I’m retired now but I was an independent consultant for computer design, programming and also did on-site training and wrote books and published video courses on programming.
This is a little long but it’s about something I would really like to understand…
I’m curious as to how the “pay for you car while it is still on the dock” thing will work out. I hope we don’t have to do the actual experiment to find out
The reason I’m curious is because in my business I’ve had to deal with state tax collectors a number of times. One thing I came away with was how well these tax collectors understood the arcane details of how particular a business works to determine if that business (or individual) was on or over the line of tax avoidance.
In one case a state wanted to collect tax/penalty from me based on an audit of one of my customers. It was a tax I did not owe and neither did my business. The cost of fighting it was too much so I paid it. But it was amazing how much stuff that state had to dig into to claim I owed the taxes.
Now here is the thing I don’t understand about “pay on dock”. For this to work Porsche NA will have to invoice the dealer before they have actually shipped the car to them. I’m pretty sure that both Porsche NA and the dealer do accrual accounting. I don’t see how Porsche NA can invoice something that is not in their accounts receivable and it can’t go into accounts receivable until it’s been shipped. I don’t see why Porsche NA would change an accounting practice just to accommodate a few customers.
The one time I think “pay on dock” works is if Porsche NA invoiced the dealer once the car was put on a car transport truck because that’s the typical time that things are invoiced. But if the car has to sit around on the dock because of whatever… that’s where I don’t see how “pay on dock” works.
It may be the dealer figured out some fast and loose way to cut us a better deal that doesn’t involve Porsche NA. They might want to do this not necessarily to help us but because they want to collect as much money as the can before end of year. But this is exactly the kind of arcane business practice the tax collectors are on to and know how to detect.
When I first started my business I bought a lot of stuff out of state. Among other things it saved me sales tax, 7.5% in MA at that time. Fortunately my accountant (a CPA) warned to o pay the sales tax to MA. She had run into lots of professionals who did this end run around sales taxes but all were found out, usually years later, and ended up with big tax/penalties to pay. The tax collectors know more about how your business works than you do.
So I won’t be doing “pay on dock” if the car doesn’t make it here in time, for a couple of reasons.
I have trouble paying for a proverbial “pig in a poke”.
The second reason is that I’m confident tax collectors will catch on to what is being done. I’m not willing to roll the dice on the time I will have to spend with tax collectors to straighten things out. When I had my business my time was worth more than what I might lose by giving up the tax credit. Now that I am retired my time is worth more than anything I can imagine.
My guess would be that the change of ownership occurs when cleared from port and on transporter - so it’s not the dealers to sell until that time.
This is my guess to. It's transfer of ownership from the co to the dealer that might occur when the car is unloaded on dock. Then it's the transfer from the dealer to us.
I am an intellectual property (patents, trademarks, copyrights, etc.) and technology law attorney.
My SA told me this was the case. It needs to be scanned by the government at the port. Basically logged in that it has hit U.S. soil.
Def, we should.
I am also taking delivery at Hennessy ATL. Chalk on red INR with MSRP at 137k(went crazy with the options). Getting custom wheels and ordered the sport side skirts from Suncoast parts. The sport side skirts on the 4S are only available in the car’s paint color which I think looks kinda off. Getting the sport skirts painted in high gloss black to match the accents.
I’m an orthopedic surgeon.
Nice. We need to have an Atlanta connect. Actually, we may all collect on the same day.
Tibia?
I should have used your numbers.
Tibia= long bone in the leg between the knee and ankle. Fx =medical shorthand for “fracture”.Tibia?
Yikes! Sounds like I may need to finance instead...thanks for the explanation. Which money factor were you quoted?
He told me the money factor months back and I forgot. I know it should be .002 but I have a feeling they’re gonna mark it up. Porsche Perimeter quoted me .00325. I remember because it was so bad. I can’t remember Hennessy.
