Notices
992 2019-Present The Forum for the Non-Turbo 911
Sponsored by:
Sponsored by:

992.2 Allocation/ Finance Question

Thread Tools
 
Search this Thread
 
Old 08-14-2024 | 05:41 PM
  #16  
Shogunade's Avatar
Shogunade
Rennlist Member
 
Joined: Dec 2022
Posts: 3,885
Likes: 2,259
From: Mid Atlantic
Default

So is ADM gone?
Old 08-14-2024 | 07:33 PM
  #17  
3520MMF's Avatar
3520MMF
Thread Starter
Instructor
 
Joined: May 2024
Posts: 164
Likes: 98
Default

Thanks again for all your help and advice. I wanted to pay cash for the deal and be done but they want me to do this finance with Porsche for 4 months
I will pay 95% of the finance amount in the first week and ween the renaming balance over the following 3 months as per all your advice
I get that they get the kickback and it was kinda implied that I had to finance for the 4 months to get the allocation. It’s just crazy to me that I can’t just pay for the car outright at delivery. But I’m very happy that I got the call for the allocation and it looks like I will be locking in by the end of the month with possible del in November
Thanks again for all the advice

Old 08-14-2024 | 07:47 PM
  #18  
shrimp money's Avatar
shrimp money
Race Car
 
Joined: Jun 2018
Posts: 4,587
Likes: 5,483
From: Ohio
Default

Can you actually pay for the car in cash and not be irritated if it gets balled up the next day?


Some people are in the game long enough, that they say you win by losing.

Paying interest for four months is a business decision you need to ask the hive when there are some people that pay $200k deposit on a hyper car and aren’t concerned about the 5% they could be making on a online Ally account.

Im out walking the dog, and that’s my rant.
Old 08-14-2024 | 07:56 PM
  #19  
3520MMF's Avatar
3520MMF
Thread Starter
Instructor
 
Joined: May 2024
Posts: 164
Likes: 98
Default

Originally Posted by shrimp money
Can you actually pay for the car in cash and not be irritated if it gets balled up the next day?


Some people are in the game long enough, that they say you win by losing.

Paying interest for four months is a business decision you need to ask the hive when there are some people that pay $200k deposit on a hyper car and aren’t concerned about the 5% they could be making on a online Ally account.

Im out walking the dog, and that’s my rant.


Don't really care what Whales do …. Your response is useless to me


Old 08-14-2024 | 08:09 PM
  #20  
Dirty Jacket's Avatar
Dirty Jacket
Instructor
 
Joined: Dec 2018
Posts: 158
Likes: 72
Default

Originally Posted by F8T and 911T
This is correct. I am a finance manager/director in a dealership (27 years)-- the best move is simply see what your payment is and then when you get first bill, send all the money except 4-6 times that payment and just let it trickle out on autopay...

and to be clear, the reason they want you to finance is... not for a 'kickback' so to speak- it is the reserve the bank will pay the dealer... so the more amount financed over the longest term and marking the rate up 2 points = money to the dealer... 99% of lenders will charge the dealer back that reserve if paid off within 90-120 days... So the dealer will want you to finance the maximum rather than putting down 90% at time of signing etc... if they make 2 points on 150k over 72 months, for example, the dealer will be paid ~$7,600-8k in reserve. This is a significant amount obv which justifies them not marking up the car price.... So, it wont hurt you to just pay it all down except about 11k and let 4-5 payments go out on auto pay since the interest on the tiny 11k balance is basically nothing anyway.... it's a win win situation.... but IF YOU AGREE TO THIS, stick to it!!! It's an awful thing if a dealer asks this of you as a reason for less price of the car and you say yes but then pay it all off anyway and they get charged back the whole reserve.
so awful right! Kind of like reverse ADM. f dealers.
Old 08-14-2024 | 09:31 PM
  #21  
F8T and 911T's Avatar
F8T and 911T
Racer
 
Joined: May 2024
Posts: 262
Likes: 155
From: Florida
Default

I don't think it's awful at all actually-- it's not like you, the customer, is paying it... a LOT of the profit for any dealer, any make, is in the backend and this includes reserves from banks as well as products.. If a bank is willing to split rate markup reserve with the dealer, then yay for all of us.... I'd much rather let a dealer make 1-8k from the bank than from me as a buyer.... Dealers are entitled to a profit. They aren't a Red Cross organization. If they make it from the customer and the banks, it's a good thing.

* my example earlier, by the way, is extreme... there won't usually be a 6-8k reserve amount but it definitely happens.. either way, if a dealer can justify selling you a car for less because they'll make a little in financing, then there's nothing wrong with that-- especially if you follow the advice above and just pay it all off except 3-6 payments.
The following users liked this post:
3520MMF (08-14-2024)
Old 08-14-2024 | 09:59 PM
  #22  
division's Avatar
division
Rennlist Member
 
Joined: Jan 2022
Posts: 137
Likes: 137
From: Florida
Default

Originally Posted by Shogunade
So is ADM gone?
Not if you're forced to finance and have to hold the loan for a certain amount of time. Whatever that loan is, the interest that you're paying and is going towards nothing is essentially an ADM.

Using Hotsaucepancake's example of a $150,000 loan at 6.29% for 72 months, if you keep the full balance, only to pay off the remainder in four months as per "the agreement", you're going to be paying $3090 in interest. However you slice it, that sure looks like an extra $3k that you're paying for the privilege of paying full MSRP for the car. Of course a lesser loan amount would be less that you're paying in interest, but that money is still going to the bank and costing you.
Old 08-14-2024 | 10:40 PM
  #23  
shrimp money's Avatar
shrimp money
Race Car
 
Joined: Jun 2018
Posts: 4,587
Likes: 5,483
From: Ohio
Default

Originally Posted by 3520MMF
Don't really care what Whales do …. Your response is useless to me
You should listen to what whales do, from an educational standpoint.

You’re telling us you have $120k+ cash to pay for your car, but have no clue how interest is calculated when financing an automobile.
Old 08-14-2024 | 10:48 PM
  #24  
3520MMF's Avatar
3520MMF
Thread Starter
Instructor
 
Joined: May 2024
Posts: 164
Likes: 98
Default

Originally Posted by shrimp money
You should listen to what whales do, from an educational standpoint.

You’re telling us you have $120k+ cash to pay for your car, but have no clue how interest is calculated when financing an automobile.


What did you and your dog talk about on the walk
Old 08-14-2024 | 11:13 PM
  #25  
double-o-seven's Avatar
double-o-seven
Instructor
 
Joined: Nov 2023
Posts: 179
Likes: 103
Default

It's just a base model. If I were you, I would just tell the dealer that I will cut you a check or wire the money for the MSRP + TTL, and if they disagree, ask them to call you if they are interested in moving forward with it in the next few days.

Let them also know that you will also be shopping with other dealers in the meantime, so that your MSRP cash buy offer is time-limited. If the dealer you are dealing with has any business brain attached, they will oblige to your MSRP cash deal. It's a freaking base model, for God's sake.

Last edited by double-o-seven; 08-14-2024 at 11:16 PM.
The following users liked this post:
Butzi (08-15-2024)
Old 08-15-2024 | 12:20 AM
  #26  
3520MMF's Avatar
3520MMF
Thread Starter
Instructor
 
Joined: May 2024
Posts: 164
Likes: 98
Default

Originally Posted by double-o-seven
It's just a base model. If I were you, I would just tell the dealer that I will cut you a check or wire the money for the MSRP + TTL, and if they disagree, ask them to call you if they are interested in moving forward with it in the next few days.

Let them also know that you will also be shopping with other dealers in the meantime, so that your MSRP cash buy offer is time-limited. If the dealer you are dealing with has any business brain attached, they will oblige to your MSRP cash deal. It's a freaking base model, for God's sake.


You’re right it’s not like I’m getting a T where I would gladly pay ADM or a special GTS where I would pay double ADM.
I’m just trying to get a daily for myself. Maybe I should actually talk to some whales for educational purposes like Shrimpy suggested.
I’m envious of the Cars and Coffee specials so many have on here.
Old 08-15-2024 | 01:24 AM
  #27  
MAXFPS's Avatar
MAXFPS
Instructor
 
Joined: Jun 2024
Posts: 227
Likes: 166
From: Oregon
Default

I’ve got one of the first 992.2 Carrera bases coming in and the dealer wanted $10K in ADM. I told them no but if they wanted to sell me overpriced stuff I could actually use like PPF or extended service contract, I would do that. We agreed on some of those add-ons, but when I told them I wanted to pay cash, they told me I had to finance for 1 month as they got a kickback. I’ve spent all my life working hard to not have any loans anymore, and frankly didn’t want the paperwork hassle. So I just asked them what kind of ADM could I pay them instead of one-month loan hassle. $3K was the answer. That’s quite the kickback for loans they get!
The following 2 users liked this post by MAXFPS:
Butzi (08-15-2024), Icegrill (08-15-2024)
Old 08-15-2024 | 01:28 AM
  #28  
Butzi's Avatar
Butzi
Rennlist Member
 
Joined: Aug 2005
Posts: 989
Likes: 281
From: Marin County/Escaped from San Francisco
Default

Originally Posted by MAXFPS
I’ve got one of the first 992.2 Carrera bases coming in and the dealer wanted $10K in ADM. I told them no but if they wanted to sell me overpriced stuff I could actually use like PPF or extended service contract, I would do that. We agreed on some of those add-ons, but when I told them I wanted to pay cash, they told me I had to finance for 1 month as they got a kickback. I’ve spent all my life working hard to not have any loans anymore, and frankly didn’t want the paperwork hassle. So I just asked them what kind of ADM could I pay them instead of one-month loan hassle. $3K was the answer. That’s quite the kickback for loans they get!
I'm not in this position, but that would have been the strategy I would take. "What is it worth to you? Let's make a deal." If you don't need to finance, why bother? Pay the hidden ADM upfront and be done.
As someone else wisely said, you can shop around...
Old 08-15-2024 | 01:56 AM
  #29  
ipse dixit's Avatar
ipse dixit
RL Community Team
Rennlist Member
 
Joined: Sep 2005
Posts: 17,330
Likes: 12,277
Default

Originally Posted by Dirty Jacket
so awful right! Kind of like reverse ADM. f dealers.
This is a most ignorant and spiteful posts.
The following 3 users liked this post by ipse dixit:
F8T and 911T (08-15-2024), ICU (08-17-2024), vladie22 (08-17-2024)
Old 08-15-2024 | 02:29 AM
  #30  
Icegrill's Avatar
Icegrill
Burning Brakes
 
Joined: Feb 2023
Posts: 1,043
Likes: 1,037
Default

Originally Posted by MAXFPS
I’ve got one of the first 992.2 Carrera bases coming in and the dealer wanted $10K in ADM. I told them no but if they wanted to sell me overpriced stuff I could actually use like PPF or extended service contract, I would do that. We agreed on some of those add-ons, but when I told them I wanted to pay cash, they told me I had to finance for 1 month as they got a kickback. I’ve spent all my life working hard to not have any loans anymore, and frankly didn’t want the paperwork hassle. So I just asked them what kind of ADM could I pay them instead of one-month loan hassle. $3K was the answer. That’s quite the kickback for loans they get!
Turns my stomach a little, how some of these stealerships can sour what should be such a great experience.


Quick Reply: 992.2 Allocation/ Finance Question



All times are GMT -3. The time now is 06:32 AM.