Allocation + ADM?
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03-14-2021 | 11:22 AM
#423
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Joined: Nov 2019
Posts: 240
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From: Newport Beach, CA
ADM vs. GT cars retained value
Two problems with your theory in my opinion.
1. Paying an ADM does nothing for future value. No one cares what you paid for your car. They look at the MSRP and current value and base their buying decision on that. Say what you want but paying an ADM is like burning money. Again if you got it, spend it by all means just like the guy above is but please don't say "they will likely see that amount and more in greater retained value". You will not see a dime of that ADM in the future. It is gone. ADM is simply the price you are paying to enjoy something now rather than give up those memories now for memories in the future. Like taking a vacation.
2. Porsche does not care what their brand ambassadors think or what they will say. They will sell literally every last GT car they make. Also it isn't them that are doing the ADM's or setting the "market value". It is the dealer and they have zero control over a dealer backing out of a past hand shake to sell to the highest bidder. Oh yeah also the dealer could care less as well. They are going to and have done this practice since GT cars have come out. Some dealers are great and take care of their customer with no ADM cars, others do not.
1. Paying an ADM does nothing for future value. No one cares what you paid for your car. They look at the MSRP and current value and base their buying decision on that. Say what you want but paying an ADM is like burning money. Again if you got it, spend it by all means just like the guy above is but please don't say "they will likely see that amount and more in greater retained value". You will not see a dime of that ADM in the future. It is gone. ADM is simply the price you are paying to enjoy something now rather than give up those memories now for memories in the future. Like taking a vacation.
2. Porsche does not care what their brand ambassadors think or what they will say. They will sell literally every last GT car they make. Also it isn't them that are doing the ADM's or setting the "market value". It is the dealer and they have zero control over a dealer backing out of a past hand shake to sell to the highest bidder. Oh yeah also the dealer could care less as well. They are going to and have done this practice since GT cars have come out. Some dealers are great and take care of their customer with no ADM cars, others do not.
"Guess what. All those that didn't pay ADM get the same value proposition. It ain't any different if you paid ADM or not. The used car market determines the final price.
Your argument is flawed from the git-go. But if it justifies you paying ADM in your mind; go for it."
REPLY:
The point re: paying an ADM of $10-15K is not about using that as leverage when selling the car or trading it in, it's about the fact that the GT cars have traditionally held their value better than other 911 models. I did a quick check of available 911s on AutoTrader (looking at Porsche store inventory - there very too few preowned 911s). The retail numbers on a 2018 GT3 vs. a Turbo or Turbo S are comparable. So my point is that for someone who wants a GT3 (for the right reasons - poseurs go away) and who typically trades every 3 to 4 years, the retained value of GT cars can offset the pain of an ADM. Of course, those who don't pay an ADM are money ahead, but the CA dealer who sold me my 991.2 GT3 and the two 911s before that would have charged me an ADM and I was out. I was told by a customer care manager at a CA dealership that Porsche has taken away dealer holdbacks on GT cars which was driving ADMs. Perhaps not so much Covid impact, though, because that person told me that their business had been strong all year with record Nov, Dec, Jan., Feb. numbers.
I'm in VA now and need a car for long trips that's makes sense on poorly maintained roads, so I'm moving to a Turbo S with an April build per TYD.
I agree that Porsche, whether GmbH or NA will want dealers to be profitable, which presumably frees up money for capital improvements, etc., so for those dealers that will only focus on the bottom line, forget a reliable, long-term relationship. But there are exceptions and I believe a customer can build a relationship with a dealer if the dealer is so inclined. Buyer's choice, buyer beware.
03-14-2021 | 04:04 PM
#424
Race Car
Joined: Jun 2018
Posts: 3,835
Likes: 1,543
From: Somewhere out East
Actually it's burning "hard earned money" for experiences in life, in the present. Which, in many respects, is priceless.
It's like that toy your kid wants for Christmas. It's $10 on Dec. 24, and $5 on Dec. 26. But you'll pay the $10 because having your child experience the joy of opening up a Christmas gift on Christmas Day is priceless and certainly worth more than the $5 you'll save by giving it to your child on the 26th.
As I've said before, you can always make more money. Time? Not so much.
It's like that toy your kid wants for Christmas. It's $10 on Dec. 24, and $5 on Dec. 26. But you'll pay the $10 because having your child experience the joy of opening up a Christmas gift on Christmas Day is priceless and certainly worth more than the $5 you'll save by giving it to your child on the 26th.
As I've said before, you can always make more money. Time? Not so much.
03-14-2021 | 04:19 PM
#425
Race Car
Joined: Jun 2018
Posts: 3,835
Likes: 1,543
From: Somewhere out East
If it was a Speedster though, I just may have to drop my trousers.
Last edited by chance6; 03-14-2021 at 04:49 PM.
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michaeldorian (03-14-2021)
03-15-2021 | 12:05 AM
#426
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From: Madison, MS
03-15-2021 | 12:20 AM
#427
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Joined: Oct 2016
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So all the members loyal to their respective dealers that were expecting an MSRP car now being hit with an ADM, weren't all those past purchases cars/service/parts etc a form of ADM? What's the count? How many dealers have done right by maybe one member on here outside of 918 VIP.
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F14sharky1 (08-14-2021)
03-15-2021 | 09:27 AM
#428
Burning Brakes
Joined: Feb 2015
Posts: 973
Likes: 393
From: Bloomfield Hills, Michigan
So all the members loyal to their respective dealers that were expecting an MSRP car now being hit with an ADM, weren't all those past purchases cars/service/parts etc a form of ADM? What's the count? How many dealers have done right by maybe one member on here outside of 918 VIP.
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alibo70 (03-15-2021)
03-15-2021 | 11:24 AM
#429
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Joined: Feb 2013
Posts: 16,904
Likes: 4,195
So all the members loyal to their respective dealers that were expecting an MSRP car now being hit with an ADM, weren't all those past purchases cars/service/parts etc a form of ADM? What's the count? How many dealers have done right by maybe one member on here outside of 918 VIP.
03-15-2021 | 01:58 PM
#430
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Joined: Mar 2016
Posts: 621
Likes: 290
From: Boston, MA
My dealer said I could get an allocation for a $60K ADM. I suggested I’d consider $30K, and he told me he’d consider it if I was ready to put down a deposit and to let him know if/when I’m serious.
This would be my second 911 / purchase from the dealer.
The ability to option a GT3 (this would be my first and perhaps only) is definitely worth a premium to me. A $30K premium though.... not so sure. A $60K premium. Definitely not.
I could get a couple nice air cooled cars for that kind of money. Tough decision.
This would be my second 911 / purchase from the dealer.
The ability to option a GT3 (this would be my first and perhaps only) is definitely worth a premium to me. A $30K premium though.... not so sure. A $60K premium. Definitely not.
I could get a couple nice air cooled cars for that kind of money. Tough decision.
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AlexCeres (03-17-2021)
03-15-2021 | 02:20 PM
#431
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Joined: Nov 2020
Posts: 985
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My dealer said I could get an allocation for a $60K ADM. I suggested I’d consider $30K, and he told me he’d consider it if I was ready to put down a deposit and to let him know if/when I’m serious.
This would be my second 911 / purchase from the dealer.
The ability to option a GT3 (this would be my first and perhaps only) is definitely worth a premium to me. A $30K premium though.... not so sure. A $60K premium. Definitely not.
I could get a couple nice air cooled cars for that kind of money. Tough decision.
This would be my second 911 / purchase from the dealer.
The ability to option a GT3 (this would be my first and perhaps only) is definitely worth a premium to me. A $30K premium though.... not so sure. A $60K premium. Definitely not.
I could get a couple nice air cooled cars for that kind of money. Tough decision.
03-15-2021 | 02:59 PM
#432
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Joined: Mar 2016
Posts: 621
Likes: 290
From: Boston, MA
I'll be honest you are going to regret spending 30k ADM on this...even optioned out. Every generation of GT they have made more and more. I'd expect the 992 to be even bigger yet. Porsche is no fool, they are going to milk the GTs for as much as they can because they know at some point the new market is going to die as they are forced to switch to Hybrid or full on Electric.
But I would like to spec my own GT3 while they’re still MT NA and run solely on Dino fuel.
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AlexCeres (03-17-2021)
03-15-2021 | 03:26 PM
#433
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Joined: Mar 2019
Posts: 3,468
Likes: 3,234
So all the members loyal to their respective dealers that were expecting an MSRP car now being hit with an ADM, weren't all those past purchases cars/service/parts etc a form of ADM? What's the count? How many dealers have done right by maybe one member on here outside of 918 VIP.
03-15-2021 | 04:01 PM
#435
Banned
Joined: Mar 2015
Posts: 3,754
Likes: 745
From: Kentucky
I've bought all my GT cars from my dealer for MSRP and get a discount on the non-GT cars (Macan/Cayenne) that I buy from them along with free shipping. They've also given me very fair values on the cars that I've traded in. I'm not a big fish but I always thank them for being so easy to work with and don't constantly bug them.
The folks I feel awful for are the ones that have a deposit on a hand shake deal at MSRP and now that the dealer has their allocations they are coming back and demanding an ADM. Sadly a good old hand shake, promise, gentlemen's agreement etc are all gone is this day and age of greed.
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michaeldorian (03-15-2021)