GMS pricings a little embarassing....GM's marketing sucks!!!
11-24-2007, 04:11 PM
#21
Safety Car
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I argue w/friends that the Corvette is the most under-priced car in the world, and then you see GMS pricings on all 08's(we're still in 07)....that's really embarassing!!!
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
Everybody loves a bargain. Well, almost everybody.
11-24-2007, 04:57 PM
#23
Team Owner
As you may have guessed, I believe the reason Corvettes are being discounted so much is because of lack of demand. It would be interesting to know if you own a new[er] C6 or an older Corvette and what are the reasons that you haven't purchased a new C6(assuming you don't have one).
11-24-2007, 05:17 PM
#24
Instructor
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I argue w/friends that the Corvette is the most under-priced car in the world, and then you see GMS pricings on all 08's(we're still in 07)....that's really embarassing!!!
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
11-24-2007, 05:23 PM
#25
Drifting
I argue w/friends that the Corvette is the most under-priced car in the world, and then you see GMS pricings on all 08's(we're still in 07)....that's really embarassing!!!
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
Why does GM keep over-producing the Corvette and then has to give deep discounts to get rid of them. They are really diluting the product!! I know it's about the $$, but the Corvette is GM's Halo car(no Cadillac comes close), and is too fine of a vehicle to be sold as a distressed product.
I know some people love to see these discounts as it gives the opportunity to get in, but it really hurts the cars resale value and overall image.
It's a shame that the marketing of this wonderful car is being handled by GM.
With (some) respect, horse hockey.
It's a car man get over it! Yes the great pricing of the C6 will probably mean that my C5 turns into a C6 this year rather than next, but GM will be making money on service and on loyal customers by pricing cars that people want within their budget. I have a 911 next to my C5 in the garage, if your theory is right the 911 is WAY superior right??? - not a chance.
11-24-2007, 09:55 PM
#26
Strong overseas demand is great, but GM should keep better control of not over-supplying Domestic dealers.
11-24-2007, 10:17 PM
#27
Burning Brakes
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St. Jude Donor '07
The rebates and discounts are built in to the price up front. If you buy a car at the first of the model year, you are likely to pay more and get little to no rebate and or discount. The rebates allow buyers with no down payment and or less than perfect credit purchase a car they might not otherwise qualify for. See the bank only sees the bottom line.... LTV Loan to Value. IF a $50,000 car has a $5,000 discount you are only borrowing 90% of what the car is "worth" according to the bank. Now you look pretty good on paper. This also helps with people who are upside down in a trade in. Allows the dealer to absorb the negative equity from the trade. With out this practice, which was started in the late 90's most people would be too upside down to buy anything. Therefore, the automakers would suffer. So jack up the price and then offer discounts and incentives, whether directly to the public or in the form of dealer incentives.
Bottom line is, in todays auto market, from experience in the business, roughly 80% of buyers would not be able to purchase with out the discounts.
Bottom line is, in todays auto market, from experience in the business, roughly 80% of buyers would not be able to purchase with out the discounts.
11-24-2007, 11:23 PM
#28
Le Mans Master
GM can't adjust their product output on a day to day basis to adjust for slow demand. They have the assembly line at Bowling Green designed for a standard output with the work load at each station fairly balanced. To cut back production, say 20%, they can't just slow down the line speed by 20% and cut down the number of direct labor employees by 20%. The work at each station still has to be done, and an employee still has to be there to do it. That's 100% of a worker, not 80% of a worker. You can't cut the employee's wage by 20% or cut his benefits by 20%. In fact, if you were able to send any of the workers home, they would still receive ~95% of their wage, even though they are not at their work station assembling Corvettes. The same goes for indirect labor and the office personnel. As for as reducing the number of parts being shipped into Bowling Green, GM purchases the amount estimated to be used annually, with JIT shipments. What I'm saying is that GM can't just cut production 20% if demand for the car is down by 20% and reduce their mfg costs by 20% to maintain their profit margin. GM can cut back their production but not their cost.
So the solution to getting rid of any product overstock, for any reason, is for the dealer to offer incentives to get the retail customer to purchase the car. Normally that's in the form of selling the car for less then it's MSRP. How much of a discount varies from dealer to dealer, due to many reasons. If to many dealers have to discount their cars by to many dollars, then GM steps in by offering incentives. GM knows that their dealers have to make some money to keep in business thus it's better to offer incentives to the dealer then have them go out of business. It's cheaper for GM to maintain their production and have incentives to sell the overproduction.
So the solution to getting rid of any product overstock, for any reason, is for the dealer to offer incentives to get the retail customer to purchase the car. Normally that's in the form of selling the car for less then it's MSRP. How much of a discount varies from dealer to dealer, due to many reasons. If to many dealers have to discount their cars by to many dollars, then GM steps in by offering incentives. GM knows that their dealers have to make some money to keep in business thus it's better to offer incentives to the dealer then have them go out of business. It's cheaper for GM to maintain their production and have incentives to sell the overproduction.
11-24-2007, 11:27 PM
#29
Team Owner
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St. Jude Donor '15
"In honor of jpee"
OP, you'll have to pardon my lack of knowledge, but what is it exactly that you will be happy with?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
11-24-2007, 11:55 PM
#30
OP, you'll have to pardon my lack of knowledge, but what is it exactly that you will be happy with?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
But seriously, GM either has to stop over-producing or stop over-allocating the car, so these discounts do not pop up so early. It's all about perception and value and GM and some dealers do a terrible job at this. That's why some of the German cars have such a high perceived value.
And yes, I would pay $80-100K for a Corvette if it had a better interior.....GM is making strides w/the 4LT.
11-24-2007, 11:56 PM
#31
Le Mans Master
OP, you'll have to pardon my lack of knowledge, but what is it exactly that you will be happy with?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
Will you be happy when GM starts charging $80K for a base, stripped, Corvette? How about $90K? That goes for all of the posters who keep claiming this is the most under priced sports car they've ever seen.
What do you want? Most, or many who post on C6 think GM occasionally reads these posts/threads. Do you WANT them to raise the price?
Simply put: are you out of your mind?
11-25-2007, 12:10 AM
#32
Melting Slicks
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Well if I have to explain.....
But seriously, GM either has to stop over-producing or stop over-allocating the car, so these discounts do not pop up so early. It's all about perception and value and GM and some dealers do a terrible job at this. That's why some of the German cars have such a high perceived value.
And yes, I would pay $80-100K for a Corvette if it had a better interior.....GM is making strides w/the 4LT.
But seriously, GM either has to stop over-producing or stop over-allocating the car, so these discounts do not pop up so early. It's all about perception and value and GM and some dealers do a terrible job at this. That's why some of the German cars have such a high perceived value.
And yes, I would pay $80-100K for a Corvette if it had a better interior.....GM is making strides w/the 4LT.
Tell me how you want the interior done and I will have mine customized for you and you can pay me 100k for it. I'll even throw in an extra set of rims!
11-25-2007, 12:35 AM
#33
Besides, if I wanted aftermarket I could do it myself......tks for the offer anyways.
11-25-2007, 12:40 AM
#34
Melting Slicks
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I would agree with you if that was a GM advertising program, but it's not. Just because one or two dealers offer something doesn't effect the entire market.
On the forum we tend to forget that the large majority of new Corvette buyers each year never heard of the Corvette forum and the average Chevy dealer who only sells a few a year doesn't do this.
Sure, you see the major, national dealers offering deals, but the top 3 dealers in the country account for less than 5% of all sales. Just because a dealer has a dozen or two cars and needs to move them quickly that doesn't mean the national market is going to fall apart.
For those smart enough to shop around at places like this, congratulations, but keep in mind that you are the minority!
On the forum we tend to forget that the large majority of new Corvette buyers each year never heard of the Corvette forum and the average Chevy dealer who only sells a few a year doesn't do this.
Sure, you see the major, national dealers offering deals, but the top 3 dealers in the country account for less than 5% of all sales. Just because a dealer has a dozen or two cars and needs to move them quickly that doesn't mean the national market is going to fall apart.
For those smart enough to shop around at places like this, congratulations, but keep in mind that you are the minority!
Well said!
Some people still buy at Maxie Price and Carmax! 
11-25-2007, 01:24 AM
#35
Le Mans Master
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I agree with the comments above, up to a point. And I also agree that the Corvette is not really a problem - YET.
But when the MFRs rely on constant rebates and other incentives to prop up demand, then the manufacturer often is over building. And the American manufacturers have been doing just that for a long time.
The problem is that it's hard to trust the market from a resale standpoint. If you are able to take advantage of the best rebates ever offered, you probably are okay. But when they come out with something new and there are little or no incentives, you are taking a chance.
I bought a new Expedition in January. The new version had just come out and there were $1,000 rebates. That's what I got. Six months later the rebates were something like $3,000. I take the resale hit. I guess I believed them when GM and Ford said a couple of years ago that they were going to start "right pricing" their vehicles so they could get away from rebates. Fool me once..... Good luck selling me the next one.
But when the MFRs rely on constant rebates and other incentives to prop up demand, then the manufacturer often is over building. And the American manufacturers have been doing just that for a long time.
The problem is that it's hard to trust the market from a resale standpoint. If you are able to take advantage of the best rebates ever offered, you probably are okay. But when they come out with something new and there are little or no incentives, you are taking a chance.
I bought a new Expedition in January. The new version had just come out and there were $1,000 rebates. That's what I got. Six months later the rebates were something like $3,000. I take the resale hit. I guess I believed them when GM and Ford said a couple of years ago that they were going to start "right pricing" their vehicles so they could get away from rebates. Fool me once..... Good luck selling me the next one.
11-25-2007, 04:53 AM
#36
Safety Car
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St. Jude Donor '08-'09-'10-'11-'12
Even with the discounts they are making money on every car. IMHO the goal isn't to make money by selling a few of them at a high price but rather to sell as many as possible at any price that includes a profit.
11-25-2007, 08:27 AM
#37
Drifting
Shawn,
After doing a little forum research, I'm confused. You go from saying that the new interior is world class:
http://forums.corvetteforum.com/show....php?t=1689739
to pinging it in this thread.
Looks like you wanted a Blue Devil
http://forums.corvetteforum.com/show....php?t=1738534
Then a Zo6
http://forums.corvetteforum.com/show....php?t=1669347
Then a wide body convertible
http://forums.corvetteforum.com/show....php?t=1849745
and finally settled on an Aston Martin
http://forums.corvetteforum.com/show....php?t=1861390
Heck it even appears that you wanted a GMID to purchace an 08
http://forums.corvetteforum.com/show....php?t=1676723
which seems to be your complaint in this thread! What is the deal, you wanted a discount yourself, but not for the other guys?
Me thinks there are a few sour grapes. Perhaps worries of a more “common car” next to the Astin at the stoplight gunning its engine?
After doing a little forum research, I'm confused. You go from saying that the new interior is world class:
http://forums.corvetteforum.com/show....php?t=1689739
to pinging it in this thread.
Looks like you wanted a Blue Devil
http://forums.corvetteforum.com/show....php?t=1738534
Then a Zo6
http://forums.corvetteforum.com/show....php?t=1669347
Then a wide body convertible
http://forums.corvetteforum.com/show....php?t=1849745
and finally settled on an Aston Martin
http://forums.corvetteforum.com/show....php?t=1861390
Heck it even appears that you wanted a GMID to purchace an 08
http://forums.corvetteforum.com/show....php?t=1676723
which seems to be your complaint in this thread! What is the deal, you wanted a discount yourself, but not for the other guys?
Me thinks there are a few sour grapes. Perhaps worries of a more “common car” next to the Astin at the stoplight gunning its engine?
Last edited by Bville-Bud; 11-25-2007 at 08:29 AM.
11-25-2007, 08:40 AM
#39
Race Director
Ever hear the phrase "what's good for General Motors is good for the country"?
Discounts and sales (ever hear of Black Friday? day after Christmas sales) are part of the American culture. the American economy is built on the consumer whose pysche says... If I don't get a big discount i'm not buying , if I didn't get a big discount I was raped and most iportatnly, I don't need it but look how much I will save if I buy it....
The only one to blame for GM marketing is the American consumer. All GM is doing is what it takes to sell cars in America.
Discounts and sales (ever hear of Black Friday? day after Christmas sales) are part of the American culture. the American economy is built on the consumer whose pysche says... If I don't get a big discount i'm not buying , if I didn't get a big discount I was raped and most iportatnly, I don't need it but look how much I will save if I buy it....
The only one to blame for GM marketing is the American consumer. All GM is doing is what it takes to sell cars in America.
11-25-2007, 09:00 AM
#40
Night Race Blue 427
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Heck it even appears that you wanted a GMID to purchace an 08
http://forums.corvetteforum.com/show....php?t=1676723
which seems to be your complaint in this thread! What is the deal, you wanted a discount yourself, but not for the other guys?