We are just finding out that GM has done another “stealth” price hike on 2016 Corvettes effective for orders after July 17th but this is a little different from the nearly half-dozen price hikes that Corvettes buyers have seen since the initial C7 Corvette pricing was announced in April 2013.
What is unique about this price increase is that it hits dealers while keeping the Manufacturers Suggested Retail Price (MSRP) the same.
The way we understand it, dealers will be charged more for both the model and options on the car. If you were paying MSRP or more for a Corvette, than this really doesn’t effect you as a buyer. But for the large volume dealers who do offer discounts off of MSRP, particularly in the middle to late model year run, than you will see some of those discounts reduced or even eliminated.
Official 2016 Corvette Pricing Has Been Released
Kerbeck Corvette’s Dave Salvatore shared this news with the Corvette Forum and says that before the price increase, Kerbeck Corvette was offering discounts on 2016s averaging between $5,500 and $7,000, but since they work on a set profit margin between the dealer price and the MSRP, those discounts available to buyers will now be reduced. Dave also says that there is no year end cash back based on units sold and there is no dealer incentives on Corvette either.
Volume dealers like Kerbeck sell Corvettes at a very small margin over cost with little profit as they make their money by selling more Corvettes. When that cost goes up, the discounts to buyers will shrink because there is only so much margin between the dealer cost and the MSRP.
Kerbeck says that anyone that received an order number for a 2016 Corvette prior to July 17th will be price protected. Kerbeck is also going out of there way to honor pricing for those customers who put deposits down for inbound stock orders even though the prices are now below dealer cost.
This change in dealer pricing looks to be an across-the-board increase for all 2015 and 2016 Chevrolet vehicles.
On the positive side, this may allow Chevrolet to then offer incentives or discounts back to dealers to help move any remaining unsold stock. But as Dave said, currently there is no plan in place to offer cash back incentives for Corvettes so that remains to be seen.
CHEVROLET NOTICE TO DEALERS:
2016 Chevrolet Corvette Price Increase – Effective July 17, 2015
Chevrolet is announcing revised model year prices effective with vehicles produced on or after July 17, 2015.
This revision affects 2015 Camaro, Caprice, City Van, Equinox, Express, Impala, Malibu, Silverado, Sonic, Spark,SS, Suburban, Tahoe, Trax, Volt and 2016 MY Cruze Limited, Corvette, Impala Limited, and Traverse.
Optional dealer discounts will decrease 3% and dealer invoice amounts will increase accordingly. Model dealer discounts remain unchanged except 2016 MY Corvette.
Dealer price schedules will be available in GlobalConnect effective July 17, 2015.
Sold order price protection eligibility dates are dictated by the customer and dealer order dates as follows:
-Customer order date must be prior to the date of the price increase.
-GM systems order date (date dealer enters in GM system) must be no more than one work day after date of the price increase.
These units will be invoiced at prices in effect at the date of production; however, the dealer open account will automatically be credited for the price increase once the unit has been delivered.
Refer to the price protection effective date on the invoice.
Chevrolet reserves the right to discontinue or change prices at any time, without written notice. All rights reserved.
Please file this administrative message with your 2015/16 model year pricing information.
It is anticipated that this pricing information will be reflected in the Order Workbench Configure a New Vehicle process at 8:00AM EST July 23, 2015.