the engines are swapped at ports.

 

It is my understanding that the engines were shipped with all the parts necessary for replacement. According to PH and RT posters their dealers had to delay the install waiting for the required parts. So I am not sure that is the reason. If I had to guess, PAG decided that having its technicians do the work was cheaper.

Regarding whether the compensation checks are taxable my view is they are not. The $2000 a month was to compensate for loss of use and possible depreciation. I very much doubt that PCNA will send us 1099's on the amount. I cannot see how the IRS can view this as income.

 

I believe they were talking about sales tax on the new purchase. Had they reduced sales price by the amount of comp the tax wouldn't have to be paid.

 

Yep. Plus if the price of the car were merely reduced, than the annual registration fee would be based off of a lower basis...

But, alas, that's not how they decided to do it--so it's all moot.

 

I agree with that. I would imagine PAG's techs are paid the same as US techs or at least within the same ballpark. Then they have to fly, lodge and feed them. The only way this becomes cheaper to PAG is if the engine itself costs significantly less if not installed (and sold) by the dealer. Engine retail is $50K+. Engine costs PAG much less ($30-35??). When the dealer installs the engine in warranty, they will charge PAG retail cost. If PAG saves $10-15K (conservative) on each engine swap, that's $400K-$600K! My two cents.