@Rodriges - Care to share?
Ethical and Dealer are exclusive words. It does mean that they will lose their loan money (if they get a comission) and when you go to buy a car again in a short amount of time they might not want to give you a deal.
1 Like
I meant a smaller loan. There is no ethics in the car game on both sides lol.
1 Like
Porsche Taycan CT
1 Like
Ethical has no place in business. It’s business, you are there to make money, not to do the right ‘perceived’ thing. I once cancelled a $4000 warranty and bought the same exact warranty for $2000. So my selling dealer lost money and my new dealer made money. That’s business, not ethics.
The dealer usually gets a kickback from the bank and/or part of the profit from increasing the rate from the base rate. So instead of charging you over MSRP, they are getting that overage from the bank/rate instead. If the loan is paid off too quickly, then the dealer is charged back all or a portion of that balance. So they are expecting you to keep the loan open as least long enough to not get a chargeback from the bank. That length is usually 90-120 days (3-4 payments).
Now since you are buying a P-car and especially a CT at MSRP, that puts you more in the spotlight and even more so if it is a smaller dealer. If you are one of those guys who wants a 911 in 6 months and they got a $3k chargeback on your last deal, the manager will probably remember that. So up to you if you want to roll that dice or not.
6 Likes
This ^ if you do that, there’s a solid chance that dealer won’t sell you a car again. The win-win would be waiting till the chargeback period is over to re-finance. @Rodriges
3 Likes
Thanks folks for opinions. They are quite polarizing, but I personally believe that ethics have place in business. If business is doing something unethical with me, it is unlikely I will continue doing business with them and probably vice versa. We clearly see that even such tough market conditions, some dealers remains better then others and not doing ADM’s for example.
Particularly in this situation there is very slim chances, that I will buy 911 in 6 months, but I think that win-win situation would be better.
3 Likes
I will say you have a solid deal even if you don’t refinance. Any new Taycan is a goldmine right now as a dealer between no new production and gas prices plus CTs are extremely rare. They could easily ask $15k+ over with financing and get it if they don’t care where it goes.
But if you want to uphold your end of the deal and keep it a win-win, then refinance it in 120 days. I have had a great experience with PenFed.
1 Like
Just run the math on all 3 scenarios and see what looks the best in terms of TCO:
- Financing $100k @ 5.99%
- Financing $102.5k @ 3% (or whatever the lowest rate you can find is)
- Financing $100k @ 5.99% then refinancing the balance @ 3% at 120 days
1 Like
For #3 which is preferable scenario from ethics perspective, unfortunately there is no data as to what rate will be in 120 days (I get it thaw we don’t have crystal ball), so hard to do math. It can rise to same 5.99 for example.
About 18 months ago I bought a vehicle and intended to pay cash, but there was a $500 incentive to use BMWFS, so I financed it.
The finance person was awesome, and (when asked directly) she assured me that the most important thing was that I was happy so I should pay if off whenever I wanted, but if was under three months the dealer would get charged back for the incentive and she’d lose her commission on the financing.
No brainer. It ended up costing me $33.79 in interest but she kept her commission, and both the dealer and I ended up with the deal we mutually agreed to.
6 Likes
Is this still the case? How long are they pausing the production for? Local dealers here seem to be unaware.
Still the case. I have MY22 orders placed in Q1 that will not be delivered until next month if we are lucky. They seem to be missing a lot of parts so they are building what they can and then coming back when they get the parts they need. There were a few base MY23 Taycan allocations handed out a month or two ago, but nothing I have seen since then.
Insanity. What do you think will be the inventory implications during year 2023? Trying to see if I should grab one now or wait until closer to my current lease end which is May 2023
Not any better, if not worse.
1 Like
The hits just keep coming:
I only care about Belgium 
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.