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Old 01-22-2013, 09:08 PM   #1
69 Rebel
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Default Do dealers need an allocation for C7

Like the title says will dealers need to secure an allocation to order a C7?
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Old 01-22-2013, 09:18 PM   #2
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Yes, they will. Dealer guidelines were set when the next generation Corvette was announced to dealers last year and the order guidelines were established for the end of the model year. Dealers need to have sold four Corvettes last year to even be in consideration for a C7 order and allocations will be distributed from that pool.
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Old 01-22-2013, 10:43 PM   #3
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That sucks, been down that route with the ZL1 was not fun.
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Old 01-23-2013, 07:05 AM   #4
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Those that sold the C6 aggressively like MacMulkin over the past two or three years are going to be rewarded with many profitable allocations for the C7.
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Old 01-23-2013, 07:37 AM   #5
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Originally Posted by talon90 View Post
Yes, they will. Dealer guidelines were set when the next generation Corvette was announced to dealers last year and the order guidelines were established for the end of the model year. Dealers need to have sold four Corvettes last year to even be in consideration for a C7 order and allocations will be distributed from that pool.
On the other hand, though, I'm assuming this has nothing to do with ordering one from a dealer...
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Old 01-23-2013, 07:57 AM   #6
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Originally Posted by 69 Rebel View Post
That sucks, been down that route with the ZL1 was not fun.
Ya, I waited a year with an allocation for a ZL1, and got tired of waiting. Other dealers would gets cars in an have them sit on a lot for $5,00 - $10,000 markup. But a sold order couldn't get priority.
The system puts dealers first instead of customers first.
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Old 01-23-2013, 07:58 AM   #7
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On the other hand, though, I'm assuming this has nothing to do with ordering one from a dealer...
Wrong, if you order from a low volume dealer you will have to wait longer for them to get their allocation. So plan accordingly.
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Old 01-23-2013, 08:28 AM   #8
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Wrong, if you order from a low volume dealer you will have to wait longer for them to get their allocation. So plan accordingly.
I see. I assumed allocation was only counting vehicles shipped to be shown/sold at the dealership...not ordering.

Thanks.
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Old 01-23-2013, 08:34 AM   #9
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When I ordered my C6 the dealer allocation was X amount of Corvettes per month. I ordered my car for a March delivery, my car arrived in March, right on time. I would think that system is basically still in place. Some dealers will not inform their customers about allotments and blame GM for lengthily order delays.
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Old 01-23-2013, 08:37 AM   #10
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I see. I assumed allocation was only counting vehicles shipped to be shown/sold at the dealership...not ordering.

Thanks.
Wrong, all car that a dealer receives are ordered, some for stock, some pre sold. GM just does not just send them.
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Old 01-23-2013, 08:46 AM   #11
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Wrong, all car that a dealer receives are ordered, some for stock, some pre sold. GM just does not just send them.
I see. So whether or not a car is for stock or to fill an order, the dealership uses one of their allocations for any order.

Would I be wrong to assume the number of allocations a dealership gets for a Corvette goes up as does their sales of all Chevrolet vehicles?
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Old 01-23-2013, 08:50 AM   #12
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Quote:
Originally Posted by adamgl View Post
Ya, I waited a year with an allocation for a ZL1, and got tired of waiting. Other dealers would gets cars in an have them sit on a lot for $5,00 - $10,000 markup. But a sold order couldn't get priority.
The system puts dealers first instead of customers first.
Actually no, it has everything to do with ordering one from a dealer. The allocation system basically gives higher volume dealers more allocations to order cars from the factory. These orders can be sold orders to a customer or orders for dealer stock. These are both treated as sold orders with customer orders taking a priority. A low volume dealer will get far fewer allocations (opportunities to order).

These are things to keep in mind as folks approach their dealership. They need to know if a dealer has an allocation. Without an allocation a dealer can place an order and it will go in to the system but it won't be picked up to be scheduled for production. While a high volume dealer will know when their cars are scheduled to be built. A high volume dealer can usually turn a car in 6 to 8 weeks for example where a low volume dealer could be three months, four months or six months. These no allocation orders get continuously passed over for scheduling in favor of orders to higher volume dealers.
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Old 01-23-2013, 08:54 AM   #13
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The first C7's will be very hard to come by. They will most likely go to the dealers that sold the most C6's in the 2013 model year. What a dealer sold on the 2013 Corvette has a direct bearing on what their Allotment will be on the C7's. So, If you want to order a C7 from a dealer that you rarely saw a new Corvette at that dealership, I really have my doubts as to if and/or when the dealer will receive the new C7. Just my 2 cents worth. The way Chevrolet looks at things is, the dealerships are Chevrolet/GM's customers. We the buying public are the Dealerships customers.
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Old 01-23-2013, 09:09 AM   #14
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That sucks, been down that route with the ZL1 was not fun.
We have not had a single dealer for three years. Seems like there never will be if this rule also applies to international dealers.
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Old 01-23-2013, 10:09 AM   #15
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Actually no, it has everything to do with ordering one from a dealer. The allocation system basically gives higher volume dealers more allocations to order cars from the factory. These orders can be sold orders to a customer or orders for dealer stock. These are both treated as sold orders with customer orders taking a priority. A low volume dealer will get far fewer allocations (opportunities to order).

These are things to keep in mind as folks approach their dealership. They need to know if a dealer has an allocation. Without an allocation a dealer can place an order and it will go in to the system but it won't be picked up to be scheduled for production. While a high volume dealer will know when their cars are scheduled to be built. A high volume dealer can usually turn a car in 6 to 8 weeks for example where a low volume dealer could be three months, four months or six months. These no allocation orders get continuously passed over for scheduling in favor of orders to higher volume dealers.
I agree, but I hate the system. I don't see why a sold order can't take priority over dealer stock allocations. It shouldn't matter what the size of the dealer is. A customer order is a sold car right away.

I went to a fairly big dealer, but not huge. They had 2 allocations for a ZL1 and I was the first in line. Waited about a year while KC and STL dealers got all the allocations in Missouri. It forces you to go to a big city to order a car if you want to get a first year Camaro or Corvette. And it hurts your local in town dealers because they can't get what you want, even with a sold order, without waiting a year.
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Old 01-23-2013, 10:29 AM   #16
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Every dealer that gets a allocation must pay for Sales and Service training from GM
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Old 01-23-2013, 10:30 AM   #17
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I agree, but I hate the system. I don't see why a sold order can't take priority over dealer stock allocations. It shouldn't matter what the size of the dealer is. A customer order is a sold car right away.

I went to a fairly big dealer, but not huge. They had 2 allocations for a ZL1 and I was the first in line. Waited about a year while KC and STL dealers got all the allocations in Missouri. It forces you to go to a big city to order a car if you want to get a first year Camaro or Corvette. And it hurts your local in town dealers because they can't get what you want, even with a sold order, without waiting a year.
A good point.

It almost sounds like a snowball effect--the more allocations you have, the more you sell, and then, BOOM, you get even more allocations. Meanwhile, the "little guy" is just trying to get his "snowball" started...

Seems like GM/Chevrolet would just let ANYONE sell a car and just get into the line.

To give a (simple) analogy, it's like saying Ticketmaster gets first dibs on selling concert tickets because they sell the most and if you are trying to buy a concert ticket from some small ticket broker, you have to wait for Ticketmaster sales to slow down. And, of course this priority in sales allows Ticketmaster to continue to be the leader in sales.
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Old 01-23-2013, 10:45 AM   #18
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The allocation system is the way GM rewards dealers who have a record of moving a lot of inventory in previous years.

While that might be an inconvenience for customers who have a relationship with a low-volume dealer in a small area, it actually makes sense to send new C7s to the dealers who have the most C6 sales.

Presumably those dealers are more knowledgeable about Corvettes, have better Corvette technicians in the service department and will be able to offer better deals to consumers.

Most of the supporting dealers at Corvetteforum are larger, high-volume dealers and should be delivering orders on C7s pretty quickly after the cars become available.

If those high-volume dealers with large allocations are not in proximity to you, they sometimes can arrange courtesy deliveries for a fee with your local Chevy dealer. If not, they can arrange transport to you. Alternately, I like the Museum delivery option. It's a fun experience and you get to know your new Corvette on the drive home.
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Old 01-23-2013, 11:07 AM   #19
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The allocation system is the way GM rewards dealers who have a record of moving a lot of inventory in previous years.

While that might be an inconvenience for customers who have a relationship with a low-volume dealer in a small area, it actually makes sense to send new C7s to the dealers who have the most C6 sales.

Presumably those dealers are more knowledgeable about Corvettes, have better Corvette technicians in the service department and will be able to offer better deals to consumers.

Most of the supporting dealers at Corvetteforum are larger, high-volume dealers and should be delivering orders on C7s pretty quickly after the cars become available.

If those high-volume dealers with large allocations are not in proximity to you, they sometimes can arrange courtesy deliveries for a fee with your local Chevy dealer. If not, they can arrange transport to you. Alternately, I like the Museum delivery option. It's a fun experience and you get to know your new Corvette on the drive home.
Kind of a side note...

That's an OK way to break in a new engine? My car said to avoid driving the same speed too often through break-in. (I'm thinking about being on an interstate driving back home from the NCM)
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Old 01-23-2013, 11:08 AM   #20
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Is seems that if the small dealer can only get only get an allocation one or two cars, then you can almost guarantee that they will be marking them up 10k + and you probably won't buy from them anyhow.

If they only have a few cars they will try to make as much profit as they can.
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