The C8 Corvette is in high demand, with every last unit getting scooped up at a very fast pace. In fact, the mid-engine Chevy Corvette was the fastest-selling new car last month. No surprise then that dealers are marking up the C8 Corvette, sometimes quite significantly. However, the markups should begin to go away now – here’s why.
As GM Authority covered previously, the C8 Corvette Stingray recently moved to an ADS (Available Day Supply) dealer allocation model with the introduction of the latest 2022 model year. For those readers who may be unaware, a dealer allocation model sets the number of units of a certain vehicle which the dealer will receive. The ADS allocation model determines this based on the number of days it takes the dealer to sell the vehicle – the more quickly a vehicle is sold, the greater the allocation that dealer will receive.
Previously, dealer allocation for the C8 Corvette was based on historic volume, with dealers that historically sold greater volume receiving higher allocation. The speed with which those vehicles were sold would not play a role in determining the vehicle allocation, so high prices did not necessarily play a role.
Now, however, that changes with the new ADS dealer allocation model. So, how does that affect C8 Corvette markups?
Quite simply, the ADS dealer allocation model encourages dealers to sell units as quickly as possible, with the goal of achieving a higher-than-average days-to-sell in order to receive greater allocation. As such, there is a greater incentive to offer the most competitive price possible, thus potentially removing the high dealer markups seen previously.
As a reminder, production of the 2022 Chevy Corvette C8 is set to begin on September 6th, 2021, according to GM Authority sources. It should be noted that the exact date is subject to change given external factors, such as the ongoing global microchip shortage, among other things.
The 2022 Chevy Corvette C8 introduces a few changes and updates over the preceding 2021 model year, including new exterior colors, as well as a the introduction of the IMSA GTLM Championship C8.R Edition.
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Comments
Glad I sold mine for a 20k+ Profit. Those days might be gone.
Thanks for making the world a better place!
His car he can do with it as he pleases
like the dealers have not been taking advantage of the situation
Why down vote the guy? Did he put a gun to someone’s head and force them to buy it from him?
Maybe it will work, but it doesn’t address the supply issue. Dealers are buying slightly used C8s and then reselling them even higher. The seller makes money and the dealer still makes money. Right now there’s still a hefty demand with little new supply. Most of us got our car at MSRP. A lot of dealers are marking up sold orders after the customer has already made a deposit and promised an MSRP price. Might still take a while before that is remedied. When it is, the folks that paid 20-30K over sticker will be left holding the bag. If they are people of means, it probably won’t matter to them. They got a car.
This is why the customer should get in writing what the selling price will be. Holds the dealer’s feet to the fire….
Dealers still marking up by $20-$30k and getting it. Try finding a C8.R. All 1,000 sold quickly. Z06 will be even worse. Going to take 18-24 months for this to all calm down.
The dealers that are adding additional dealer markup will continue to do so….just like the Dodge dealers…they will register unit sold and then resell them as used.Only thing that will settle the market is when supply catches up with demand.We were lucky enough to get one from our local dealer at MSRP….brilliant car.
I got mine at MSRP by ordering and waiting a year. Tempted to sell and use any extra to buy another. But will just keep my one car . It is fantastic .
Not so sure that dealer markups disappearing is a given. Hasn’t the C8 has been one of the fastest selling cars already – even with the mark ups. This scenario is driven by the demand curve. While ADS may “re-balance” allocations between dealers, I do not believe the markups will go away substantially until supply meets or exceeds demand.
What I’ve found is that dealers are charging $10,000 to $30,000 on top of MSR just to place the order. I did find one dealer with 4 new C8s on their floor at $30,000 over. But most get their “Christmas Party Fund” money up front.
Fasted is absolutely correct. If you have to pay the markup just to get it ordered, then it’s already sold when it hits the dealer and is seen as a fast sale (even with the markup). It’s the market. Supply and Demand.
Because the greedy dealers have already screwed all those standing in line to be screwed, That’s why
Tuff they can sell a vehicle for what they please. Why don’t people get this? It’s so strange people get so mad about dealers charging over msrp if you don’t like it buy something else.
They have actually been following this business model for the Corvette for a while now. The dealers will mark the corvette sold as soon as they arrive and just as long as they sell it before the month end they dont have to reverse or change anything. I dont see the markups changing anytime soon
That’s the nice thing about Tesla, no dealers
Which means no price competition, no discounts.
And no price gouging
All this has done is messed up the allocation process for the larger dealers that were selling at sticker.
I think you greatly over estimate the impact of ADS. A small dealer will still make far more money selling 3 or 4 cars at $30k over than by selling at MSRP and being able to get 2 more allocations next year. ADS isn’t going to allow a small or mid-sized dealer to become a big one in a couple of years. The difference is marginal.
Friend of mine worked at a dealership, that his father owned, over 35 years ago. He told me then that he could sell cars all day long at MSRP or more. I asked him how he could get people to overpay thousands of dollars for a car. He told me about this saying in the car business, “There is an Ass for every seat.” Still holds true today, just seems that the seats and the Asses are even bigger. Although my friend was making obscence money for his age at the time (20’s) he left the car business because he had a conscience. His dad, the owner, left the State eventually because he did not have a conscience, and evidentally was not very good a keeping proper finacial records or reporting incomes accurately. Never have paid MSRP and never will thanks to my friend.
I read only 10% are being marked up, I think none of the top 10 are selling marked up.
I put a 1K refundable deposit down for the IMSA Edition. The dealer told me I was 4th on the list for ordering 2022 models. They said once they get their allocations they would let me know how many IMSA Editions they are getting. If they receive enough, then I would have to come to the dealership and place the order with another 4K totaling a 5K deposit which is now non-refundable. Well it is August 29th and the dealership said, they still did not get their allocation list? Reputable dealer, in fact, if I gave you the dealership’s name, everyone would recognize it.
ADS is causing this problem, the large stores that were all used to getting a large amount every month say 25-40 cars per month all received a fraction of that last month which is a massive problem. When you are used to these cars showing up a large groups it naturally takes time to get all of them processed through PDI and the sales completed with the customers that ordered the cars, even more so if the car is going to an out of state customer that is taking delivery in the dealership. ADS does not take that into account. It looks at how many cars are currently in inventory and dictates how many you get based on that. It has made what was a straightforward process a complete cluster with no idea how many you’ll get each cycle.
There is no set allocation. “ADS” Has taken over and the dealership earns allocation as they turn their inventory. GM allocates available Corvette production to dealers based on that dealers sales numbers divided by their availability. A dealership could probably take a guess at how many they’re going to get but they now have no set number. Corvette is now distributed to dealers the same way as all other models are.
That makes it sound like the dealer cannot take a firm sold order because they do not know how many cars they’re going to get. Sorry, that doesn’t make any sense
Got my 2021 ceramic matrix gray metallic C8 convertible at the Palm Springs Chevy dealer, at list price, 14 months after paying a $5,000 deposit to get in their wait list.
In that time frame the dealer seemed to be “buying” some of their own C8 allotments, marking them up exponentially, then reselling them as used. There were often several “new-but-used” C8s present for sale.
So, if a dealer “buys the vehicle for themselves” that notifies GM that is sold quickly. Then the dealer has all the time they want to hold the car for sale to anyone willing to pay $20,000-$30,000 over MSRP sticker price.
Hence this NEW method of C8 allotments to dealers will not change the practice of dealer mark-ups at all. Because of dealer self-quick-buys.
…There is a dealer named Beaky…a fat baldheaded man with a crooked nose…not sure if his name is Beaky or it’s a nickname…he does sell the odd Vette…for a fistfull of dollsrs over MSRP
Just curious why “fat bald headed” has any bearing on this message thread. Seems like you are possibly disrespecting someone based on your interpretation of their appearance. Which does not seem to appeal to you. Odd.
I love Vettes and currently have a C7 Z06 which is my 17th Vette over the years. For those kind of prices, I’ll just go for a Porsche 911 Turbo S. Super performance and will retain its value a lot longer. Unfortunate GM cannot manage the greed but great they developed and designed a super competitive car.
Sold my 2022 c8 2lt vet convertible. trying to find dealer that will sell at MSRP i am located in Arizona. ALL our Dealers are $50K over MSRP.!!!