To Jack Baruth: Excellent work. Thank you.
I’ll never pay a dealer markup. I almost didn’t buy my C-5 because of it. I went back to the dealer I bought my 93 C-4, and the A hole wanted to mark it up 5 grand. I left and found another dealer in town that gave me the same trade in on my C-4 and NO Mark Up… I never darkened that first dealer’s doorway again. I don’t need anything so bad to pay some A hole middle man to fleece me. Uncle Sam does a good enough job of that. It was one of the first C-5’s in Jacksonville and had some recalls. They did some recall to the fuel tank and left the dang fuel line loose and gas was spraying all over the place. Had them tow it back and fix it. I don’t like the first new cars off the line, too many recalls and bugs to get out.
I honestly don’t feel sorry for anyone who pays the outrageous markups. Everything has its price, it’s called supply and demand. Anyone who pays the price to obtain one of the early production units falls into one of three categories. Either they are a collector (in which case money is no issue) or they are just a Corvette lover with no financial restrictions, or they are the guy who Is just out to impress people he doesn’t like with money he doesn’t have. Bottom line is nobody is forcing anyone to buy these cars, everyone has a choice, and I choose to wait and buy a used one in a few years, off a guy like Larry, preferably a 2nd or third year production. The $20K I save will Look a heck of a lot better in my hands then in the hands of a greedy dealer!!
Okay, reading comments for and against dealer ADM, a question occurred to me. The complaint is the dealer is marking up a vehicle he came to “own” from someone else. How many of the readers that take exception to the practice have a problem with flipping a classic in THEIR driveway for more than they paid for it? mSrp is suggested pricing. I doubt a 59 vette owner will suggest the MSRP when they go to resell from the driveway.
Sometimes it’s like arguing balls and strikes: you don’t argue to change the call, you argue to influence the next call(s). I bought a new 2010 Challenger SRT8 from a long-standing family dealership here in SoCal. They gave me a great deal, especially considering they had to do a dealer trade with a NorCal dealership to make it happen. Fast-forward five years and the Hellcat comes along. I was number three in line with an allocation of two to the dealer. The number two guy turned out to be a pain in the hind end, so the dealership moved me up in his place because I was a repeat customer (and apparently not a pain). Granted, I ended up paying a $10k markup…but the number one and three guys paid $20k. Fast forward another year and Chrysler brought out the Scat Pack Shaker option in Plum Crazy. I always loved that color, and the Shaker hood, so back I went. Special ordered it and the dealer charged me their COST plus a few hundred bucks to cover expenses. My point is: Relationships matter. Argue for the next call.
I have to disagree with Kyle. In my opinion, GM will “never” stop producing the Corvette and even if first year sales are not as high as they would like, the fault will lie with the dealer pricing issues not the car. No one is forcing folks to pay the markup - it’s just a “me first” decision and there’ll always be people with more money than brains (sorry, but it’s true).
And, the only reason that manufacturers can’t easily sell direct is that certain politicians care more for big business than they do for the consumer.
When Carroll Shelby went back into the Mustang business in 2007 (actually, 2006 with the Hertz Shelby GT-H cars), I started really paying attention because I’d just sold my business and it seemed fitting that I’d buy a new Shelby Mustang 40 years after I bought my first one, a ’67 GT500 purchased from a dealer in ’68 at 15% off MSRP. Dealers all over the country we’re applying large ADMs on the Shelby GTs and I tried to get my local Ford dealer to take my order at MSRP. No deal. They wouldn’t even let me talk to the sales manager or the local owner. I tried twice. So, I used the telephone and after about 5 calls around my region I heard the sales manager tell me, “Yeah, I think we can do that.” I gave him my card for a $500 deposit and ordered the car. 8 months later my Shelby GT/SC was delivered to my door by Shelby American after some extra time to have their Mod Shop install a Paxton Supercharger. By then the 2008 models were out and there was even one on the truck enroute to a dealer.
Looking back, the wait seems totally irrelevant and I still enjoy the car immensely every time we take it out. Same with the ’67 GT500, which we still drive as well (yes, of course I kept it all these years…doesn’t everybody hold on to their favorite cars for 40 years?). The fact that the ‘67 was a leftover model is actually even cooler because Shelby American did all the post-assembly line work on the car, unlike the ‘68s that were handled by AO Smith in Ionia. Similarly, Ford took over production of “Shelby” Mustangs after the 2006-2008 runs that were built by Shelby American at Las Vegas Speedway.
In the fullness of time, an anxious wait for a new car is smoothed over and the reward can be even higher. You’ll save a lot of money and enjoy the car just as much if not more.
It’s easy to say, “take your time”. But for us 70 year-olds time has a far greater value than it does for a 40-something.
I love this! So well put!
One of my all time favorite cars.
This may have been mentioned before, but I’m going to mention it anyway at the risk of being ostracized online lol…
Pricing on the new vehicles should be federally mandated with MSRP laws… in some countries, it’s against the law to sell a product over the manufacturer’s suggested retail price; the government essentially tries to protect its citizens from getting taken advantage of when ‘hot products’ come out.
That doesn’t mean there aren’t back doors to that concept though… dealers license new vehicles as personal vehicles and advertise them for sale as used cars. But, if you order a new vehicle to your specs from the dealer brand new, then they are bound by law to sell it for MSRP or less.
I just got the last C7 from my local dealer for $12,000 below MSRP and I love it. Rather have it then the C8.
Interesting article, I have one on order through a third party so I was concerned if there was going to be a mark up from the local dealer.
I disagree about your Boat Anchor comment, I am a big fan of my normally aspirated Ferrari California and would take it over the turbo all day long. There is nothing like the sound of a normally aspirated Ferrari, go out and drive one!
As someone who spent his entire career in the auto industry, I can tell you that the manufacturer does have a way to stop ADM price gouging. It may not be kosher but it works. In the case of Chevy, the factory rep or regional manager takes the dealer out into the parking lot for privacy and tells him/her that if they ever want to see another truck, to cut out the greed crap. In most cases it works. If not, slow their allocations down. It’s a shame this stuff happens. It has ruined many new vehicle launches. Case is point was the two seat Tbird of a few years ago. Some dealers added thousands to the sticker and of course the days supply exploded, undoing all the good of the launch advertising. One poster is right though. There are many dealers who abhor the practice of excessive dealer markup. Do some research online and you can likely find one.
I was the first one to buy a C7 on my block when they came out. I bought it at MacMulkin Chevrolet, the second largest Corvette dealer on the planet (Kerbeck is number 1). They gave me (and everyone else) a discount of $3k below MSRP. I hope both of these dealers will continue their fair pricing policies.
A local Porsche dealer had a GT2RS on the floor with a $70,000 mark up on an almost $300,000 sticker. I know it sat there, unsold, for months. Seemed like a lot of moolah to tie up, hoping for a greater fool to show up.
Mark ups ruin the car for me… My Mama didn’t raise an Idiot… C8, keep em…. I don’t care how fast it is… Chevy has a reputation for building JUNK for decades anyway…
Whenever I hear or read complaints about dealer markup I always think “Yeah, and if the dealer sold a high demand vehicle for MSRP, and someone offered the buyer a 20% premium above MSRP as soon as the car left the lot, most of those people who complain about dealer markup would jump at the chance to fatten their own wallets”.
A few old chestnuts to bear in mind: They’re called stealers for a reason. A fool and his money are soon parted (see the article about the Mini Beach car. That dough could have purchased two marked-up C8s). And do bear in mind that greed is one of the seven deadlies. Proceed as you see fit. Many of the comments above indicate that they know which way the wind blows. There will be plenty used Chevys…er I mean C8s to come…at sane prices.