Trader220

I know the owner of another area dealer very well. We were members at the same golf club for years and we would play golf together from time to time. I used to pick his brain about the car business and the Porsche business as we played. That was all going back over the course of the last 12 years while I was still a trader. When I decided to get into this business (Porsche) I didn’t want to go to work for someone I know, that has the potential to create issues I would rather not deal with. Anyway, I had a conversation with him not all that long ago and he was very satisfied with the small number of sales they made per month with very low overhead while making money on service. The point being, not every dealer wants to sell as many cars as they can for no or little profit. The business plan of some places revolves around low overhead and small steady business. It’s my opinion they’re not trying to screw you they just are happy making fewer trades with more edge than doing big volume with little to no edge (In trader speak).

nyca

Well, how does that work? The typical service department is working on cars the dealership has sold - how can a dealership business model focus on service revenue, and forgo sales, when the cars in the service department are mostly the ones the dealership has sold? The number of cars the dealership sells is directly related to the number of cars the service department works on, the exception being if a particular dealer has a service department that is so much better then their regional competitors, that owners will switch their service work to them.

Trader220

I would say that perhaps they are losing sales to others dealers in the region but those people dont want to drive the extra distance to service their car. IMO they're not "focused" to greatly on anything but keeping what they have going in tact. IMO they have tiny overhead in inventory and sales people which I assume they want to keep it that way.

You'd really have to ask them for the specifics on their business model.

doublebagel

just leased a 09 black/black c4s for $1559/mo, 3year/10k miles, 5K down (for fees and a little cap reduction) - I'm happy. Maybe could have gotten a lower price, but the car puts a smile on my face everytime I drive it.

DRJMK

I agree Trader. I went to the local dealer first but no available cars I wanted. in fact, their inventory consisted of 4 cars, 3 aqua blue and 1 macademia. Tried to give a deal on the launch cab, but it was not a deal. I went elsewhere. Now, their service tech is one of the best around and I will take it there for all major services. Their sales department consists of 2 guys, the manager and one semi-retired older gentleman who just wants to hang out and maybe sell a car! I know that the dealer does a ton of service, that's how he stays in business!

DRJMK

Congrats! Welcome! would love to see some pics! Start a new thread and post them up!!!

scott watkins

A $61k smile must be one heck of a BIG smile

The good news as I see it, if folks are willing to write $1600 checks to rent a car each month, the overall economy ain't that bad after all!

Spiffyjiff

how much % off sticker?

OldGuy

Scott unless you are intimately familiar with peoples finances why dont you lay off people who lease? Its impossible for you to know whats best for anyone unless you are their personal accountant. A lease is just another tool for someone to use.

Back to the OP points. I pulled the trigger today on a C2S and its by far the best deal percentage wise I have ever received on a car purchase. Yes the deals are back right now and you can find amazing deals on cars in inventory. I asked for a deal I thought personally was impossible. My salesdude came back within $600. So there was nothing I could since he called my bluff.

Holli82

We want details

Holli82

nevermind,

I read your post on the GT3 forum

Congrats & enjoy!

OldGuy

Anyone wanting the numbers can PM me and I will give you the exact deal.

vexed

I peaked in the GT3 forum, sounds great. We'll be very interested in how you compare it to your former ride.

jderrico

What he said...and how about some pictures?

scott watkins

"Scott unless you are intimately familiar with peoples finances why dont you lay off people who lease? Its impossible for you to know whats best for anyone unless you are their personal accountant. A lease is just another tool for someone to use."

Paul, be happy to take offline and discuss the cons of fleecing a personal vehicle, regardless of an individuals situation. Here's a good example of what I would tell anyone looking to take a fleece.

"Look, I’m not coming down on people that lease cars. But, if you want to become wealthy someday, you’ve got to stop pouring so much money into a huge asset that goes down in value every second of its existence. Wealthy people pour money into assets and investments that go UP in value. Warren Buffet drives around a used pick-up truck during much of his personal time. He has lived in the same house that he bought about 30 years ago. He’s wealthy because he knows that possessions are a horrible investment and they never buy the happiness that they promise. Sometimes a brand new leased car or a no-money-down, financed car feels so good to sit in. It has that new car smell and it drives so smoothly, but is that what makes you happy in life? Do you need to “look” good driving a new car? Would you be embarrassed to drive a 12 year old Honda accord with faded paint? The point is that leasing a car only helps the dealership and car manufacturer in the end."

1. If you get in an accident and the vehicle is totaled, you’ll still be responsible to pay back the full lease contract amount. Even if the insurance company gives you back less than what you owe to the dealership, you’ll be responsible for the full amount. If you do go with a lease, at least be smart enough to buy “gap” insurance which covers you for that difference that you would owe to the dealership.

2. Many times, the lease agreement will be for 5 years/60,000 miles. So, if you go over that 60,000 and keep it until the 5 years is up, you’ll pay a penalty for every mile over 60,000 miles. Think about how many miles you put on a car each year. Most people use well over 12,000 per year.

3. If you lose a job or experience a heavy time of financial hardship and cannot afford the payment anymore, the dealership will recover the car, sell it an auction, and if they sell it for less than you owe for the lease agreement, you will be legally responsible to pay the difference.

4. The car is NOT yours, yet they still make you pay for the maintenance of it.

5. Again, you can’t claim the car as an asset. It is technically still an asset of the dealership that leased it to you.

6. A lease starts a trend of perpetually paying a car payment. If you never paid a car payment and the average car payment in America was $350 a month, putting that $350 a month in a mutual fund that made 10% would become $791,171 in 30 years. That is astonishing, and what astonishes me more is that there are people out there that will continue to defend leasing cars and financing cars with no money down because the “maintenance costs” are so much lower for a new car. Give me a break.

7. If you decide to take the option to buy the car at the end of the lease term, you’ll have paid much more than the cost of the car even if you had financed it.