Trumps tariffs a potential threat?
07-14-2018 | 12:06 AM
#33
Three Wheelin'
Joined: Apr 2015
Posts: 1,975
Likes: 12
Originally Posted by unotaz
I wonder if you could just prepay for the car up front now and have the dealer sign a statement saying that the car is fully paid for, regardless of tariffs?
07-14-2018 | 12:14 AM
#34
Drifting
Joined: Sep 2014
Posts: 2,255
Likes: 1,014
From: Los Angeles/Taipei
07-14-2018 | 12:45 AM
#35
Burning Brakes
Joined: Jan 2016
Posts: 960
Likes: 80
If tariffs happen, maybe it cure us of our addiction?
But seriously, it wouldn’t be good for Porsche as many of us here would decide differently if we had to pay $40K more.
Glad my Touring is due stateside late August, which should be well before this might happen.
But seriously, it wouldn’t be good for Porsche as many of us here would decide differently if we had to pay $40K more.
Glad my Touring is due stateside late August, which should be well before this might happen.
07-14-2018 | 12:51 AM
#36
Intermediate
Joined: Dec 2014
Posts: 36
Likes: 0
Bring on the tariffs. I have RS on order and would walk away (its a car) since US has been getting screwed for years and nobody has had the guts to change things. Other countries need our business, they will bend. In the end Germans might by more Corvettes ,Camaro's,and Mustangs, which means more GT3 RS's for US market in the long run. Let it play out. Germany is not going to risk its car business in the US. As for you Trump doubters, the money you saved on new tax laws this year will pay for the tariffs if it would happen.
07-14-2018 | 01:07 AM
#37
Drifting
Joined: May 2015
Posts: 3,096
Likes: 44
Chinese customers will love if if the tariffs happen. They already got the 3.0L engine to be affordable in their market, and if Porsches suddenly become less affordable in the US, that’ll just make them all that more desireable over there when they can have a luxury that a reduced number over here can.
07-14-2018 | 01:17 AM
#38
Drifting
Joined: May 2015
Posts: 3,096
Likes: 44
Bring on the tariffs. I have RS on order and would walk away (its a car) since US has been getting screwed for years and nobody has had the guts to change things. Other countries need our business, they will bend. In the end Germans might by more Corvettes ,Camaro's,and Mustangs, which means more GT3 RS's for US market in the long run. Let it play out. Germany is not going to risk its car business in the US. As for you Trump doubters, the money you saved on new tax laws this year will pay for the tariffs if it would happen.
07-14-2018 | 01:34 AM
#39
Three Wheelin'
Joined: Apr 2017
Posts: 1,774
Likes: 782
Trade is a complicated issue. Where do you get your information about dealer organizations and unions? Or is this merely your opinion?
07-14-2018 | 02:26 AM
#41
Rennlist Member
Joined: Jun 2001
Posts: 3,829
Likes: 217
From: La Jolla
Bring on the tariffs. I have RS on order and would walk away (its a car) since US has been getting screwed for years and nobody has had the guts to change things. Other countries need our business, they will bend. In the end Germans might by more Corvettes ,Camaro's,and Mustangs, which means more GT3 RS's for US market in the long run. Let it play out. Germany is not going to risk its car business in the US. As for you Trump doubters, the money you saved on new tax laws this year will pay for the tariffs if it would happen.
Congress reduced the upper income tax bracket by 3% but took away a host of deductions. If you live inhigh tax states like CA and NY you will have higher taxes. Businesses got the biggest tax breaks and will see their taxes go down.
An interesting question is whether the dealers will accept the cars from PCNA if they know they cannot sell the car because of the high tariffs. Accepting the car means paying for it. Unless they know they can sell it, some dealers may decide they cannot afford to floor plan it and reject the car (I’m not sure if they are contractually bound to accept .the car.
07-14-2018 | 02:32 AM
#42
Burning Brakes
Joined: Sep 2013
Posts: 1,054
Likes: 8
From: Los Angeles, CA
Tarrifs go into effect and I'm out as well. Will look to older cars or a used .2 GT3. But I assume so will everyone else and the prices will rise accordingly. Sucks. Hoping it doesn't happen as I have a January delivery.
07-14-2018 | 03:23 AM
#43
SJW, a Carin' kinda guy
Rennlist Member
Rennlist Member
Joined: Apr 2008
Posts: 6,786
Likes: 622
From: On the internet
The way the tariff would work is it would be paid by Porsche (as the importer) on the car when it arrives in the US and clears customs. All cars are currently subject to a 2.5% “tariff” now. Anyone who has imported a car personally can see how it works.
While Porsche could just up the MSRP by the amount of the tariff, that is not a foregone conclusion either in it happening at all, happening right away, or happening at the same amount of the tariff.
I am sure PAG has various contingency plans in place, but I would suspect that they would not immediately up the MSRP on all cars by the amount of the tariff. I would suspect it would be less than the amount of the tariff, likely phased in over time, and also may not include cars on order as that would create a lot of ill will and headaches. Maybe that is wishful thinking, but it is more realistic than some other scenarios.
While Porsche could just up the MSRP by the amount of the tariff, that is not a foregone conclusion either in it happening at all, happening right away, or happening at the same amount of the tariff.
I am sure PAG has various contingency plans in place, but I would suspect that they would not immediately up the MSRP on all cars by the amount of the tariff. I would suspect it would be less than the amount of the tariff, likely phased in over time, and also may not include cars on order as that would create a lot of ill will and headaches. Maybe that is wishful thinking, but it is more realistic than some other scenarios.
07-14-2018 | 03:44 AM
#44
Pro
Joined: Apr 2018
Posts: 630
Likes: 437
From: WA
I don't think it will happen, I believe Germany will do what they can to prevent this debacle from ending up in a trade war. Germany has far too much to lose to risk one of their biggest markets if not the biggest from taking a major hit in sales. I personally don't believe in tariffs but in open/free markets. However, I do believe I see Trump's play here. Why is it that we pay a 2.5% tariiff to import a German car into the states but the Germans impose a 10% tariff to import a US car into Germany? If anything let the field be even and if it all goes sideways well at least we have the Porsche's that we have.
07-14-2018 | 06:25 AM
#45
Thread Starter
Nordschleife Master
Joined: Jul 2011
Posts: 5,435
Likes: 818
From: Central New Jersey
My info came from my sales manager as to what the industry organizations are doing which is believable.
PAG keeping the cars in Germany until tariffs end is a good idea. Sending bills of sale in advanced is another good idea but I guess it depends on how the law is written. Unless this later tactic clearly works and an exception under the tariff I would not buy the car and the get caught in a fight with the Fed over it. No way. Not worth it.
PAG eating the tariff? Lol. They won’t even reduce the price of a WP here in the States when we don’t even get the roll bar. They have one way pockets.
Did you know we have a 20% tariff on EU trucks and vans? WTF? We are protecting our truck industry. If I’m Germany etc that has to be reduced. What’s good for the goose...
Our economy would be devastated by a trade war with the EU. While at first I thought used GT cars might go up in value I’m not so sure if the economy goes in the crapper.
If if you are paying an adm do you think a piggish dealership is going to revert their adm into the tax for you and give it up to the Fed.
China deserves to get kickef in the *****. Duplicitous they are. China steals, lies, manipulates and cheats. Mexico too. They ain’t our friends. They are consistently f’ing us from immigration to trade. Now Canada getting hit I didn’t understand but I guess the EU is looking at that and saying to themselves “this guy it’s nuts, we better work this out”.
A 20% tariff has me walking 100%.
PAG keeping the cars in Germany until tariffs end is a good idea. Sending bills of sale in advanced is another good idea but I guess it depends on how the law is written. Unless this later tactic clearly works and an exception under the tariff I would not buy the car and the get caught in a fight with the Fed over it. No way. Not worth it.
PAG eating the tariff? Lol. They won’t even reduce the price of a WP here in the States when we don’t even get the roll bar. They have one way pockets.
Did you know we have a 20% tariff on EU trucks and vans? WTF? We are protecting our truck industry. If I’m Germany etc that has to be reduced. What’s good for the goose...
Our economy would be devastated by a trade war with the EU. While at first I thought used GT cars might go up in value I’m not so sure if the economy goes in the crapper.
If if you are paying an adm do you think a piggish dealership is going to revert their adm into the tax for you and give it up to the Fed.
China deserves to get kickef in the *****. Duplicitous they are. China steals, lies, manipulates and cheats. Mexico too. They ain’t our friends. They are consistently f’ing us from immigration to trade. Now Canada getting hit I didn’t understand but I guess the EU is looking at that and saying to themselves “this guy it’s nuts, we better work this out”.
A 20% tariff has me walking 100%.
Last edited by Waxer; 07-14-2018 at 07:10 PM.