Why are dealers hesitant to do European Delivery?
#1
Why are dealers hesitant to do European Delivery?
I've spoken with a few dealers now about a 992 GT3 waitlist. Some had no problem with doing ED. Others straight up said "no." Some said "no, for GT cars." How does the allocation process work differently with ED?
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Andi (12-29-2022)
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RossP (09-04-2020)
#3
Most dealers who understand the long-term benefits of creating more passionate customers (and the deferred benefit of another allocation) are happy to offer ED for free. Some less forward thinking dealers require the customer to pay the $3k ED fee, and the truly backwards dealers refuse ED entirely.
Last edited by GrantG; 09-02-2020 at 08:10 PM.
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Larry Cable (12-29-2022)
#5
The dealer has to pay upfront $3k for ED (most recent info I have), but they receive another Non-GT model allocation (a 992 Carrera variant in this case) in exchange. I think it also defers the accounting for the sale (may not count on their books until delivery or possibly re-delivery in US).
Most dealers who understand the long-term benefits of creating more passionate customers (and the deferred benefit of another allocation) are happy to offer ED for free. Some less forward thinking dealers require the customer to pay the $3k ED fee, and the truly backwards dealers refuse ED entirely.
Most dealers who understand the long-term benefits of creating more passionate customers (and the deferred benefit of another allocation) are happy to offer ED for free. Some less forward thinking dealers require the customer to pay the $3k ED fee, and the truly backwards dealers refuse ED entirely.
So, for a hypothetical scenario: A dealer is given an allocation for a 992 GT3. I take it and say I want to do ED, then that allocation is taken away from them (?) and given to Porsche directly and their GT3 allocation is replaced with a Carrera allocation. What do they lose in that scenario? The commission? Just the $3k? Sounds like a win-win to me if they don't lose commission, since it's basically an instant sell.
#6
I really appreciate your explanation! The one dealer I talked to that said "no" to ED said that it was basically a policy of the dealer to not do it for GT cars and yammered something about allocations, but I didn't understand it.
So, for a hypothetical scenario: A dealer is given an allocation for a 992 GT3. I take it and say I want to do ED, then that allocation is taken away from them (?) and given to Porsche directly and their GT3 allocation is replaced with a Carrera allocation. What do they lose in that scenario? The commission? Just the $3k? Sounds like a win-win to me if they don't lose commission, since it's basically an instant sell.
So, for a hypothetical scenario: A dealer is given an allocation for a 992 GT3. I take it and say I want to do ED, then that allocation is taken away from them (?) and given to Porsche directly and their GT3 allocation is replaced with a Carrera allocation. What do they lose in that scenario? The commission? Just the $3k? Sounds like a win-win to me if they don't lose commission, since it's basically an instant sell.
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Larry Cable (12-29-2022)
#7
Attempting to get on a waitlist for this car has proven to me that Tesla gets one thing right about the car buying process (not that I'm a Tesla fan at all otherwise).
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#10
First - What Grant said. A little bit more though: It s a bit of a sticky situation for the dealer. ED is advertised by Porsche as a no cost option but dealers need to pay the $3k. So dealers can either pass on the cost to you or eat the cost. It puts them in a bad position I think. It also makes negotiations on the price a bit more difficult. Some dealers just have a bad taste in their mouth because Porsche is making them pay for this cost so they thumb their nose at the whole program.
I've done 2 EDs since 2013 and another planned next year for the 992 GT3 if it is available by then. Both were 5% off and ED paid for by the dealer. My current arrangement with my local dealer (and another dealer as a backup) for the GT3 is MSRP and I pay the ED. I'm #1 on the list at one of them.
I've done 2 EDs since 2013 and another planned next year for the 992 GT3 if it is available by then. Both were 5% off and ED paid for by the dealer. My current arrangement with my local dealer (and another dealer as a backup) for the GT3 is MSRP and I pay the ED. I'm #1 on the list at one of them.
#11
First - What Grant said. A little bit more though: It s a bit of a sticky situation for the dealer. ED is advertised by Porsche as a no cost option but dealers need to pay the $3k. So dealers can either pass on the cost to you or eat the cost. It puts them in a bad position I think. It also makes negotiations on the price a bit more difficult. Some dealers just have a bad taste in their mouth because Porsche is making them pay for this cost so they thumb their nose at the whole program.
I've done 2 EDs since 2013 and another planned next year for the 992 GT3 if it is available by then. Both were 5% off and ED paid for by the dealer. My current arrangement with my local dealer (and another dealer as a backup) for the GT3 is MSRP and I pay the ED. I'm #1 on the list at one of them.
I've done 2 EDs since 2013 and another planned next year for the 992 GT3 if it is available by then. Both were 5% off and ED paid for by the dealer. My current arrangement with my local dealer (and another dealer as a backup) for the GT3 is MSRP and I pay the ED. I'm #1 on the list at one of them.
#12
ED used to be a way to enjoy picking up your car at the factory and saving a few dollars in the process. Mercedes was very active promoting ED and in the ‘50s and ‘60s the West German government strongly promoted US tourism. Even back in those days dealers often discouraged ED due to paperwork on their end, delivery uncertainties at the factory (special holidays, summer shutdown, and errors of specifications). Cars would often arrive at the US POE late, damaged, or vandalized. The selling dealer had to deal with the unhappy customer, not the factory. The majority of ED stories on RL appear very positive, but I do think some dealers believe the potential problems on their end are not worth the trouble. Many of these ED averse dealers don’t like Exclusive options, PTS, and custom orders in general. Selling off the lot is a known and predictable process for them.
Last edited by djcxxx; 09-06-2020 at 12:35 AM.
#14
I was actually told by a dealer that Porsche can now finance European Delivery cars, so this shouldn't be a problem anymore.
#15
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I love when our clients do ED.
Big issue now is transportation to and from (for you, the client) as the Covid thing evolves...we do not know what the next phase will bring. I think we do about 3-4 ED clients picking up cars per year...panamera, 911 GTS, GT3, sure- if you're a qualified client (Porsche Financial does the lending FYI) then there is no downside (other than not getting a clear film install). Right now, you have time to get the relationship going since it will likely be 12 months from today before you'd actually be picking the car up. Not sure you'd be getting the first car from anyone without buying history.
In the past, there have been issues getting SPECIFIC DATES because of factory hours, travel routes, etc. so the best way to do it (I've personally done euro delivery 2 times) is to plan on being there 4-5 days early and having a changeable ticket back. I actually left the last car there for a few weeks in storage, went back to California, flew back again, then dropped it at one of the designated drop spots.
*recommended routes vary by season*
Big issue now is transportation to and from (for you, the client) as the Covid thing evolves...we do not know what the next phase will bring. I think we do about 3-4 ED clients picking up cars per year...panamera, 911 GTS, GT3, sure- if you're a qualified client (Porsche Financial does the lending FYI) then there is no downside (other than not getting a clear film install). Right now, you have time to get the relationship going since it will likely be 12 months from today before you'd actually be picking the car up. Not sure you'd be getting the first car from anyone without buying history.
In the past, there have been issues getting SPECIFIC DATES because of factory hours, travel routes, etc. so the best way to do it (I've personally done euro delivery 2 times) is to plan on being there 4-5 days early and having a changeable ticket back. I actually left the last car there for a few weeks in storage, went back to California, flew back again, then dropped it at one of the designated drop spots.
*recommended routes vary by season*