Porsche Cracking Down on Flippers?
#376
Rennlist Member
first crack down on the "customers" who are often in cahoots with the dealer, then go after dealer. I believe they are increasing supply so the dealer will be able to make more money via volume and service, remember to PCNA the dealer is their customer, not you. Increasing volume increases units sold and increases service dept revenues
#377
first crack down on the "customers" who are often in cahoots with the dealer, then go after dealer. I believe they are increasing supply so the dealer will be able to make more money via volume and service, remember to PCNA the dealer is their customer, not you. Increasing volume increases units sold and increases service dept revenues
#378
****
I find Alejandro Salomon sort of amusing.
But what he said at the start of the video
(above) needs clarification. He indeed
seems to have been an original owner* of
a 918. That is the only way he could have
qualified for the 918 VIP Program. When
Alejandro sold that & bought the second
918, that transaction did nothing to
provide him any additional privileges
under the 918 VIP Program!
Anyone that buys a second-hand 918
does not qualify for the VIP Program
- only the original owners! So I don't
know why he decided to mention his
second 918 purchase on this video
because that doesn't come with any
'privileges' re: the 918 VIP Program!
Alejandro sold his 918 after shortly after
he bought it. I really don't know how long
he kept it. But if he kept it for 6 months
from the date of his purchase, he has the
right to remain in the 918 VIP Program for
only 3 Years!
If, on the other hand, he would have kept
the original 918 he bought for 3 years, he
could have remained in the VIP Program
for at least 10 Years! This is my understanding
of how the 918 VIP Program works!
Given the fact that Alejandro is making a
nice living doing these videos & reviews
of new cars, I questioned (at the time that
he sold his 918) why he didn't keep for for
a full three years so that he could qualify
for 10 full years of the 918 VIP Program
& its 'right of first refusal' for all special
models - such as future gt cars & even
some non-gt cars like the Boxster Spyders.
For someone in his 'line of business', that
is a very useful & valuable program that
merited the longest membership possible!
*Undoubtedly Alejandro has 'sponsors' that
are fronting the money for his acquisitions.
And perhaps one of those 'sponsors' is the
real member of the 918 VIP Program & not
Alejandro. To my knowlege we have never
seen the 'pink slips' to see in who's name
are all of these cars. If Alejandro is only
the 'front' man & not the principle/owner,
that could explain a lot! Regardless, he has
found himself a nice 'internet' gig & he is
making the most of it! I respect that!
Saludos,
Eduardo
Scottsdale
Guy money doesn't come from Youtube, at all, this is something he wanted, the money already was there, I recall his first videos with the Pagani, how could he have bought a Pagani with a 0 subscriber channel?
Now on the cars, he is fairly smart, he buys/finances/leases a bunch of cars puts a couple of thousand on them and trades them/sells them and ends up losing or even breaking even while he gets to experience a LOT of cars, like most of us dream or want to do.
Just to recall his Porsches, 4.0 RS, 991 RS, 2 918, R, Carrera GT, this in what? 2 years? Plus dozens of other cars.
He keeps his cash flow fluid, gets to experience the cars, doesn't get beat by depreciation a lot, while rarely paying fully for any car. So he is smart and he doesn't have any sponsorships fronting him money.
On the 918, I don't remember why he sold it, but no way he would have stuck around with it 3 years just waiting for depreciation to hit and maintenance expenses stacking up, money that could be used to get a nice car or two.
By the time his program ends, he already has a decent repertoire with Porsche, so it won't make that big of a difference when trying to get one, might be left hanging for a couple but not for all.
As for the mention of the 918 with the Weissach pack and the Carrera GT he mentioned it, so people don't take him as a flipper, even if the turnaround of his cars are 3 to 6 months, he gets them because he wants to enjoy the car, if he makes money, the better. But it's easy to see that cars aren't all about profit for the guy, given a number of Rolls that he had and AMG's. There is nothing that depreciates more than AMG's and Rolls (Bentleys maybe).
P.S. Just to reinforce, Youtube can make some nice pocket change, but not hypercar money, not until the Millions of subscribers and very sharp business mind.
#380
The fact that you would label him "fairly smart" based purely on his ability to acquire 10M of cars and lose little to zero on these acquisitions is PRECISELY what is wrong with the entire sports car market. His lack of depreciation has NOTHING to do with his brains. It has EVERYTHING to do with him having money to begin with, getting preferential treatment from dealers, and this twilight zone era of sports car appreciating after purchase. The one word you said that makes sense "dream."
Why wouldn't he have preferential treatment (meaning getting an allocation)? The guy spent more in 2 years on Porsches than most Porsche owners will spend their entire lives. Why would he get it?
And he is smart enough to at least maintain whatever he either made or was handed to him. How many people actually were dumb enough to have multiple cars that they bought all cash and left hanging with the depreciation?
He is as financial smart as anyone with a car problem can be.
Where is the wrong in this?
I'm really struggling to follow, mainly that "His lack of depreciation has NOTHING to do with his brains. It has EVERYTHING to do with him having money, to begin with"
He isn't a broker. For example, when he sold his 918 he then bought a 918 with weissach package, during the times they were more expensive than they are now, before he had a 4.0, bought overpriced, same with the CGT, he has his R, the only Porsche I think he made a bit of coin was with the RS, while they were over appreciated.
How is he everything wrong with the sports car market?
Plus it's dumb to tie up cash in liabilities if it's not a dumb move and if you are a car nut, with a lot of cash around, sometimes people get dumb and get into spending sprees, that more times than not, will end up in filing bankruptcy and just burning money.
#381
Hello my fellow Canuck (Bonjour!),
There is no VIP program here in Canada. But the 918 owners are all "best" customers to their respective dealers so they always get first crack.
That said, my older brother will be getting whatever Porsche decides is the 918 successor and it really doesn't take much more than having a relationship with your dealer and the ability to drop the $200k+ Deposit that will be required to purchase said successor.
I've got him on my dealers radar for the GT2RS, but was told that it may be a long shot as there are 2 x 918 owners at my particular dealer.
GL mon ami!
There is no VIP program here in Canada. But the 918 owners are all "best" customers to their respective dealers so they always get first crack.
That said, my older brother will be getting whatever Porsche decides is the 918 successor and it really doesn't take much more than having a relationship with your dealer and the ability to drop the $200k+ Deposit that will be required to purchase said successor.
I've got him on my dealers radar for the GT2RS, but was told that it may be a long shot as there are 2 x 918 owners at my particular dealer.
GL mon ami!
#382
first crack down on the "customers" who are often in cahoots with the dealer, then go after dealer. I believe they are increasing supply so the dealer will be able to make more money via volume and service, remember to PCNA the dealer is their customer, not you. Increasing volume increases units sold and increases service dept revenues
#384
#385
Rennlist Member
Hello my fellow Canuck (Bonjour!),
There is no VIP program here in Canada. But the 918 owners are all "best" customers to their respective dealers so they always get first crack.
That said, my older brother will be getting whatever Porsche decides is the 918 successor and it really doesn't take much more than having a relationship with your dealer and the ability to drop the $200k+ Deposit that will be required to purchase said successor.
I've got him on my dealers radar for the GT2RS, but was told that it may be a long shot as there are 2 x 918 owners at my particular dealer.
GL mon ami!
There is no VIP program here in Canada. But the 918 owners are all "best" customers to their respective dealers so they always get first crack.
That said, my older brother will be getting whatever Porsche decides is the 918 successor and it really doesn't take much more than having a relationship with your dealer and the ability to drop the $200k+ Deposit that will be required to purchase said successor.
I've got him on my dealers radar for the GT2RS, but was told that it may be a long shot as there are 2 x 918 owners at my particular dealer.
GL mon ami!
To expand on that, yes there is no official 918 VIP program in Canada.
But Porsche Canada do honour the first right of refusal PCNA are giving to their 918 VIPs.
Existing 918 customers will get the courtesy, but if one sold their 918, the offer will be gone. There is no 3 year/10 year period. There was only 30 918s sold in Canada, and only 20 something customers (some bought multiple). As time goes by, there are not much more than 10 'original' owners left, say roughly 15.
So for any limited cars, if Canada is getting more than 15, the 'public' will also have access to the allocations.
Granted, the dealers will decide which of their customers will get the call outside of their 918 customers. But even if a customer of theirs sold their 918, they would have still bought at least 4 other cars from their dealers during the 918 ownership time and will be a 'very good' customer to the dealer, and hence probably will still get the call anyway.
#386
Drifting
^Whoopsy FTW! Thanks for the clarity
#387
Three Wheelin'
I think PCNA should first start cracking down on the low hanging fruit....dealers who buy other dealer GT allocations for over MSRP. Then look at the dealers who have new GT cars sitting in inventory beyond a few weeks as those are most likely dealer spec'ed GT cars trying to be sold at big mark-ups. PCNA should reduce the number of future GT allocations for that kind of bad behavior. That would quickly get the dealers in line with the program. These 2 are the most upsetting things that go on with some dealers. I'm fine if dealers want to try to sell for over MSRP to out-of-towners if they have taken care of their good customers.
However, if a dealer "earned" the allocation to begin with why should they give it up to another dealer for anything less than what they would sell the GT car for in their market? It doesn't really matter if we all agree with that dealers sales model or not, some dealers have customers willing to pay far above MSRP money for a GT car. If a dealer that is sitting on allocation wants to sell it to another store for big money over MSRP then thats on the other dealer and customer, not on the original allocation dealership.....fine by me. As I have stated there is no one solution to problem other than overbuilding these cars and then we will start endless posts about how Porsche screwed up everyones resale value!? I am so tired of value based threads it has me with living with migraines. You will always have loopholes in any system that won't get rid of problem 100%. The only solution I think that would work is a GT lease only situation up front that you technically don't own (PFS/PCNA does) with no early buyout clause for at least 2 years (or more). If you want out early then car is owned by PFS/PCNA and goes back to them and they figure out how the car enters the dealers inventory again. Yes I understand lots of details would be figured out and this is far from current setup but this would fix many (certainly not all) short term flipping issues (the crazies will still try to sub-lease the car out for profit or write contracts committing car at end of required period but by then maybe the next new thing will be announced and "desperate to own" people would have moved on). Also a couple of states are very lease unfriendly for one reason or another so that one obstacle with the lease only option.
Last edited by sccchiii; 06-14-2017 at 02:56 PM.
#388
Drifting
^I had this conversation with my dealer.. talk about lease only.. I advised them that as a customer, when I purchase something, it's mine and not (in this case) the dealers. I have no issues with RFR, after purchase for a period of 2-3 years.. but It's mine if I drop the coin for it.