Korbek

Basically free money lol. Hell, my pay raises at work are vastly outpacing the interest I'm paying, to say nothing of investments (several have been semi-immune to the stock market selloff). I was gonna pay off our house early but at 2.25% on our mortgage, it makes more sense to invest that $$ too and just pay the monthly payments.

hyprsprt

with all due respect those examples are not even close, food that is necessary to survive and the C8 as nice it is, it’s still a toy. To me it doesn’t matter how nice or how much other comparable toys cost the C8 it’s still a toy and I have a budget of how much I would WANT to spend on that it’s not about how much I can afford that it’s irrelevant, to me it’s how much I want to spend.

Innovated

Well less than 2 weeks later, eggs are back down to about three or four dollars per dozen. So why exactly should I have paid more than double, just because?

There's a difference between letting yourself get ripped off on certain things, versus something gradually going up in price. I personally actually pay attention, and I'm not just going to blindly pay way more for everything, and reprogram my brain to just ignore it

Dave O

You are missing the point. The eggs may have been a one off and no, you shouldn't buy something if it is an anomaly. But unless you are blind to the fact we are in a recession. Prices are going up everywhere, and in most cases it's not gradual. So yes, you do need to reprogram your brain on what things cost today vs. a year ago. Sorry, but it's true. So it makes sense that GM will raise the price of the Corvette - and no, they are not trying to rip you off as a result of it. It is still the most bang for you buck mid engine sports car being produced. If you simply can't afford it that's one thing. But if your reasoning is because it's too much for a toy then guess what - you'll never have that toy because the prices will continue to go up. And if that's your choice, that's fine. Just seems a shame as you can't take it with you.

Dave O

Since the OP mentioned eggs I used that example as well as others. In reality, the price of EVERYTHING is going up as I mentioned in my post. And yes, the C8 is a toy. But just as the price of everything else is going up, so will the Corvette. If you don't want to spend the money for it that's your choice. But if your reasoning is because it's too much for a toy then guess what - you'll never have that toy because the prices will continue to go up. And again, it's your choice. It just seems a shame as life is too short and you can't take it with you - all under the assumption that you can afford it.

Innovated

And you are also missing the point. The point most of us here are trying to make, is that the c8 originally started out at 59k, which is an incredibly amazing deal for the car. Then, they raised the price a couple grand more. Which is fine, the car is still a great deal. Then they raise the price a couple more grand. Which is still not a big deal, the car is still a bargain.
The original point of this thread is to discuss whether or not people will decide to not go ahead with a purchase, if GM raises the price of the car 10%.

Inflation or not, would I be completely fine with paying $71,000 for the same exact car that others only had to pay $59,000 for just 2 years ago?

Dave O

I do understand your original post. First off, after adding up the no's and yes's as best as I can by who answered your question, there is a slightly favorable response for the "it wouldn't make a difference to me" crowd. Second, the car wasn't $59,000 just 2 years ago. The 2023 is the 4th year of production. The base 2020 was sold for $59,995, the 2021 for 60,995 the 2022 for 62,295 and the 2023 for 65,895 (these prices include the mandatory destination charges). IF a 10% increase was levied on the 2024 model year (which I and most think is not realistic) the price would be around 72,300. Still a lot more, but 2 model years ago (with 2024 as a starting point since this is the subject of the debate) the price was 62,295 and not 59,000 for a 2022.

Lastly, you can't just throw inflation out of the picture as you mention above in bold. The whole premise as to why there might be a 10% increase is because of inflation. Are you completely fine with paying 10%+ more for everything you are buying today than you did 2 years ago even though what you are buying are the exact same things? Probably not. So why are you pointing out buying a Vette as an outlier? GM is no different than any other item that has risen in cost. Once again, if you can't afford one don't do it as it is just a toy and not a necessity. I get that. But for those that don't want to purchase one just because it is reaching some sort of threshold in their mind then what about everything else you are buying today that is 10% higher than it was two years ago? Have you stopped buying those things because they are 10% higher. It's just a mental thing. And I get it. The cost of a car is much more than a gallon of milk. But if you can afford it, it's still just a mental thing. Either you can afford one or you can't. But to not get something you want because of some sort of mental barrier is odd to me. Maybe it's because I've seen so many people scrimp and save all of their lives only to pass on without spending the money they worked their entire lives to get. Life is short. If you really want a Corvette and can afford one, get it. If there is something else you want to spend your money on instead, do it. But don't just pass on one of the most affordable mid engine sports car ever because you are having an issue wrapping your mind around spending 10% more.

Avanti

Who can say since one person's "major price increase" is another's pocket change.

Wife said I could

I'm probably the poorest guy on this board....

....that being said, I am what was historically referred to as a "cash buyer". Stupid or smart, I don't know. But I got nervous as the stock and housing markets were roaring and sold my last three investment properties and dumped a (to me at least) big chunk of various stocks.

I parked this money on the sideline anticipating the markets to crash. Stock market is going down as I anticipated. The housing market is slowing, but I think I pulled the trigger too soon. Oh well.

So I have some cash and got put on a wait list. If the market goes down further before I get an allocation, I may opt to jump back into the market with both feet and say screw the vette in anticipation of potential gains.

A 10% hike while stocks are on sale? AND I have cash in hand? It'd be a no brainer... I'd throw in the towel on a Chevy and buy stocks.

GM is walking a tight rope in regards to a price hike.

2007yellow430

My F430 was 180k in 07. The new 396 starts at 320k. That’s inflation. 12k is nothing.

Art

Innovated

Dammit , I hadn't even considered using the C8 money to build up my brokerage account with heavily discounted stocks and index funds.

I think the issue I am having is that I somehow would start to feel irresponsible for buying a C8 instead of saving / investing the money .

So with every price increase , I start to feel more and more discouraged toward the purchase of a vette .

But you know what they say - You only live once.

And besides , over the years I've probably lost enough in the market to buy two C8s

undecided1965

If you compound 10% annually over 15 years you'd be at 3x price at least.
For example, my 2008 M5 fully loaded was $95K, a fully loaded M5 is about $120K. So in 14 years it's gone up only 1-2% max per year.

undecided1965

Obviously you are very astute, almost perfect timing with your choices.

Innovated

Very good advice and wisdom. I agree with that completely

Hoffer362

Thats funny. Poorest guy on the board selling last 3 investment properties
I would say I would be the poorest guy on the board by a longshot if that is the standard

undecided1965

If demand dries up, it would be a foolish decision on GM's part to raise prices. Of course, on this board, the prevailing sentiment is that demand will stay high in perpetuity.

Dave O

Umm, I don't quite understand your logic on the title of your thread. In a recession, prices go up. Unless you have been living under a rock, you should have noticed the price on just about everything increasing over the past year. Now your buying power goes down. GDP does down, or the value of all goods and services goes down. But prices go up. Here is the latest from labor department:

Consumer prices rose 8.3% from a year earlier in August while core prices, which exclude volatile food and energy items, climbed 6.3% annually, according to the Labor Department's consumer price index.

Hoffer362

I don't think demand will dry up. All Vettes thru C7's were straight up American Sportscars.
The C8's represent a new level of sophistication with a dramatically wider audience. The word Supercar has never been in the Corvette vocabulary until the C8.
Hardly any Vettes are being sold outside the US and that's not because there is no demand. I think if production could increase 50% they would be sold no problem.

RKCRLR

Yes, but then the producers are faced with renegotiating the contract or letting the supplier go under and then finding and qualifying a new supplier. The new supplier will charge enough to keep their company profitable (likely more than the original supplier) and in the mean time the producer will have to stop production until the new supplier has been found and qualified. Or, in desperation, the original starts cutting corners that lead to quality problems in the hopes that things will eventually get better.

Also, many contracts have clauses for circumstances beyond the suppliers control.

undecided1965

Recession = economic contraction. People lose their jobs, demand for luxury products drops. It just so happens that we have high inflation right now and a recession is also under way but the two should not conflated. Two different things. The reason the Fed is trying to force a recession is to actually lower the inflation, right?