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This is not right…European Delivery

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Old 07-23-2012 | 01:11 PM
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This is not right…European Delivery

Hi folks, apologize for the long post but I have to get this off of my chest. I am not a Porsche owner yet, but recently placed an order with a dealer here in the U.S. Here's my story…

Two of my neighbors and I are buying Porsches (2 Cayennes and a Boxster S). To get a better deal, we all agreed to buy them together and then take European Delivery in October. We had read up on the new European Delivery program and knew that it was offered at no additional charge to the customer (see press release here http://press.porsche.com/news/release.php?id=695 ). What we found during our negotiations with every dealer is that the $2995 fee is seen as a bottom line cost to the dealer. The only way we could get Euro Delivery 'free' is if we agreed to take a higher price on the car. Because we negotiated a really sweet deal, the dealer actually refused to let us take European delivery (unless we paid more for the car to offset the price).

Does that sound right to you?!

Keep in mind, this wasn't one dealer, this was many dealers as we contacted EVERY DEALER IN THE US (even Alaska & Hawaii).



Every one of them continued to explain to us that it was a cost to them and ultimately that cost in one way or another is passed to us, the purchaser of the vehicle. In fact, because our deal would have put the cars under invoice with European Delivery thrown in, we were refused that delivery option.

I contacted a European Delivery Specialist at Porsche USA via email and this is an excerpt of her response:

Thank you for your interest in the Porsche European Delivery Program. The configurator is correct, it is a no cost option for the customer. The
dealership will instead pay the costs associated with the program, but we
have added an incentive for the dealerships to cover that cost so it should
not be passed onto to the customer
.
Porsche USA clearly has the position that I should not have to pay for it however I don't think they anticipated our ability to negotiate to the point that the program became a loss for the dealer.

I wasn't satisfied with Porsche's answer on this especially given the dealer would not let us take Euro Delivery and emailed the specialist to get a contact in customer service:

After I hung up the phone with you, I looked over the press release from Porsche regarding the European Delivery. Our interpretation has always been that European delivery is free due to the highlighted excerpt below, but our experience with the dealers has proven out that it is simply another cost passed onto the consumer as part of the overall deal negotiated. As you mentioned over the phone, because our deal was at or near invoice we were therefore ineligible for this free perk. To reiterate, the dealer had no incentive to absorb the $2,995 fee charged by Porsche USA...thus passing this charge to us.

What we are trying to understand is at what point is European Delivery no longer available to the consumer 'at no additional charge'? We assume based on our real scenario that this threshold is invoice + the European delivery fee ($2,995). Is that accurate? In effect, we believe this program is penalizing us as customers simply because we negotiated well. This deviates in both spirit and wording from what is stated in the press release as I cannot find anything indicating the consumer has to pay the fee. We recommend at a minimum that the verbiage surrounding this program be altered to remove any doubt that this is in fact a cost passed to the consumer, albeit one that can either be paid for in cash or financed as part of the deal.

I'd like to escalate this with Porsche; can you provide an appropriate contact?
I was directed to a General Manager, Customer Relations for Porsche North America. I emailed them and they stated very simply that the program was supposed to be paid by the dealer, listened to the fact that we were refused Euro Delivery and simply said that is how the program works. No real resolution and 3 guys are still wondering how they are going to get 'free' European Delivery.

At this point, I am really frustrated and thought I'd relay my experience here on the web to get your reaction. I feel that we are right and are getting selectively denied something that is being advertised by Porsche as free. Isn't that a violation of FTC rules? Bait and switch?

Check this out:

http://www.ftc.gov/bcp/guides/free.htm


(g) Negotiated sales. If a product or service usually is sold at a price arrived at through bargaining, rather than at a regular price, it is improper to represent that another product or service is being offered ``Free'' with the sale. The same representation is also improper where there may be a regular price, but where other material factors such as quantity, quality, or size are arrived at through bargaining.

(i) Similar terms. Offers of ``Free'' merchandise or services which may be deceptive for failure to meet the provisions of this section may not be corrected by the substitution of such similar words and terms as ``gift'', ``given without charge'', ``bonus'', or other words or terms which tend to convey the impression to the consuming public that an article of merchandise or service is ``Free''.


http://www.ftc.gov/bcp/guides/baitads-gd.htm

Am I off base? All I want to do is drive my Porsche in Europe and Porsche says 'no'.

That sucks.
 
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Old 07-23-2012 | 01:59 PM
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There is no charge for European Delivery if you are paying MSRP. If you negotiate a better deal you have to expect the dealer to take all costs into account.
 
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Old 07-23-2012 | 02:04 PM
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I sort of disagree with you...I get the whole cost thing but when you advertise something as free on a negotiable product, then not deliver it, it really wasn't free to begin. The way they worded is, in my opinion, pretty misleading. It really is a cost to me any way you look at it.
 
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Old 07-23-2012 | 02:10 PM
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It's the same as negotiating a deal on the car and then adding one more option. Would you expect the dealer not to charge you for that option. European delivery is an option. It has a cost.
 
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Old 07-23-2012 | 02:21 PM
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Yeah, but they advertise that option as free and it isn't. It is only free, <wink> <wink>, when you pay us full price. If so, cool...they should say that in the press release and everywhere else they state it is free.
 
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Old 07-23-2012 | 02:22 PM
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Here goes that saying "nothing in life is free".....the dealerships cannot lose money on transactions or they will not be around long. I think the confusing thing is that Porsche says the offer incentives back to the dealership for Euro delivery (sounds a bit like holdback pricing or something)....that is what I would question. If Porsche provides a dealer incentive, won't they receive that to make it budget neutral to the dealer and you as the customer??
 
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Old 07-23-2012 | 02:26 PM
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Yes...that was the claim of the Euro Specialist, that an additional car allocation made up for the $2995 cost the dealer paid for. I really don't understand why they make this so confusing. When I did this with BMW, they paid me to come get it in Germany. The amount basically paid for 1/2 my trip.
 
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Old 07-23-2012 | 02:57 PM
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I was buying a Boxster S here in Canada and was told the same thing. I'd have to pay MSRP to get Euro delivery.
 
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Old 07-23-2012 | 04:54 PM
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We don't know all the facts but it sounds like you cut a deal with the dealer and then told them you wanted Euro Delivery. I think the dealer has the right the change the price if you change the terms of the deal. I'm not going to argue about their press release, it sounds like you intentionally or unintentionally changed the deal and want the same price to me.

btw, I just did this for my wife's new Merc and they are "free" with a flat % off msrp. It was a good deal in my mind...

Roy
 
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Old 07-23-2012 | 05:29 PM
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I've always thought Porsche Euro Delivery cost extra unlike BMW and MB. I actually picked up my Mercedes in Germany. Got 7% off of MSRP, delivery fees waived. Free night in Stuttgart, free voucher from the airport and to the factory. Free lunch. Buy one get one free adult airline ticket. Add another $1100 and you get 5 extra nights at 5 star hotels, free breakfast and free dinner at three of the hotels. It was a killer deal. It's unfortunate Porsche doesn't have anything similar for ED.
 
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Old 07-23-2012 | 06:14 PM
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Sorry but I’m with the rest of these guys. The manufacturer (Porsche) is selling their cars at MSRP. If you buy one, they will offer the Euro delivery for free.

If you negotiate a better deal, then I would say all bets are off. They can afford to offer it because you’re paying full retail.


Having said all that... does that mean if we don’t take the Euro delivery, we should expect a $2995 discount?


Mark
 
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Old 07-23-2012 | 10:05 PM
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This is interesting. You negotiated the purchase of a new car. Like with any purchase negotiation, you have the right to close the deal or walk away. I'm sorry you aren't getting the deal you would like and that sounds like 70% of every car purchase I've ever made. The difference is I don't complain about any deal I agreed to. Unhappy, or not, your deal is your deal to accept or reject. If you get your car(s) and choose to remain part of this forum, please post photos as we love to see new cars.
 
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Old 07-24-2012 | 04:51 AM
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@Tpup...we were up front with the dealer(s) about wanting Euro delivery. We didn't 'surprise' them.
 
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Old 07-24-2012 | 04:52 AM
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@OrangeCrush, in my experience...yes.
 
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Old 07-24-2012 | 04:54 AM
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@denversteve...yes I am happy with my deal, it is ridiculously awesome...I am just more upset about the Euro Delivery not being free as advertised. If they simply state it is free if you buy at MSRP and put that in all their public statements about it, I would be fine with that. It is just misleading how it is worded when it really is just another cost to me.
 


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