The days of profit on GT cars is nearly over. Great news!
Discussion
One measly non story in Autocar for pr suggesting leasing might prevent premiums?
If Porsche wanted to stop flipping they could do quite easily with the correct purchase agreement. Rocket science it ain't.
They clearly don't want to and why should they after all it is a major branding success story at the expense of a few pissed off potential essentially non profit low volume customers.
If Porsche wanted to stop flipping they could do quite easily with the correct purchase agreement. Rocket science it ain't.
They clearly don't want to and why should they after all it is a major branding success story at the expense of a few pissed off potential essentially non profit low volume customers.
av185 said:
If Porsche wanted to stop flipping they could do quite easily with the correct purchase agreement. Rocket science it ain't.
Not a lawyer but wouldn’t be surprised if it’s harder than you think....especially if they want to do it in all markets which I am sure they do. I know Ford enforced such a clause in Canada on a Ford GT buyer....doesn’t follow that it can be done here or in other markets though.Lease agreement structure would be easier for Porsche to police and also would be something they could enforce globally relatively easily. Have a very low monthly payment with a large lump sum to be paid off if you want to sell your car within three years. Job done.
In other news he also said they would be increasing the number of GT models.
I don't know if this applies to Porsche but with the Italian marques it isn't quite as clear cut as it appears from the outside.
Getting to the top of the list for desirable cars entails a cost, although nothing as crude as a direct kickback. You generally have to buy quite a bit of metal that doesn't appreciate. And worse still you occasionally get a call asking you to buy a car thats been hanging around for too long, or they've bought in too high in px to secure a sale.
Thats not to say its a bad deal if you like cars and have the liquidity. But it isn't a license to print money and the dealerships get something out of the setup as well. So I imagine Porsche would have to compensate them in some way if they were to dictate that tap be shut off.
Getting to the top of the list for desirable cars entails a cost, although nothing as crude as a direct kickback. You generally have to buy quite a bit of metal that doesn't appreciate. And worse still you occasionally get a call asking you to buy a car thats been hanging around for too long, or they've bought in too high in px to secure a sale.
Thats not to say its a bad deal if you like cars and have the liquidity. But it isn't a license to print money and the dealerships get something out of the setup as well. So I imagine Porsche would have to compensate them in some way if they were to dictate that tap be shut off.
AndrewD said:
If they make more GT cars then they don’t need to bother with lease arrangement.
They don't want to satisfy demand, the waiting lists add to the desirability of the brand as a whole. Enzo was explicit about this by saying we'll always make less then we can sell. Hence the article is just a puff piece. Because as you say they could easily just increase supply, or list price as someone else suggested.
AndrewD said:
If they make more GT cars then they don’t need to bother with lease arrangement.
And if they have a lease arrangement with a hefty upfront fee then I think a lot of people wont buy in either. GT cars are trinkets for a lot of the owners and they are either flipped for a profit or held for a year or two with low mileage and then sold with a minimal loss. I can’t see those buyers wanting to shell out heavily on a lease when it’s parked in the garage doing a few hundred miles per year - it’s not an Enzo! I’ve done 4.5k in mine in a year and think it’s been underused and yet it’s at the top end mileage wise of the current advertised cars.
I think the future GT Porsche cars should either be leasing only for a fixed period with all cars being returned to supplying dealer..The only other credible alternative would be to increase numbers so people like myself and Juno can get an RS.
Either of these options needs to happen sooner rather than later IMHO.
Either of these options needs to happen sooner rather than later IMHO.
5to1 said:
AndrewD said:
If they make more GT cars then they don’t need to bother with lease arrangement.
They don't want to satisfy demand, the waiting lists add to the desirability of the brand as a whole. Enzo was explicit about this by saying we'll always make less then we can sell. Hence the article is just a puff piece. Because as you say they could easily just increase supply, or list price as someone else suggested.
Cheib said:
This proposed lease structure would take the power out of OPC’s hands to do those deals for an RS on the basis that you “give back” you three month old GT3. That would be a massive positive IMHO. Wouldn’t suit a lot of people though....OPC’s or favoured customers.
If I recall correctly there are already terms in the sales process to preclude flipping the vehicle. Perhaps they are hard to enforce in some jurisdictions, but they certainly should be able to enforce such terms in some country's.IMO Porsche are knowingly complicit because it suits them. They allow it to happened at arms length through the dealers. This keeps the dealer chains happy, who after all make significant investment and take hits in other areas. And it builds/maintains the brands cache without Porsche being directly involved.
If they implemented this type of policy I don't think you'd see the same level of demand. I believe the speculation becomes a self fulfilling prophecy which drives up demand, waiting lists and residual value. Without it I suspect most new "halo" cars would lose value just like any other and Porsche/etc dont want that.
Just make as many as people want to order and there’ll Be no market whatsoever for over priced ones. If you can walk in and order one at list why would anyone pay overs.
All they have to do. The fact they limit numbers creates the flipper market, not the flippers which shows this story is utter tosh.
All they have to do. The fact they limit numbers creates the flipper market, not the flippers which shows this story is utter tosh.
Cheib said:
I know Ford enforced such a clause in Canada on a Ford GT buyer....doesn’t follow that it can be done here or in other markets though.
I believe that case was due to the buyer receiving a very significant discount due to being an “Influencer” and he was meant to instagram the car. Instead he sold it on and was in breach of contract. Gassing Station | Porsche General | Top of Page | What's New | My Stuff