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Porsche Cracking Down on Flippers?

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Old 06-04-2017, 02:59 PM
  #331  
GT3RS-Fan1
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Originally Posted by ipse dixit
With all due respect, I don't think anyone here has any right to tell others how to spend their money -- regardless of whether that money is spent on a hobby, or buying an appliance of some sort that is used to drive around in circles with.
I think this is a result of PORSCHE creating some awesome products. There are cars I value a lot so I use it sparingly. 911R is my latest one from last year's delivery acceptance and use it on late night cruises after I watch the late night show weather permitting. All of us buy things we enjoy and use them the way we want to use it. To me the 911R is the most fun car I've ever had. I am simply happy to be a recipient of one.

Originally Posted by Maverick787
Ditto, if they drive it or wax it daily they paid for it. We're not judges how people enjoy their cars. These comments have become quite silly.
I agree. There are cars I have no one else cleans and uses but me (members in the family don't drive manual) . There are special cars we've owned in our lifetime and how we use is dependent upon the owner.

Originally Posted by kavocat
I just woke up on a beautiful and lazy morning in Carmel and read this discussion. Having met Eduardo in person, and having corresponded offline, I can say he is a true gentleman. We can all agree or respectfully disagree about flippers and ADMs, but Eduardo always brings a necessary decorum to the forum (not to mention the invaluable PTS information he provides). He gets my vote for MVP of Rennlist.
I second that motion. Mr. Eduardo is very diplomatic in his post. He doesn't get riled up easy. I agree that I have learned a lot just by reading Eduardo's post on Paint-To-Sample (PTS) . I'm aspiring to have one of the cars into the future to be PTS. However just as many here have experienced, I am still contemplating about the agony of long wait due to the lengthy and stand by process of the PTS versus getting the new model as it becomes available. On the next numbered car, I will for sure shoot for PTS.

Drive safe,
GT3RS-Fan1
Old 06-04-2017, 03:19 PM
  #332  
dark knight
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Originally Posted by porscharu
The main issue with Porsche increasing supply to "cure" the problem is the additional exposure to risk. What happens when the additional inventory doesn't turn? It is sold below MSRP and cheapens the brand. You could make an argument that they don't mind the flippers because it allows a higher annual price increase. If scalpers are buying up all of the good seats to Taylor Swift's concerts the solution may not be only playing in 100,000 seat stadiums. It is a higher cost and dilutes the experience.
again if the only way to get the car was to order w nonrefundable deposit or pay up front this won't be a problem
Old 06-04-2017, 03:40 PM
  #333  
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I'd say Joe and Eduardo are both valuable contributors here on RL and both in it for the same passion for these cars in different ways.

A little disagreement on a subject like this happens and I'm sure all parties can move on with no hard feelings.

This is the major league and we can all handle a few fast pitches
Old 06-04-2017, 04:08 PM
  #334  
Z356
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Originally Posted by Nick
I am not sure why everyone is blaming the 918 VIP program
for the lack of allocations. It's my understanding that the
allocations to the 918 owners are not counted against the
dealer allocations...What am I missing?
Nick:

The 911R allocations for the US were mostly taken up by
918 VIP customers in this important Porsche market. The
exceptions were just a few. I know of only two non-918
owners that got a 911R in the United States - Rennlisters
C.J. Wilson & Suitcase. I am sure a few others won that
e-ticket...but not many. And that was & is the 'problem'.

US dealers were NOT able to get any additional 911R
allocations for their non-918 customers. The ones given
to 918 VIPs DID count against dealer totals! And then
there is something else related to this 'problem' that only
a few people here understand. In the US, customers that
decided to buy a 918 back in its day chose which dealer
they wanted to 'deal' with. There are many dealers that
got 5 or more customers with 918s. When the 911R were
allocated, the 918 VIPs took them & they ended up just
at the dealers normally associated with high-net worth
individuals. So you had a double-whammy:

A) Almost all US dealers not only did NOT have a 911R
to allocate to their customers.

B) But worse, some US dealers never even got a chance
to 'show off' at 911R in their expensive Porsche showroom
since they didn't have a 918 customer in their ranks!

Not surprisingly, many US dealers were very pissed!

And the combination of all of this is what really triggered
the changes we have seen now instituted by PCNA. First,
the 'holding period' required for 918 VIPs before they can
sell (e.g. 911R) has been set at one year from date of
purchase. And second, the so-called 'cracking down'
on Flippers, the topic of this thread. The third change
(we hope) is that in the future the number of units in
Limited Edition models will be increased to take into
consideration the take-rate of those in the 918 VIP
Program in the US!

PAG could/should have anticipated a problem with limiting
the production of 911R worldwide to 991 in light of the
number of customers they knew full well were in the US
918 VIP program! Sccchiii estimated in January these are
down to 250 from the original 286 US owners. And I think
Chaosoul has intimated PCNA has yanked the VIP privileges
for more 'flippers' since that date. So their numbers are
dwindling. As all of you know, the 918 VIP Program allows
its members 'first right of first refusal' for any new gt product,
although the courtesy was also extended for the non-gt 981
Spyder...and a few limited edition Panameras!





In my opinion, they could have made 1245 or more 991Rs
and taken care of this 'problem'. But they didn't and now
they must live with consequences of their lack of foresight.
Don't understimate the headaches & heartaches that have
occurred when lifetime US customers (that over the years
have bought Porsches that cumulative add up to more than
the cost of a 918
) felt they were not treated correctly & got
pissed. And their dealers had no choice but to voice these
complaints to PCNA & PAG. And thus the current 'crackdown'
on 'flippers'. It was the lack of 911R allocations for important
customers like these of that started the 'problem'. Remember
PAG cranked out MY2016 991 gt3 RS until way past expected
build dates to meet demand & sort of make up for their
restrictive allocations on the 911R. But that was not enough
to satisfy those that felt Porsche treated them - loyal US
customers - unfairly!

So that you all understand clearly the 'thinking' behind this
crackdown, I'll recount here an exchange I had last February
with someone very familiar with the 'problem' & well connected
with US dealers, PCNA & PAG:

Question by me:
"Is the initiative to curtail the flipping coming from PAG
or just PCNA?
"

Response by my 'contact':
"My (source of information) does not believe PAG cares
at all about this issue, this is a PCNA issue only currently.
Driven mostly by USA dealer complaints.
"

So caveat lector!

***
And this problem will continue if/when Porsche announces
the next Limited Edition gt model. My prediction is that we
will see the number set for those numbered/limited editions
set higher from now on - just to accommodate the expected
take rate from the US 918 VIP Program.

My dos centavos, for what it's worth.

Originally Posted by Nick
I do understand that some 918 owners flipped their
RS and GT3 allocations but this would not impact the
ADM surcharge.
I'll express my own opinion re: this matter on a future
post.

Saludos & Vaya Con Dios,
Eduardo
Scottsdale


Last edited by Z356; 06-04-2017 at 04:45 PM. Reason: spelling - 'editions'
Old 06-04-2017, 05:32 PM
  #335  
Petevb
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Originally Posted by Z356
Response by my 'contact':
"My (source of information) does not believe PAG cares
at all about this issue, this is a PCNA issue only currently.
Driven mostly by USA dealer complaints.
It continues to astound me how disconnected VWAG / Porsche seem to be from market, especially in the US.

Initially canceling the 911R program, then reinstating but dramatically underestimating the numbers it would sell in... Massively missing GT4 demand (worldwide). Complete disconnection re how pissed the VIP program has made their best (current and future) customers.

Honestly it's hard not to see it as amateur hour...
Old 06-04-2017, 06:06 PM
  #336  
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Speaking of irritating customers, I noticed a change to the Porsche website a few weeks ago, their new MSRP disclosure includes what I don't recall seeing before. I checked Canada as an example and the same language isn't there.

New Disclosure (emphasis added):
*Manufacturer’s Suggested Retail Price. Excludes tax; title; registration; delivery, processing and handling fee; dealer charges. Dealer sets actual selling price.

Then on the configurator the same thing applies:

* All information is subject to change without notice. Neither Porsche Cars North America, Inc. nor the manufacturer can accept liability arising from the use of any information contained herein. Only an actual invoice issued by PCNA at the time a vehicle is sold to an authorized Porsche dealer may be used as an official indication of equipment and pricing. The Total Manufacturer's Suggested Retail Price (MSRP) shown excludes taxes, title, registration, other optional or regionally required equipment, and dealer charges. The price and availability of Individually Commissioned Equipment (CXX) can be determined only after review and analysis by the manufacturer. Actual selling prices are set by dealers and may vary.
Old 06-04-2017, 07:27 PM
  #337  
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Originally Posted by porscharu
^^^^So a 7% drop in YTD CPO 911 sales. A 10% drop from 15-16 in 911 sales. Hmmm, do you see the writing on the walls? Contrast that with 42% growth from 15-16 and 28% growth in CPO YTD for the Macan. All of this at double the volume of the 911. They should be dedicating more capital and production scheduling to the Macan.
Originally Posted by STG
They're cranking out as many Macan's as they can. Also, made in a completely different factory and city than the 911's.
So if you take out GT3s, RSs, and Rs out of the 911 totals the drop is even larger. I'd allocation more capacity to GT cars from non-GT 911s.
Old 06-04-2017, 07:31 PM
  #338  
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Originally Posted by usctrojanGT3
So if you take out GT3s, RSs, and Rs out of the 911 totals the drop is even larger. I'd allocation more capacity to GT cars from non-GT 911s.
Carrera 991.2 sales are down over 991.1 NA's

718 4 banger Turbo sales are down over Boxster and Cayman NA's.

Very disappointing obviously coming off of a new facelift.

Porsche is having a tough time with sports car sales. Any upside potential is with the GT models period.
Old 06-04-2017, 07:38 PM
  #339  
Nick
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Eduardo, thanks for the response. I understand the R issue but I was referring to blame heaped on the VIP program for the lack of allocations regarding the GT3. Many assumed that 918 owners were getting them all but in fact the allocations remain the same for the dealer after parcelling out 918 owners.

Nate, this is a CYA disclaimer as well as an acknowledgement by Porsche that some dealers are charging ADM's. Implicit in the disclaimer is Porsche is accepting the greedy dealer practice.

Porsche is being shortsighted on this issue and it will come back to haunt them unless they take action (my understanding is Porsche recently stated to apply some pressure on dealers but certainly not enough).
Old 06-04-2017, 08:07 PM
  #340  
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Originally Posted by STG
Carrera 991.2 sales are down over 991.1 NA's

718 4 banger Turbo sales are down over Boxster and Cayman NA's.
Well... what did they think was going to happen? Did anyone not see that coming?

Originally Posted by STG
Porsche is having a tough time with sports car sales. Any upside potential is with the GT models period.
If you think about it though, the real purpose of Porsche sports car sales as far as Vwag is concerned is to justify profit margins on Maccans, etc. So selling less of the lower-end models and more of the GTs may increase the brand's value that they can milk with the Maccans.
Old 06-04-2017, 08:14 PM
  #341  
dark knight
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Originally Posted by usctrojanGT3
So if you take out GT3s, RSs, and Rs out of the 911 totals the drop is even larger. I'd allocation more capacity to GT cars from non-GT 911s.
Id support that move!
Old 06-04-2017, 08:55 PM
  #342  
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Unfortunately what makes the GT models attractive is they are NA. Porsche has emission requirements and without the 911 model range TT engines, they would have difficulty meeting the requirements.

If the GT3 was TT, not sure I would want one. It would all depend on the driving experience...sound, responsiveness and over all performance.
Old 06-04-2017, 09:26 PM
  #343  
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Originally Posted by Nick
Unfortunately what makes the GT models attractive is they are NA. Porsche has emission requirements and without the 911 model range TT engines, they would have difficulty meeting the requirements.
I don't think this is totally correct. Lamborghini doesn't have to meet emission requirements because parent Vwag can meet them off other Marquees and average the Lambos into the group, right? I think it would have been a better decision to do the same thing with Porsche, but obviously that's not the decision that they made.
Old 06-04-2017, 09:35 PM
  #344  
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Originally Posted by Dewinator
I don't think this is totally correct. Lamborghini doesn't have to meet emission requirements because parent Vwag can meet them off other Marquees and average the Lambos into the group, right? I think it would have been a better decision to do the same thing with Porsche, but obviously that's not the decision that they made.
Agree with this. As has been stated elsewhere, Porsche is now basically an SUV company with a sports car heritage. They sell more and make more money from Cayennes and Macans, than they do from 911s and Boxsters.

As STG pointed out, Porsche doesn't understand their market as well as they thought, given how they undervalued the GT4, how they thought they could eliminate manual GT cars, and thought they could just stick turbos in a 911, a car defined by sound, feel, and emotion, and think people would still line up to give them six figures for it.
This is much of the reason there is so much demand for the 991 GT3, because its still a true 911, while the carrera has become a clinical, soulless turbo grand tourer.

Would have been smarter to make all the non-sports cars turbo, (Cayenne, Macan, Panamera), while keeping the true sports cars NA, (911, Boxster, Cayman). Most of their sales/profit are still from the first 3 cars and Porsche could have pulled this off.

Instead, people are going crazy for news of the possible GT3 touring car, because so many people want a wingless but NA 911, however, Porsche doesn't sell that anymore.

Last edited by Drifting; 06-04-2017 at 10:10 PM.
Old 06-04-2017, 10:51 PM
  #345  
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Originally Posted by Drifting
Agree with this. As has been stated elsewhere, Porsche is now basically an SUV company with a sports car heritage. They sell more and make more money from Cayennes and Macans, than they do from 911s and Boxsters.

As STG pointed out, Porsche doesn't understand their market as well as they thought, given how they undervalued the GT4, how they thought they could eliminate manual GT cars, and thought they could just stick turbos in a 911, a car defined by sound, feel, and emotion, and think people would still line up to give them six figures for it.
This is much of the reason there is so much demand for the 991 GT3, because its still a true 911, while the carrera has become a clinical, soulless turbo grand tourer.

Would have been smarter to make all the non-sports cars turbo, (Cayenne, Macan, Panamera), while keeping the true sports cars NA, (911, Boxster, Cayman). Most of their sales/profit are still from the first 3 cars and Porsche could have pulled this off.

Instead, people are going crazy for news of the possible GT3 touring car, because so many people want a wingless but NA 911, however, Porsche doesn't sell that anymore.


Well said


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