Do dealers lose money on most left over previous year models?
02-05-2008, 12:23 PM
#16
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Recently one dealer was advertising 6 or 7 'demo' 2007 Caymans at at one point $10,000 off of MSRP. No way a dealer would have that many demos.
There were also deals on 'demo' Boxsters (base and S) and even a few Carreras. All cars listed were 2007s and this was after the 2008 models were available.
Previously when I was shopping for a Porsche I would come across quite a few 'used' Porsches available at various Porsche dealerships. While some cars had the mileage that indicated useage, more than a few had factory delivery miles or just a bit more miles. Oh, and quite a few -- especially the ones with the low miles were the previous model year, not a couple of years old as one would expect.
Don't worry how Porsche does it, know only that Porsche has ways of helping its dealers move unsold stock.
Course Porsche can adjust its factory output to reduce inventory if it forecasts slow sales but if it has already built the cars if they're already at the dealerships, well, there has to be a way for Porsche to help these dealers.
Sincerely,
Macster.
There were also deals on 'demo' Boxsters (base and S) and even a few Carreras. All cars listed were 2007s and this was after the 2008 models were available.
Previously when I was shopping for a Porsche I would come across quite a few 'used' Porsches available at various Porsche dealerships. While some cars had the mileage that indicated useage, more than a few had factory delivery miles or just a bit more miles. Oh, and quite a few -- especially the ones with the low miles were the previous model year, not a couple of years old as one would expect.
Don't worry how Porsche does it, know only that Porsche has ways of helping its dealers move unsold stock.
Course Porsche can adjust its factory output to reduce inventory if it forecasts slow sales but if it has already built the cars if they're already at the dealerships, well, there has to be a way for Porsche to help these dealers.
Sincerely,
Macster.
Porsche doesn't help with unsold stock. The better way of saying this would be that dealers have a way of manipulating the system to try to move unsold stock. Porsche's service loaner program pays the dealer a certain chunk of money up front when they put in cars as service loaners, and then give them a similar payment after the car is in service for several months. As soon as the dealer reports the car's use as a service loaner the clock begins ticking on the warranty and the dealer gets a payment. Less scrupulous dealers take advantage of this to write their new inventory down. Did they tell you that the warranty is already running on the car you're interested in? Do you get a Porsche loaner car when you take your car in for service, or is that dealer's loaner quota sitting out on the lot with the warranty running and big "save thousands" signs in the windshields?
02-05-2008, 01:50 PM
#17
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Porsche Sales ??
Reading the press release from Porsche (HERE) stating that 2718 cars were delivered to customers in USA & Canada is simply not true.
PCNA is passing false info to PAG.
Dealers "punch" cars unsold in their inventory as a reported sale to PCNA which then reports to PAG.
One thing that happens is that the warranty clock starts ticking from the punch date and in CA it must be disclosed and reported to DMV as a used car sale.
My own dealer has at least 15 PUNCHED cars for the past couple of months.
It's a rob peter to pay paul situation.
Dealers will do it to look good to PCNA and keep allocations.
PCNA will ask dealers to punch to meet goals and look good to PAG.
If each of the 212 dealers punched 1 car the reported PAG "true" sales would be 7+% less.
I suspect that the # of punched cars is quite higher
The whole automobile industry is so weird from top to bottom.
In this down economic climate there is another aspect of "punched" cars.
Smaller dealerships sitting on inventory take the "punch" and sell their car to a larger dealership.
The larger dealership now has for all intent and purpose a "new" vehicle in their used car inventory.
Small dealer shows a sale to PCNA.
PCNA shows a sale to PAG.
A giant shell game, the reality, no new car delivered to a customer.
A So Cal dealer shows 8 2007 "pre owned vehicles" each with less than 100 mi. on the clock.
If you are in the market to buy there are some great deals to be had out there, if you shop around and don't mind that the warranty clock (in service date) started ticking when the punch was made, for a NEW car.
PCNA is passing false info to PAG.
Dealers "punch" cars unsold in their inventory as a reported sale to PCNA which then reports to PAG.
One thing that happens is that the warranty clock starts ticking from the punch date and in CA it must be disclosed and reported to DMV as a used car sale.
My own dealer has at least 15 PUNCHED cars for the past couple of months.
It's a rob peter to pay paul situation.
Dealers will do it to look good to PCNA and keep allocations.
PCNA will ask dealers to punch to meet goals and look good to PAG.
If each of the 212 dealers punched 1 car the reported PAG "true" sales would be 7+% less.
I suspect that the # of punched cars is quite higher
The whole automobile industry is so weird from top to bottom.
In this down economic climate there is another aspect of "punched" cars.
Smaller dealerships sitting on inventory take the "punch" and sell their car to a larger dealership.
The larger dealership now has for all intent and purpose a "new" vehicle in their used car inventory.
Small dealer shows a sale to PCNA.
PCNA shows a sale to PAG.
A giant shell game, the reality, no new car delivered to a customer.
A So Cal dealer shows 8 2007 "pre owned vehicles" each with less than 100 mi. on the clock.
If you are in the market to buy there are some great deals to be had out there, if you shop around and don't mind that the warranty clock (in service date) started ticking when the punch was made, for a NEW car.
02-05-2008, 02:21 PM
#18
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That is not true. In California even if a new car has been punched (RDR sent to the manufacturer or distributor) it doesn’t get reported to DMV until it is sold and when it does sell it gets delivered on a new car report of sale.
02-05-2008, 06:25 PM
#19
Race Director
Visited the dealership offering the many 'demo' cars at substantial...
Sorry for the late reply. Anyone tried flying in/out of Chicago the last few days?
Porsche doesn't help with unsold stock. The better way of saying this would be that dealers have a way of manipulating the system to try to move unsold stock. Porsche's service loaner program pays the dealer a certain chunk of money up front when they put in cars as service loaners, and then give them a similar payment after the car is in service for several months. As soon as the dealer reports the car's use as a service loaner the clock begins ticking on the warranty and the dealer gets a payment. Less scrupulous dealers take advantage of this to write their new inventory down. Did they tell you that the warranty is already running on the car you're interested in? Do you get a Porsche loaner car when you take your car in for service, or is that dealer's loaner quota sitting out on the lot with the warranty running and big "save thousands" signs in the windshields?
Porsche doesn't help with unsold stock. The better way of saying this would be that dealers have a way of manipulating the system to try to move unsold stock. Porsche's service loaner program pays the dealer a certain chunk of money up front when they put in cars as service loaners, and then give them a similar payment after the car is in service for several months. As soon as the dealer reports the car's use as a service loaner the clock begins ticking on the warranty and the dealer gets a payment. Less scrupulous dealers take advantage of this to write their new inventory down. Did they tell you that the warranty is already running on the car you're interested in? Do you get a Porsche loaner car when you take your car in for service, or is that dealer's loaner quota sitting out on the lot with the warranty running and big "save thousands" signs in the windshields?
All cars had their Marooney sticker either on glass or laying in car somewhere.
All were offered at MSRP. Didn't see an additional dealer markup tacked on though...
For the sake of discussion, then assume Porsche doesn't help its dealers in order they can better move (sell) holdovers. By some means then the dealers are coming up some scheme that apparently allows them to offer essentially new cars for substantially below MSRP. While the cars may be labeled 'demo' or 'used' they have factory delivery miles on them, or so few additional miles as to have not been used much as a demo or loaner.
This implies there's quite a margin in the new cars prices one can still factor this into his estimate of what he thinks he can get a new/used Porsche for.
Oh, the one Porsche dealer I've done business with near me out here in CA doesn't offer loaners per se, anymore, but does provide a coupon that one can use to obtain a rental car -- from a rental office located just several score feet away from dealer's service entrance -- for just tax on the rental car's normal cost.
Almost before my Porsche was out of warranty shortly after I bought it new in Jan. 2002 my selling dealer was cutting way back on Porsche loaners. I got a new S for a loaner, one time (and returned it washed/waxed and cleaned inside and out) but after that the few times I needed to leave my car and needed a loaner I received just run of the mill rental fleet loaners, mainly Ford Tarus, granted at no cost to me.
Sincerely,
Macster.
02-05-2008, 07:44 PM
#20
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Guys, 'punching' cars and 'titling the car are two DIFFERENT actions. One has nothing to do with the other.
RDR'ing- putting the warranty into motion forward
Titling- showing ownership.
RDR'ing- putting the warranty into motion forward
Titling- showing ownership.
