GM Isn’t All That Concerned About Corvette Markups
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Demand for the mid-engine C8 Corvette Stingray is (and has been) through the roof, with long waiting lists and limited supply. As a result, some dealers are charging substantial artificial markups. While markups are a relatively common practice for hugely popular models like the new Corvette, some dealers are charging $5,000, $20,000, or even $100,000 over MSRP. We covered this topic earlier in the week, but now, according to Chevrolet’s Director of Car and Crossover Marketing, Tony Johnson, GM isn’t all that concerned about the ongoing Corvette markups.
GM Authority Executive Editor Alex Luft recently spoke with Johnson about the latest Corvette markups, asking if Chevrolet or GM were concerned that dealers were raising the price for the popular new sports car.
“Dealers are the interface with the 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,” Johnson told GM Authority.
After asking if there was anything GM or Chevy could do (or would want to do) to encourage dealers not to charge tens of thousands of dollars over MSRP, Johnson responded by saying:
“Well, it’s supply and demand. We supply them, the dealers meet the demand.”
So far, this line of thinking seems to be working out quite well. Despite the considerable C8 Corvette markup, sales have soared, with 21,626 units sold in the U.S. throughout the 2020 calendar year, and 14,582 units sold in the U.S. through the first half of the 2021 calendar year.
Corvette Sales - 2020 - USA
| MODEL | YTD 20 / YTD 19 | YTD 20 | YTD 19 |
|---|---|---|---|
| CORVETTE | +20.22% | 21,626 | 17,988 |
Corvette Sales - 2021 - USA
| MODEL | YTD 21 / YTD 20 | YTD 21 | YTD 20 |
|---|---|---|---|
| CORVETTE | +132.23% | 14,582 | 6,279 |
These figures must also be considered in light of numerous production delays, which limited supplies of the new eighth-generation Corvette from the get-go. Production of the next-generation Vette was originally set to begin December of 2019, but was later pushed back to February of 2020 as a result of the UAW labor strike. Plant shutdowns stemming from the COVID-19 pandemic also severely impacted supply.
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The problem is it’s not only Corvettes, I have a local dealer charging $3000 over on Traverses and $5000 over on some pickups. Also seen some Ford dealers charging $8000 and higher for some of their high-end trucks. People are crazy to pay that but apparently, there are enough that are willing to let them keep doing it.
If we the buying public let these vehicles sit on the lot for just 12mos. Employees can’t pay there own mortgage. We can then buy the vehicles under market value so yes the Dealership should mark up all there models so they can see how pretty they look sitting on the lot instead of my driveway.
As someone who will never own a Corvette, I wonder how “Great” a dealer is who charges $100,000. above MSRP??
This cowboy wouldn’t deal in any way with a business that gouged customers.
You do it all the time, but don’t know it.
I can’t believe all the people complaining about a car over MSRP (“Suggested Price”) on a car that matches others costing $200K +
Buy all means sell any of the assets you have for what you consider fair market value. Supply and demand is not too difficult to understand. home values are up , and many homes are in bidding wars. If you want to stay out of the auction you can ! Do not be jealous of those that recognized a good value and were willing to pay what it was worth to them.
If you will never own a Corvette,then get out of this site and get yourself a LIFE !!!
So why are you here then?
This BS is out of control ! Market demand is one thing, But DEALER RAPE ! Now that’s another .
“Rape” ??? No one is forcing you. Go buy a Toyota
Michael, Thats the last thing on this earth I would do is buy a foreign POS vehicle. And another thing, I OWN a 2019 C7 Z06 already . So that being said I just cant find the mental clarity to hand over that kind of cash for one of these .
Toyota’s aren’t ‘foreign’ They’re proudly built in the good ‘ole USA by Americans and very thankful for the opportunity to do so
Yes they are! Why would you send AMERICAN money to jaypan? jaypan does NOT practice FREE TRADE with the US? Ask yourself WHY toyoto stock shares arent sold on any US stock exchange? (NO “yes they do” posts either and do your research first).
Just be grateful the car is not made of wood
Maybe Tesla had a point, after all.
Look #1 GM is limited in what they can do on pricing. They can not dictate to dealers what to charge only MSRP. After that it is up to you and the dealer. If they want too much walk. No one is holding a gun on you to buy from a bad dealer.
GM can trim to hold back allocations or discounts but the best thing they can do is catch up on supplies and make the dealers compete for sales.
There are good dealers out there and bad. Stop buying from the bad snd the problem is resolved.
Just got $7500 off a GMC this week even with very low supplies.
Folks you are only a victim if you let yourself be one.
GM can’t dictate prices, you’re right about that. But GM can do other things that discourages these practices.
It sucks that GM as a company keeps touting how they’re all about the customer and the customer experience on the one hand and then turn around and do nothing about this egregious practice. Grow some balls and make your dealers deliver an excellent customer experience that doesn’t deter customers.
C8.R why do all your comments make you sound like a cuck?
Back when I retired from the military, I was in the same boat. I wanted a Pontiac G8 GXP, with 6-speed manual (Vette wasn’t practical, and CTS-V was too costly). I scoured the U.S. and found the one I wanted that was still available. Sticker was just shy of $41k … the dealership that had it was asking $52k, and said, “Pontiac is going away and they only made this car for one year, so it’s worth more.” I walked away from it thinking I’d wait and find a used one, but then I stumbled upon another one (not the color I wanted, but I settled) and this time, the dealership was honest, honored all the current incentives, military pricing, etc. and I purchased that GXP for roughly $7,500 under sticker price … still have the car today!
Don’t get mad at people taking advantage of the situation and trying to make an extra buck … just find the honest people and deal with them. You can have the vehicle shipped for $3,500 or less from pretty much anywhere to anywhere in the lower 48. Gas stations/oil companies rip people off on a daily basis, but I bet you always find the least expensive spots to fill up your tank…
I say just wait C8 now are hot and people buying them are desperate to get one. In two years or less when there are too many of the C8 out there we will see the price drop just like ever other year model. I would feel really stupid paying anything over sticker for a car that in 2 years won’t get me more then 52k when I try to sell or trade it lol.
I have mine, ordered it a year ago, at MSRP… you did not pay too much, you just bought it too soon.
Hope you can join the club. Great car. 2 dealers, right now , sell MSRP, that I know of for sure. There might be others.
Got mine too after 1.5 yr wait (Arctic White). Bought at msrp from great dealer. This car delivers what others charge $300k+ for. Wouldn’t look for them to fall too much as demand is great. If GM is smart they will take msrp up and get paid for producing a great sports car.
BW – you are right On. The price IS going up, and will continue upwards. I paid $5K Over MSRP, and am very happy I did!
The only people complaining on here are the ones that can’t afford one. I have yet to hear from a C8 owner complaining about the price.
I paid a little under $30k over MSRP and honestly it was worth it. I was looking at a Porsche Cayman GTS, a Porsche 911, an Audi R8 and the Corvette was as good or better than that list. $30k Over was still cheaper than the Audi, and about the same as the 911 so it was a fair deal in my opinion.
Could somebody tell me where does the 30 grand OVER go? I am hoping someone in auto sales knows the answer or has a pretty good idea. thanks
If a Dealer to the Dealership as with any car, or to the individual that is selling it.
BTW- It seems silly to me what people pay for a pair of China Nike Shoes and other China Name Brand clothes, but if they think it is worth it and are happy, good for them.
Their not concerned because people are stupid and will buy them anyway. Let them make a total loss insurance claim and see what they get. Simple if you get screwed from a gm thief, never go back or better yet never buy that brand again. Realize what you can buy for $100,000 over sticker, I know brains isn’t one of them
They aren’t called “stealers” for nothing!
why the outrage? if the dealers don’t do it, somebody else will.
there is no shortage of flippers who are willing to buy these at msrp and turn around the next day and sell them for huge markups.
I always believed in “a fair days wage for a fair days work” and when consumers see the substantial markups on the new Corvette, I believe other thoughts enter their minds. I would ask all to have patience and look for and support a dealership that will sell you the Corvette of your dreams at MSRP.
Fair comments but I think perspective has to adjust. These cars are having to deal with similar economics and availability of more bespoke brands.
Inventory gets so low eventually they’ll be no lot units. Everything will be to-owner acquisitions. And inventory on lot would be pre owned.
This is what premium cars being Ferrari deal with. My mentor is in that world and I never understood it. To be able to get order a new vehicle from factory is a significant thing. It seems weird. For us normal humans its a drag because now not available to us because of this demand.
I think this is really and testament to Chevrolet building a very serious car. I think its awesome.
Yeah, supply and demand. Don’t care, when you get into thousands and thousands of dollars, it’s wrong I feel. I call it price gouging. But what do I know? Just an old retired assembly line worker. Rode hard and put up wet. If these folk have the extra money laying around like that, well, it’s their money. I just don’t don’t approve of it. And of course GM’s take of the old Sgt. Schultz saying, “I know nothing.” Let them do it.
When the Ford GT came out in 2004 the MSRP was about $135k. The local dealer was asking $400K and sold it.
To Terry Fong;
Yup. Like it or not, Mr. Fong is 100% right.
The question is, does that make it right? Does the almighty dollar rule all our decisions? Does greed win out in the end? Is greed good? We need some kind of moral compass to lead us through this journey we are all on.
It works for our Democrat Leaders
Michael,
This is an automotive forum, not a political discussion. Please have respect for your fellow commenters.
Are you the website dictator tom?
No, just pointing out what should be obvious. Some people can’t have an intelligent discussion without making it political. Just saying.
Gotcha
Getting back to Corvettes, my favorite Corvette was the 1955 model with the 265 V 8 with Powerglide, I will be signing off mainly because of insulting remarks, politics, and and some serious drifting away from the wonderful new, mid engine Corvette. I wish all of you the best and thank you for the opportunity for free speech with civility and compassion for others.
That 55 Corvette was only $3000 new, but now costs more than a new C8. Funny no one is complaining and calling the sellers 0f these cars rip offs.
Difference between collectors/private owners, and stealerships. Collectibles always appreciate in value, and maybe someday 50 years from now, the C8 will be worth double or more too. Lest we forget the costs associated with manufacturing each vehicle, and inflation so in today’s dollars, that $3,000 is now $33,000 roughly. Given that fact, a ‘55 selling for $40-50 grand really ISNT that bad for price gouging, compared to the $20,000+ dealerships and private parties are asking.
This happens to be the world we live in. Like it or not the market sets the price – whether it’s above MSRP – OR BELOW. Supply and Demand. This is not limited to Chevy or GM, nor is it limited to the auto sales industry. What I find appalling is that GM Authority is inciting and promoting the bashing of GM and Chevy without presenting the full picture across all brands’ dealers. Running this article two days after the last – which recieved unprecedented response – is pure sensationalism. GMA is taking advantage of “the market” for this kind of news. But it’s OK for them? I do not like dealer markups and in fact they are appalling to me as well – but it is what it is.
I paid $5K over MSRP and waited 9 months for my C8. I am totally happy, but would I pay $20K or $50 over? Hell NO ! Personally, I didn’t want one THAT Bad. A Gucci purse can cost $12,000 and up, and they sell them because women are willing to spend the money (or HIS money). People DO set the prices.
Michael, I’m in the same boat as you. Paid a $7K markup and never looked back. Frankly, given the times – I think it was a fair deal. I could have put down a deposit and got my name on a waiting list for MSRP – and waited, and waited, and waited. But I got the car in 5 months and have been enjoying it while many others are waiting. Like you, I would not have paid the five figure premium, but I got to check this off my bucket list.
Honesty? Let’s talk honesty. In December of 2019,
I ordered at agreed upon MSRP from Ourisman chevrolet of Baltimore, where I just purchased my 2019 2SS camaro convertible. Upon delivery the added a 39,995k market adjustment fee. Completely Unethical. I told em to shove it. A friend of mine called two hours after I left and asked them how much for the same vehicle and was informed 10k over. I was on my way to Criswell in Thurmont Maryland two days later and the GM called me now offering the same. 🤔 If that’s the price now, what wasn’t it initially? Got one in the end at MSRP in 4 months from Criswell.
Yep, not all dealers have ethics. When shopping for my C8 I found dealers (even some of the Largest) taking big deposits when they KNEW they would never get that many allocations. I finally found an honest one who was honest about my chances from the start, and he admitted charging $5K extra increased my odds. It is what it is, but not all Dealers really care about their customers.
If you had a legally signed and executed purchase agreement for the 2SS and they reneged – now there’s a lawsuit if you wanted to go through the hassle.
GM can’t force prices on dealers, which why the sticker price is suggested. If people are willing to pay way over MSRP, that’s on them, not the dealers. If people weren’t willing to pay what the dealer wants to sell the Vette for, the dealers wouldn’t be selling for that price.
Am I wrong? I thought the MSRP included profit for GM and the dealership?
This happened in 1990 when the zr1 came out.Price one now and see what they are worth.I say buyer beware because you are going to loose your shirt in a few years of ownership!!!!
I don’t see why anyone who doesn’t see your point of view is STUPID, just because an individual decides to spend his money differently than you does not make them STUPID.
Are those of you who find paying over MSRP so disagreeable so sure that an individual is buying the car for his own use or is it the corporation or the company that they own buying the car for them to use. Maybe the corporation is sufficiently wealthy that a mere $100,000 over MSRP is an insignificant amount. Do any of you think that the owner of Amazon would be too concerned that the corporation paid over MSRP for a vehicle that they desired or do you think that this particular owner is STUPID.
Maybe those of you who find so many buyers are STUPID would like to be in the shoes of the owner of Amazon, at that point you may find that being STUPID is not such a hinderance.
I don’t like our Democrat Leaders causing high utility costs and $4.00 a gallon gas prices. My choice is to pay it or walk.
How would you feel if your hospital emergency room charged more money when there is a wait than when there is no wait? Or treated the wealthiest patient before the sickest patient? They do not do this because they are professionals. This practice of charging over MSRP makes the dealers prostitutes, not professionals. Just because you can do something does not mean that you should. The stealership’s action is another example of rats winning the rat race and why capitalism must have government regulation.
Well stated, Dr. Ken
Government regulation is not what people want. China and Communist Countries have Total Government regulations. I pay $1,000 for a pill to kill Hep C virus. I have no choice. People pay Thousands of dollars for medicines that cost a few bucks to make. This does not mean they are not Professionals.
If you are upset, you are totally free to go to a Communist Country and live with everyone paying the same.
Bad example doc. Hospitals are gouging everyone already. Now that’s something that begs for government regulation. Perhaps there should be an MSRP for specific procedures. Drug prices are another. When my disease eventually gets to the point where it needs to be treated – the meds (one pill a day) are priced at over $90,000 a year. Not a typo – $90,000 a year.
Unfortunately they do charge different fees for people.