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      11-24-2009, 01:42 PM   #1
Oh Captain My Captain
With Great Power, Comes Great Responsibility
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Drives: 2012 Porsche Cayenne S
Join Date: Sep 2009
Location: Pittsburgh

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Cancelling a Dealer Order...What does the dealer suffer in losses besides the sale?

I am wondering what happens when an order is canceled. While discussing my purchase of a Z4, another dealer next to me was on the phone struggling with a client who apparently was canceling or backing out of a recent deal. The dealer was upset at the end of the call and apologized to me for having to listen to him rant. He then went to speak with the sales manager.

I looked at my dealer and quipped " I hope we don't ever have that conversation." His reply, "If we did. I would hunt you down and burn your car to the ground." Nervous laughter from both of us at that. We made the deal and shook hands and I handed over a check to reaffirm my commitment in light of what we had just both witnessed.

Still, it left me wondering how in the hole a dealer is when an order is canceled. Obviously if the buyer walks away when the car is sitting on the lot, its a much bigger loss than if the car has not started production yet; but how much of a difference is there? How often does it happen? In this economy I would think that every sale is crucial to the salesperson's livelihood.

Any salespeople care to comment?
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Previously Drove --> 2010 Z4 35i --> Cayenne S ---> Maserati GranTurismo --> Ram 1500 -->Tesla Model 3 -->Currently Drives: 2021 X6 M50i
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