General Motors Isn’t Too Concerned About Corvette Dealer Markups

By
Mitch Talley
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17
14147

General Motors Isn't Too Concerned About Corvette Dealer Markups

Photo Credit: CorvetteFurman.com


General Motors is apparently leaving it up to individual dealers to set what they feel is a fair price for the immensely popular new C8 Corvette.

That’s the word from Chevrolet’s Director of Car and Crossover Marketing, Tony Johnson, in an interview last week with GM Authority Executive Editor Alex Luft.

When Luft asked Johnson about Chevy’s response to reports that some dealers are charging anywhere from $5,000, $20,000 or even $100,000 over MSRP, Johnson replied:

“Well, it’s supply and demand. We supply them, the dealers meet the demand.”

Furthermore, Johnson pointed out that dealers are GM’s interface with customers, “so customers make the deal with the dealer, so we leave that side of the business to our great dealer partners, who I think do a fantastic job, honestly, meeting customer needs and helping them through the journey.”

Privately, Chevy management is no doubt thrilled about the overwhelming response that is creating an unprecedented market for the new mid-engine Corvette. It means they’ve built a product that people want to buy.

Of course, Chevy has done its share, albeit not intentionally, to create the tight market, with numerous production delays caused by the UAW strike, pandemic shutdowns, and subsequent parts shortages, that have led to a shortage of new Stingrays for customers.

The good news for those in the market for C8 Corvettes is that year-to-date production is up 132.23 percent from 2020 to 2021, with YTD production figures of 6,279 units in 2020 compared to 14,582 units in 2021.

It’s likely that once production ramps up for extended periods with no downtime due to shortages, the prices charged for Corvettes will drop, especially on the used market where individual owners have been getting more than $20,000 over MSRP.

However, one way that GM may be fighting back against those dealers with large markups is a change to how Corvettes are allocated for the 2022 model year. GM will be taking into account how long it takes a dealer to sell a new Corvette and those dealers that can sell them faster will end up with more allocations than dealers with Corvettes sitting on dealership lots with a premium price.


Source:
GM Authority

Related:
Download the 2022 Corvette Price Sheet
2022 Corvette Prices Increased for the Z51 Performance Package, Front Lift, and Destination Fee
Chevrolet Offers New Options, Enhancements, and a Higher Price for the 2022 Corvette Stingray

 



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17 COMMENTS

  1. You’re on a real allocation, you’re now in event code 3000 for 2021 C8, you also have another dealer that has you now in the 5th position for a 2022 order, that dealer has agreed to just MSRP. You build a maxed-out C8 and have it trucked to your garage with your 2021. C8 will have under 3 miles on it, you sell it same day for 20g over MSRP. Yes, you paid sales tax on the C8 along with extra freight, but the credit union finances 110% of the deal with a rate of .99 apr, and you’re out zero money just a few hours in time. Good investment? Would you do it?

  4. I sold Fleet and Lease for GM in the 70’s. Shame on the dealers, never forget the Conversion Van market. Hot for3 years and near the end we could not give a cargo van away. GM is not the only game in town.

  5. Typical public comment from GM. We’ll see what happens with 2022 allocations. Market Adjustments of $20-$30k are ridiculous but there are azzes for every seat it appears. I will remember which dealers are charging these outrageous prices and when the market settles down, never buy from them again.

  6. All Gm is doing is allowing dealers to be legal extorsonists. Gm should stay on low supply and just jack up the price then. I agree with Bob.

  7. I would boycott any Chevrolet dealership doing this nonsense. It’s not like this is the ZR1 or the Zora. These are base models.

  8. Same old, same old. Same story as the introduction of the C5. It lasted a couple of years, but at better production rate than we see with the C8. Back then GM did their famous Alfred E. Newman ‘What me worry” imitation. All of a sudden GM was powerless to deal with issues with dealers.

  10. Because GM leaves pricing up to the dealer, that renders dealers to be “independent contractors”, not “great partners” and not “meeting customer needs” on GM’s behalf.

    Since GM has chosen to leave it up to the dealers to set market rates, why does GM bother to establish MSRPs.

    I understand supply and demand. What I don’t understand is how GM execs can with a straight face act as if they care whether the customers’ need are being met. But again, with record GM exec bonuses being created (I suspect this is so – not proven), we shouldn’t expect any changes any time soon.

  14. I have been a GM customer for over 50 years and I have it with their BS attitude!
    No matter how rich you may be do not give in to mark ups!
    In a few short years there will many C 8 on their used car lot’s!
    PS, I just love my C7 G S.

  15. Not to entirely stick up for the dealer but consumers are the buyers, dealers are in the business to make money, period. Like I mentioned in my first post here on this article, in all fairness I have noticed from many sources that consumers are driving their C8’s for a certain amount of miles, and selling them for more than the MSRP originally. Is that fair? Most cars have always lost about 10% by the time you get your car home, should they be selling them for less?

    Also, inflation plays a role too, in 2019 during the time C8 pricing was announced or last year for the 2021, everything has changed, yet base pricing is still the same and has been since first announced.

    All I know is I was on 3 lists for about a year, moving so slightly in the buying for MSRP mode, dealers were not giving me true allocation numbers and were only estimating my movement on the lists. In April I was done waiting and wanted to try something different, I called a few dealers in the Country, asked about their allocations for April, offered to pay more than MSRP, they said 15g up for the Coupe we may have a slot, I said 10g, they agreed to the 10, wrote the deal in 3 hours over the phone, and in 5 days I moved to event code 3000 after a 5g deposit. I will be driving in about 6 weeks. Waaaaay worth the 10g instead of waiting for a 2022 mid-year 22. You want it now, pay, otherwise wait it out and as far as I am concerned, I’m more than happy to get it now.

  17. NEXT TIME GM NEEDS A BAIL OUT GET THE MONEY FROM ALL OF YOU DEALERS THAT CHARGED OVER STICKER FOR THE CORVETTE !!!!! TOO BAD WE GOT PEOPLE WITH MORE MONEY THAN BRAINS !!!!

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