Allocation Options? Are there any?
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From: CC Philly
Allocation Options? Are there any?
Do I have options?
I’m a legacy client at my dealer and have been supporting them and have a solid personal and purchase history with the family for many years. I was 1st on their list for a Targa GTS and 3 months after the demand order was executed, they informed me that $20K will be added to the MSRP. Had I known three months ago I may have decided to approach other dealers. This resulted in missed opportunities which are not available now when timing is so critical to the allocation process. I’ve bee informed that I have my allocation. I know the addition of an ADM is not challengeable, but do I have any other options? Make an offer for a lower ADM? Buy and sell at a profit? Transfer the allocation? Etc? Yes... I want the car but the ADM moves me well above my over-optioned build.
I’m a legacy client at my dealer and have been supporting them and have a solid personal and purchase history with the family for many years. I was 1st on their list for a Targa GTS and 3 months after the demand order was executed, they informed me that $20K will be added to the MSRP. Had I known three months ago I may have decided to approach other dealers. This resulted in missed opportunities which are not available now when timing is so critical to the allocation process. I’ve bee informed that I have my allocation. I know the addition of an ADM is not challengeable, but do I have any other options? Make an offer for a lower ADM? Buy and sell at a profit? Transfer the allocation? Etc? Yes... I want the car but the ADM moves me well above my over-optioned build.
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Joined: Apr 2021
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From: Torrance, CA
There are some people who have gotten a GTS at MSRP, but most here have not. $20k ADM is high, but dealers out my way are charging that much on a 911s or a Targa. I assume they are getting it. As for your options:
- If you're willing to pay ADM, make an offer for something less, or offer to buy aftermarket goodies, like wheel & tire insurance or an extended warranty.
- The allocation does not really belong to you as property, so transferring it to someone else won't get you anything.
- Keep your current awesome ride and wait out this storm, and get ready for a 2023 or 2024 replacement.
Burning Brakes
Joined: Aug 2021
Posts: 930
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From: Georgia / Connecticut
I empathize with your situation but relationships don’t put food on the table.
I came to the realization early in my life and many years ago the ONLY person who will take care of me is ME !!!!!!
I came to the realization early in my life and many years ago the ONLY person who will take care of me is ME !!!!!!
Thread Starter
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Joined: Jul 2017
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From: CC Philly
There are some people who have gotten a GTS at MSRP, but most here have not. $20k ADM is high, but dealers out my way are charging that much on a 911s or a Targa. I assume they are getting it. As for your options:
- If you're willing to pay ADM, make an offer for something less, or offer to buy aftermarket goodies, like wheel & tire insurance or an extended warranty.
- The allocation does not really belong to you as property, so transferring it to someone else won't get you anything.
- Keep your current awesome ride and wait out this storm, and get ready for a 2023 or 2024 replacement.
Burning Brakes
Joined: Jun 2018
Posts: 1,112
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What did they tell you at the time you first placed your Demand Order? Did you discuss terms of the pricing? If not, shame on you. If yes, and they changed the terms shame on them you probably have legal (civil) recourse. Without seeing actual, written documentation it is hard to say. If the second thing is true, and if it were me, I would find another dealer period. That is, unless you have a contract that stated MSRP or less. If so, potentially, you can sue for trebel damages, say for instance you pay ADM somewhere else. Hopefully a real laywer will weigh in on this. If you have a contract, you have a case. Verbal is not going to stand up anywhere unless the dealership values your continued business. I can't weigh in on current market conditions, but when I placed my Demand Order in very early August, it was at MSRP and I have a signed Buyers Order with pricing in addition to the Demand Order both signed by myself and the Sales Manager. Hope it works out to your satisfaction.
I recommend folks call shyster dealerships out and maybe they'll change their tune.
I recommend folks call shyster dealerships out and maybe they'll change their tune.
Last edited by icanthelpit; Nov 8, 2021 at 03:04 PM.
Thread Starter
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Joined: Jul 2017
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From: CC Philly
What did they tell you at the time you first placed your Demand Order? Did you discuss terms of the pricing? If not, shame on you. If yes, and they changed the terms shame on them you probably have legal (civil) recourse. Without seeing actual, written documentation it is hard to say. If the second thing is true, and if it were me, I would find another dealer period. Potentially, you can sue for trebel damages, say for instance you pay ADM somewhere else. Hopefully a real laywer will weigh in on this. That is, unless I had a contract that stated MSRP or less. If you have a contract, you have a case. Verbal is not going to stand up anywhere unless the dealership values your continued business. I can't weigh in on current market conditions, but when I placed my Demand Order in very early August, it was at MSRP and I have a signed Buyers Order with pricing in addition to the Demand Order both signed by myself and the Sales Manager. Hope it works out to your satisfaction.
I recommend folks call shyster dealerships out and maybe they'll change their tune.
I recommend folks call shyster dealerships out and maybe they'll change their tune.
No mention of terms of the pricing or a buyer’s contract. Is that standard operating procedure? Do I have any bargaining power because they didn’t?
Drifting
Joined: Jun 2021
Posts: 2,077
Likes: 1,760
From: Westchester NY
I doubt you have any legal recourse if you were "on their list". if you have a signed purchase order, that may be a different situation but still not one where you are inn the driver's seat - pun intended. But since there were no GTS allocations prior to last week, I have to assume you have no signed agreement of any kind.
There are some people who are apparently getting a GTS allocation at MSRP, but I don't recall seeing anyone get a Targa GTS without some ADM. My dealer originally wanted a $15K ADM - and I use "my" lightly as I am a first time Porsche customer and have no relationship with them other than stopping in and giving them a $1,000 deposit a few months back. As Go Bruins suggested, I negotiated them down to $10K by agreeing to purchase wheel and tire insurance from them and having them do the PFF. Since these were two things I was going to do anyway, it was a creative way to put more earnings in their pocket (so they sell me the car and not the next guy on the list who would pay the $15K) but reducing the amount the premium was actually costing me.
There are some people who are apparently getting a GTS allocation at MSRP, but I don't recall seeing anyone get a Targa GTS without some ADM. My dealer originally wanted a $15K ADM - and I use "my" lightly as I am a first time Porsche customer and have no relationship with them other than stopping in and giving them a $1,000 deposit a few months back. As Go Bruins suggested, I negotiated them down to $10K by agreeing to purchase wheel and tire insurance from them and having them do the PFF. Since these were two things I was going to do anyway, it was a creative way to put more earnings in their pocket (so they sell me the car and not the next guy on the list who would pay the $15K) but reducing the amount the premium was actually costing me.
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Racer
Joined: Mar 2021
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From: Westchester NY
If it makes you feel any better, another dealer probably would have been less responsive or wanted a higher ADM. A 20k ADM for any targa in the current market is not bad if guarantees you're getting an allocation. I've heard many dealers asking 25k ADM for Targa 4S's.
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Burning Brakes
Joined: Jun 2018
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I’ve had seven 911’s since 1972 and always ordered eye-to-eye with the sales manager. No, I didn’t get a signed buyer’s contract because I just didn’t know about that it or the need to get it. Stupid me to think that hugs from the dealer was all it takes.
No mention of terms of the pricing or a buyer’s contract. Is that standard operating procedure? Do I have any bargaining power because they didn’t?
No mention of terms of the pricing or a buyer’s contract. Is that standard operating procedure? Do I have any bargaining power because they didn’t?
Burning Brakes
Joined: Jun 2018
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Advanced
Joined: Nov 2021
Posts: 66
Likes: 70
From: PA/NJ
Hi Go Bruins
How long did it take to get the allocation at Porsche on the Main Line.
I was told I was currently #11 for a Targa and that depending on allocations I could potentially get one this month, but more likely in April.
How long did it take to get the allocation at Porsche on the Main Line.
I was told I was currently #11 for a Targa and that depending on allocations I could potentially get one this month, but more likely in April.
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Joined: Apr 2021
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From: Torrance, CA
Now, if you're #11 for a Targa, that seems to me to be pretty meaningless. I don't think there's tons of Targa allocations and it's a small percentage of 911s produced. I'd keep looking and see if you get lucky like I did.
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From: Southeast US
Its getting harder and harder for "good" dealers to resist the ADM mark-ups. This is especially true with low volume allocations for Targas, Turbo S and the like. If they get five base carreras every month but only one targa every quarter, they can afford to sell one base carrera to a legacy customer at MSRP but selling that targa at MSRP in today's market is tantamount to giving it away.
I think that you need to consider the dealers position and consider that ADM is the cost of such a car today. There are many who would gladly pay that to get the car. If you truly have purchased more than one previous car from the dealership you should consider sending a letter to the owner/general manager expressing your position and attempt to negotiate a more reasonable ADM.
My personal belief is that cars with more chips involved due to more moving parts such as targas with their roofs and turbo s with their active aero devices are going to be harder to get as Porsche will allocate their chip supplies to the most profitable portion of their products.
I think that you need to consider the dealers position and consider that ADM is the cost of such a car today. There are many who would gladly pay that to get the car. If you truly have purchased more than one previous car from the dealership you should consider sending a letter to the owner/general manager expressing your position and attempt to negotiate a more reasonable ADM.
My personal belief is that cars with more chips involved due to more moving parts such as targas with their roofs and turbo s with their active aero devices are going to be harder to get as Porsche will allocate their chip supplies to the most profitable portion of their products.
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From: Doylestown, PA
You can always counter the ADM and offer another amount. That being said, a Targa GTS is a very desirable model — they probably have a line of folks that will take it if you don’t.
Yes, ADM and market adjustments are annoying, but unlike MSRP and window sticker, it is something that you can negotiate.
Given that this environment will be with us for the next couple of years and dealers will likely cling onto ADMs going forward, this is the new normal. This is what the cars cost, MSRP + ADM. There’s little point getting outraged over it, because, as others have noted, every dealer is doing it now, even for Base Carreras. Every 911 is a “GT3” now.
Yes, ADM and market adjustments are annoying, but unlike MSRP and window sticker, it is something that you can negotiate.
Given that this environment will be with us for the next couple of years and dealers will likely cling onto ADMs going forward, this is the new normal. This is what the cars cost, MSRP + ADM. There’s little point getting outraged over it, because, as others have noted, every dealer is doing it now, even for Base Carreras. Every 911 is a “GT3” now.
Thread Starter
Rennlist Member
Joined: Jul 2017
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From: CC Philly
Its getting harder and harder for "good" dealers to resist the ADM mark-ups. This is especially true with low volume allocations for Targas, Turbo S and the like. If they get five base carreras every month but only one targa every quarter, they can afford to sell one base carrera to a legacy customer at MSRP but selling that targa at MSRP in today's market is tantamount to giving it away.
I think that you need to consider the dealers position and consider that ADM is the cost of such a car today. There are many who would gladly pay that to get the car. If you truly have purchased more than one previous car from the dealership you should consider sending a letter to the owner/general manager expressing your position and attempt to negotiate a more reasonable ADM.
My personal belief is that cars with more chips involved due to more moving parts such as targas with their roofs and turbo s with their active aero devices are going to be harder to get as Porsche will allocate their chip supplies to the most profitable portion of their products.
I think that you need to consider the dealers position and consider that ADM is the cost of such a car today. There are many who would gladly pay that to get the car. If you truly have purchased more than one previous car from the dealership you should consider sending a letter to the owner/general manager expressing your position and attempt to negotiate a more reasonable ADM.
My personal belief is that cars with more chips involved due to more moving parts such as targas with their roofs and turbo s with their active aero devices are going to be harder to get as Porsche will allocate their chip supplies to the most profitable portion of their products.
