992.2 Allocation/ Finance Question
08-14-2024, 05:41 PM
#16
Rennlist Member
So is ADM gone?
08-14-2024, 07:33 PM
#17
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
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
08-14-2024, 07:47 PM
#18
Race Car
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.
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.
08-14-2024, 07:56 PM
#19
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.
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
08-14-2024, 08:09 PM
#20
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.
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.
08-14-2024, 09:31 PM
#21
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.
* 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.
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3520MMF (08-14-2024)
08-14-2024, 09:59 PM
#22
Rennlist Member
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.
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.
08-14-2024, 10:40 PM
#23
Race Car
08-14-2024, 10:48 PM
#24
08-14-2024, 11:13 PM
#25
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.
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.
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Butzi (08-15-2024)
08-15-2024, 12:20 AM
#26
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.
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.
08-15-2024, 01:24 AM
#27
Instructor
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!
08-15-2024, 01:28 AM
#28
Rennlist Member
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!
As someone else wisely said, you can shop around...
08-15-2024, 01:56 AM
#29
RL Community Team
Rennlist Member
Rennlist Member
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08-15-2024, 02:29 AM
#30
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!