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Yes I did. Because they are still getting cars in, and still selling them. The difference is "we" as consumers have nothing to look at, take for drives, negotiate on. While I was there they were writing two deals on allocations. So business keeps on - there just is no inventory, it's a pre-order market with ADM.
And that's never going to change, the auto manufacturers have always wanted the supply and sales chain to work like this - and they are using this "chip shortage" to make that happen. The dealers love it too. Never let a good crisis go to waste.
Make no bones about it - Dealerships are killing it in this environment. Every car they get is sold w/o having to discount at all.. Do not feel bad for any of them
There is good and bad about it. Yes, no discounts, so commissions and profits are up on a per car basis, but with lower volume, less cars to make money off of.
If you make $15k per car and sell 5 per month you make $75k. If you make $9k per car and sell 10 per month, you make $90k. I'll take the $90k.
There is good and bad about it. Yes, no discounts, so commissions and profits are up on a per car basis, but with lower volume, less cars to make money off of.
If you make $15k per car and sell 5 per month you make $75k. If you make $9k per car and sell 10 per month, you make $90k. I'll take the $90k.
I don’t think volume is down though, it’s in line with previous years I believe.
There is good and bad about it. Yes, no discounts, so commissions and profits are up on a per car basis, but with lower volume, less cars to make money off of.
If you make $15k per car and sell 5 per month you make $75k. If you make $9k per car and sell 10 per month, you make $90k. I'll take the $90k.
Perhaps the mainstream brands may eventually end up going back towards a market that we were once used to but I think luxury brands are going to stick with the higher margin lower volume business model including "mass market" luxury brands like BMW and Mercedes. Porsche never really was one to chase volume and focused more on margins and now the rest want a piece of that cake. There is a reason why it seems as if every Mercedes dealership in SoCal is full of S Classes and EQS' and hardly any A classes or C Classes.
The automakers are breaking the "lease turnaround" market totally. People used to lease and then automatically get a new car every 3 years. Many are walking away from that now, buying their cars off lease or purchasing instead of leasing when entering the new car market. People will keep cars longer, and overall the industry will need to produce less cars to fill demand. And when the coming recession and interest rate increases hit to stop inflation ($110 oil, fertilizer shortages are going to increase food prices dramatically from here), they are going to be left holding the bag. They are living it up now, laughing at consumers - their day of reckoning is coming. Not for a brand like Porsche which deals with high income people who are insulated from much of this, but when Ford is selling Broncos for $15K over MSRP - that won't last.
Two weeks ago I talked with my dealer about pre trading my TTS early because I was concerned that the market might correct before my next one arrives. Probably not going that direction now.
Make no bones about it - Dealerships are killing it in this environment. Every car they get is sold w/o having to discount at all.. Do not feel bad for any of them
The dealership and the salesmen are two very different things.
All of VW AG is affected by this. While the 911s and Taycans are still flowing from Zuffenhausen at the moment, it won’t be surprising to see that production halted as well.
While this can be frustrating to folks, it’s nothing compared to what the people of Ukraine are going through right now.
There is good and bad about it. Yes, no discounts, so commissions and profits are up on a per car basis, but with lower volume, less cars to make money off of.
If you make $15k per car and sell 5 per month you make $75k. If you make $9k per car and sell 10 per month, you make $90k. I'll take the $90k.
Show me any Porsche salesman making 90k a month or over a million a year? I may be wrong but that seems highly unlikely.
03-02-2022, 12:05 PM
