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I got $1500 off right from my local dealer, along with a few other perks! Sorry, but the truth is around the holidays and in most of the northern states, money gets tight and people tend to hold on a bit, at least till spring! Bill
 

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Well, if you consider the dealership gets 5% of the invoice price for each car they sell (all GM dealers do) I personally think that every car buyer should pay invoice, definately no more than $500 over. My father spent many years as the general manager of a Chevrolet dealership before getting out of the business. He's the person who tought me about new car buying. I have purchased 5 new vehicles in the past 2 years. The most I've paid was $400 over FACTORY invoice (not an inflated version from the dealer i.e. advertisement fees,etc.) I paid INVOICE for my Z (2001, bought at the end of the production year). If you are getting the largest allocation of Z's in the country I think you would do more business and make more money by having quick turnovers by selling closer to invoice. If you don't, someone else will. The internet is a wonderful thing for the consumer!
 

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Rick,

When it comes time for a new car I will buy one from you, if you will ship it to NV.
 

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Honestly? I would think you guys would have the best idea. Are they piling up on your lot? Discount. Can't keep them in stock? Raise the price.

Your dealership has to ride a tight line. When you're not selling a bunch of cars, the profit has to be there on the ones you do, so you can pay the bills. If you were to offer better discounts than the competition, then you could increase unit volume by stealing sales from other dealers. Hopefully, the increased volume provides sufficient income stream to operate the business.

I didn't decide to buy my car until I found a deal to buy it at invoice (2001 close out). And that was before 9/11. There's no way I'd bite on a $1500 off deal - that's just the way I am. A car's a pretty stupid investment so no sense in compounding the problem by paying the kind of markup you're asking.

These are different times, Rick. Reduce overhead, inventory, sell more off of internet. Lean and mean.
 

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Discussion Starter · #7 ·
Zoomin said:
Honestly? I would think you guys would have the best idea. Are they piling up on your lot? Discount. Can't keep them in stock? Raise the price.



These are different times, Rick. Reduce overhead, inventory, sell more off of internet. Lean and mean.
This makes since to me. We have delv. almost 75 Zs so far this year. Up untill the last couple of weeks everyone of them have sold before they hit the lot. Now we have 2 on the lot not sold. I dont think this is the time yet to say well $3000.00 off is a good deal, but I think we do need to do a little better than we have till now. If you notice the poll I run as to when people bought their Zs. Not many have bought in the last 60 days. I dont know where we need to be on price but I dont think untill the 03s start to hit are you going to see 3 to 4 thousand discs. I am open to any reasonable offer for any of the 10 I have on the lot and comming in. If you plan to buy one give me a shot at your offer.:)
 

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Vette 1

YOU ARE IN THE PARK...........:D
I would trade up to an '02, if the market was decent for a trade in.........but, alas..............it's not.
38k for 3k mile cherry, is not reasonable........UNLESS you can get the '02 for 46/47k.......
and, the biggest bummer.....is BACK to the original rates........whatever they are now......

The times are always a changin'......................

Cycles........always, ebb & flow.............








:(
 

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If you want to know what the dealer invoice is on any car, go to the Kelley Blue Book site <www.kbb.com>. The direct link for the Z06 is:

<http://www.kbb.com/kb/ki.dll/kw.kc.nc3?kbb.VA;670905&22066;car&181;Chevrolet;2002 Corvette&M7M3A5>

Invoice on a 2002 Z06, including the $645 "destination charge", is $44,136.88. The sticker is $50,350. That's a $6,213 markup. In addition, the dealer gets an additional $2,000 to $3,000 "incentive" or "rebate" from GM, so the real gross profit is around $9,000.

I have purchased most of my cars right around invoice. The dealer still made the "incentive". The reason I waited until 2001 to get a C5 (I was driving a C4 Conv) was the dealers all wanted sticker or more for the cars. A really bum deal!

Those who paid sticker or more a year ago are now seeing what their used C5s are worth on the market. The buyer down the road doesn't care if you paid dealer invoice or $10,000 over sticker, the car is worth the same to him.

In late May, Kerbeck had a bunch of Z06s coming in and was offering $4,000 off sticker. Not the greatest price, but I bit. In this economy I would say $500 to $1,000 over invoice ($5,000 to $5,500 off sticker) would be reasonable. With everyone out of work or looking out to see if their job is there tomorrow, not too many people are willing to plop down $50K for a toy.

Just my $.02
 

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You can also go to www.carpoint.com for dealer invoices. Search under "new cars" then pick the model you're looking for. It allows you to pick the options you desire then calculates invoice price and MSRP.
 

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Discussion Starter · #13 · (Edited)
In May of last year we were offering $6000.00 off on all remaining 2001 Zs. The dealer gets 3% of cost on hold back, so on a Z that is more like $1350.00 not $3000.00. Don`t believe everything you hear.:( Think about this guys. The dealer has invested $45000.00 of his money in this Z and if he sells it for a $500.00 over invoice and his $1350.00 hold back, that is less than a 4% return on his money. He can get that by putting it in a long term CD. What is the incentive to go into business for that kind of a return? Now if he like us and has 125 per year of these cars that is a $5,625,000 investment for less than a 4% return. I dont think anybody here would take that kind of a return on that kind of an investment. Now understand he still has not paid overhead yet. Would anyone here do that?:-?
 

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Rick,

Maxie should have sold them to DFW dealers......they were selling for MSRP 60 days ago........IF you could get one.

Your scenario of course makes sense, no ONE in their right mind could/ would, DO ALL their deals that way........

Luckily for you & me, (being also in sales),MOST buyers are not as well versed and educated in their shopping methods.........as the TYPICAL internet individual.

If, ALL were.........we would soon have NO economy.......as NO ONE can stay in business without making a profit, AFTER overhead..............

But, we all know...................the scenario you posted is on one particular car, and a dealers profits are made from MANY areas.............and ain't you glad:D

For every ONE Z sold @ this rate, there are 10 that are not.......so, it more than even's out..........
Same goes for every model made by GM......or any other mfgr for that matter............

I just wish, I had KNOWN about this forum, 90 days ago, and the dealers here.............I got a GREAT DFW deal, on mine.........
But, not 6k off..................:(

Rick, if there is/was a way to get the trade in values UP, even if on paper, and get the NEW '02's COST's down to help offset the BIG swing, I think a lot of folks would come to the dance...........:)
 

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JimGreen said:

Invoice on a 2002 Z06, including the $645 "destination charge", is $44,136.88. The sticker is $50,350. That's a $6,213 markup. In addition, the dealer gets an additional $2,000 to $3,000 "incentive" or "rebate" from GM, so the real gross profit is around $9,000.
Rick,

I was planning on purchasing a '02 Z in the Spring since I cant drive it much in the winter here in NY, but if you can give me a Black/Black for $46K Flat which comes out to around $1,800 over invoice I will put a deposit down with you this week. I feel this is a fair number considering many people on this board have mentioned that they bought their Z's for $1500 over. Let me know what you think.

Tommy
 

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Rick, you need to call my wife and convince her it's time to order a new EBZ for museum delivery :) :) :)
 

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Discussion Starter · #18 ·
Guys all of you know how this business works it is no big secret. It is "Supply and Demand- Supply and Demand" the dealer is no diff. from any other business. He tries to maximise his profits while staying competive. At the very beginning of the model year when supplys are tight and the demand is high, the dealer holds his profit. As the year go on and the demand goes down so does the price. I think you would have to agree that by selling around 500 Vettes per year we have to be competitive. Can you get a better price than I can offer, YES. You pay a little more with us for selection, speed of delv, experience in ordering and out of state delv. Not to mention what I belive to be the best customer service in the business. We are in the process of building a new dealership. When we get through with it, it will be one of the largest Corvette centers in the nation. We will have a full line of Mods, Corvette collectibels as well as what will be the largest Corvette allocation in the South. If you want the absolute cheepest price and dont mind what you have to do to get it, then I am not your man. If you want " Exactly What you want, and want it Quick" with a salesperson that cares about your business and you as a person. Has as much knowledge of Corvettes as any salesperson in the country and willing to spend a few hundred more dollors for it then look no further.:)
 

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WOW, $6000.00 off in May of last year (May of 2000), I thought the Z06's did not ship till Aug or Sep or 2000. Maybe I'm wrong.

Now onto the math. If the dealer has $45000.00 tied up in one of these cars. (A copy of my 2002 dealer invoice proves its less than that, but anyway) The ROI is a bit higher than the 4% that was mentioned. Here is why. Normally Interest is quoted via APR which is 12 months. Rick quoted 4%, but did not mention that the time period was less than 12 months. Lets say you sell this car at a gross profit of $1850.00 (holdback + $500 over invoice) For argument sake lets say the car sits for 30 days. Here is the math. $1850.00 / $45,000.00 = .04111111 (which is the 4% approx that was mentioned) but what was failed to be mentioned was that was for 1 month. Multiply that by 12 and BAM.. Sign me up for that ROI. 49.3333332% annual. Now, what about the 75 Z06's that were mostly sold before they were delivered and most likely sold at $1500.00 to $2000.00 off sticker (thats a typical current discount here in the Chicago area). I won't bother to work the math here. But we all know its probably more than the 49% as demonstrated above.

I'm not exactly sure when a dealer has to pay for the cars that are received. But lets assume he pays the day it shows up on the lot, and 4 hours later you come in and pay cash or finance it. I bet its possible that the dealer has been paid for the car before he himself pays GM for it. What kind of ROI is that.

Correct me if I'm wrong guys, but the 4% ROI that was figured below equates to an approx 48% ROI.

Joe



Rick Daniel said:
In May of last year we were offering $6000.00 off on all remaining 2001 Zs. The dealer gets 3% of cost on hold back, so on a Z that is more like $1350.00 not $3000.00. Don`t believe everything you hear.:( Think about this guys. The dealer has invested $45000.00 of his money in this Z and if he sells it for a $500.00 over invoice and his $1350.00 hold back, that is less than a 4% return on his money. He can get that by putting it in a long term CD. What is the incentive to go into business for that kind of a return? Now if he like us and has 125 per year of these cars that is a $5,625,000 investment for less than a 4% return. I dont think anybody here would take that kind of a return on that kind of an investment. Now understand he still has not paid overhead yet. Would anyone here do that?:-?
 

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Discussion Starter · #20 · (Edited)
What about the 100s of Tahoes, Z71s, Avalanges, Trail Blazers and Suburbans that all cost more than $30,000 that may sit on his lot for the whole year before he makes a dime on them? What about the Camaros and all of the other Chevy cars that he cant sell. And by the way any of these cars and trucks you can come and buy for dead invoice any time you want. You guys know that you are wanting the Flag Ship of the Chevy line. The Corvette IS a profit unit for the dealer. I have always been amazed that you never hear anyone say anything about the fact that the dealer is only asking what the manf. has said is the suggested retail price. Does anyone ever say that GM marks up their cars too much? Does anyone ever say that GM is a crook for telling the dealers to ask this much? Does anyone ever say that GM makes too much on their cars? If you own GM stock I would be willing to bet you want them to make as much profit as they can just like every co. tries to do.
 
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