It’s the worst tree ever What’s up everybody, Rob Ferreti here, and today I want to talk about something that sorta has me hopeful and has me smiling which is Porsche’s GT Boss announced that they are going to crack down on people buying and flipping cars. They unfortunately enabled that scenario with the 911 with the 918 program where they sold the GT3 RS’s to people to reward them for buying the 918’s. Cause the 918 was a high dollar platform They wanted to make sure they sold them all so to speak. So they had to incentivize some rich people to buy cars. That unfortunately brought them into the world of.. Like now we control the demand, and not Porsche, but they allowed the customers to control the demand. And when the customer controls the product, [Counter right-hook] Price goes up and I’ve been saying this forever, cars should not be bought as investments they are not, they are depreciating assets. you go out, they were designed to be enjoyed, and not produced in limited numbers, for any reason other then we think we can only sell this many, not lets make it so our customers can go buy cars and hoard them for a long time and they’ll go up in value And that’s essentially what happened Uh, case in point, I mean my 488 is probably still worth more than I paid for it. And that’s cool, I mean that’s a very cool thing Ferrari has been known to generate cars for decades that are worth more than they’re ultimately sold for. Porsche, that’s sort of a new thing most of their old cars go up in value but they’ve been driven, there’s not a lot of Porsches that sit around for decades and that’s starting to become the pattern with the new GT cars. cause when you start introducing the words scarcity, people get really really giddy about it. And you get people buying cars that wouldn’t otherwise buy cars just because they think they’re going to double their money or they look at it as more of an investment than a purchase for a toy and cars are ultimately supposed to be toys. Porsche’s GT boss is like “We’ve had enough of this, ” “if you guys are planning on flipping cars.” “We’ve got your name” “and we’re not going to sell you anymore cars” And that’s going to end up helping if they implement this the way he talks the thing that sort of kicked this on was the 911 R was supposed to be the last manual transmission Porsche And everyone is like “Nooooo” So then these guys bought them and sold them There were sales in the millions Over a million dollars for a car that was $190,000 What the original window sticker was Maybe 220 with options that’s an $800,000 delta And Porsche didn’t get that, that’s the guy who bought it and says “Thank you very much” and right out the door cause there weren’t many available. So now you’ve got the guys buying it, say “Wait, wait a second” “you’re now going to make manual GT 3’s?” “That’s essentially this car” “With a wing on it” “and you’re selling it, like what’s going on?” You spent a million dollars on this, and his response was.. “We’re not a hedge fund” What are you doing? I didn’t tell you to spend a million dollars on a car So, ultimately he’s saying we don’t produce cars for you to flip and make money and to park and to try to manipulate the value over time We produce cars for people We’re a car company We see demand, we fill the demand. And we saw that there was a demand for a manual GT car, we built it. People are excited about it they’re going to buy it but, don’t think you’re going to buy it and flip it to make money Cause they see that They see that the dealers are looking the market up I’ve said it, other people have said it Nobody likes that, nobody likes to go into a dealership and be like “Show me the money, ” “what are you going to give me, over sticker? We’re going to ask you to sign something that when the car comes in you’re paying market price for it instead of the sticker price Nobody wants to do that, as a customer you feel that you’re being taken advantage of and then, what’s going to happen? I’m going to order a car It’s going to come in You’re going to tell me I have to pay 50,000 over window for the car that I spec’d out and ordered or you’re going to sell it to somebody else for market price? That doesn’t work So how is Porsche going to track this? Well, there’s not a lot of people buying GT cars, there’s only so many of them out there. When they see these cars changing hands, they’re going to remember. They’re going to see the car move with no miles Guess what? Congratulations, that’s the last car you’re getting. It’s alright, I’ve got my wife, She’ll buy one, cause the dealers going to take care of me. cause I’ve been a customer for so long. She’s going to get blacklisted, then the dealer. If they start seeing the dealer sending a lot of cars to a lot of different people and these cars keep turning over the dealers going to take crap from Porsche and thats the way it’s supposed to be It’s not going to be an overnight success, it’s not going to instantly weed out all of these people buying cars to flip, but it will allow people like me, who my order for the 991.2 GT 3 isn’t even in yet but i’m going to place the order i’m just trying to find the right dealership that’s willing to like put me on the list on a fair order If I have to wait a year, i’ll wait a year if I have to wait 18 months I just want a car that I can buy and drive I don’t care what it’s worth in the end I’m going to buy it, and put 20 or 30 thousand miles on it and sell it and order another one That’s what’s going to happen and there will luckily be more than enough GT 3’s out there The thing that you get when you restrict the market, and you limit the number of vehicles out there is you have all of these guys buying and speculating none of the cars ever move You’ll see it with like baseball cards and everything else. People are hoarding stuff as it comes in, and then it turns out there is a lot of people that have bought it just cause they wanted to see it go up in value and when it doesn’t, you’ve got a lot of people dumping them onto the market and the market ultimately comes down Think of pogs Think of cabbage patch kids Think of baseball cards Baseball cards use to ohh, limited edition cards lets go buy the boxes of unopened cards just so we may have it in there all of this happened, baseball cards were up here now baseball cards are worthless they’re worth paper, there is very few cards that have an actual value all of our childhood collections are garbage for the most part if you own a lot of baseball cards, send me an email [email protected] I’ll hook you up with a great deal But, those are the problems that you run into everybody sort of, hoards it and when they realize the value is going down then they are trying to sell it, sell it, sell it you’ve got a lot of stuff on the market and more sellers then buyers and then all of a sudden the value goes down and ultimately will level out and if you make it where Porsche’s producing as many cars as people will line up to buy that, you’re going to get a lot of people speculating and a lot of people buying I don’t know if they’re going to limit the number of GT 3s but you’ll have a whole bunch of people buying and speculating for GT 3s which will mean there are more $180,000 GT 3s out there than there are buyers for them the market will level and there will be a influx of second hand market cars eventually, which will drive everybody’s price down, but, That’s just supply demand economics. And i’m excited to get mine I don’t know when my order is going to go in but i’ll figure it out And I will bring that car to you guys and you’ll see me drive it you’ll see it every adventure I drive you see what I drive, I drive a GT3 it’s why I sold the last one, to get the new one probably going to be a little bit more of a gap in ownership than I was expecting it to be but when I get one, you will see it, thank you for watching and Porsche GT Boss, I don’t remember you name, but you’re awesome thumbs up, good luck with that, if you need any help designing the program to get these guys to stop flipping cars, shoot me an email. I’m on your side. Thank you guys, catch you next time.