[Trader220]

Originally Posted by Macster

Dealers may be caught between rock and hard place regarding any leftover 08s.

Porsche may have dispensed all the incentives its going to. Dealers can't expect Porsche to keep this up forever. As a car sits it accumulated flooring costs or represents tied up capital if the dealer has paid for the car. After a while a dealer can be facing with selling the car at a loss or holding out in the hopes someone will come in and pay enough for the car to make the dealer whole.

Back in late 2001 and very early 2002 when I was shopping for a Boxster dealers had lots of very low mile used cars. Low miles like factory delivery low miles.

What was going on was in order to not appear to be offering discounts on new stock these cars were being advertised as used even though they were not as used.

More recently like in early 2008 "used" was out and "demo" was in. Lots of "demos". Again low low miles but heavily discounted.

There is always going to be a gap between what a dealer is asking for a car and what it is worth.

Figure dealer has only what he will allow for the same car as a trade in and start from there.

There are volumes written on how to buy a new or used car (and sell a used car) and I suggest you visit your favorite local bookstrore and search out one or two. How to Buy a New or Used Car, something like that and another is What Car Dealers Won't Tell You is another, IIRC. Author names escape me. Oh, have this second book right in front of me: Bob Elliston is its author.

If you want to est. depreciated value of that 06, attempt to learn its MSRP not including any additional dealer markup.

Multiply that by 0.87. This gives you (ballpark, very ball park, the "invoice" price of the car.

Now when this car sold new (perhaps in late 05) it lost 10% of its value calculated by taking 10% away from the "invoice" price.

Then every year after that when the new fall models arrived, the car depreciated another 10%.

Say car invoiced for $50K. When new car buyer drove it off lot in 05 its value went to $45K. In 06 it dropped to $40.5K. In 07 $36.45K. In 08 $32.8K. In 09 $29.52K. And now with the 2010's at the dealers, the car's depreciated value is: $26.5K.

Now various factors can slow or even stop this descent. Or speed it up. Market conditions, economy, new model introduction, and so on.

The huge discounts offered on the 08s can only have dragged earlier car values down.

Depreciation does tend to flatten out over time.

But the formula gives you some idea.

Or visit www.kbb.com and plug in the numbers and see what wholesale or trade in or private party or even retail price is for the car.

Also, do a search any distance for same year cars and see how many turn up and their price ranges.

Try to find any way you can to justify offering less for the car than its asking price.

If you want the car. If the car otherwise checks out.

Price not fact, only an opinion.

There is alway another car.

Sincerely,

Macster.

That was a rather bazaar post.


A used car is one that has been titled already you can’t just magically call it a used car and knock the price down. In addition Porsche would not give the dealer any incentive money at all on a car which has been titled. There are laws on exactly what constitutes a “used” car. So back in 2001 and 2002 the same things applied.

Fast forward to 2008, a “demo” is just that, a car whose warranty has started and has been driven but which has never been titled. Porsche will from time to time assist dealers with incentives on demos. You cant just substitute one word for the other they have different legal meanings associated with them.

There is a gap? …. What a car is worth or anything for that matter is a simple fact of what price it changes hands at. Other then an actual selling price the term “worth” has no meaning without a qualifier, what you think a car is “worth” someone else might not pay 1/4er of that.

There was no “additional dealer markup” in 2006 and if there was it would have no relevance on anything. The MSRP of any vehicle is fairly easy to find even back in 2006.
Besides the acronym MSRP can not by definition include any other markup. For the record there is about 10 to 11% from MSRP to invoice on a Porsche and that’s public information. The .87 you suggest would imply there is 13% which is wrong.

On top of that if you depreciate a car 10% a year you’re going to have a lot of explaining to do to those guys who are driving around in cars whose price in the open market is a lot more or less than that. There is no straight line way to determine deprecation since market conditions vary.

There is no reason you have to justify offering less, just offer less because you want to and that’s where your own personal definition of “worth” on that car is.