1984 Porsche 911 Carrera Targa on 2040-cars

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'We're not a hedge fund': Porsche plans to curtail speculators and flippers

A sizable number of speculators view cars as an investment. Rare or unusual models are quickly snapped up and either parked for years or flipped for a profit. Cars from automakers like Porsche and Ferrari are more prone than others, and at least some people behind these models are getting a bit tired of it. While it's difficult to police what goes on after you sell a car, Porsche has some plans that might curtail the problem before it starts. Andreas Preuninger, the head of GT road-car development and the man behind the new 911 GT3, spoke to Car and Driver at a recent event. "I personally like to see my cars being used," he said. "That's what we build them for. They are just too good to be left to stand and collect dust." One recent example of this rampant speculation is the 911 R. While the special manual-only model sold for $185,950 when new, used versions were selling for nearly $1.3 million just months after it went on sale. While the car is a masterpiece and an instant classic, a good number will be parked and simply used as art and not the rolling testaments to the man/machine interface they were intended to be. The concern over valuations has become so fierce that some owners are upset that Porsche is offering the new 911 GT3 with a manual transmission, fearing that it may hurt the value of the 911 R. "When I said we're not a hedge fund, I'm talking to those people who are yelling at us for offering the manual transmission similar to the R," Preuninger said. "But if there are people wanting to buy cars like that, then as a company we should try to fulfill that, to meet that demand." It seems Porsche is keeping a close eye on who is flipping cars. Since there is often far more demand than supply with certain models, the German automaker has a name for every car before it's built. Buyers with bad reputations might not even make the wait list. Related Video:

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

The Mercedes-Benz S-Class leads this month's list of discounts

Like last month, the biggest discounts car buyers will find on new vehicles are all applied to expensive luxury sedans. Unlike last month when there were two, there isn't a single Rolls-Royce to be found anywhere in the top five. Sorry, one-percenters. But just because the pinnacle of European luxury isn't represented doesn't mean there aren't big discounts to be found on lovely luxury sedans. In fact, this month's list is led by the 2020 Mercedes-Benz S-Class, a technological wonder that coddles its driver and passengers with all the bells and whistles the German brand has to offer. The Mercedes-Benz S-Class is offered in many shapes and sizes with several powertrain options. That means there will be a huge variance in prices across the model range, but on average, 2020 S-Class buyers are seeing $11,803 lopped off the car's $109,447 sticker price, leaving an average transaction price of $97,644. That's a savings of nearly 11%. It's worth noting that there's a new S-Class for 2021, but the 2020 edition is still a lovely machine. Up next is the Porsche Taycan, sitting in second place just like it did last month. Buyers are seeing average sticker prices of $125,736 but are paying $113,938. That's a savings of $11,798 — or about 9.4% — off the price on the window sticker. As was the case last month, we're not sure how many of the Taycan's buyers will be able to claim tax rebates due to the Taycan's status as an electric vehicle, but that could potentially represent a further cut off the car's sticker. Rounding out the top three for the month of July is the Maserati Ghibli. With an average discount of $10,161 that represents a whopping 14.3% of the car's sticker price, this Italian luxury sedan actually leads the list of vehicle discounts when ranked by percentage. And if you're a Maserati fan but the Ghibli isn't your cup of espresso, the Levante crossover and larger Quattroporte sedan are also seeing very large discounts. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2022 Mercedes-Benz EQS Edition One revealed