Do you think interest rates are weakening demand for these workhorses?
No, we will sell out again this year. It will take him two weeks to sell all 40 cars. Start the new year very slim. I actually like to keep a few cars in stock. Some manufacturers want to sell down to zero. This is not a great model for consumers. When they come in, it’s not good to see no cars or only one. So having a few Porsches, 10, 15, or 18, is a healthy number where people can say, ‘Sportbacks are prettier, but they need a little more space.’ So a few cars is a healthy place.
Do Porsche dealers see weak demand in the used car market?
No no, I need to be a little more careful. There were 15, 18 months when there was almost no cap on the value of a car. It was worth the money someone paid for it. So as long as you’re in that hot market and you’re rolling your car every 30, 45 days, you’re fine. What happens when it slows down and starts to be 60 or 90 days.I got the car I appraised in September.Very different market.
So sharp used car operators make very quick and short turns to set market prices. If it was worth 100 grand in September and is worth 85 today, that’s what it’s worth.
Think of all of online marketing. Everything is so transparent. Keep looking for a 3 year old Cayenne to see how many are in your area, price and mileage. [are], What is Carfax? Homework just got a whole lot easier for guests, so that’s really good for consumers.
How sustainable is the profitability of a Porsche dealer?
Our manufacturing plants think like us. They know what cars sell. So this goes all the way back to Germany from the street. If you do this right, you could sell out at any moment. But we have come through this recession not unscathed, but mostly. So there is no reason to change this model if done properly with good communication.
Porsche would like to shorten it a bit. Consumers want something shorter. They speak like we do. Good guests speak like me. He started talking to me about the car market, so if it’s short for him, it’s a really worthwhile position.
Need more sales training following a dealer-friendly marketplace like this?
When we get into motorization, you have to be really sharp. People don’t understand watts and volts. I did not do it. If you’re talking to an experienced Tesla trade-in owner, you’ll have a quick talk. You talk to someone new: “Do you have 110? [volts] Home or 220?” They just don’t know.
Therefore, training is intensified across the board. OEMs are in various stages of preparation for this.
Are Porsche dealers holding back on buying used cars?
If there are few new cars, we have to increase the number of used cars. So I can’t take it back. Now I have to be really sharp. You need to understand the market, the auction. I needed to find out how many lease cancellations were coming back each month.Then I had to step in front of the guest and say, “I want to buy it for you.” [acquiring used vehicles]You need to dial back both acquisitions and retail in an educated way [price].
Do you think Porsche dealers’ interest in used cars is waning as new car inventories grow?
No. Instead of selling 30 used cars, he now sells 60. I’m not going to turn back. [I will] Still trying to sell 60. This model is alive. There is no way that used car sales will decrease in three years.
In a down market, you have to be pretty astute. So some people withdraw because of that. But the car will sell. Those cars have to be sold. Those trade-ins, those wrecks—those cars are going to be sold.
What about the fixed business of a Porsche dealer?
We are having a big year. Porsche business is doing very well.when you put it together [higher] Volume, this high-volume used car market is very volatile. It’s all more of a service business.
We are expanding — this is common. It’s not just the mic. We are planning to build another service department nearby. We are expanding into the markets that I originally joined and left.I’m going to go back to the other markets I’ve been in and make it much more convenient for those people so they don’t have to drive. [into the project]At Porsche, we don’t just open two petrol stations. Porsche is very proud and he wants it to look like a store. They have a very exciting program that allows them to expand their service sector.we think [fixed operations is] Big, not small.
My used car manager has a used car service advisor.that’s one channel [for revenue]And when he sells it, he has a built-in guy that needs maintenance.
How is the technician shortage affecting Porsche dealers?
I am training there. There we do a huge amount of training. And we really like homemade.
Is that homegrown strategy pretty common?
I think so. We are always looking for new young trainees. We buy their tools, we buy toolboxes. It is a constant, constant need.