I am seeing 6 month old Corvettes w/original MSRP's of $65K or so being advertised for around $50K and some even lower. Why is this?

IMO, this is what happens when GM ****** out the Corvette by over-producing it. I don't care how under-priced the Corvette is to begin with, when you over-produce anything, then you are basically telling the customer, I don't care about how much your car depreciates, as long as we get ours.

The over-producing causes dealer inventories to pile up resulting in steep(I mean real steep discounts) discounts on one of the finest & most under-priced car in the world. This car is too good to be discounted as if it's distressed merchandise!

I bet if they had just made 15% less/yr., we would see much lower depreciation. We would also not see these steep discouts which hurt the buyers that did not get that kind of discount at time of their purchase.

What do you think would happen if Porsche was producing 25K-30K(which is less than the Corvette's #'s) 911's/yr for US sales? Well, we would be seeing 20K off stickers every day and huge depreciations.

GM should learn from Porsche. They are the most profitable(profit/vehicle) car company in the world.

The fact is that GM has no clue how to handle it's probably one & only Halo car.

Now I know some people are going to say, then go buy a Porsche, or w/out the discounts, I couldn't afford one, etc. etc. But give it some thought first before replying. It's like the person who buys the Hyundai $2K cheaper than the Toyota or Honda thinking they saved so much money, but don't realize that in the long run, they are loosing more w/the Hyundai b/c of it's higher depreciation value.

 

Well speaking for myself I love the fact the price has dropped. I bought a factory ordered 07 with the options I wanted for 43K. It's an amazing value and GM is still making a bunch of $ on the car. Those that paid 60-70K got ripped to own the latest and greatest as fast as they could.

And limited production doesn't work in all cases, take the GTO for instance. They made about 12,000 each year and GM can't give the cars away even with huge discounts.

 

Who pays MSRP? I have seen forum dealers advertise for GMS for everyone, and sometimes even at invoice. You cannot compare the used price to MSRP, because no one paid MSRP, accept people who get it early in 2005. It is a fair game.
And, by the way, stop blaming everything on GM. If GM reduces the number of Vetts, and sell the Vette for what Porsche goes for, most likely you won't be able to afford one.. peace

 

I'm like John, buy at the right price. Don't try to be the first on the block..........

 

Not every Corvette buyer is a member of this Forum. You'll be surprised how many people pay MSRP or close to it.

What....do you think if GM makes a little less Corvette's, then they have to charge $25K for the car???? NO!! Btw...I guess you have read my Tax returns...LOL.

 

The problem is that you can't compare MSRP, you have to look at transaction price. If you look at from the perspective, the resale value is very good.

 

many cars have bad inital depreciations when sold with in 6 months of purchase, for 2 reasons, the buyer assumes that there must be something wrong with it since the seller is getting rid of it so soon. If the price is to close to a new one why not just buy new?
Over all the resale on corvettes is not bad remember you are buying a car not an investment.

 

The C6 is a mass produced consumer good. Even the Z06 is mass produced by any prior standard. Cars almost always depreciate. The more they build the faster the price drops. Because the car is mass produced there is ( IMO ) a lot of margin in it. GM makes money and the dealer makes money. All this money being made is NOT value in the car.

It's profit margin.

That's why, IMO, paying over msrp for a car like a C6, even a Z06, is very foolish.

I love the dropping prices. I plan on buying a 08 IF the engine is new with more hp. I will not get much off msrp because I will be buying the best vette yet. However, prices on 05-07 will drop like a rock even faster when the car is updated with more power and a new engine IMO.

I might even buy an 07 Z06 next year instead of an 08. I would expect next fall to get an 07 Z06 for 2 to 4 thou off msrp. Remember, the market is slowly becoming satisfied and saturated. And....there is competition in the marketplace even though many won't admit it from the GT500 stang.

like a rock means something after all.

ps. I am also hoping for a much improved clutch and 6 speed in 08.

 

can you tell me where you were able to get a new 07 for 43k, and what are the options you have? Thanks

 

GTO is ugly thats why........

 

Are you buying to resell or to enjoy?

Most here are buying strickly for enjoyment and don't can't give a crapola about resale. At least not until they want to sell it!


Drive the car dude!!

WB

 

My car is optioned with Yelocity Yellow paint, Z51, Comp gray wheels. I have the 1LT interior. I ordered with MacMulkin Chevy in NH (they are on the forums as well) they took my GMID price. MSRP is about 48K, so I saved about 5K

 

Oh please do not compare a GTO to a Corvette!! They are totally different cars w/different markets & buyers.

 

If I'm going to buy used I want a STEEP discount.

If its not steep, I'd rather new. Wouldn't you?

WB

 

The bland styling hurt the car, along with no trunk space (in a car for 4 people lack of trunk space is a killer) and no options other then a wheel size. I know of a couple people that wrote off the GTO completely because no sunroof was offered!

 

Why is the OP blaming GM for overproduction?

Let's say, just for pure speculation, that GM can produce a 'Vette for $30K and sell it to a dealer for $36K after applying all overhead, materials, labor, etc. The company makes money when cars are sold to dealers, not individuals. Unless GM has to subsidize the dealers so that they will buy 'Vettes, it's making it's money selling more 'Vettes, not less.

Dealers add 1.) 3% Holdback + 2.) 11-12% Invoice/MSRP mark-up to what they actually paid GM for the car. At full MSRP pricing, dealers are making 15%+ on every 'Vette sold, which is quite good, given that for an average new car sale the dealer nets about 2.5%. Used cars always take a 20% hit off MSRP in the first year, unless it's an exotic. The key is to not buy at MSRP. Transaction prices are much lower than MSRP for informed buyers. Used 'Vettes traditionally have had good residuals, but a 30% hit in 2 years is common off MSRP, even for the best mass-produced brands such as BMW, Mercedes, Lexus, etc.

The discounting going on now is at the dealer level, not at GM's. GM is not offering any incentives on this car that I know about. GM is still making the same/more money for each one they sell because the fixed overhead applied to the Corvette is now spread over a larger number of units sold, GM can keep the cost of the Corvette down and still make more money.

Most modern cars are not economical to mass-produce in a unit volume less than 30,000 annually. Porsche, and other exotics are an exception, but just take a look at prices of those vehicles. That's not the direction I want the Corvette to head, personnally.

GM overall does a poor job of managing they're inventory, I agree, but were GM to cut production of the Corvette by more than several thousand units annually, they would either have to 1.) Raise prices considerably, or 2.) Stop producing the Corvette entirely, as it would not make sense economically, since the build would not overcome the high fixed and variable costs GM applys to each vehicle they produce.

My opinion is that what it going on in the Corvette market now is the same at what always happens. Early adopters (2005, etc.) pay higher prices for being the first on the block to own a new model. Supply catches up with demand, and then prices come down. The 'Vette demand is also highly seasonal. Not many people want to buy something today then have to put in storage for 4-6 months.

 

dmizer2167...since when is a Porsche an Exotic?

It is mass produced car that is being marketed brilliantly.

 

I ordered an 06 Z51 LT1 with a stick from EVS (forum vendor) it was 39,795 with a GMS discount. Give them a call.

 

man could u let me know where u saw such discounts? 10k is A LOT, much more than GMID for a non fully loaded vette...

 

I just got my 07 c6 for $443 over invoice from a local dealer. I shopped around for quite some time...heck, been wanting a Vette for the last 10 yrs.