JiminyGlick

Geez! That's even worse than my local dealer that prompted to start this thread to begin with!

So I think it's completely fair to say that there are dealers that are still out there doing the right thing (no ADM) but it looks like ADM on allocations is an emerging trend or at least not as rare as people may have thought.

ipse dixit

Is that the dealer ask, or are they actually selling allocations / cars with an ADM.

The former, sure. The latter, would need to see an actual bill of sale to believe.

3rdpedal

I'm not a fan of ADM or dealers in general as they are typically known to be less than savory, but at the same time there are plenty of good people to deal with. I feel like I did on my process.

That said buyers love to think they got a great deal and that dealers make way more than is disclosed.

But let's think about the fact that when there is surplus inventory dealers will discount cars and work deals to get inventory moving. Now we are in an inventory shortage. Should they not try to do the reverse and make ADM? It does seem a bit hypocritical to think we should get discounts and deals when they need to sell a car and not be charged more for limited production vehicles or during times when demand outweighs supply by a considerable margin.

If you can find a dealer with no ADM, awesome, but I think for a little while that might be harder and harder to find, especially if you don't have a prior relationship.

nyca

People don't seem to understand - the way to combat inflation is - stop buying the stuff. Bacon at $10 a pound, I don't buy it. 6 months for a van - I buy something else, or just keep the car I have.

ipse dixit

audi4t

Yes - the free market works both ways.

I just returned my leased Mercedes - 6 months early with no penalty and no fees. I also received a check for $1000 - when did that ever happen ?

Im in North Georgia and dealers lots are empty.

They have no inventory new and used cars are in demand with insufficient supply.

Keadog

I was at our (fairly large) Toyota dealer to have brakes done the other day. Their showroom had two vehicles - both sold. A Tacoma and a Highlander. Front lot empty.
They matched my indie's price, put winter tires on for free and washed it "to get the business". Creepy.

pitt911

Dealers are hurting because they have less inventory to sell. A dealer that used to move 50-60 units a month, now is moving 10-30 because there have no inventory , So, they are trying to max profit per unit , and the decent ones are paying their SA more per unit because the SA now is selling less units per month ,

rk-d

I've talked to a dealer who said they are doing better this year than last.

doug_999

All car dealers are running out of cars. In order to keep the lights on, the profit per car has to go up. I don’t blame them for what they are doing now - it’s not greed, it is their only choice.

pitt911

depends on the management , they are putting a lot of effort into buying used cars and selling them to replace new units ..
and I am not defending dealers , but just pointing out that as a business that make profit per unit sold and there are less units to sell , your profits will go down .
some dealers have told me that they are debating laying off some sales force because of the shortage

breny4104

Hopefully the dealers won't add the ADM retroactively right as you're signing the paperwork.

brianja

My dealership told me that they are prioritizing giving allocations to customers who are bringing a car in on trade so that they will have another vehicle to sell (giving a particular nod to low-mileage, interestingly spec'd, good condition cars). Most of their current inventory is trade-ins and it is moving fast. Some are selling the first day they have them in.

They are also NOT doing ADMs as far as I know (they didn't on my C4S).

peterdouglas

I was waiting in the showroom last week at my (largish) dealer for 10k service on my 992TTS and overheard some of the sales staff discussing current ADM practice at two other dealers. Apparently quite a few dealers sales people are consistent in pushing ADM when a potential customer:
1. Appears to be a time-wasting tire-kicker,
2. Appears to be an ignorant first-time buyer *posing* as a knowledgeable owner/buyer (particularly if arrogant), or
3. Appears to be motivated to buy to satisfy some personal insecurity, rather than out of passion or appreciation for the cars.

A common sales tactic was said to be to offer a current or “near-term” allocation with ADM accompanied by hints that a later allocation “might” be available without ADM.

They said that the “customers” who get this treatment from the other dealers are - predictably - the same ones who get laughed at when they leave the showroom.

This particular dealer is (apparently) simply patiently waiting for allocations and seems to be candid and forthright about allocations and not charging any ADM. Everyone queues according to order sequence in category (I am hoping for 2022 delivery for my 992Targa order - but nothing firm yet).

Drew46

Fair point. After all, the "S" in MSRP does stand for "Suggested" and not "Stipulated". No reason to believe that "Suggested" is a cap any more than it would be a floor.