Last post on Oct 24, 2013 at 5:25 PM
You are in the Porsche 911
What is this discussion about?
Porsche 911, Porsche Carrera GT, Coupe, Convertible
#906 of 2175 Re: 2007 Turbo [slickoko]
Sep 06, 2006 (3:55 am)
"I'm planning ot buy a turbo and am considering a 2007."
That's good, since there wasn't a 2006 and the 2008 is a year+ away.
"Does anyone know if it's possible to get one under MSRP"
Doubtful. Most of the ones that have arrived to date have been pre-sold. The earliest my dealer could get me one is November/December. I could probably get a nominal "courtesy" discount, as a previous 911 customer, but it would be nominal. New customers will likely pay MSRP. I'm not seriously considering one, as we enjoy the Cab too much and a Turbo Cab is likely another year away.
"Also, I understand the ED cars don't count against dealer inventory. Does that mean I have a better chence of getting a discounted price if I go that route?"
Sure you aren't confusing Porsche and BMW/Mercedes? As far as I know, the Factory delivery option for Porsche still comes out of a dealer's allocation, and, in any event, ADDS a couple thousand $ to the price. There is no discount.
Supposedly Porsche is scaling back production somewhat on the Turbo, in anticipation of a further softening of the US economy. I think the only chance you could get a discount is to find a dealer that happens to have an unsold car in stock or incoming. You'll be stuck with the color and options, but you may get a nominal discount. But, at least in my area, ordering it to your specs will likely take a few months and cost you MSRP. Which, by the way, is still a good deal compared to the former 996 Turbo S w/ X51.
#907 of 2175 997 Turbo tiptronic
Sep 06, 2006 (7:35 am)
Picked one up last week, lots of fun compared to the E55 I used to drive. Highly recommended.
#908 of 2175 Re: 2007 Turbo [habitat1]
Sep 06, 2006 (6:58 pm)
Habitat1, you have a good handle on all things Porsche, including pricing/allocations/discounts, etc.
When I look at the Porsche US distribution model as a business person, I love it. Take a look with me at how I see how Porsche has it set up. Its amazing.
First, Porsche is over-dealered with many more dealers than they really need. The Boston market, hardly Porsche country, has I think 5-6 dealers. Porsche controls distribution by rationing cars with an allocation system. A dealer's allocation is a function of previous sales. In other words, the big get bigger (i.e., Champion). The dealers all have to show their current model year inventory on the Porsche factory web site so all potential customers can view it. Again the guys with the allocations get the cars and then get to exhibit their inventory nationally at Porsche's expense. The guys who have the biggest allocations have the best selection and they have a leg up on their competition. Because every one knows what everyone else is holding in inventory, there is little incentive to buy a car locally. If you do want to buy a car from dear ol' Joe, he must have an open allocation. No allocation (and they are specific even down to C2Cab vs. C4Cab), no deal. As a result of all this, there is no real territoriality and the Porsche market is really a national one.
Now I realize that not every buyer takes advantage of the Porsche web site, checks inventories, and calls around. But lots do and this must be increasing. The Economist would call this "disintermediation". Sal, my barber, would call it doing away with the middle man.
Porsche took steps to rationalize this about 10 years ago and wanted the dealers to not stock new cars but just do deliveries, service, etc. The factory was going to operate as I recall out of NV and have regional factory showrooms (I could be wrong on this). Naturally the dealers complained to their state legislators and won.
Porsche should be grateful. The way the system is set up now, the dealers have to buy and pay to floor plan the cars, not Porsche. But Porsche controls the distribution and has made it transparent, diminishing the dealer's margin.
#909 of 2175 Re: 2007 Turbo [blckislandguy]
Sep 06, 2006 (7:33 pm)
Thanks to you both, Habitat1 and Blckislandguy. Where I live, we're lucky to get any vehicle for MSRP, they're usually priced over. I called my local dealer, and they said they sell at MSRP with no additional dealer mark-up. Probably this is because of the nationally available inventory. Now the problem is there are no Tip Turbos in any of the inventories, at least not that I've seen, so even getting one is an issue. My local dealer seems to have no idea when one will come in. I was going to go for the ED, but it seems there won't be one available there either for several months. I guess it's a waiting game now.
#910 of 2175 Re: 2007 Turbo [blckislandguy]
Sep 07, 2006 (9:00 am)
I'm not sure how Porsche's distribution system differs from the other manufacturers cuch as BMW, Mercedes and Acura. but on a couple of your points:
"The guys who have the biggest allocations have the best selection and they have a leg up on their competition."
Not necessarily. Personally, I'm inclined to (and did) purchase from a relatively smaller dealership outside of Baltimore rather than one of the much larger dealerships in the immediate DC area. Yes, price and availability of the car I wanted were major factors, but I also value personal service. I dealt directly with the sales manager and service manager.
"..there is no real territoriality and the Porsche market is really a national one."
I bought our two Acuras from my hometown dealership, 375 miles away. But I did not buy a 911 from a Porsche dealership 250 miles away because, for that purchase, I wanted the option to go back to the selling dealership for service or warranty work. The fact that Porsche dealerships list their inventory on a Porsche website is helpful, but not doing so didn't keep my Acura business in DC.
"Sal, my barber, would call it doing away with the middle man."
And that's not a good thing?? Sorry, but like I said, I prefer to deal directly with a sales manager or GM. With all of the information available to me, I don't need a salesperson to teach me about a car or get in the way of a deal. Again, no difference between my Porsche and Acura purchases.
"...diminishing the dealer's margin".
Porsche dealer's margins are the best in the automotive industry, short of exotics like Ferrari. I got a spectacular deal on my 911 at $10k off. Which was still $2k+ over invoice. I am willing to bet that 80% of 911's are sold with less than a $5k discount, which would be $5-7k over invoice. Ask a Porsche dealer if he'd rather be selling Fords at $2k under invoice.
Again, I'm not sure what is different about Porsche than other dealers, other than they make more money.
#911 of 2175 Re: 2007 Turbo [slickoko]
Sep 07, 2006 (9:01 am)
"Thanks to you both, Habitat1 and Blckislandguy."
You're welcome - and thanks for giving me the opportunity to snag post 911 from Blckislandguy.
#913 of 2175 Re: 2007 Turbo [habitat1]
Sep 07, 2006 (11:20 am)
It's looking like there are turbo 911s coming in this fall, but the ones not spoken for already are selling at $160K plus, a full $30K above MSRP. My local dealer never called me back, so I suppose the saleman was talking out of turn. Looks like geting one at MSRP is out of the question and, as much as I want one, I just can't see paying $160K (plus tax!) for it. Guess I'll go back to trying to find a 2005.
#914 of 2175 Re: 2007 Turbo [slickoko]
Sep 07, 2006 (3:21 pm)
Just where the heck do you live? I am sure you can get a Turbo in the DC area for MSRP before the end of the year. Shipping to the west coast would run about $2,000, but I'd be willing to bet my dealer would split that cost with you.
If you are serious, let me know.
P.S. And don't start looking for a 2005 996 turbo. They are fine cars, but at that price, I think you would be better off with a 2007 997 Carrera S. My friend who traded his 996 Turbo for a Carrera S couple a few months ago would agree.
#915 of 2175 2007 Turbo 911
Sep 07, 2006 (6:41 pm)
My local dealer did finally call back. Seems they were waiting for the allocation info to come in. The big sticking point is I want a Tip, and they seem to be in short supply. Pacific in FLA has a Oct build coming in and they want $160K. My local dealer offered me MSRP, Dec build, Feb (or so) delivery. (I am out west.) I was considering ED (and still am) so I can actually DRIVE the car, but my trip to Europe is already set for November. If your dealer can get me a Tip at MSRP to meet my schedule, then, yeah, I'm interested.