Porsche USA requiring dealers to sell to only people in their geographic areas
#16
I have been told by two Northern California dealers that Porsche will not allow these dealers to sell me a car (992 GTS or 781 GTS 4.0) because I live in Montana which does not have a Porsche dealer.
This is after I have placed a deposit with one of these dealers on a 992 GTS as of March 2021.
Does this sound correct?
This is after I have placed a deposit with one of these dealers on a 992 GTS as of March 2021.
Does this sound correct?
#17
Three Wheelin'
The incentive to sell out of market is how much above retail they can charge. The Porsche dealer in Iowa can’t sell to locals for 50k over msrp, but the NY and CA dealers can all day long. So, if the Iowa dealer wants to make 50k over retail he WILL sell to out of state buyers.
#18
Rennlist Member
I have been told by two Northern California dealers that Porsche will not allow these dealers to sell me a car (992 GTS or 781 GTS 4.0) because I live in Montana which does not have a Porsche dealer.
This is after I have placed a deposit with one of these dealers on a 992 GTS as of March 2021.
Does this sound correct?
This is after I have placed a deposit with one of these dealers on a 992 GTS as of March 2021.
Does this sound correct?
Last edited by 981KMAN; 10-29-2022 at 08:29 PM.
#19
Burning Brakes
Not a problem in SC. This from Porsche Charleston. “Out of state buyers are responsible for all state, county, city taxes and fees, as well as title/registration fees in the state that the vehicle will be registered.”
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981KMAN (10-29-2022)
#20
CT chiming in...
Interesting thread.
So I'm awaiting my 992 delivery in CT and my local dealer insists that the car first be registered in Connecticut.
My sales manager says its is because Porsche NA does not treat out-of-state registrations the same when calculating eligibility for future allocations. Not sure if this is true. It seems plausible. But I have residences in CT and GA. I stand to loose a little over $10k by registering it in Connecticut vs. GA.
I don't think that Porsche North America would take a position regarding where vehicles are registered insofar as sales tax matters are concerned - they are not the tax authority. I do however think they would act to preserve the dealer model of: locally sold...locally serviced, to strengthen customer relationships. Case in point, several friends wanted me to speak to so..and..so at Manhattan Motorcars, or so..and..so at Porsche Beverly Hills on the basis that they have the allocations. While I've had to wait quite a while (deposit placed Sept. 21' Allocation offered April 22' - still in production), my local dealer, whom I've bought several 911s from took the order at sticker-no markup. So, I can see where Porsche wants to prevent a scenario where a select few dealers with large allocations are selling all over the country to the detriment of the local dealer.
So when my 23' finally arrives (maybe in January) it comes with an MSRP about $5k higher than a 22', the interest rates have more than doubled in the past 2 quarters, and the 992.2 will be just around the corner. Had I shopped for the allocation, I could have potentially sidestepped all those pitfalls. But I'm certainly in no position to complain! I'm too excited over the car!
DRP
So I'm awaiting my 992 delivery in CT and my local dealer insists that the car first be registered in Connecticut.
My sales manager says its is because Porsche NA does not treat out-of-state registrations the same when calculating eligibility for future allocations. Not sure if this is true. It seems plausible. But I have residences in CT and GA. I stand to loose a little over $10k by registering it in Connecticut vs. GA.
I don't think that Porsche North America would take a position regarding where vehicles are registered insofar as sales tax matters are concerned - they are not the tax authority. I do however think they would act to preserve the dealer model of: locally sold...locally serviced, to strengthen customer relationships. Case in point, several friends wanted me to speak to so..and..so at Manhattan Motorcars, or so..and..so at Porsche Beverly Hills on the basis that they have the allocations. While I've had to wait quite a while (deposit placed Sept. 21' Allocation offered April 22' - still in production), my local dealer, whom I've bought several 911s from took the order at sticker-no markup. So, I can see where Porsche wants to prevent a scenario where a select few dealers with large allocations are selling all over the country to the detriment of the local dealer.
So when my 23' finally arrives (maybe in January) it comes with an MSRP about $5k higher than a 22', the interest rates have more than doubled in the past 2 quarters, and the 992.2 will be just around the corner. Had I shopped for the allocation, I could have potentially sidestepped all those pitfalls. But I'm certainly in no position to complain! I'm too excited over the car!
DRP
#21
Track Day
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Are we all the blame for this? I wanted to purchase a vehicle located in VA. Was so far down the road...to the point of shipping my trade in to them, when I discovered that the Sate of VA charges sales tax on the entire price of the vehicle without a reduction for the amount of your trade in. I asked if they would meet me in the middle, given my $1,600 shipping of vehicle costs, $450 air fare, and $3,000 additional sales tax. The answer is no. I am walking away from this deal, and makes me want to walk away from all things Porsche. Are others experiencing this treatment from their Porsche dealerships?
#22
Burning Brakes
Are we all the blame for this? I wanted to purchase a vehicle located in VA. Was so far down the road...to the point of shipping my trade in to them, when I discovered that the Sate of VA charges sales tax on the entire price of the vehicle without a reduction for the amount of your trade in. I asked if they would meet me in the middle, given my $1,600 shipping of vehicle costs, $450 air fare, and $3,000 additional sales tax. The answer is no. I am walking away from this deal, and makes me want to walk away from all things Porsche. Are others experiencing this treatment from their Porsche dealerships?
Finally, today’s headline
Porsche profit soars 41% in nine-month operating profit
Last edited by LDT; 10-28-2022 at 09:24 PM.
#23
Rennlist Member
Colorado does the same.
#24
@shrimp money is right. It's a Dealership specific rule, not a PCNA rule. I can't comment on different States tax laws, but I live in Florida and have bought 2 cars from my Dealer in Los Angeles and registered them here myself with no problem whatsoever. I would do business with whichever Dealer gave me an allocation and worry about the rest later. And call me crazy, but if it was true that allocations are based on where the buyers are rather than which Dealer is selling cars, none of them would be selling to people outside of their respective markets. Just a thought.
Last edited by Smirnoff67; 10-29-2022 at 07:50 PM.
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981KMAN (10-29-2022)
#25
@shrimp money is right. It's a Dealership specific rule, not a PCNA rule. I can't comment on different States tax laws, but I live in Florida and have bought 2 cars from my Dealer in Los Angeles and registered them here myself with no problem whatsoever. I would do business with whichever Dealer gave me an allocation and worry about the rest later. And call me crazy, but if it was true that allocations are based on where the buyers are rather than which Dealer is selling cars, none of them would be selling to people outside of their respective markets. Just a thought.
#26
Rennlist Member
I had this issue with dealers in Delaware, Pennsylvania, Maryland and Ohio when I was trying to get a T build allocation about a year ago. All told me the same thing - that I'd need to register the car in the state and that I would also need to have a car to trade in to them. I have a 997.1 S with low mileage and a great options set, but I know I would get much more on the open market compared to what they would give me in trade, and frankly I was planning on adding the T to the stable. Porsche Silver Springs (MD) said they would do it since I'm within 50 miles of them and have a history of having my old Cayman S serviced there, but I had to agree to a minimum build spend which I just was not comfortable with.
#28
Rennlist Member
Are we all the blame for this? I wanted to purchase a vehicle located in VA. Was so far down the road...to the point of shipping my trade in to them, when I discovered that the Sate of VA charges sales tax on the entire price of the vehicle without a reduction for the amount of your trade in. I asked if they would meet me in the middle, given my $1,600 shipping of vehicle costs, $450 air fare, and $3,000 additional sales tax. The answer is no. I am walking away from this deal, and makes me want to walk away from all things Porsche. Are others experiencing this treatment from their Porsche dealerships?
Gotta take the dealer's side on this. They don't make the tax laws or fly the airplanes. I agree that splitting shipping is reasonable but funding tax and airline shouldn't be their burden.
And you should have researched the tax issue prior to committing. It's the first thing to think about in an out-of-state deal.
Taxes and logistics are not Porsche specific problems.
BTW I'm not a dealer or corporate Porsche apologist - there's plenty wrong with allocations, ADMs, etc.
Edit- just realized that I answered a two year old post in a recently revived thread. Oh well - five minutes of my life that I'll never get back.........
Last edited by ldamelio; 07-25-2024 at 08:23 AM.
#29
Rennlist Member
Gotta take the dealer's side on this. They don't make the tax laws or fly the airplanes. I agree that splitting shipping is reasonable but funding tax and airline shouldn't be their burden.
And you should have researched the tax issue prior to committing. It's the first thing to think about in an out-of-state deal.
Taxes and logistics are not Porsche specific problems.
BTW I'm not a dealer or corporate Porsche apologist - there's plenty wrong with allocations, ADMs, etc.
Edit- just realized that I answered a two year old post in a recently revived thread. Oh well - five minutes of my life that I'll never get back.........
And you should have researched the tax issue prior to committing. It's the first thing to think about in an out-of-state deal.
Taxes and logistics are not Porsche specific problems.
BTW I'm not a dealer or corporate Porsche apologist - there's plenty wrong with allocations, ADMs, etc.
Edit- just realized that I answered a two year old post in a recently revived thread. Oh well - five minutes of my life that I'll never get back.........
I have purchased 3 Porsches from out of state dealers, latest was a 2024 C2S, and never had any issues. I confirmed the tax & registration laws with the Dealer prior to finalizing the deal. Smooth sailing!
Last edited by 981KMAN; 07-25-2024 at 11:35 AM.
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ldamelio (07-25-2024)