grammatoncleric-ga:
Thank you for your question. I hope that the following information
answers your question for you.
First, please note that Porsche North America and the German parent,
Dr. Ing. h.c. F, Porsche AG, do offer a European Delivery Program.
This is important, because a US-specification car cannot otherwise be
sold in Germany to a consumer. In the case of a European Delivery
Program customer, the vehicle is manufactured for export, so it is
acceptable for it to be used temporarily in Europe prior to it being
shipped to the United States by Porsche for final delivery to the
customer at their dealer.
This recent article speaks about the factory delivery programs of
several manufacturers, including Porsche:
http://home.hamptonroads.com/stories/story.cfm?story=77263&ran=160441
However, the European Delivery Program will not necessarily on its own
allow your friend to avoid any dealer markup on a 2005 Porsche 911
Targa. While some other European manufacturers who offer factory
delivery programs do provide some price advantage (Volvo being a prime
example), the German luxury brands do not offer any price advantage
for their factory delivery customers. In fact, in the case of Porsche,
the European Delivery Program is an extra-cost option, adding US$2250
to the cost of a 911 (2004 model year option price). For this extra
amount, the customer must still pay for their own airfare and hotel
accommodations to travel to the factory in Stuttgart, Germany.
Information regarding this program is available on the Porsche North
America website at:
http://content3.us.porsche.com/prod/911/carrera_models.nsf/usaenglish/europeandelivery
http://content3.us.porsche.com/prod/911/carrera_models.nsf/usaenglish/europeandeliverythegrandtour
http://content3.us.porsche.com/prod/911/carrera_models.nsf/usaenglish/europeandeliverybringingyourporschehome
The program cost does include the opportunity to take part in "The
Grand Tour" if the customer plans accordingly and successfully
reserves a spot in the next session (one in the spring, one in the
fall). "The Grand Tour" costs exactly the same as a regular European
Delivery Program, but includes many extras including a tour of the
factory.
As I have mentioned, this is an extra-cost option available from
Porsche directly. This means that the cost of this option can be
factored into any financing arranged through Porsche Financial
Services ( http://www3.us.porsche.com/english/usa/financial/delivery.htm
). Please note the comment in the following article, that quite
astutely points out that if a customer wishes to have their vehicle
delivered at the European factory, then that customer will most likely
not be able to arrange traditional financing through a bank or credit
union since the vehicle will, for a time, be beyond the legal reach of
the lending institution:
http://www.bankrate.com/brm/news/auto/20000426.asp
Benefits of using Porsche's European Delivery Program include:
- this is the only way to get a US-specification vehicle delivered
from the factory for temporary use in Europe;
- no additional taxes beyond those normally collected in a North American sale;
- the opportunity to drive the vehicle on the Autobahns before
condemning it to the gridlock of the American highway system :) ;
- all shipping costs are built into the selling price, and are no
different than the costs for a car picked up from a dealer lot in
North America;
- the opportunity to have an excellent driving trip in Europe in a
vehicle that would otherwise be extremely expensive to rent, allowing
the customer to enjoy the European roads in style
As for the dealer markup, the Nextag.com information is a good guide:
http://www.nextag.com/PORSCHE_911_2004_Carrera~63242186z27znz2703000z2z1z2703000zzmainz2-htm
There is close to $10k difference between the invoice price and the
list price. Remembering that the European Delivery Program is an
extra-cost option added on top of the price of the vehicle, it is
still best for your friend to shop around and swing the best deal they
can get from a dealer. Noting that a European Delivery Program vehicle
should not affect the dealer's allotment of new vehicles for a given
model year (ie. the number of vehicles that they can order from the
factory), a reasonable dealer should be able to provide your friend
with more negotiating room. In a way, the sale is a 'bonus sale' for
them, since it does not reduce their inventory of new vehicles that
they can sell in the 2005 model year.
Incidentally, if it were actually possible to purchase a new US-spec
vehicle from the Porsche factory without using the European Delivery
Program, then the shipping costs would be based on the cost to prepare
the vehicle for shipping in a container (as opposed to how Porsche
ships their vehicles, namely on a Roll-On/Roll-Off ship), insurance
for the voyage, freight charges to transport the container to
Arlington, and unloading costs upon arrival in Arlington. The
container shipping costs alone from Hambourg to Houston will be about
US$3500. On top of this, the initial sale in Germany would be subject
to the EU Value Added Tax (which can be claimed for a refund upon
leaving the EU), as well as import taxes and duties upon arrival in
the US. A more complete list of items to be aware of can be seen here:
http://www.ehow.com/how_107575_bring-car-europe.html
Generally, it is best to involve a shipping broker to manage all of
this on behalf of the vehicle owner.
All of this is moot, though, as Porsche will only sell a
US-specification vehicle for factory delivery if the vehicle is
purchased through their European Delivery Program, which includes
state-side shipping and delivery following the factory delivery and
temporary European use by the owner.
I hope that this Answer helps to illustrate the option made available
by Porsche North America. Please let me know if you would like any
part of this Answer clarified, using the Request Clarification button
above.
Regards,
aht-ga
Google Answers Researcher |
Clarification of Answer by
aht-ga
on
03 Nov 2004 10:09 PST
d) Cost
It is not possible to purchase a US-specification Porsche 911 Targa
directly from the German parent (Dr. Ing. h.c. F, Porsche AG);
therefore, the cost to purchase this vehicle for delivery at the
factory will be based on the price that can be negotiated with a
dealer in the US, plus the additional cost of the European Delivery
Program. This means that the price will be based on an base invoice
price (dealer's cost) of about US$66363, a base list price of
US$76000, plus the cost of any options including the US$2500 European
Delivery Program charge.
If one were to buy a German-specification 2005 Porsche 911 Targa, then
according to this news article:
http://www.autointell-news.com/News-2004/July-2004/July-2004-2/July-21-04-p3.htm
a German-spec 2005 Porsche 911 Carrera is listed for EUR75000 tax
included; the Targa model traditionally has about a 10% premium, so
estimate EUR82000 for a Targa. At today's exchange rate of 1.278,
that's US$104800. As the vehicle would be delivered in Germany, there
is no export tax involved, and the Value Added Tax of 16% can be
claimed for a refund when leaving the European Union, bringing the
value of the vehicle back down closer to $70000, or about US$90000.
e) As long as a vehicle is either purchased (and taken possession of)
in the EU by a non-EU resident, then no export taxes or duties are
required by the EU. In the case of the European Delivery Program, no
additional taxes beyond those that Porsche is already remitting for
the commercial export of the vehicle apply.
f) If a vehicle purchased and used in Germany is imported to the US
(and assuming that the vehicle meets all applicable US safety and
emissions standards and possesses certifications of meeting these
standards), the vehicle will be subject to certain duties and taxes.
According to the federal US International Trade Commission, the
applicable duty rate is 2.5% (look-up result in database):
http://dataweb.usitc.gov/scripts/tariff2004.asp
On top of this, it may be necessary to post a bond of up to 50% of the
vehicle's value to cover the cost of any safety and emissions
equipment conversion required to meet US standards.
The 2004 Porsche 911 did not have an applicable gas guzzler tax, the
2005 model should also be exempt as the engine is not substantially
different. And, as of January 2003, the luxury tax on vehicles has
been eliminated for all vehicles purchased or imported into the US.
g) Shipping costs
Shipping a vehicle from the German port of Hambourg to Houston TX will
be approximately US$3500, based on preparing and sealing the vehicle
into a 20-foot shipping container. Insurance will be in addition to
this, and will depend on what the owner wishes to insure against.
h) Total costs
If the European Delivery Program is used, then the total cost will
range from about US$74k to US$90k (depending on the dealer's final
price) plus the cost of any additional options added, and the
incidental costs related to the travel.
If a German-spec vehicle is purchased from a Porsche Center in
Germany, then shipped to the US, the estimated net total cost would be
approximately US$96000 (purchase cost, duties, shipping), plus the
cost of converting the vehicle to meet US-spec requirements.
So ultimately, the European Delivery Program is still the best option
for purchasing a new 2005 Porsche 911 Targa and have the opportunity
to drive it in Europe before receiving it (again) in the US.
Regards,
aht-ga
Google Answers Researcher
|
