C7 will be sold over sticker? Dealer price gouging?
08-21-2012, 04:50 PM
#21
Le Mans Master
Member Since: Jul 2009
Location: Los Angeles California
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I'll be going to my local dealership and telling them "Invoice + $1K". That's the only way I'll do it. I'm not going to let a dealership gouge me. Rydell doesn't work on commission so the sale will be all that matters to them. They'll make their $1K and I'll take my car to their service department where they'll make the money that really matters to them.
It's really that simple.
It's really that simple.
08-21-2012, 04:56 PM
#22
Drifting
I'll be going to my local dealership and telling them "Invoice + $1K". That's the only way I'll do it. I'm not going to let a dealership gouge me. Rydell doesn't work on commission so the sale will be all that matters to them. They'll make their $1K and I'll take my car to their service department where they'll make the money that really matters to them.
It's really that simple.
It's really that simple.
. But given the newness of the vehicle and expected gouging, I wouldn't call that a bad price. Good luck !
08-21-2012, 05:25 PM
#23
Team Owner
08-21-2012, 06:52 PM
#24
Race Director
Even when selling at "invoice", the dealer will get a "hold back" payment from the factory after the car sells. These seem to run around 2%-3%, which on say a $50,000 car would be $1000 - $1500.
In my experience, from what I have read and seen, and based on what I think I know (???
) it seems that around 12% +/- below invoice is the dealers break even point. However, that can vary due to short term factory incentives ( "factory cash, Dealer cash", etc), and some cars just don't have as big a mark up from invoice to MSRP because the factory is trying to be competitive in a market segment and/or move out slow sellers. The Chevy Volt is a good current example of this!Your results may vary!
08-21-2012, 07:42 PM
#26
Team Owner
Even when selling at "invoice", the dealer will get a "hold back" payment from the factory after the car sells. These seem to run around 2%-3%, which on say a $50,000 car would be $1000 - $1500.
In my experience, from what I have read and seen, and based on what I think I know (???
) it seems that around 12% +/- below invoice is the dealers break even point. However, that can vary due to short term factory incentives ( "factory cash, Dealer cash", etc), and some cars just don't have as big a mark up from invoice to MSRP because the factory is trying to be competitive in a market segment and/or move out slow sellers. The Chevy Volt is a good current example of this!Your results may vary!
When I first started looking for a Z06 in 2008, my local dealer said he would sell me one at "invoice", so I went to Edmunds to see what the invoice was on a Z06 he had in stock. Armed with that information, I walked into the dealership to purchase a Z06 they had on the floor. They printed off an "offical invoice" that was some $900 more then what Edmunds showed.
I declined his generious offer. I found an identical car in Washington state that was priced below the Edmunds price, but considering what it would cost to get the car back to Missouri, I declined. Waited six months(July 28, 2008) and purchased a new 09 Z06 for 14.4% off MSRP. Even though the MSRP price of the 09 Z06 was higher the the 2008 I looked at, I saved approx two grand over the 2008.
08-21-2012, 08:13 PM
#27
Le Mans Master
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Here is my 02. GM told all of their dealers that starting on Jan 1st 2012 to Dec 31st 2012 they had to sell 4 Corvettes to get a C7. So many small dealers will not be getting a C7. The big guys took extra cars knowing that they will get more C7's. If the C7 is a hit then they will make big money.
When the C5 came out most dealers sold them at or over MSRP for the first 4 years the car was out.
There will always be customers who have to have it and they will pay what the dealer wants. How would you like to be the buyers who paid $25K over for the 2009 ZR-1's? Now your 120K list + 25K car is worth in the 70's.
When the C5 came out most dealers sold them at or over MSRP for the first 4 years the car was out.
There will always be customers who have to have it and they will pay what the dealer wants. How would you like to be the buyers who paid $25K over for the 2009 ZR-1's? Now your 120K list + 25K car is worth in the 70's.
08-21-2012, 08:27 PM
#28
Racer
If the new C7 actually looks like the "C7 video" you will be able to buy your new Vette at dealer cost, as their will be a full inventory at the factory and large dealer's lots. We can only hope and pray that Jalopnix has it ALL wrong!
08-21-2012, 08:49 PM
#29
Le Mans Master
GM told all of their dealers that starting on Jan 1st 2012 to Dec 31st 2012 they had to sell 4 Corvettes to get a C7. So many small dealers will not be getting a C7. The big guys took extra cars knowing that they will get more C7's. If the C7 is a hit then they will make big money.
C6 has been selling (and I believe those sales numbers are from GM's point of view i.e. dealers taking delivery) at a rate of about 12,000 cars per year.
You mean to tell me that GM is only going to produce 3,000 C7s? I don't think so.
Maybe this allocation method applies to the first 3,000 C7s built, which might be four months' worth of production.
But Bowling Green is accustomed to churning out 3,000 Corvettes a month at full speed, so they'll be switching to some other allocation formula if demand is there -- probably to do with longer-term C6 volume and/or total Chevy volume.
.Jinx
08-22-2012, 12:06 AM
#31
Melting Slicks
08-22-2012, 07:52 AM
#33
The only features the Video car and the jalopnik drawings share is the front bumper and rims.
08-22-2012, 08:22 AM
#35
Le Mans Master
How does this math work?
C6 has been selling (and I believe those sales numbers are from GM's point of view i.e. dealers taking delivery) at a rate of about 12,000 cars per year.
You mean to tell me that GM is only going to produce 3,000 C7s? I don't think so.
Maybe this allocation method applies to the first 3,000 C7s built, which might be four months' worth of production.
But Bowling Green is accustomed to churning out 3,000 Corvettes a month at full speed, so they'll be switching to some other allocation formula if demand is there -- probably to do with longer-term C6 volume and/or total Chevy volume.
Dealers know that people want to have their Corvette first, certain people need the latest and greatest to show off, which is their choice, but most of the time these people pay extra to feed their egos, that is what it's all about.
Of course Chevy will build the cars at they pace of the demand, not unsual for BG to work two shifts. All is supply and demand and for those who are first, pay for that privilige. Me, I will wait a couple more years, get the bugs out of it, and usually after 2 years of production, Chevy does something to make the car more special, so I can wait.
.Jinx
C6 has been selling (and I believe those sales numbers are from GM's point of view i.e. dealers taking delivery) at a rate of about 12,000 cars per year.
You mean to tell me that GM is only going to produce 3,000 C7s? I don't think so.
Maybe this allocation method applies to the first 3,000 C7s built, which might be four months' worth of production.
But Bowling Green is accustomed to churning out 3,000 Corvettes a month at full speed, so they'll be switching to some other allocation formula if demand is there -- probably to do with longer-term C6 volume and/or total Chevy volume.
Dealers know that people want to have their Corvette first, certain people need the latest and greatest to show off, which is their choice, but most of the time these people pay extra to feed their egos, that is what it's all about.
Of course Chevy will build the cars at they pace of the demand, not unsual for BG to work two shifts. All is supply and demand and for those who are first, pay for that privilige. Me, I will wait a couple more years, get the bugs out of it, and usually after 2 years of production, Chevy does something to make the car more special, so I can wait.
.Jinx
Dealers know their are a certain type of people want to have their Corvette first, before anybody else. These people need, feed off, the latest and greatest of anything to show off, which is their choice, heck its their thing. Most of the time these people are willing to pay extra to feed their egos, and of course the dealers are in it for the money, so they very much know they can make a few extra dollors, that is what it's all about.
I clearly remember a large Chevy dealer in No. VA have a black Z06 C5 on the showroom floor. It was the first one delivered to the east coast, and on it was an additional sticker marking the car up 15K from the original price. Car was sold in six minutes.
Of course Chevy will build the cars at they pace of the demand, not unsual for BG to work two shifts. All is supply and demand and for those who are first, pay for that privilige. Me, I will wait a couple more years, get the bugs out of it, and usually after 2 years of production, Chevy does something to make the car more special, so I can wait.
08-22-2012, 08:59 AM
#37
Drifting
08-22-2012, 10:14 AM
#38
Melting Slicks
It can be more than ego fueling those buyers paying over MSRP. It can be smart business - $$$. For example, if you are a Corvette accessory manufacturer, it can make sense to pay thousands more one of the first new Corvettes. Not only would you have something to attract curious Corvette enthusiasts to your shop or car show booth ("bait"), you'd also get a head start on any new accessories you decide to develop. (Flip through any Corvette accessory website or catalog, the C7 will need many of those items, too.) Shortening the time to bring a new product to market is often key to success. Beat your competitors to market with a solid product, they may not even produce an alternative and you've just locked up one item in the C7 accessory market for years.
The dealer who leaves that brand new C7 sitting like bait in his showroom, waiting for the Corvette enthusiast with money to burn, is no fool. The dealer can afford to wait you out.
The new Corvette will draw in the curious and raise traffic at the dealership, traffic they spend marketing budget on to generate in other years.
It doesn't matter if the C7 looks like Jalopnik-Omega or not, it doesn't matter if it has round tail lights, it doesn't matter if some people on CF say don't like it, because a lot of people will like it. People like exclusivity, they crave the recognition. People like the attention being the first will bring. People are competitive, they like being #1. The C7 will be a hot item for a couple of years, you can count on it. And for a while people will pay over MSRP, but don't expect they'll admit to it on CF.
Cheers,
JB
The dealer who leaves that brand new C7 sitting like bait in his showroom, waiting for the Corvette enthusiast with money to burn, is no fool. The dealer can afford to wait you out.
The new Corvette will draw in the curious and raise traffic at the dealership, traffic they spend marketing budget on to generate in other years. It doesn't matter if the C7 looks like Jalopnik-Omega or not, it doesn't matter if it has round tail lights, it doesn't matter if some people on CF say don't like it, because a lot of people will like it. People like exclusivity, they crave the recognition. People like the attention being the first will bring. People are competitive, they like being #1. The C7 will be a hot item for a couple of years, you can count on it. And for a while people will pay over MSRP, but don't expect they'll admit to it on CF.
Cheers,
JB
08-22-2012, 01:03 PM
#39
Le Mans Master
It can be more than ego fueling those buyers paying over MSRP. It can be smart business - $$$. For example, if you are a Corvette accessory manufacturer, it can make sense to pay thousands more one of the first new Corvettes. Not only would you have something to attract curious Corvette enthusiasts to your shop or car show booth ("bait"), you'd also get a head start on any new accessories you decide to develop. (Flip through any Corvette accessory website or catalog, the C7 will need many of those items, too.) Shortening the time to bring a new product to market is often key to success. Beat your competitors to market with a solid product, they may not even produce an alternative and you've just locked up one item in the C7 accessory market for years.
The dealer who leaves that brand new C7 sitting like bait in his showroom, waiting for the Corvette enthusiast with money to burn, is no fool. The dealer can afford to wait you out. The new Corvette will draw in the curious and raise traffic at the dealership, traffic they spend marketing budget on to generate in other years.
It doesn't matter if the C7 looks like Jalopnik-Omega or not, it doesn't matter if it has round tail lights, it doesn't matter if some people on CF say don't like it, because a lot of people will like it. People like exclusivity, they crave the recognition. People like the attention being the first will bring. People are competitive, they like being #1. The C7 will be a hot item for a couple of years, you can count on it. And for a while people will pay over MSRP, but don't expect they'll admit to it on CF.
Cheers,
JB
The dealer who leaves that brand new C7 sitting like bait in his showroom, waiting for the Corvette enthusiast with money to burn, is no fool. The dealer can afford to wait you out.
The new Corvette will draw in the curious and raise traffic at the dealership, traffic they spend marketing budget on to generate in other years. It doesn't matter if the C7 looks like Jalopnik-Omega or not, it doesn't matter if it has round tail lights, it doesn't matter if some people on CF say don't like it, because a lot of people will like it. People like exclusivity, they crave the recognition. People like the attention being the first will bring. People are competitive, they like being #1. The C7 will be a hot item for a couple of years, you can count on it. And for a while people will pay over MSRP, but don't expect they'll admit to it on CF.
Cheers,
JB
Reading through all the C7 posts over the past 18 months, we repeatedly see 50 or 100 various CF members pronouncing doom on the C7 if certain things happen or don't happen. OnPoint succinctly captured most of these sentiments in his Doomed thread.
The truth of the matter is the C7 will sell like hotcakes because there are thousands in the country and elsewhere that will like it and will buy it for the reasons you state.
08-22-2012, 01:09 PM
#40
Race Director
I agree on all three points, especially your third one.
Reading through all the C7 posts over the past 18 months, we repeatedly see 50 or 100 various CF members pronouncing doom on the C7 if certain things happen or don't happen. OnPoint succinctly captured most of these sentiments in his Doomed thread.
The truth of the matter is the C7 will sell like hotcakes because there are thousands in the country and elsewhere that will like it and will buy it for the reasons you state.
Reading through all the C7 posts over the past 18 months, we repeatedly see 50 or 100 various CF members pronouncing doom on the C7 if certain things happen or don't happen. OnPoint succinctly captured most of these sentiments in his Doomed thread.
The truth of the matter is the C7 will sell like hotcakes because there are thousands in the country and elsewhere that will like it and will buy it for the reasons you state.