[VIDEO] GM May Target Dealers Charging Over MSRP for the 2020 Corvette with Reduced Allocations

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[VIDEO] GM May Target Dealers Charging Over MSRP for the 2020 Corvette with Reduced Allocations

Photo Credit: Corvette / Instagram


There’s been quite a bit of discussion about dealer allocations for the 2020 Corvette and where we currently stand right now as retail production of the new mid-engined sports car is slated to being in just a couple of weeks.

When Chevrolet first gave the allocation targets to dealers last year for the 2020 Corvette, the factory was planning to start retail production in early December with 2020 Corvettes being produced for roughly nine months before the model year changeover in September 2020 to the 2021 models. Dealers were given a hard number for their first three months of production, followed by an estimate for the final six months for the model year.

But unplanned circumstances, namely last year’s UAW strike against the automaker, has changed those allocation estimates after Chevrolet was forced to move production back by two months. We are now hearing from some dealers that they are estimating a 15-20% reduction in those original 2020 estimates.

Our friend Mike Davenport, aka YouTube’s Chevy Dude, put out an interesting video late last week that raises some of these concerns regarding dealer allocations for the 2020 Corvette and what that means for potential customers. We have the video embedded below but wanted to go over a couple of points from it.

The first is that Mike is very correct in laying out the facts that from its initial reveal to the first dealer deliveries, the C8 Corvette will be here faster than it took the C7 Corvette – and that’s still true despite the 6-week UAW strike that delayed production.

Mike suggests that GM is looking to see how many sold orders (with status code of 1100) are in the system before deciding on allocations for the remainder of the year. Mike says he is making a push to get all his customer’s orders into the GM Workbench order system so that Chevrolet will see that these are real customers with order numbers. He also shares his opinion that GM is going all out to make sure that it can fulfill its sold customer orders first and that the top national dealers will probably be able to take care of their customers in this regard. What we find newsworthy in the conversation is that instead of the automaker reducing allocations across the board, Mike thinks that GM might disproportionately take away allocations from dealerships who (1) have charged over MSRP, (2) those that have unsold allocation, or (3) dealers who are attempting to submit stock orders.

We’ve heard this before that GM might try to make an example of certain dealers who are charging over MSRP for the new Corvette. We would be okay with any reductions in allocation targeted first at those dealers who are selling the Corvettes for more than MSRP as it does end up protecting those enthusiasts from huge markups and the associated games that go with it, like selling your sold order to someone else because they were willing to pay more for it.

I think that Mike’s idea to get his customers into the Workbench order system is probably a good thing overall. But there is no guarantee that just because you have an order at 1100 status that it will be picked up and fulfilled by GM during the current model year. With all the demand for the car prior to production, late orders may end up being 2021 models. That brings up a whole other set of questions regarding 2021 pricing as well as any new options or colors that may become available during the C8 Corvette’s second model year. Unfortunately, we just don’t have those answers yet.

For those of you without a current 2020 order or dealer deposit on a new 2020, I think the time has passed where you can still order the C8 Corvette for the inaugural model year. Most likely all new orders will end up being pushed to 2021 models. But the good news is that you may still get the car in 2020.

Our friends at Chevrolet are pretty smart when it comes to the massive planning and scaling up the workforce to produce as many new C8 Corvettes that can be sold, and they aren’t trying to make the C8 rollout any more difficult than it should be. With so many moving parts and so many varying opinions, it can be difficult to watch this process play out. These next few months will be the hardest for those with a new Corvette on order. Corvette buyers need to be extremely patient during this time and eventually, you’ll see your Corvette dreams fulfilled.


Source:
Chevy Dude / YouTube

Related:
Chevrolet Opens Orders for the 2020 Corvette Stingray Convertible
Torch Red, Arctic White and Elkhart Lake Blue Lead the Color Choices Based on Kerbeck’s C8 Corvette Orders
2020 Corvette is Sold Out According to GM’s North American President

 



8 COMMENTS

  1. On my sales order, my dealer has added a ‘delivery charge’ to their place even though I am getting the car at the Museum. Is that correct?

  2. Delivery charge applies to all cars leaving the factory. Even if you’re picking it up at Museum someone has to prep the car, load it onto the carrier, unload it.

    So what you are saying is you’re willing to pay $100k ballpark for your Corvette, but you want those people making it possible to work for free? Seriously?

    You’re paying a ballpark of $100k for a first year car everybody wants, but you’re going to nitpick over a grand in destination charges?

  3. This is from another forum Im on.C7 Z06 automatic.

    We were able to make our selections but our dealer isnt allocated an automatic until this week. When we put our deposit down in August the salesman said it would be full msrp. When we ordered they wanted ten grand dealer mark up. We said no. He met us half way and charged five grand. I called back next day and got them to throw in coating and interior protection. We still don’t have the price. Everything still says will advise.

  4. We got our dealer to guarantee in writing on our order form that they would not charge a premium (rip charge) of any more than $4,500 over MSRP. I think I’m going to copy this article and send it to them and hope they might reconsider adding on the rip-off fee for fear of missing out on some allocations. Our dealer, in Franklin, TN gets, I believe about 100 Vette allocations per year, and we were #23 on the preorder list. They, like most dealers had the intention of charging over MSRP but weren’t sure what it would be. We were willing to pay “some” over MSRP but with the demand back in Sept when this happened, we were thinking the rip-off fee could be $10,000 or more so we wanted a limit we would pay……….so we said it’s a no go unless we have it in writing what the rip fee will be. Maybe

  5. Not surprised. Any dealer willing to try taking customers on a ride have no business selling cars, especially the Corvette. As a favor to one another and out of respect to America’s Sports Car, we should call them out.

    Publicly.

    The sole Chevrolet dealership in Clarksville, TN is one of them. I had a deposit with them. After my trade in was appraised (by their sales manager) at $22,300, I was told by them that “the max that GM allows them to offer on a trade in is $5,000”. On top of that, also on the invoice was a $11,350 “Allocation Security Charge”. Their explanation was that “since they did not initially have C8 allocations (despite being told otherwise when I placed my deposit), that this ‘mark up’ was necessary for them to obtain one”.

    Wrong. Answer.

    So, I asked for my deposit back, and upon receipt, I walked out. I am still fuming mad over this blatant insult hurled at me.

    Such a shame. When placing my deposit, they were so excited, as I was told that I was their first new Corvette buyer under the age of 45 in over 20 years! Look, I get it that I am way, way, way younger than the typical Corvette owner (no slight intended), but for them to think I was dumb enough to be duped into paying a “pseudo-penalty” for it is beyond unacceptable!

    So it looks like I won’t be part of the Class of 2020, which is okay. Looking forward to 2021!!

  6. Wait a year for this process to normalize and you can pick up a used 2020 for far less than MSRP

  7. In March of 2005 I gave Kerbeck Corvette a $1000.00 deposit on a 2006 Z06 for MSRP. Took delivery of the car on 12/31/2005, they delivered the car as promised. NO games played. In 2019 I called Mike Furman at Criswell Chevrolet on the phone and made a deal for a 2019 Z06. Drove there two days later and drove my new Z06 home. NO games played. Mike is a straight shooter.

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