hf1

Should have just stayed out when I first made the decision. My brain hurts from too much logical incoherence. I'm out.

gt-2

I agree.....logic and reason sucks when it actually makes sense?

ipse dixit

What's logic have anything to do with this?

Most folks here don't have enough facts to even begin to apply logic.

WernerE

Exactly. And yes, in reply to another post, 2016-2017 will probably be a high water mark for dealer profitability (and by extension, valuations). The automotive industry will likely see more change in the next 5 years than it has in the past 10-15. It's both an opportunity and a risk -- and probably more of the latter.

Manufacturers are already controlling dealerships like never before - why would they want to own them? Granted, there are some bad examples but name an industry that is free of them.

Personally, I think second stickers are counterproductive with building customer relationships, but I understand them.

Pokerhobo

Acoording to the NADA, dealerships make 44% of their profit from service. I'm sure the traditional manufacturers wouldn't mind getting that piece of the pie back. New car sales is 30% (which includes financing and leasing profits) and the remainder is from used car sales. Let's say hypothetically manufacturers were allowed to sell directly to consumers, I don't expect the big 3 to drop MSRP to invoice, but I wouldn't be surprised if the Korean manufacturers did which eventually would affect the domestics and eventually the luxury market to some extent.

WernerE

Net Profit or Net Income is 1-4% of gross sales. Stating NADA averages for departmental sales mix is irrelevant to the larger point made.

redleg321

Hard to apply logic when the topic is:

Buying from dealerships: Such a great idea, government has to force consumers to do it!

neoprufrok

Had to do the same thing on my Mclaren 675LT

neoprufrok

Not sure what brand you'd go to, but I haven't had the greatest experience with McLaren either. It's more of the same.. but worse. Since the cars depreciate like a rock. Ferrari? Well, nowadays, to get a car you have to buy another ferrari (California, 458, or Used FF) and sell it back to the dealer at a low *** price, so they make some profit and give you the allocation magically or you're forced to take whatever showroom 488GTB they have.

I'm actually new to the Porsche brand within the last year, but the cars are much better quality and technically to me that I will endure the retardedness of the GT allocation mess.. because it simply happens at every other brand...

EXCEPT maybe Lambo. But last I checked, I haven't seen many lambos flying around Sonoma with me recently (caveat that I have not driven nor seen the Performante Huracan)

neoprufrok

This. Dealer relationships mean a lot. I usually stick to one dealer. They treat me well. Drive my car to me, transport my car (McLaren) to the track after track inspection etc. My Porsche dealer (livermore) has been doing the same. Transports me (50+ miles) to and from dealer or pickup/drops my car off from my house. Has given me loaners for 1-2 days while my car is being worked on.. at a different shop (paint correction/clear bra)... All that stuff added value to the relationship. That I service my cars at the one dealership matters as well - they make money off of that as well. Problem is.. some dealers are not loyal to you even if you do do this.

hf1

ricsan

The 911R was a fish hook in the market.
If they really want to stop the speculation they can increase the production for each model and so the game is over.
No, they did a new GT3 with manual gearbox and probably with touring packet.

Pokerhobo

Your point was (paraphrasing) "who's going to spend millions to build a facility and hire people to work at that facility [if manufacturers sell directly to consumers]". My point is that a significant portion of profit (not gross income) comes from servicing sold vehicles and the manufacturers would not have a problem building service and delivery stores (not needing full blown dealerships that exist today).

STG

Porsche sells to 200 dealers now. Anyone know what it would take to sell to 200,000+ customers?? Porsche's sales would drop 40% overnight without dealers and showrooms.

So some of you guys are suggesting turning a whole MULTI BILLION $$$$ industry upside down because 1,000 or less forum guys can't get a car today at MSRP?

That's the most logical solution?? I hope you don't think this way in your careers.

ipse dixit

Or more importantly, anyone know what it's like to sell in 50 states, each with their own set of consumer rights and laws? Especially as it relates to financing, disclosure requirements, etc.?