Adm!!??
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From: Southern California and Nevada
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I will take the other side of that bet any day. Annualized inflation is over 6% but that number is trending even higher (>7.5%) over the last 4 months and is not expected to ease anytime soon. Why would any manufacturer hold their MSRP flat instead of their scheduled annual increase? I predict 3% at a minimum, expect 4-5% and would not be shocked by 6-7% or more.
The manufacturers see what the dealers are getting and they will want a piece of that since their costs are shooting up. There is no harm in setting a high MSRP as they can always bring it back down with programs and incentives, leaving the consumer feeling like they got a nice discount. Setting it too low (for the current market) puts all the upside in the dealership's pockets.
BTW, Tesla just announced increases from 4.5%-9.5% across its range. And that is not an annual increase since they increased in October of last year.
But time will tell.
EDIT: MSRP on the Corvette only increased about 1.5% and Range Rover increased roughly 3.5% across the range (no pun intended).
The manufacturers see what the dealers are getting and they will want a piece of that since their costs are shooting up. There is no harm in setting a high MSRP as they can always bring it back down with programs and incentives, leaving the consumer feeling like they got a nice discount. Setting it too low (for the current market) puts all the upside in the dealership's pockets.
BTW, Tesla just announced increases from 4.5%-9.5% across its range. And that is not an annual increase since they increased in October of last year.
But time will tell.
EDIT: MSRP on the Corvette only increased about 1.5% and Range Rover increased roughly 3.5% across the range (no pun intended).
Drifting
Joined: Jun 2021
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From: Westchester NY
The only pricing 2023 BMW has confirmed ins the X7 at a little more than 5.34%.
None of these cars have been demanding ADMs as high (%age or absolute $) as the 911 has been so I expect at least similar increases by Porsche. But I have been wrong several times before - and that is only counting today!
None of these cars have been demanding ADMs as high (%age or absolute $) as the 911 has been so I expect at least similar increases by Porsche. But I have been wrong several times before - and that is only counting today!
Advanced
Joined: Feb 2021
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From: South Florida
It really depends on your unique situation. I was on a wait list for a 992 TTS when I got a phone call and said that even the waitlisted allocation is now going to have a $50k ADM. This was just a few weeks ago.
I offloaded 3 of my other vehicles for a significantly higher premium than I would have gotten under normal market conditions. Significant enough that even with the sales tax credit my ADM was almost negated completely on $240k spec 2022 992 TTS.
This dealer had a handful of 992 TTS’s in stock and I was genuinely curious so I asked how many people are coming off the street with wires or checks for the full amount. He said in most situations people are leveraging trades to combat ADM vs just walking in and paying ADM in cold hard cash. Not saying it doesn't exist, but it sounds like its more common and "justifiable" to get these deals done on the route of trade. I just saw a well equipped 992 TTS listed for almost $370k!! madness...
Just my two cents and how I was able to make my dream a reality even under these crazy times.
I offloaded 3 of my other vehicles for a significantly higher premium than I would have gotten under normal market conditions. Significant enough that even with the sales tax credit my ADM was almost negated completely on $240k spec 2022 992 TTS.
This dealer had a handful of 992 TTS’s in stock and I was genuinely curious so I asked how many people are coming off the street with wires or checks for the full amount. He said in most situations people are leveraging trades to combat ADM vs just walking in and paying ADM in cold hard cash. Not saying it doesn't exist, but it sounds like its more common and "justifiable" to get these deals done on the route of trade. I just saw a well equipped 992 TTS listed for almost $370k!! madness...
Just my two cents and how I was able to make my dream a reality even under these crazy times.
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Joe Kucinski
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It really depends on your unique situation. I was on a wait list for a 992 TTS when I got a phone call and said that even the waitlisted allocation is now going to have a $50k ADM. This was just a few weeks ago.
I offloaded 3 of my other vehicles for a significantly higher premium than I would have gotten under normal market conditions. Significant enough that even with the sales tax credit my ADM was almost negated completely on $240k spec 2022 992 TTS.
This dealer had a handful of 992 TTSs in stock and I was genuinely curious so I asked how many people are coming off the street with wires or checks for the full amount. He said in most situations people are leveraging trades to combat ADM vs just walking in and paying ADM in cold hard cash. Not saying it doesn't exist, but it sounds like its more common and "justifiable" to get these deals done on the route of trade. I just saw a well equipped 992 TTS listed for almost $370k!! madness...
Just my two cents and how I was able to make my dream a reality even under these crazy times.
I offloaded 3 of my other vehicles for a significantly higher premium than I would have gotten under normal market conditions. Significant enough that even with the sales tax credit my ADM was almost negated completely on $240k spec 2022 992 TTS.
This dealer had a handful of 992 TTSs in stock and I was genuinely curious so I asked how many people are coming off the street with wires or checks for the full amount. He said in most situations people are leveraging trades to combat ADM vs just walking in and paying ADM in cold hard cash. Not saying it doesn't exist, but it sounds like its more common and "justifiable" to get these deals done on the route of trade. I just saw a well equipped 992 TTS listed for almost $370k!! madness...
Just my two cents and how I was able to make my dream a reality even under these crazy times.
I was under the impression I'd have some wiggle room using a similar approach with a trade-in on an attempted recent transaction, dealer wasn't interested in giving me a good price on my trade. Walked.
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Advanced
Joined: Feb 2021
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From: South Florida
Interesting data point. Did you offload your vehicles to the dealer you bought the TTS from? Private party?
I was under the impression I'd have some wiggle room using a similar approach with a trade-in on an attempted recent transaction, dealer wasn't interested in giving me a good price on my trade. Walked.
I was under the impression I'd have some wiggle room using a similar approach with a trade-in on an attempted recent transaction, dealer wasn't interested in giving me a good price on my trade. Walked.
In all 3 cases, I traded the cars to dealers or wholesalers/manheim - but not the same ones to the same place, which made it a little bit more of a pain in the butt, although worth it in the end. I live between south FL and the northeast and they are two completely separate car markets. For example south FL dealer offered my very competitive/ high price for my 991.2 TTS trade - but nothing to trade into, dealer up north (non P dealer where I got my 992 TTS) offered me almost 15k less. I would estimate I had to call about 3+ separate places per vehicle to get price checks on each before I picked the place I was gonna sell them to. In the end we were able to make the deal happen and they came up on their trade price. On another vehicle I had, I was literally offered 10k more by just going down the street to another local dealer and asking what their number would be for the trade.
You have to be willing to walk in this market. The dealer will read any sign of desperation and feed off it. The plus side is coming to the table with several high dollar trades, seemed to circumvent any sales associates and in all cases they usually put me in touch with the GM to negotiate.
Instructor
Joined: Feb 2022
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From: Northern Virginia
I'll take the counterargument on that point. I suspect most of us have enjoyed a healthy net worth increase over the past couple of years thanks to the combination of stock market and real estate appreciation. But some of us are old enough to remember in the US, 1987 (Black Monday), 2001 (dot com crash), and 2008 (housing collapse). We currently have too many dollars chasing to little supply. That won't last. Heck, if we had a market correction of 25% or I faced long-term unemployment, my desire to spend $160k on a luxury good would change overnight.
The stock market doesn't perpetually rise and neither will the demand for these amazing cars.
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Joined: Mar 2014
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From: SW Florida
At some point these transportation and production issues will end. What happens to all those hefted up ADM cars at that point? Are they really worth 30-40% more? I dont think so. I love these cars but they are still just cars and Im not so entitled that I have to pay that kind of mark up vs waiting or passing. Just dont get yet I do as I know plenty of people with more money than common sense, no disrespect intended.
Drifting
Joined: Jun 2021
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From: Westchester NY