UK v USA Porsche pricing
Discussion
was discussing this topic with dealership.
Was explained that not only in the USA but the majority of countries that Porsche have dealerships, that new cars are sold at over list price ie what ever the dealer wants to price it at.
i presume that the reason is UK consumer law as to why its not allowed???
it begs the question whether in the UK where GT/RS/Heritage etc cars are allocated is a fairer system, as there is so much unhappiness amongst UK Porsche buyers as to the smoke and mirror games played by the dealerships.
would it just be simpler to get eg a GT3 advertised at £250k or a sports classic at £450k from the get go?
Was explained that not only in the USA but the majority of countries that Porsche have dealerships, that new cars are sold at over list price ie what ever the dealer wants to price it at.
i presume that the reason is UK consumer law as to why its not allowed???
it begs the question whether in the UK where GT/RS/Heritage etc cars are allocated is a fairer system, as there is so much unhappiness amongst UK Porsche buyers as to the smoke and mirror games played by the dealerships.
would it just be simpler to get eg a GT3 advertised at £250k or a sports classic at £450k from the get go?
An oversimplification is in most US states dealers are protected from manufacturers selling directly to customers. It was done to protect local jobs in the 50s and has led to big dealer groups like Penske having a lot of power.
In the UK and in some other markets the balance is more in the manufacturer's favour. So even though the RRP is just a guideline not legally binding or protected by consumer rights dealers are less likely to step out of line.
In the UK and in some other markets the balance is more in the manufacturer's favour. So even though the RRP is just a guideline not legally binding or protected by consumer rights dealers are less likely to step out of line.
Edited by WilsonWilson on Friday 14th July 14:42
The US has something along the lines of Additional Dealer Markup (ADM) which appears to be what the dealer charges for an allocation at times of high demand. The cars are sold at list in the current market with ADM on top.
I could see ADM being a bit galling but I guess it comes down to how much you want the car.
I could see ADM being a bit galling but I guess it comes down to how much you want the car.
Supply and demand. Personally I see anything wrong with the US model unless it’s a monopoly of sorts. As above, I’d rather OCPs just advertised GT products at their actual market value rather than the games that have to be played (which I just never could do personally). At least to would be a level playing field then rather than having to schmooze the dealers which is frankly degrading.
The US model doesn't eradicate the schmooze, it does add uncertainty, there have been cases of dealers adding more fees very late in the process (like days before delivery) and ultimately with limited run models the dealers still sell at over sticker to those that are most "loyal" - so for the 'winners' in the current UK process it would mean they just pay more, and for everyone else, it does offer the possibility of availability, but at a premium same as the current flippers mkt. I don't see it being better, other than the transparency
In my opinion, it’s only a matter of time till Porsche moves to the agency model like other manufacturers, including JLR, Mercedes, and Ferrari. Then cars will be allocated by the manufacturer/distributor, not the dealer.
Instead of margins disappearing into the pockets of dealers charging ADMs, and customers who only buy certain cars to make a profit, manufacturers will adjust pricing according to demand (Porsche increased the cost of the GT3 by $24k overnight in the recent price hike), and allocate cars to customers who are valuable to the brand. I look forward to it.
Instead of margins disappearing into the pockets of dealers charging ADMs, and customers who only buy certain cars to make a profit, manufacturers will adjust pricing according to demand (Porsche increased the cost of the GT3 by $24k overnight in the recent price hike), and allocate cars to customers who are valuable to the brand. I look forward to it.
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