"Tariff Adjustments" are coming, says my SA

[KombuchaBioleather]

My SA just texted me to ask me to come in to do the deal today (even though car's not ready yet), saying "I'd hate for you to be affected by the tariff adjustments." If he's being truthful, then that could mean even vehicles that clear customs before the tariffs go into effect could still be subject to these 'adjustments.' What do y'all think - is that BS?

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[PrudentOcean]

The car can’t be subject to the actual tariff, but the dealership might jack up the price on all in-stock cars anyway because the cars would be worth more relative to a car that hasn’t been imported yet.

That’s a shitty position to take but I’m glad your SA is looking out for you.

 

[jkjjpc]

A friend who works for one of the largest dealer groups in the country said the dealers/manufacturers will print new Monroney stickers so there are not be lower vs higher priced cars. Time will tell if that is true.

 

[Fun TC Driving]

Just five minutes talked to the GM of a major Porsche dealership. He said, “we await a statement from Porsche corporate.”

 

[sor]

I spoke to a dealer today who is buying up inventory they can find. They have several gently used Macan EVs incoming and expect to get today’s new MSRP prices for them. Also saying that used car prices will go up in the wake of new ones jumping.

Even American made cars will go up because there isn’t enough to replace demand of imports.

 

[USMA81]

According to Grok, the AI engine, tariffs typically are applied when goods arrive at port. So ostensibly the vehicles in the US now, and any that arrive before the tariff date, would not have it applied. YMMV.

 

[sloubere]

According to Grok, the AI engine, tariffs typically are applied when goods arrive at port. So ostensibly the vehicles in the US now, and any that arrive before the tariff date, would not have it applied. YMMV.

Tariffs on new cars will raise prices of existing (already imported) ones implicitly. If the new car is worth X+20% because of the tariffs, why leave money on the table for cars already in the country, or cars made in the US by not increasing their prices either.
Tariffs tend to impact prices on the whole market, not just the imported ones.

Same thing with used cars, if now all the new cars are X% more expensive, then the used market will also follow the lead.

 

[Wivenhoe]

As the dealers will most likely experience high cancellation rates after the 2nd April, as the cars will be too expensive & uncompetitive, do you think they will risk sales by putting existing cars into the same category.

i‘m sure the dealers will be trying to find ways to cover the potential for a massive drop in income but significantly increasing the cost of tariff free new cars probably won’t help.

Being in the UK we have to rely on media so not sure whether it’s ‘alternative truth’ or not, but sentiment seems to be building against the Tesla brand in the US so it’ll be interesting to see where the lost Porsche sales go to.

If the tariffs stick long term then I suspect the global car market will change forever in the same way your President seems to want to alienate Europe China & Canada in favour of carving up the world with Adolf Putin.

 

[sor]

I don’t know - but one dealer I have talked to are preparing to mark up existing new inventory to “a bit better than tariff rate”, and certified pre-owned cars to old MSRP.

It’s really anyone’s guess - people will either jump on existing inventory and possibly pay small markups in bidding wars to get a pre-tariff car or they’ll balk and decide they don’t need to buy now.

They expect to move some who cancel orders over to buying their existing inventory.

 

[themacnut]

MSRP is established by Porsche corporate. When they account for the tariff, it’s not a dollar for dollar increase by product family. They may adjust pricing differently by model. They don’t run their business on cost plus model, with every product having the same profit level. This is common practice in automotive, as well as many industries.

I would guess new MSRP will apply to all existing new inventory for consistency. Reprints of the Monrovey sheets. Consistent pricing for the dealers.

I personally don’t agree with the tariff strategy. How much will it impact sales? Time will tell.

 

[Fun TC Driving]

In addition to the question of perhaps re-pricing new ones not customer pre-ordered, would dealerships re-price their already on their premises CPO and regular used vehicles? I am thinking they would or at the best, all used vehicles there now would now have a non-negotiable, take it or walk away price.

 

[BigApple]

does this impact already existing leases and their buyout prices when the lease is up ? or is that locked in and not changeable?

 

[themacnut]

Overall your sale price on a new vehicle is finalized at purchase. Having a confirmed order or even a car in production doesn’t lock your pricing.

CPO and other used vehicles are set by each dealer based on the market and demand. They buy the cars, and in many cases make more profit than on new cars.

Just sold one of our 911’s back to the dealer, 6,000 miles. Pricing is good, and they are hungry for good used cars. Limited availability, tariffs on new cars likely a factor.

If pricing on new cars increases, seems logical CPO and used will get a slight uptick as well, especially if inventory is limited. If tariffs, and other economic factors start impacting demand, and inventory increases, prices will fall.

Or if another Mfg drops pricing to fix lagging sales (EV market of last 2 years, several examples), others may follow trying to capture more business, even if profits take a short term hit. Common across many industries (capital equipment, airlines, etc).

 

[themacnut]

does this impact already existing leases and their buyout prices when the lease is up ? or is that locked in and not changeable?

Lease is a contract. Doesn’t change.

 

[PrudentOcean]

The one thing that is working in Porsche’s favor is their high profit margin of around 40%. They can afford to absorb some of the tariff so that their sales don’t crater completely. Other brands (Honda, Toyota, Kia, Hyundai, VW) don’t have that luxury.

I am sure Porsche would rather sell cars at a lower profit than see their sales in their most important market dry up.

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