ADMs on allocations?
09-16-2021, 12:34 PM
#31
I was waiting in the showroom last week at my (largish) dealer for 10k service on my 992TTS and overhead 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).
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).
09-16-2021, 01:46 PM
#32
Burning Brakes
I was waiting in the showroom last week at my (largish) dealer for 10k service on my 992TTS and overhead 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).
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).
Last edited by PHX; 09-16-2021 at 01:47 PM. Reason: I am stupid.
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peterdouglas (09-16-2021)
09-16-2021, 02:58 PM
#33
Instructor
Lol this is insane. They are essentially profiling potential buyers? What has the world come to? If you have a customer willing to drop >100k on a car please be reasonable.
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09-16-2021, 03:01 PM
#34
Bingo. This is exactly what happened and was discussed and played out on the table with my SA. Small dealership, however, there was a (kinda weird to say it, but I felt like it was) a vetting and proving process with the SA, Sales Manager, and even the GM. I just happened to email the GM of the dealership first, explaining my timelines, requirements, needs, and thoughts on all the touchy subjects (car passion, model, ADM, timelines, transparency, etc.) beforehand so I went in, although unknowingly, ahead of the power curve before we got to meet our SA, the staff, and place a deposit along with our December allocation.
It is all about money - nothing else.
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Cotechia (10-05-2021)
09-16-2021, 03:12 PM
#35
09-16-2021, 03:18 PM
#36
Burning Brakes
i did not get any sense that people were being profiled or judged on any other criterion or whether they met someone/anyone’s concept of being “worthy” of buying a car.
i was just reporting the facts of the conversations I heard - and express no personal view on the merits of the underlying issues - which certainly are open for discussion, given the range of subjective opinion represented on these forums.
09-16-2021, 03:32 PM
#37
Instructor
It's an increasing trend IMO, especially in luxury goods. Maybe Porsche is headed in the direction of Rolex? Rolex has always encouraged their ADs to vet their clients to make sure they're not out to make a quick buck on the purchase of the watch. They ask about your birthday, your work, why you want a particular watch, anything else you're celebrating, etc. It wouldn't be too surprising to see Porsche adopting similar tactics. However, Rolex vets you for (essentially) their safety, not to charge you more. In this case we're talking about these Porsche dealers vetting you but they shouldn't be doing that with an eye to add ADM.
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JiminyGlick (09-16-2021)
09-16-2021, 03:44 PM
#38
Burning Brakes
Is it wrong/unethical for a dealer to charge ADM?
If a dealer does or may charge ADM, is it ok for sales people to evaluate customers for the likelihood that they will/will not be willing/able to pay?
and PS - is trying to identify customer types who are thought to be likely willing to pay ADM (one could call that “profiling” I suppose) =
wrong?
unethical?
immoral?
bad practice?
natural?
normal?
ubiquitous?
human?
Last edited by peterdouglas; 09-16-2021 at 03:51 PM.
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09-16-2021, 03:53 PM
#39
Vetting is the real world. I doubt it's as overt as the example posted, but I'm sure many dealers will make judgement calls on prospective buyers and go the extra mile for some of them - particularly those who are local or have the potential to be long term clients. There are a finite number of allocations and I don't doubt that there is a strategy in distributing them. Smart dealers play the long game, IMO.
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09-16-2021, 03:55 PM
#40
do you both feel (it seems that you may) that it is improper for sales people to try to evaluate potential customers’ ability and propensity to complete a purchase?
Is it wrong/unethical for a dealer to charge ADM?
If a dealer does or may charge ADM, is it ok for sales people to evaluate customers for the likelihood that they will/will not be willing/able to pay?
and PS - is trying to identify customer types who are thought to be likely willing to pay ADM (one could call that “profiling” I suppose) = wrong? unethical? immoral?
bad practice?
Is it wrong/unethical for a dealer to charge ADM?
If a dealer does or may charge ADM, is it ok for sales people to evaluate customers for the likelihood that they will/will not be willing/able to pay?
and PS - is trying to identify customer types who are thought to be likely willing to pay ADM (one could call that “profiling” I suppose) = wrong? unethical? immoral?
bad practice?
The way to “test” the seriousness of a buyer is to ask for a down payment WITH an allocation. Asking ADM based on any assessment of a potential buyer seem silly - unless the goal is to figure out how much I can “milk” that specific buyer. I would stay miles away from any dealer that operates like that.
09-16-2021, 05:09 PM
#41
Rennlist Member
Here are a couple of videos from Porsche Center Calgary. First about getting an allocation and, second, about ordering GT3 types. They do vet you especially in todays market.
09-16-2021, 05:37 PM
#42
I personally would not pay ADM. Thus, in terms of dealers assessing customers' seriousness on moving forward with placing an order, yes, I have experienced my fair share of it.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.
09-16-2021, 05:55 PM
#43
Burning Brakes
ADM on a car I can get right now? Maybe.
ADM on a car I have to wait 9 months for? Nope.
ADM on a car I have to wait 9 months for? Nope.
09-16-2021, 06:01 PM
#44
I personally would not pay ADM. Thus, in terms of dealers assessing customers' seriousness on moving forward with placing an order, yes, I have experienced my fair share of it.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.
09-16-2021, 06:06 PM
#45
If financing with Porsche Financial, aren’t they not able to submit the application to Porsche until the vehicle has arrived at the dealer? Wouldn’t make sense to get a hard approval for the vehicle to arrive months later when credit situation can change unless the policy changed?
I personally would not pay ADM. Thus, in terms of dealers assessing customers' seriousness on moving forward with placing an order, yes, I have experienced my fair share of it.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.
I end up placing my 992 order with Rusnak Porsche. They ran my credit and obtained a hard approval from Porsche Financial before moving forward with the order, along with $3.5K deposit, no ADM.
Prior to Rusnak Porsche, I inquired with Downtown L A Porsche, they asked $5K ADM, rent via Porsche Drive for 3 months ($3,100/month to rent a 992), $5K deposit, along with credit application, confirmation of my recent addresses, proof of employment, proof of residence, ownership of property of those addresses on my credit report, proof of insurance coverage. The list was long. And I end up not moving forward with Downtown L A Porsche. I felt I was being ridiculously ridiculed.