$50k dealer markup on targa 4s allocation!
10-09-2021 | 10:30 PM
#31
Instructor
Joined: Nov 2019
Posts: 125
Likes: 104
From: Washington, DC
10 months for a regular Carrera? Things must be loosening up. Seriously though, alot of articles floating out there about how the premium brands, notably all the Europeans, are going to make this the "new normal" - cars mostly built to order, and a higher transaction price for them (and the dealers) for each one. And we aren't just talking about niche cars like the 911, they want to extend this model to everyday cars like C classes and 3/5 series BMWs. Even Alfa Romeo, who barely has any US sales at all, says they are going to do it for 2023. They are pivoting off this COVID/chip shortage thing, to change their business model and lock in these price increases for themselves. A 911 is one thing, but there isn't really anything special about a 3 series.
10-09-2021 | 11:31 PM
#32
Three Wheelin'
Joined: Feb 2016
Posts: 1,280
Likes: 774
10 months for a regular Carrera? Things must be loosening up. Seriously though, alot of articles floating out there about how the premium brands, notably all the Europeans, are going to make this the "new normal" - cars mostly built to order, and a higher transaction price for them (and the dealers) for each one. And we aren't just talking about niche cars like the 911, they want to extend this model to everyday cars like C classes and 3/5 series BMWs. Even Alfa Romeo, who barely has any US sales at all, says they are going to do it for 2023. They are pivoting off this COVID/chip shortage thing, to change their business model and lock in these price increases for themselves. A 911 is one thing, but there isn't really anything special about a 3 series.
Last edited by malba2366; 10-09-2021 at 11:32 PM.
10-10-2021 | 05:20 PM
#33
Race Car
Joined: Jun 2018
Posts: 4,582
Likes: 5,477
From: Ohio
The only issue with this is that you lose out on all the sales of impulse buyers, which I think is a large portion of sales.
"Hello, welcome, is there anything in particular that you're looking for?
"Oh no, I'm just here to look around."
20mins later...
Would you like to add the paint treatment plan for $900, it's only $2/month for 450 months.
"Hello, welcome, is there anything in particular that you're looking for?
"Oh no, I'm just here to look around."
20mins later...
Would you like to add the paint treatment plan for $900, it's only $2/month for 450 months.
10-10-2021 | 06:12 PM
#34
Rennlist Member
Joined: Apr 2021
Posts: 609
Likes: 573
From: Torrance, CA
Is it a new world of how we buy cars? Manufacturers seem to think so. They want to sell cars at MSRP and they don't want to offer incentives to dealers or customers. They don't want to offer 0% financing or aggressive leases. They believe the paradigm has shifted, and are saying so openly now.
10-10-2021 | 07:42 PM
#35
Three Wheelin'
Joined: Feb 2016
Posts: 1,280
Likes: 774
The only issue with this is that you lose out on all the sales of impulse buyers, which I think is a large portion of sales.
"Hello, welcome, is there anything in particular that you're looking for?
"Oh no, I'm just here to look around."
20mins later...
Would you like to add the paint treatment plan for $900, it's only $2/month for 450 months.
"Hello, welcome, is there anything in particular that you're looking for?
"Oh no, I'm just here to look around."
20mins later...
Would you like to add the paint treatment plan for $900, it's only $2/month for 450 months.
10-10-2021 | 09:41 PM
#36
Instructor
Joined: Mar 2021
Posts: 225
Likes: 61
Well, that’s the issue. I had two dealers more than willing to hold my money for non-existent allocations they would give me once Porsche gave them one. Both wanted 10% of the build price. The dealer that actually had an allocation only wanted $5k and was able to provide a delivery date. So in reality it might as well be unobtanium. I’m not exactly sure what these dealers do with your money, maybe invest it? Use it for operating capital? Obviously they have to give it back when you figure out they’ll never get an allocation, so not sure why they do this.
Last edited by Thefullsend; 10-10-2021 at 09:42 PM.
10-11-2021 | 12:37 AM
#37
Rennlist Member
Joined: Oct 2014
Posts: 669
Likes: 425
From: St. Louis, MO
I’m trying to maximize my odds so am on a couple of waitlists for a targa 4. In my spare time I call a dealer a week to see what their waitlist looks like. I found one today that had both a Dec and a Jan build available for a Targa 4s. Amazing! Definitely worth paying for the s upgrade to get something much sooner than I expected. I asked about process, deposit etc. Then comes the catch. A “market adjustment” of $50k! Holy cow. Are people actually paying these?
10-11-2021 | 12:47 AM
#38
RL Community Team
Rennlist Member
Rennlist Member
Joined: Sep 2005
Posts: 17,320
Likes: 12,262
I’m trying to maximize my odds so am on a couple of waitlists for a targa 4. In my spare time I call a dealer a week to see what their waitlist looks like. I found one today that had both a Dec and a Jan build available for a Targa 4s. Amazing! Definitely worth paying for the s upgrade to get something much sooner than I expected. I asked about process, deposit etc. Then comes the catch. A “market adjustment” of $50k! Holy cow. Are people actually paying these?
10-11-2021 | 01:04 AM
#39
Drifting
Joined: Aug 2004
Posts: 2,429
Likes: 1,004
From: new york
Is it a new world of how we buy cars? Manufacturers seem to think so. They want to sell cars at MSRP and they don't want to offer incentives to dealers or customers. They don't want to offer 0% financing or aggressive leases. They believe the paradigm has shifted, and are saying so openly now.
10-11-2021 | 01:39 AM
#40
Three Wheelin'
Joined: Sep 2018
Posts: 1,877
Likes: 1,326
Haha… this is my strategy… ride it out with the cars I’ve already got. I’m pretty convinced it’s a losing strategy. The more the ADMs climb the more I’m wanting a new car. Not sure I have the will power.
10-11-2021 | 06:30 PM
#41
Thread Starter
Intermediate
Joined: Sep 2021
Posts: 49
Likes: 17
that’s a little harsh. I was quoted 5-10k occasionally on an adm for a targa 4. But 50k for a jan build? That’s crazy. I really doubt anyone has paid that sort of adm for an allocation that doesn’t get them a car until March. It’s one thing if it is on the lot to satisfy a near term need for a price insensitive buyer.
10-11-2021 | 07:58 PM
#42
Drifting
Joined: Jun 2021
Posts: 2,002
Likes: 1,660
From: Westchester NY
Two of the dealerships I spoke to said the same thing about their first Targa GTS build - $50K. But its one thing to say that and another thing to find someone to pay it. I can imagine there may be a couple or a few, but I am not convinced there are enough to account for all of the first allocations at each stealership.
10-11-2021 | 09:16 PM
#43
Three Wheelin'
Joined: Sep 2018
Posts: 1,877
Likes: 1,326
There are still some dealers that will sell allocations at msrp. Especially if you live near PECLA or PECATL you can shop around. I passed on a Targa 4S allocation at msrp a month or two ago because at the time they wouldn’t take a build for euro delivery which I want to do. Working with same dealer to try and time it right for late spring/early summer ED 2022 now but allocations are so rare we’ll see if one comes through that works and I’m sure I’m not first in line at the moment.
10-11-2021 | 10:42 PM
#45
Rennlist Member
Joined: Aug 2021
Posts: 16
Likes: 3
From: Manhattan beach
There are still some dealers that will sell allocations at msrp. Especially if you live near PECLA or PECATL you can shop around. I passed on a Targa 4S allocation at msrp a month or two ago because at the time they wouldn’t take a build for euro delivery which I want to do. Working with same dealer to try and time it right for late spring/early summer ED 2022 now but allocations are so rare we’ll see if one comes through that works and I’m sure I’m not first in line at the moment.