Why are CPO Porsche Cars Are So Expensive?
#16
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Asking price for the car was $79k IIRC, dealer wanted $2.5k to CPO it.
We ended up doing a deal with a $2k add-on for CPO.
So that was the exact price difference for CPO - $2k.
#17
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My experience is not there. I was dealing on an '06 C2S with 8k miles during 2008. The car wasn't CPO and I was going to buy it that way but changed my mind.
Asking price for the car was $79k IIRC, dealer wanted $2.5k to CPO it.
We ended up doing a deal with a $2k add-on for CPO.
So that was the exact price difference for CPO - $2k.
Asking price for the car was $79k IIRC, dealer wanted $2.5k to CPO it.
We ended up doing a deal with a $2k add-on for CPO.
So that was the exact price difference for CPO - $2k.
I been searching for an 09 for some time. Those CPO are asking for about the same price as it was new. Those 1st owners bought it with 20% or more discounted because of factory cash back. I Just can't do it.
#18
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Thank you acao for your post. It was clear, easy to follow and understand. PFS, Dealerships, etc. require a profit to be in business. How much profit is market driven.
I guess the real trick is to find the perfect Porsche at Manhiem that the receiving dealer didn't want and the PFS truck picked up.
I suppose that can be done, but a few thousand bucks (Dealer & CPO mark-ups) as insurance is the route I prefer. I would rather write the check, forget about it, and sleep at night. Otherwise I would be laying awake wondering if tomorrow is the day my engine gernades.
I guess the real trick is to find the perfect Porsche at Manhiem that the receiving dealer didn't want and the PFS truck picked up.
I suppose that can be done, but a few thousand bucks (Dealer & CPO mark-ups) as insurance is the route I prefer. I would rather write the check, forget about it, and sleep at night. Otherwise I would be laying awake wondering if tomorrow is the day my engine gernades.
#19
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My dealer threw in the CPO for free since I was about to walk away from the deal. I told him to throw in the CPO at no cost and I'll buy it. He surprised me.
Last edited by hpowders; 06-21-2011 at 09:52 PM.
#20
Instructor
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Buying a 3-4 year old car with the depreciation discounted is what conventional wisdom recommends. For a 997.2 however , many signs point to just coughing up more money and buying new.
#21
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I totally agree. As I pointed out in my original post - I am looking to buy a reasonably optioned C2 MSRP around $87K. I think since we are close to the model transition and July/August timeframe - I should be able to negotiate a price about $75K for a brand new C2 car. A 2008 model is priced at $60K. Amortizing difference of $15K over a period of 36 months or 42 month translates into a monthly depreciation rate $416 or $357 per month. I think that rate of depreciation is quite reasonable specially for a Porsche car. You can also make sure you break the car in properly and don't have any other worries associated with buying a used/CPO car including brand new tires, brakes etc. Decisions....Decisions....
In my opinion there has to be a stronger value proposition for a CPO car then the market is presenting right now. Am I missing anything? Appreciate continued advice, discussion and insight. This thread hopefully presents a good baseline to a lot of new members presently considering buying a CPO car. Thanks for all the great replies and high quality discussion on this topic.
In my opinion there has to be a stronger value proposition for a CPO car then the market is presenting right now. Am I missing anything? Appreciate continued advice, discussion and insight. This thread hopefully presents a good baseline to a lot of new members presently considering buying a CPO car. Thanks for all the great replies and high quality discussion on this topic.
#22
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You'll be hard pressed to get an $87k car for $75k. There is only 10% markup in these cars, so invoice on an $87k car is about $78k and there aren't any factory incentives yet on the 11's.
#23
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I think you are correct. I am assuming in a few months Porsche and/or dealership might want to get rid of the 2011 stock and with some incentives $75K is a very realistic number. I think $70K might be a stretch. In no particular rush to buy a new or CPO car?
#24
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A follow up question to the one I posted originally. Let's say I originally lease a car. The agreed on sale price of the car is $80K with a 36 month residual value of $44K. The lease is up. I have 2 options:
1. Return the car to Porsche Financial Services (PFS)
2. Retain ownership of the car by buying it from PFS for 44K
If the residual value of the car was originally set artificially low, the car should be a bargain at $44K. Is the lessee not better off buying the car and potentially selling it in the private market place rather than back to PFS. One might argue this might result in an additional profit for the lessee of several thousand dollars thus subsidizing his original lease.
1. Return the car to Porsche Financial Services (PFS)
2. Retain ownership of the car by buying it from PFS for 44K
If the residual value of the car was originally set artificially low, the car should be a bargain at $44K. Is the lessee not better off buying the car and potentially selling it in the private market place rather than back to PFS. One might argue this might result in an additional profit for the lessee of several thousand dollars thus subsidizing his original lease.
#25
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I guess the real trick is to find the perfect Porsche at Manhiem that the receiving dealer didn't want and the PFS truck picked up.
I suppose that can be done, but a few thousand bucks (Dealer & CPO mark-ups) as insurance is the route I prefer. I would rather write the check, forget about it, and sleep at night. Otherwise I would be laying awake wondering if tomorrow is the day my engine gernades.
I suppose that can be done, but a few thousand bucks (Dealer & CPO mark-ups) as insurance is the route I prefer. I would rather write the check, forget about it, and sleep at night. Otherwise I would be laying awake wondering if tomorrow is the day my engine gernades.
Then, self insure for the markup. The bottom line is that CPO on Porsche isn't that valuable when it comes to small stuff. 99% of things that go wrong can be fixed for under $2000. Without getting on a high horse, you should really have alot more than $2000 available to you. The CPO is valuable for the catastrophic failure, i.e. engine kablooie which could get into 5 figures. If CPO is a $10k markup, just self insure the nice Porsche you found sitting on the Lexus lot.
#28
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Let's us assume that an original (new) owner leased a car for 36 months. The MSRP of the car (C2) is $86K and the person leasing the car was able to negotiate a price of $80K and the lease payments were based on this purchase price. Usually 36 month leases have a residual value of approximately 55%. This gives a lease purchase price of $44K. Add $2K for CPO certification and $2K in dealer profit. This gives us a total sale price of $48K.
#29
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Yes, you can make a little cash if you can sell a lease-end car for more than its residual, including all transaction costs. But, add up all your lease payments and then add in your residual, and you'll realize that the total cash outlay to own a car that was leased is really expensive. In other words, no matter how clever a bargain you strike on the lease end side, you already lost at least inception.
#30
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I think the used car market has changed a good bit from last year for these cars and its no longer a buyers market. The deals arent quite the same and theres not as much cpo/used car inventory. The summer time is also a bad time to buy a used sports car as this is when they sell for premium..