4afewdollarsmore

As I continue my hunt for a great 996 (the hunt is almost as much fun as the purchase) I have heard something on the street (or at the poker table!) that goes something like this:

"A dealer only keeps the best cars on trade on their lot, the rest they take to auction. Thus any carfax search that shows "car bought at auction" is an inferior car either due to problems, color or low options."

As I look for a 996 I am looking at all distribution channels (Porsche dealer, second tier but reputable exotic car dealers, ebay (flame away) and private party). I am not sure why I would discount a car that checks out on a PPI just because it snaked its way through an auction but I await the feedback from you more experienced buyers of Porsches (note-as stated in an earlier post I am new to the buying experience of exotic cars).

Thanks again.

BruceP

There are lots of exceptions and 'yeah, buts', I'm sure, but I believe this is generally true. Especially for relatively low volume dealerships, there just isn't the gross margin in the business to carry inventory that doesn't move, deal with cars that keep coming back, or employ lots of high pressure sales sharks. These dealerships make money by selling cars with little effort or manpower, and doing the majority of their service work either under warranty or on cars they've known for awhile by rote.

That doesn't mean the corollary is true, mind you. Not every car at auction is bad. Some are just high mileage, for example, or have been collision damaged and thus tainted no matter how well the repair work was done. And some were taken as trades by dealers that couldn't resell the vehicle because it wasn't their kind of thing. When I bought my 996, the Porsche dealer took my BMW Z3 on a trade, openly planning to ship it to auction. It was a one owner, meticulously maintained, low mileage, showroom new car. But it went to auction because this Porsche dealer doesn't sell used BMWs.

ReidN

This is not true. Here is why. A Porsche owner decides he wants a new Corvette so he trades it in at a Chevy dealer. Now you are in the market for a Porsche are you going to buy one from a Chevy dealer. NO. So he has 2 choices wholesale the car or sell it at auction. He is going to do whatever will get him more money. I sold cars for 2 years when I was younger. I hope this helps.

rountreed

Not so sure ReidN there once was a guy named Bob who bought his Porsche from Ford, well that is a whole other story.

dirtrack49

Having spent to much of my life in the car business, I can tell you that cars go to auction for many reasons, some of which are:

1. The dealer does not normally try to sell that type of car on his lot.
2. The dealer can't find a wholesaler willing to take it. Kind of rare but occasionally happens.
3. The car has several minor problems that just ain't worth fooling with.
4. The car has one or more major problems.
5. The car has a bad news history.
6. The car has been on the dealers lot for way to long and it's time to say bye-bye.

Any car I would consider buying at auction, I would go over it with a fine-tooth comb. Don't look twice, but look several times before buying.

If your buying at auction, you must be aware of what type of auction you are at. There are auctions that are referred to as the "Mooch Auctions". These auctions are made up of mostly the general public who happen to know someone with a dealers license who take them to the auction to buy a car. The prices for a halfway good vehicle will normally be well over wholesale because the "mooches" think they are getting a good deal. Kind of defeats the whole purpose of buying at an auction.

Tom L
2002 C2

rcg412

also.... all lease cars that are returned go to auction.

BruceP

Is that true? Up here, I think that the majority of pre-owned Porsches at Porsche dealers are actually returned from lease. It's a key source of inventory for them, because they generally sold the cars in the first place and have the provenance and service histories on them.

99firehawk

was it a red turbo ?

rcg412

I think most go to auction... not sure if some stay with the dealer, but it is entirely possible.

JES1680

My understanding is all lease cars go to auction. They are not owned by the dealer that leased them, but the leasing company. The leasing co, want's to make as much money as they can on them as well, so they go to auction where dealers purchase them to sell on their lots.

BruceP

That makes total sense, where it's an independent leasing company.

I think around here that a lot of leasing business is done by the manufacturers' own finance arms, represented by the retailer (like Porsche Financial Services). That would probably explain why it seems to be more common to see lease returns on dealer lots.

pl

ReidN

I wouldn't but hey thats me...
[QUOTE]Originally Posted by rountreed
Not so sure ReidN there once was a guy named Bob who bought his Porsche from Ford, well that is a whole other story.

DCP

My car was sold by Porsche Leasing Ltd at auction after a one year lease. I don't know whether it might have been offered to Porsche dealers first, but a used car dealer bought it at auction. The car was pretty nearly perfect, so I would not be afraid of auctioned cars.

pl

the p-car dealer and other dealer are sitting on the same auction.