Althought this part of the forum doesn´t have a lot of succes I´m going to put a new thread. Actually I receive some business or education pieces of news from differents webs and curiosly, I´ve received this one today. I paste as I´ve received: "For a couple of reasons, used cars are a growing priority for luxury-brand automakers like Porsche. First, many people who buy high-end, expensive cars tend to graduate from a used car to a new one. Second, used cars are an important profit center for dealers, especially when new-car sales are slow. Finally, as leasing has become common, it’s important for car companies to protect used-car values. In leasing, the customer effectively borrows the difference between the upfront cost of a vehicle and what it’s projected to be worth at the end of the lease. The more a used car is worth at the end of a lease, the less the leasing customer has to borrow, which in turn lowers monthly payments. Luxury auto brands are also promoting the sale of off-lease cars and trade-ins as “certified pre-owned” cars, or CPO for short. Unlike most used cars, CPO cars are inspected and refurbished by the dealer, and come with a warranty. That can add $1,500 or more to the price of a luxury car, but many customers feel the additional comfort level is worth it. In all, the luxury brands are trying to get their new-car dealers to sell more used, off-lease vehicles. That keeps them out of the hands of independent used-car dealers who can give the brand a bad name, and away from wholesale auctions where prices are rock-bottom. If the actual market price of a vehicle coming off lease is lower than the automaker and its finance company expected, the automaker can incur a loss. I spoke in New York on May 28 with Mick Pallardy, vice president for the eastern region for Porsche Cars North America. Pallardy, based in Herndon, Va., is responsible for Northeast markets from Virginia to Maine. The following are edited excerpts: BNET: Do people really move up from used cars, or is there a used-car mindset that says, “I’ll only buy used, let somebody else take the hit on depreciation”? (According to Automotive Lease Guide, the average new car depreciates 40 percent as soon as it’s purchased, or 55 percent after three years.) Mick Pallardy: It’s (Porsche is) really an aspirational brand. Certified pre-owned is how a lot of people first gain access to the brand. About 60 percent of CPO customers go on to buy a new Porsche. If you include all used cars, not just certified pre-owned, it’s 70 percent. BNET: How much is an average car worth after a certain amount of time? Is there a rule of thumb? MP: It’s hard to say specifically, because we have so many different models and so many different trim and equipment levels. For the 911 (model), especially, we have people scouring the country for a specific model, or a specific feature, or a specific color. They look all over the country, they have all these online tools, they look all over, and when they find what they’re looking for, they’ll either come get it, or pay somebody to ship it to them. BNET: I read that Porsche had record sales for CPO (691 cars in April 2008, versus 548 in the year-ago month; 6,581 in 2007, versus 6,114 in 2006). MP: Just about every month is a record. BNET: Are you pushing that program? MP: We have programs in place (to encourage the dealers to buy CPO vehicles and sell them at retail). For the next fiscal year we will also be enhancing the CPO warranty, to something that’s in keeping with the brand. You don’t want it to go to the independent (used-car) dealers, because of the customer handling. You want the customer handling to be in keeping with the brand. Image via Flickr user KB38, CC 2.0" I hope you have enjoyed it. JuanMa.
Interesting article, thanks. I've always bought used and privately (3 Porsches, so far), but it's my impression that people who don't know much about cars feel safer buying "Porsche Approved" than privately. A premium of US$1,500 sounds like cheap insurance but here in Europe I hear the price difference is in the €6,000 range, which I personally don't think is worth it. If you find a used car you like, I think getting it inspected by a dealer or competent mechanic who knows the model is more than enough. You're going to need some major problems to spend €6,000. Otherwise, you're just adding to the dealer's profit, and frankly, I'd rather spend the money on tires and gas!
Dear Vollblut, I agree completely. We live in a distrust era, in which nobody believes nobody, for benefit of clever dealers.
Thanks very much for the tag, now I think sligtly different about second hand cars ( I wanted to buy a Porsche approved before). I´ve always bought second hand cars and i´ll probably continue on this way. Regards
I absolutely agree with you as well, Vollblut. We have to also consider that cars sold directly from owners have generally had an easier life than those leased or enjoyed under renting models and sold through PCO. These owners knew from the beginning that they would not be keeping the car longer than the leasing/renting period and we all know what that sometimes mean.... Additionally, Porsches tend to be 2nd or 3rd purpose cars, making it is easy to find units in excellent condition with low kilometer figures on the clock. This, added to Porsche characteristic quality level, makes for almost new cars at incredible prices. But fear is a great lever to make business. People tend to be conservative and hate risk, specially when we are involved with Porsche mechanics. As said before, most important is a qualified inspection and eventually a private mechanical insurance with a solid company. In my case I had to resort to used car market, since the model I sought is no longer in production: long life aircooled!!
The newspaper article reflects the real situation, very well, and it seems I'ts similar, here there and everywhere as I can see. I've also bought several Porsche Approved cars in the past with good outcomes. I'ts believed that second hand cars have a potential risk of breakdowns, and all kind of different failures, not always but it's true, therefore the better option for a buyer is to get them in a brand's dealer, who includes a warranty and more theoretical reliability that reassures us a bit more. That's the truth ? yes but not all . An important aspect of buying in Official Dealers, is the price, wich is much higher than the price they pay for them. Ok I know they clean and overwiew them, but sometimes they hide importants points as the car's history wich is very important, for instance previus owner. An where does the car come from. Don't forget that. In any case to buy a new car is a bad investment in financial terms . The depreciation is awfull, only our dreams come true :rolleyes:compensates the big effort we do when we buy one Porsche , new or used. Regards::[question]
Personally I prefer to buy second hand cars vs new ones, but I'm absolutely dissapointed when a Porsche official dealer is applying a dramatical reduction on their offer for buying a 2nd hand car. Of course they have to do some checkings, warranty, but in any case they cannot assure the reliability of what are you asking for. With current situation of deep crisis, and from my point of view, is easier to get the same profit doing that way instead of trying to sell a brand-new car. Anybody knows which is the margin for new and used Porsches? In USA or Germany the gap is so big? I find "Porsche Approved" a luxury-tax that is trying to say that I'm totally dumb... Rgds, jm
The perfect Utopia is to buy an used car from a friend or somebody you know. As usual, the car you are looking for usually never fits the possible sales of friends, relatives or known sellers/cars. To buy a new car is the worst investment ever, but you choose the extras... on the other hand, used cars never exactly fit perfectly in your size. Second hand cars bought in an officical dealer mean it will be a very clean unit, and a mechanical warranty, but are expensive cars. I prefer the risk of a car of somebody known, if I know it's a thoroughly cared car, It will be my option, although I know that if I have a "disease" I will pay for it (no dealer's warranty), and shouldn't think it's a fault from who sold it to me. The best option ever would be a known used car, with manufacturer's warranty extension. But are not always available :( Regards T
In my particular case, I tried to find just what you're describing... and I believe I did it. Warranty was given by dealer (not directly, but through a third party), but I was able to investigate a lot the seller, and check deeply the car. Of course price was not very low, but cheaper than an official dealer. :)
Many of you seem to be very experts in second-hand cars dealings. I've often got a question on extended warranties given by the brand: if you purchase a second-hand car to a private seller is it possible to get a one year warranty given by the brand for that car?. How much does it cost, and what's the procedure or the premises to get it?. Thanks in advance for your answers. Cheers!!
In this particular case I don´t know. Warranty is delivered by the seller ( professional dealer), but in fact is an insurance product sold by an Insurance Company. Therefore, I wonder whether or not, a private seller could give an extended warranty. Regards
used I am glad i found this section in english!! I also agree, if possible, i would buy it from a friend or a PCA member. If i cant find the particular model, then i would go for a pre aproved, warranty counts sèciaññy if your looking to buy a GT2, 3 or turbo. Here in spain i find it deficult to buy from individuals, not impossible, but i prefer from dealer, because of waht i have seing with the KM. In the US if you roll back the miles. its a federal crime, and its 10 years for each mile, so people really done mess with it. My 2 cents!
