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Auto Gallery 2016 GT3 35K over MSRP

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Old 08-29-2015, 09:13 AM
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Tacet-Conundrum
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Originally Posted by mrsullivan
I was told very few 2016 allocations. Maybe BS maybe not. I was told around 100 in U.S.
If you heard it from a salesperson or sales manager... Grain of salt as always!
Old 08-29-2015, 09:52 AM
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Originally Posted by Tacet-Conundrum
Just a little off topic but does Auto Gallery have their Pagani operation where they sell their Porsche's?

$35K over ATM is good for the LA market.
No. Porsche and Audi are together. I do not know where the other dealers in the group are but they are not by Porsche.
Old 08-29-2015, 10:02 AM
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I have had good experiences with Auto Gallery and David Lang. Another LA Porsche dealer bought back my friends allocation for $30k over MSRP. The market is LA is stupid and the 2016 GT3's are going to be few and far between.

Here is an idea...buy a used 2015 there are many for sale.
Old 08-29-2015, 10:15 AM
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One more point...the continued debate over MSRP is silly to me. The goal of any business is to maximize profits.

You want to talk about over MSRP...I was offered a 2011 GT3RS 4.0 this week for 340k over MSRP.
Old 08-29-2015, 10:48 AM
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Originally Posted by Spyerx
There are 2 dealers in SoCal worth working with, the rest, in my experience, SUCK.

Circle, and Walters.
How about Porsche of San Diego? When I got on their list for a GT4 I was told they always sell for MSRP or under. Hoehn, on the other hand, told me their GT4s would go for "Market" price.

TT
Old 08-29-2015, 10:59 AM
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There are a lot or doctors, lawyers, bankers, etc on here that people think rip them off. Don't buy it if you don't like their price. Eggs, milk, gas, WATER, rent, and a lot of other things cost more in LA than middle america too. "They are already making a lot of money" shouldn't be your reasoning for a lower price.
Old 08-29-2015, 11:12 AM
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Born and raised in LA, and leaned we just tolerated high prices just because they said so. However they still pick and choose who gets the MSRP deal no matter where you live LA is just worse.
Old 08-29-2015, 11:15 AM
  #23  
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It's a good think Porsche does not have Ferrari new car rules...
Old 08-29-2015, 11:15 AM
  #24  
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Agree that it's ridiculous for dealerships to be allowed to demand prices above MSRP but it could also be worse guys... Like a MSRP of US$315k in Aus for the base car... It's all relative...
Old 08-29-2015, 11:18 AM
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mrsullivan
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without turning this into an economic thread, there are some overly simplified views here --

dealers that charge over MSRP are scum...
supply/demand, dealers should charge as much as they can get, its a free market...

Both those black and white views are a bit too simplistic, in my opinion. There are other issues to consider here. A dealer might maximize a sale on one set of cars in the short term, but lose customers in the longer term and ultimately end up worse financially (to the earlier point of maximizing profits). There are also rules/policies and even laws about franchising, etc.

But the real story here is about PAG/PCNA, not the dealers.

My general view is that if Porsche allows dealers to charge anything they want, that is a PAG/PCNA problem, not the dealers. I have been shocked at the way Porsche has allowed this to happen, and it seems like more so over the last few years than before that. It would be an interesting economic analysis to see what Porsche (the brand, not the dealers) has lost in defection customers that have gone to Ferrari, McLaren, etc. because they couldn't get allocations at all, or could only get them at extreme premiums. My opinion is that Porsche is being shortsighted by allowing the dealers to do what they are doing. I think they should limit allocations, fine, annoying but fine, but limiting allocations so that the dealers can then gouge customers with inflated prices is not a good long-term plan. Illegal, probably no, but shortsighted I say yes. For the dealer, but especially for PAG/PCNA.

There are plenty of manufacturers that require their authorized resellers/retailers to sell their product at MSRP, not more. Porsche could do the same. And charge penalties/ yank license if there are infractions. Might cause Porsche to lose some $ in the short term, but build brand loyalty over long term.
Old 08-29-2015, 11:21 AM
  #26  
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Originally Posted by mrsullivan
But the real story here is about Porsche /PAG, not the dealers.

My general view is that if Porsche allows dealers to charge anything they want, that is a PAG/PCNA problem, not the dealers. I have been shocked at the way Porsche has allowed this to happen, and it seems like more so over the last few years than before that. It would be an interesting economic analysis to see what Porsche (the brand, not the dealers) has lost in defection customers that have gone to Ferrari, McLaren, etc. because they couldn't get allocations at all, or could only get them at extreme premiums. My opinion is that Porsche is being shortsighted by allowing the dealers to do what they are doing. I think they should limit allocations, fine, annoying but fine, but limiting allocations so that the dealers can then gouge customers with inflated prices is not a good long-term plan. Illegal, probably no, but shortsighted I say yes.
This... They should reduce allocations of high demand cars to dealers who choose to gouge their customers...
Old 08-29-2015, 12:14 PM
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Originally Posted by mrsullivan
without turning this into an economic thread, there are some overly simplified views here --

dealers that charge over MSRP are scum...
supply/demand, dealers should charge as much as they can get, its a free market...

Both those black and white views are a bit too simplistic, in my opinion. There are other issues to consider here. A dealer might maximize a sale on one set of cars in the short term, but lose customers in the longer term and ultimately end up worse financially (to the earlier point of maximizing profits). There are also rules/policies and even laws about franchising, etc.

But the real story here is about PAG/PCNA, not the dealers.

My general view is that if Porsche allows dealers to charge anything they want, that is a PAG/PCNA problem, not the dealers. I have been shocked at the way Porsche has allowed this to happen, and it seems like more so over the last few years than before that. It would be an interesting economic analysis to see what Porsche (the brand, not the dealers) has lost in defection customers that have gone to Ferrari, McLaren, etc. because they couldn't get allocations at all, or could only get them at extreme premiums. My opinion is that Porsche is being shortsighted by allowing the dealers to do what they are doing. I think they should limit allocations, fine, annoying but fine, but limiting allocations so that the dealers can then gouge customers with inflated prices is not a good long-term plan. Illegal, probably no, but shortsighted I say yes. For the dealer, but especially for PAG/PCNA.

There are plenty of manufacturers that require their authorized resellers/retailers to sell their product at MSRP, not more. Porsche could do the same. And charge penalties/ yank license if there are infractions. Might cause Porsche to lose some $ in the short term, but build brand loyalty over long term.
I have seen markups from just about every brand I would consider buying. Its not an issue unique to Porsche. What IS unique to Porsche is that they have the most in-demand products on the market.
Old 08-29-2015, 12:21 PM
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Originally Posted by Serge944
I have seen markups from just about every brand I would consider buying. Its not an issue unique to Porsche. What IS unique to Porsche is that they have the most in-demand products on the market.
if their product is so in demand (I agree that it is), they should just raise the MSRP at corporate headquarters vs. allowing eBay auctions at individual dealerships for their new vehicles...
Old 08-29-2015, 12:37 PM
  #29  
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Default Auto Gallery 2016 GT3 35K over MSRP

Originally Posted by mrsullivan
if their product is so in demand (I agree that it is), they should just raise the MSRP at corporate headquarters vs. allowing eBay auctions at individual dealerships for their new vehicles...
Let's not go there. Porsche pricing is already very high across ALL its models. Even the GT models are priced pretty high. If you want to be charitable, pay the dealer market adjustment.

When demand surpasses any supply, the aftermarket/blackmarket pricing reflects that. Whether it's an iPhone, toilet paper, or an RS. Simple economics.

The difference with the GT cars is that they artificially limit production below demand to create hype and want. This is all by design. They don't have that problem with the other models...
Old 08-29-2015, 12:42 PM
  #30  
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Default Auto Gallery 2016 GT3 35K over MSRP

The psychological aspect to this is interesting. Something is more desirable the harder it is to get. More people jump on board when there is competition for the hard to get "thing". It snowballs, and marketing at its best. Whether an attractive car or woman.


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