tomzarbo

Just peeked at Kerbeck in AC Corvette site and they list a whopping five C6 Corvettes for sale.

They usually have dozens and dozens of them in stock and inbound. I've visited them several times and the lot is always full of rows of beautiful Corvettes.

But I'm wondering, what are dealers like Kerbeck and others who move huge amounts of Corvettes doing until they spool up production on the C7? There are salespeople there who need to sell cars and there really aren't any to move since C6 production has ceased. At least in Kerbeck's case, they have what always appeared to be one big lot that had nothing but 'Vettes, how are they dealing with this?

TomZ

P.S. By the way, the several times I've visited Kerbeck, they have been super-cool and accommodating; they even once asked my wife and I if we wanted to be in a commercial with Charlie and the former Miss NJ. I declined, (My wife is pretty, but I think I have a face for radio) but they've always been A-OK in my book.

Larry/car

Investments. Dealers can still find new C6s. If you contact Kerbeck I'm sure they can accommodate your request. They probably are taking deposits on C7s and the high markup will help bridge the gap.

direct007

My guess is rather than have to carry a ton of C6 and blowing them out at, near or below cost and paying floorplanning in the meantime, it makes more sense to focus on the substantially more profitable C7 and if things go right, they should be arriving in about 6 weeks. As far as the salespeople, the seasoned ones that have been with them for a long time know the drill and Kerbeck has some guys that have been there quite a long time. All the sales staff are probably working on a draw until the new ones arrive. It's the dealers that have 50+ C6 sitting on their lot when the C7 arrives that I would be more concerned with. That's a lot of dough in carrying costs sitting in that inventory.

Supercrewbear

You do realize that Chevrolet has a whole slew of other models for sale too, don't you? They have pickups, sport utilities, sedans and even the Camaro. If a dealership and its staff relied on selling only Corvettes they'd be out of business in a very short time. They aren't just sitting around waiting on the C7 to come out!

R&L's C6

I don't know anything about running a dealership, but I bet a lot of their profits come from the service department. That and with the rush of new orders, I'm sure they'll be just fine. Most dealers dont sell that many Corvettes for it to matter.

Shodanusmc

They have other new and used models to sell. The Volt is ready to take off.

R&L's C6

I read somewhere they sold almost 120k trucks in May and June this year alone.

tomzarbo

Yes, I realize Chevy sells other models as well. Kerbeck sells a lot of vehicles.

Point I was trying to make is that they have a huge lot dedicated to the Corvette and basically none to sell. I assumed they probably moved other cars to the lot to even things out, but they can only sell so many cars and I was mostly wondering how it affects the Corvette sales team.

Direct007: working on a draw meaning that their income may be supplemented by the dealership until they have some new Vette's to sell?

TomZ

direct007

Yes, most dealerships offer a draw so that when business is slow, the salespeople don't starve and they can even out their income. During gravy periods they payback the draw so it works out.

b4i4getit

They make a tidy profit on each and every Corvette they sell. I am sure none of the salesman are in financial difficulty.

JoesC5

Every Thursday evening, they are having BINGO in the basement.

tomzarbo

Good info, I didn't know that. It makes sense, though. Kind of like a 'budget plan' on the electric bill but in reverse.

Maybe, but if I sold 2 or 3 Vettes a week as a salesperson at $60,000 a pop, how many $25,000 average cars would I need to sell a week to equal that? That's kind of my line of thinking. Truth is, I don't have any idea how all this stuff works, that's why I asked. I guess I felt a bit of concern for the sales staff and wondered how they'd get buy. Of course, I guess selling cars and selling houses are similar in a way, When times are slow for whatever reason, you don't make as much.

That 'Splain's it!

TomZ

GM'er

Many dealers haven't been making any $$$ selling C6's for the last couple YEARS. They have been selling them at dealer cost just to get their sales rate up to earn more allocation on the C7. $$ are being made on other models and used cars.

dcbingaman

Gentlemen,

The average Chevy dealer probably makes more money in a WEEK selling Silverados than he'll make in a month selling Vettes. That and the big profits from the Parts and Service departments.

I had a friend who owned a Cadillac dealership in Homestead, FL, and he told me the New Car sales barely broke even, but he made a ton of money through the "side door", ie., Parts and Service.

Great guy - he died in a car-bus accident on the causeway delivering an Eldorado to a customer in the Keys. I still miss him.

THECORVETTEMANN

I live close to Homestead, Fl. Who are you referring to?

dcbingaman

Greg Wurl. His parents and mine were great friends and Greg and I grew up together in St. Louis. He moved to Miami with his Mom and Dad in the 70's and became Parts Mgr. at Brown Cadillac, (his dad was Service Mgr. there until he retired and moved back to St. Louis.)

Greg was such a good parts manager that GM GAVE HIM that Cadillac dealership in Homestead, just in time to have Hurricane Andrew pile all his new Cadillacs up on the side of the building. He recovered and prospered until the accident.

He was a great guy and we had some good times together, both here and in Miami. His wife, Vicki was a sweetheart, too. I think she remarried and moved back home to Orlando. I'm not sure who owns the dealership now.

HolyRoller

Filling small Ziploc bags with Cheerios and selling them as donut seeds.

That, and moving almost as many Silverados every week (43,259 June 2013; 418,312 in all of 2012) as Corvettes all year (13,466 MY2013 total production).

bikeriderga

Corvette is a not a huge seller for Chevy.

Look at the sales numbers:

Chevrolet Silverado : (2013 YTD): 284,666
Chevy Cruize: (2013 YTD) : 159,136
Equinox: (2013 YTD) : 144,904
Malibu: (2013 YTD): 123,573
Impala: (2013 YTD): 96,297
Traverse: (2013 YTD) : 60,910
Camaro: (2013 YTD): 50,281
Tahoe: (2013 YTD) : 47,976
Corvette: (2013 YTD): 6,344

Corvette is on the bottom side of the scale for GM. It is a money maker per unit, but if it were not a classic icon for GM as America's only true production Sports Car, would not be a priority.

tunaman

Well, one large dealer in Southern California appears to be trying to make it up on a used 2013 Grand Sport LT1, with 5k miles, which is listed at $84k

Chicago1

Others have stated it so I won't repeat the obvious. Odd question to ask though..