donquixote30

Hi fellows! I'm exploring the possibility of trading-in my 2006 997S for a 2008 GT3. I'll be willing to pay list price, but will not settle for more than a 15% depreciation on my beloved Carrera S. The car has only 7,500 miles and is in pristine condition. I made this proposition to a dealer today and he is willing to check it out as the Galves reference book he uses doesn't provide any data with respect to the 2006 model.

The salesman indicated that there is one customer on the waiting list and that no 2008 allocations have been assigned to his dealership as of yet. Further, if I get on the waiting list now, I should be receiving the car by the end of the year or in the Spring, 2008. Here is the catch, if I trade-in my car now to avoid further depreciation, the dealer will be getting $70,000-plus capital to play with interest free until the GT3 is delivered several months later. Clearly, this interest income should go to my bank not the dealer's. What is the standard procedure when a car is traded-in several months before a limited supply vehicle, such as the GT3, is delivered?

TT Surgeon

Just sell it pvtly yourself

mrpc12

Just do 2 separate transactions. Sell them your car and put the money in your bank. Then give them a small refundable deposit towards the GT3.

Paul523

In new york state do you get credit for trade-in $$ amount against sales tax?....... in other words, if you pay $110K for the GT3 and trade in the 997S for $75K, is sales tax calc'd on the full $110K GT3 purchase price or only on the $35K difference? That could be a $6K swing... a couple $K more than a year's interest on $75K.

I know in some states with trade-in credit/tax offset if you trade in your car to the dealer today, you would have up to 6 months to take delivery on the new one to realize the sales tax savings.

donquixote30

mrpc12,

Thanks for your creative suggestion. If I sell it to the dealer, would that count as a trade-in sales tax-wise. In New York State, the trade-in amount is exempted from sales tax.

C4S Surgeon,

I tried to do so through my dealer (selling it privately yet transacted through the dealer), but he is not willing to do so any longer. I did it when I ordered my Carrera 2 years ago. Thanks.

donquixote30

Paul523,

Only on the difference. Thanks.

Alan Smithee

I think that's wishful thinking; 15% off MSRP would be full retail for your minimally optioned 2006 on a good day. The dealer still needs to pay to CPO the car and make a profit...

E55AMG

Agreed. My dealer will allow me to sell privately and run it thru him so I don't lose the tax advantage but I'm asking a lot less than you and not getting very much interest at all. But you never know. good luck.

Sharptt

If you can get what you paid for your 997S less 15% on trade towards a 2008 GT3 I would suggest you jump at the deal. Realistically the dealer pays about 12% below MSRP for a new 997S, so it is highly unlikely he will pay you almost the same amount for what will soon be a two year old car. Especially when you want to trade up to a car that is produced in smaller quantities and he can selll all day long at list. But in negotiating a deal you have to start somewhere and I wish you luck. Factor in the elimination of hassles of private sales and the NYS sales tax savings and you may find a common ground/compromise. Let us know how you make out.

Solo1111

I agree with Sharptt. I was helping my business partner to inquire a similar trade-in for his 07 Carrera 4S Cab for the soon-to-come 08 TT Cab. Despite the car is under lease, the dealer told us that he would have to lose 20% of the car's value at the very least.

Selling it privately will likely to reduce your lost but as always, cars depreciates quickest in the first few years.

Good luck and keep us posted with your decisions.

donquixote30

Hi guys, thanks again for your thoughts. I agree, 15% off list on a nearly two-year 2006 997S is a bit unrealistic. That was my offer, and surprisingly he didn't rejected it off-the-bat. I'm sure he will come back with a lower counter offer. Still, if I trade-in my car now and he plays with that capital interest free for about 9 months, that's nearly an additional $3,000 "payment" (simple interest) he is getting at my expense. I suspect that's part of what he is banking on.

Selling it privately through the dealer, assuming he will go along with it, is also a painful and risky proposition as it may take a long time to sell an expensive and rapidly depreciating sports car. To a large extent, my indecision is based on the fact that a mint-condition 997S is a jewel I find very difficult to depart from as I'm not a track-oriented person. My main interest on a GT3 is to experience a 911 in its current purest form, and I suspect the 997S is not far from reaching that level.

Another thought I cannot get off from the child in me, is to keep the 997S and buy a new Honda S 2000 on its last production year. I have always loved its classy looks, together with its meticulous workmanship, superb handling, and competitive pricing. A manufacturer's discount is currently being offered until May 14. I asked a dealer how low he would go on it, and he replied $29,000. I suspect a more aggressive dealer I'm familiar with will sell it for $28,000 or $28,500. That's a lot of fun at a bargain price. The downside
would be additional insurance and garage space, as I would be very hesitant to get rid of my backup car, a 2005 Volvo S 60 stick shift I also love. Thanks again for your help!

Frank 993 C4S

Also keep in mind that selling your mint 997S now would mean that you'd be Porsche-less for the summer. Nothing about owning these cars is financially sensible in the first place.

leif997

Don Q: I knew you would come over to the dark side after your initial ?'s regarding the GT3's back in Jan....do a little research; there are cars to be had now nation-wide....you will take a hit anyway, so do it now and enjoy

Mark Dreyer

Keep the 997S. On the other hand, if you do get the GT3, you are obligated to become a "track-oriented person"

YYC930

This does not enter into the equation. I've never thought about it or made it a factor when doing a deal involving a trade-in.