Need advice

[baseball]

Originally Posted by Perfectlap

otherwise it will hurt new sales which is where they make their real margins.

While I agree with the rest of your analysis, dealers actually make money in this order:
1) Parts & Service (contributing over 70% of operating profit)
2) Used Car Sales (contributing over 25% of operating profit)
3) New Car Sales (contributing less than 10% of operating profit)
Source: NADA.org

Also you may find a better deal on a new car than a used one right now. In recessionary times, new car sales decrease while used car sales increase. According to Automotive News, franchised dealerships sold 675,100 used cars and trucks in January 2008, an 8.0 percent increase from the year-ago month.

If the dealer comes down substantially from 40K (which I agree is too high), make sure you're still getting the CPO. I had one dealer drop the price on a used one I was considering, only to discover he was trying to recoup his profit by dropping the CPO on me. Read the fine print and good luck.

[Perfectlap]

yes you're absolutely spot on. I should have said Porsche make their bread and butter on new car sales, even in a slump they're still the most profitable car company in the world. The dealers on the other hand really feel it when the numbers come down. Pimps always get the lion's share!

You can get a better new car deal in this type of economic down turn but that's assuming the big hit of new car depreciation is not an issue to the buyer. In the present tight credit market with much fewer buyers going forward then just one year ago, you can surely expect there to be even sharper drops in new car depreciation. So you almost HAVE to get a really good deal on a new car sale. Meanwhile trade-ins are what they are and the dealers have allot of room to negotiate and right now they are struggling to show revenue. So from a consumer's point of view, the even lower entry price of a CPO Porsche has most of the upside of warranty protection with much less of the downside depreciation.

[kennedi]

I appreciate the feedback from you guys! So should I start negotiating the price now BEFORE I go to Connecticut to see it or once I get there? I would kind of hate to have to go out there twice.

R/
Kennedi

[super66]

I wouldn't go near the car without negotiating....as I mentioned and PL seconded...that asking price to me sounds ridiculous.....

I say my porsche and left it at the dealer and dealth with them primarily via the phone, the last thing you want is to be at the dealer and starting your negotiations.....the dealer will always play the why would you come this far and not buy it over 1000 dollars....what's a thousand dollars.....and after awhile you'll agree and buy it....

negotiate and then go see it if the price is right.....or fly to Minnesota and buy the good docs arctict silver 987S

http://www.autotrader.com/fyc/vdp.j...rice=&cardist=0

try this link
http://986forum.com/forums/showthread.php?t=15900

[baseball]

I agree with those that said to negotiate over phone/email before you go to look at the car. Cars are seductive and none are more seductive than a Porsche Boxster in the springtime.

Once you get them to agree on a price, have them email/fax you the "out the door" price which includes all the documentation fees, prep fees, etc. they expect you to pay. This is how I bought my boxster and it's a good technique to use if you and the dealer are far apart in the negotiation. And as someone said earlier, it's a lot easier to say "No" when you haven't traveled a long distance to buy your dream car.

[Perfectlap]

Hmm....I might disagree on negotiating first and checking out 2nd.

There's two problems with that approach.
1- You might not be so impressed with car when you see it.
2-They may not take your offers as seriously as if you put face time into it.

This is what I ALWAYS do:
I call and say "yeah how's it going I'm calling about this car". Ask all the basic questions that you should know before seeing it. Car history, accidents, repairs, dents, dings, tires, etc. Ask them to give you a 1-10 scale of 10 being right off the boat new. If you like what you hear take the trip but LEAVE THE WALLET AND CHECKBOOK AT HOME! Salesmen are very very good. You'll go in just to see it and once you are in fro the test drive you are as good as closed.
Never never ever ever ever make a deal with a salesmen on your first trip to the dealer. NEVER!!!
Check out the car drive it, see if you like it and go right back home without even leaving a deposit and don't tell them "I'll call you on Friday". Tell them you have to talk it over with your wife since she is the CFO of the house. Don't make an appointment of when you will speak again. But be friendly to the sales guy and DON'T let them sit you down "at the table". If they try to get you to sit down run out of there! Sitting at the table is just like giving them thousands of dollars.]
Basically the trip to the dealership is for your knowledge and piece of mind regarding the condition of the car and NOT for any manner of negotiating.


Wait a few days. See if they call you first. If they don't call you then make a call and say "I talked to my wife and she's not crazy about buying a Porsche in this economy but I think I can sway her". Then make a really lowball offer and this is the important part: DON'T SAY ANOTHER WORD AFTER YOU NAME THE PRICE.
Wait to see what they say. If they say no or I have to talk to the manager, say"Ok, let me know". When they call back with the a higher counter offer say "well let me run it my wife". Wait a day to go by. Then call back with a marginally higher offer than your initial offer. In other words you are basically ignoring their counter offer. Keep at it with "I have to check with my wife" until they call you back with a yes or an offer that is SLIGHTLY more than your previous offer. If they say "no we can't do it for that price" and they don't offer to check with manager then just say "Alright thanks anyway" and hang up. That will really hurt them and they will go back to their desks thinking about the missed sale. See if they call you back, I bet you they do. A good salesmen will never walk away from a deal on price when you are at least close on price. Certainly not in this economy.

p.s.
Good suggestion on faxing the outdoor the price. This can be negotiated as well.
I had to recently walk out of a deal because they tried to tack on a $800 dealer fee at the last minute, literraly. My folks were about to sign when I said "what's that for?" and they said "dealer fee, everyone pays it". And I said "????what do my folks get for that"? and they're like "uh sorry that can't be negotiated". To which I respond "so in other words they don't get anything for that? ok Have a nice day". They all looked at me with jaws open as we walked right out and drove away.
The next day a really junior sales guy was put on grovel duty and said "ok we will drop the dealer fee". I was inclined to bust balls and say "well since last night I saw another car this morning and I'm not so crazy about the price we agree to".
But I had to leave Florida that day. But you get the point. Don't let them add in any extra fees at the end for things you aren't getting something for.

[baseball]

Originally Posted by Perfectlap

Hmm....I might disagree on negotiating first and checking out 2nd.

This is a good point - negotiating over phone/email works best with new cars. I forgot we were talking about a used car.

I have seen pictures of used cars that looked incredible both inside and out. Then when I saw the car in person, it was below average. Basically, pictures lie. And then there was the Boxster I test drove that looked great - but the interior smelled so bad I couldn't bear to drive it. Make sure this is a car that doesn't have any of those issues before you fall in love with it. As PL said, leave the checkbook at home and use the wife as "bad cop".

One more thing, get the wholesale/retail value for this car from vmrintl.com and galves.com (small fee). They generally give the lowest (and most accurate) values IMO. Print these out and use them as leverage in your negotiation.

[peakpro]

I agree on seeing the car first.

And test driving and looking and test driving some more. And then negotiating.

During my search I went to see many cars. At least 20.

You need to see the car in good daylight and if interested test drive it more than once at different times.

It takes allot of effort to find the right car.

for example:

One 05 with 5000 miles looked great in the pictures (as expected) and I was excited. I test drove it and found that there were numerous large scratches on the back rear panels.

Another 06 with less than 10000 miles was had long scratches on the hood.

Another 05 with 20K miles had the most worn out controls I have ever seen.

I finally bought on an 05 with 39000 miles. Yes, the most miles of any car I test drove. It does not have one scratch on it. Not one. Honest.

The interior is impeccable. My wife was is a interior designer type can't believe the way the car looks.

The only issue is a very slightly warped spoiler which will be replaced soon by the dealer at no cost to me.


Take your time, let them know you are seriously searching and ready to buy the right car at the right price.

then pull the trigger when you are ready and have fun.

[renzop]

Originally Posted by kennedi

I appreciate the feedback from you guys! So should I start negotiating the price now BEFORE I go to Connecticut to see it or once I get there? I would kind of hate to have to go out there twice.

R/
Kennedi

Kennedi,

Never tell the dealer you don't want to make 2 trips. And never think it yourself. Unless they sell you the car for 34K with CPO you MUST WALK OUT without buying. Then call them back a week later and let the negotiations begin. Your strongest bargaining position is with your back to them and walking away.

You do not want to go there with your checkbook. You do not want to go there thinking you will buy it. You want to go there to inspect and drive the car. Then you want to go home and think about the purchase rationally without the dealer's pressure.

If they say that they can only give you such and such a price if you buy now then politely ask them what's wrong with the car that they want to get rid of it so quickly.

Regards,
Alan