ADMs dropping
Instructor
Joined: Aug 2020
Posts: 147
Likes: 180
From: Milwaukee, WI
Three Wheelin'
Joined: Feb 2016
Posts: 1,568
Likes: 1,019
My Porsche SA told me that last week they let go the SA that used to sit next to him. Didnt go into specifics, but I can imagine less work meant they need less people. He was also complaining about not making money (which doesnt necessarily means its true though). He was saying 911 and 718 allocations are still low, and the SUVs dont make much money on profit for the dealer. He said commissions are based on profit, which makes sense.
They are seeing a slowdown in sales, high rates and no subvented leases make the SUVs much less affordable. While the 911/718 sales may remain hot, the 40-50 sports cars they may see in a year is not the bread and butter of the dealerships - they need to move Macans and Cayennes to do well.
Banned
Joined: Mar 2023
Posts: 409
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Porsche made about the same number of 911s last year as they usually do.
Pro
Joined: Dec 2022
Posts: 676
Likes: 616
From: CA
Of course he doesnt. Fabs and FATPs dont want to tool up for low margin automotive and industrial chips when they can use those resources on high margin phone and computer chips. I think that we will see a gradual easing of the supply issues but the chip supply chain is very hesitant about over capacitizing. Asianometry on YT has some great videos on the chip industry.
Rennlist Member
Joined: Aug 2003
Posts: 1,913
Likes: 1,049
From: Texas
I can attest. The 2017 X5 I ordered for my wife was on the showroom floor in south Texas complete with a red bow in 3 weeks, in what has to be a record. The 2020 X5 arrived in 6 weeks, in early March 2020, just before Covid. Both excellent vehicles. The 2017 we leased for 3 years, the 2020 we financed and I just finished paying it off earlier this month.
Pro
Joined: Feb 2022
Posts: 529
Likes: 336
From: Rhode Island
We are still seeing long lead times on chips, though I will say it is much improved from 12 months ago. Some parts are still 12+ months, so we design them out if we can.
Rennlist Member
Joined: Jun 2021
Posts: 1,210
Likes: 1,591
From: St. Louis, MO
Safety related components are a big problem also. I was told standard components can source new chip designs. However, safety rated components cannot without being retested/certified, and the process is too long. Again, just what I was told. I’m on the business of implementing those things. Not designing/sourcing their materials.
I keep hearing it will be better by the end of the year, but that’s what I heard last year too.
But not to worry because apparently it’s all just BS.
Last edited by jhenson29; Mar 26, 2023 at 12:54 AM.
Burning Brakes
Joined: Apr 2021
Posts: 1,211
Likes: 494
From: Southern California
Was $2700 their standard MSRP price for the 2+ maintenance package?
Also, how long did you wait to get your GTS allocation?
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Three Wheelin'
Joined: Feb 2016
Posts: 1,568
Likes: 1,019
This is helpful. Assuming youre financing with Porsche, is there no early payoff penalty or do you have to wait a certain amount? I remember BMW financing doesnt allow early payoff until 3 months (or at least thats how it was the last time I did it).
Was $2700 their standard MSRP price for the 2+ maintenance package?
Also, how long did you wait to get your GTS allocation?
Was $2700 their standard MSRP price for the 2+ maintenance package?
Also, how long did you wait to get your GTS allocation?
No automaker captive financing company has prepayment penalties or otherwise restricts the early payment of loans. You can pay off your Porsche (or BMW) loan the day after you buy the car if you want, the dealer will tell you otherwise because they lose the loan origination fee if you pay if off before a certain timeframe.
Pro
Joined: Jul 2019
Posts: 655
Likes: 378
No automaker captive financing company has prepayment penalties or otherwise restricts the early payment of loans. You can pay off your Porsche (or BMW) loan the day after you buy the car if you want, the dealer will tell you otherwise because they lose the loan origination fee if you pay if off before a certain timeframe.
*I know there are no financing discounts now, but based on a previous scenario
RL Community Team
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Rennlist Member
Joined: Jan 2019
Posts: 6,075
Likes: 8,970
From: Doylestown, PA
I dont understand taking the dealer preferred financing.
If youre borrowing, youre missing on the opportunity to get your best rate. A 3 month old car is no longer a new car. You put yourself in the refinance or used car interest rate tier.
If youve got the cash, youre better off just paying cash and a modest cash ADM. It will be better for your credit report, because even the quick payoff wont offset the hard pull to get there. Why go through that?
Youre not getting the car for MSRP if youre forced to use expensive financing. ADM comes in many forms: cash, financing, watches, PPF, etc. If you didnt want it and forced to do it to get the car, youre getting back door ADM.
If youre borrowing, youre missing on the opportunity to get your best rate. A 3 month old car is no longer a new car. You put yourself in the refinance or used car interest rate tier.
If youve got the cash, youre better off just paying cash and a modest cash ADM. It will be better for your credit report, because even the quick payoff wont offset the hard pull to get there. Why go through that?
Youre not getting the car for MSRP if youre forced to use expensive financing. ADM comes in many forms: cash, financing, watches, PPF, etc. If you didnt want it and forced to do it to get the car, youre getting back door ADM.
Burning Brakes
Joined: Mar 2022
Posts: 906
Likes: 886
From: Greater Houston Area, TX
If you have excellent credit rating, a hard pull doesnt cost you anything.
Drifting
Joined: Aug 2004
Posts: 3,423
Likes: 1,930
From: new york
No automaker captive financing company has prepayment penalties or otherwise restricts the early payment of loans. You can pay off your Porsche (or BMW) loan the day after you buy the car if you want, the dealer will tell you otherwise because they lose the loan origination fee if you pay if off before a certain timeframe.
Burning Brakes
Joined: Apr 2021
Posts: 1,211
Likes: 494
From: Southern California
I dont understand taking the dealer preferred financing.
If youre borrowing, youre missing on the opportunity to get your best rate. A 3 month old car is no longer a new car. You put yourself in the refinance or used car interest rate tier.
If youve got the cash, youre better off just paying cash and a modest cash ADM. It will be better for your credit report, because even the quick payoff wont offset the hard pull to get there. Why go through that?
Youre not getting the car for MSRP if youre forced to use expensive financing. ADM comes in many forms: cash, financing, watches, PPF, etc. If you didnt want it and forced to do it to get the car, youre getting back door ADM.
If youre borrowing, youre missing on the opportunity to get your best rate. A 3 month old car is no longer a new car. You put yourself in the refinance or used car interest rate tier.
If youve got the cash, youre better off just paying cash and a modest cash ADM. It will be better for your credit report, because even the quick payoff wont offset the hard pull to get there. Why go through that?
Youre not getting the car for MSRP if youre forced to use expensive financing. ADM comes in many forms: cash, financing, watches, PPF, etc. If you didnt want it and forced to do it to get the car, youre getting back door ADM.
Rennlist Member
Joined: Oct 2004
Posts: 1,878
Likes: 1,253
From: Lakewood Ranch, FL
True. But even if it was a "handshake" agreement to take the Porsche financing as part of the deal, I would honor it. What's the time frame that allows the dealer to keep the fee - I have heard 4 or 6 months of payments mentioned here on the forums? Then you can refi that loan to your own lender (credit union, penfed, whatever) to get the lower rate.