Notices

Porsche USA requiring dealers to sell to only people in their geographic areas

Thread Tools
 
Search this Thread
 
Old 10-15-2022, 12:58 PM
  #16  
malba2366
Three Wheelin'
 
malba2366's Avatar
 
Join Date: Feb 2016
Posts: 1,270
Received 769 Likes on 433 Posts
Default

Originally Posted by 15caymangts
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?
The dealer can do whatever they want, but in such situations Porsche redistributes "credit" for the sale to the in market dealers depending on where the car is registered. These "credits" are used to determine future allocations. When dealers had more allocations than they could move, they would sell out of market, at the moment every dealer can sell all of their cars in market so there is no incentive to sell out of market and potentially lose out on future allocations.
Old 10-15-2022, 01:17 PM
  #17  
PTS-BRG
Three Wheelin'
 
PTS-BRG's Avatar
 
Join Date: Feb 2018
Location: Greenwich, CT
Posts: 1,783
Received 636 Likes on 347 Posts
Default

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.
Old 10-15-2022, 08:25 PM
  #18  
981KMAN
Rennlist Member
 
981KMAN's Avatar
 
Join Date: Oct 2018
Location: South East USA
Posts: 971
Received 761 Likes on 375 Posts
Default

Originally Posted by 15caymangts
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?
Ever try the Porsche Dealer in Spokane? They are a skip across Idaho on the border with Montana, and thus Montana is part of their sales region.

Last edited by 981KMAN; 10-29-2022 at 08:29 PM.
Old 10-17-2022, 09:19 PM
  #19  
LDT
Burning Brakes
 
LDT's Avatar
 
Join Date: Sep 2022
Location: Southeast USA
Posts: 955
Received 531 Likes on 380 Posts
Default

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.”
The following users liked this post:
981KMAN (10-29-2022)
Old 10-21-2022, 05:18 PM
  #20  
drspeed991
Intermediate
 
drspeed991's Avatar
 
Join Date: Mar 2020
Posts: 26
Received 21 Likes on 8 Posts
Default 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
Old 10-28-2022, 08:44 PM
  #21  
bjsbuds
Track Day
 
bjsbuds's Avatar
 
Join Date: Sep 2013
Location: Somewhere in the Middle
Posts: 22
Likes: 0
Received 0 Likes on 0 Posts
Default

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?
Old 10-28-2022, 09:02 PM
  #22  
LDT
Burning Brakes
 
LDT's Avatar
 
Join Date: Sep 2022
Location: Southeast USA
Posts: 955
Received 531 Likes on 380 Posts
Default

Originally Posted by bjsbuds
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?
Assuming you live in another state? And this tax issue is VA state law? Not much the dealer can do about it. But on new cars dealers are absolutely taking advantage of current events at the customer’s expense. After two months my dealer still has my trade ('21 Audi A6) and now has it priced below what they gave me. I’m loving it! It was an eleventh hour last day of the month deal and I squeezed them for everything I could get on the trade even getting up out of my chair to walk which is hard to do when the car you’re buying is one you really want.
Finally, today’s headline

Porsche profit soars 41% in nine-month operating profit


Last edited by LDT; 10-28-2022 at 09:24 PM.
Old 10-28-2022, 11:51 PM
  #23  
bkrantz
Rennlist Member
 
bkrantz's Avatar
 
Join Date: Oct 2012
Location: SW Colorado
Posts: 6,072
Likes: 0
Received 1,114 Likes on 671 Posts
Default

Originally Posted by ithardin
Missouri is ridiculous with sales tax at the DMV when you register...AND the little gem called "personal property tax" that you have to pay in order to re-register the car. Maybe its a sign I should move to Montana and open the state's first Porsche dealer!
Colorado does the same.
Old 10-29-2022, 07:46 PM
  #24  
Smirnoff67
Pro
 
Smirnoff67's Avatar
 
Join Date: May 2021
Posts: 602
Received 463 Likes on 249 Posts
Default

@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.
The following users liked this post:
981KMAN (10-29-2022)
Old 07-17-2024, 04:42 PM
  #25  
ashleyrb
1st Gear
 
ashleyrb's Avatar
 
Join Date: Jul 2024
Posts: 1
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by Smirnoff67
@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.
I know this is thread is old, but I was wondering if you could share which dealership you used? I'm having a hell of a time with the "out of area" sales.

Old 07-19-2024, 02:56 PM
  #26  
princetonprep17
Rennlist Member
 
princetonprep17's Avatar
 
Join Date: Jan 2009
Location: Washington, D.C.
Posts: 88
Received 28 Likes on 19 Posts
Default

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.
Old 07-22-2024, 07:22 PM
  #27  
BigRed911
Instructor
 
BigRed911's Avatar
 
Join Date: Sep 2012
Location: NJ
Posts: 219
Received 28 Likes on 16 Posts
Default

So much for calling dealers across the country 😂😂😂😂
Old 07-25-2024, 08:09 AM
  #28  
ldamelio
Rennlist Member
 
ldamelio's Avatar
 
Join Date: Feb 2018
Location: Bucks County PA
Posts: 1,564
Received 1,061 Likes on 583 Posts
Default

Originally Posted by bjsbuds
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.
Old 07-25-2024, 11:32 AM
  #29  
981KMAN
Rennlist Member
 
981KMAN's Avatar
 
Join Date: Oct 2018
Location: South East USA
Posts: 971
Received 761 Likes on 375 Posts
Default

Originally Posted by ldamelio
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.........
I think most of us have done this at one time or another, so no issues.... I do agree with your feedback - @bjsbuds should have done his homework first. Plus why blame PCNA, or the Dealer in VA for his issues with state tax laws? He should have confirmed all of that up front prior to making the deal....

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.
The following users liked this post:
ldamelio (07-25-2024)



Quick Reply: Porsche USA requiring dealers to sell to only people in their geographic areas



All times are GMT -3. The time now is 11:29 AM.