Has the corvette finally priced it self out of the new car sales for the mid- high in
03-06-2010, 08:37 AM
#61
Le Mans Master
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Thankfully, I'm now one of the one's who own my '07 outright. 
But I wouldn't feel right to let my perfectly good vette go for the mere down payment toward a new one (a Z06 though). I'll see what the future brings but I doubt I'd be selling/trading only to go into another lengthy term of payments.
But I wouldn't feel right to let my perfectly good vette go for the mere down payment toward a new one (a Z06 though). I'll see what the future brings but I doubt I'd be selling/trading only to go into another lengthy term of payments.
and here's some food for thought. Back in the day if you could afford a vette you could usually afford the highest performance options offered by GM. I owned an L88 which wasn't outrageously more expensive than a base engine configuration. Sadly GM moved the bar way way out of my reach starting with the Z06 and now the ZR1. I can afford a regular vette but have ZERO chance at buying a ZR1 unless I want to live in it.Sure those high end vettes are great perhaps even a bargain of sorts but still out of the reach of most vette buyers. In a way it's fractured the vette community because of the cost and status of those models. Again I'm not saying it's all bad only that I believe GM has created an elitist class of vette owners... to some extent with the Z06 but especially with the ZR1. Many of those owners aren't really vette people but simply bought the ZR1 because of status and snob appeal in my opinion. Yea some could have even bought a true exotic but wanted the bragging rights of the ZR1.
Yes I'm well aware that mfg like Porsche has done this with it's many models for years but the vette was always a different market model. Anyone that could afford a vette could probably buy the highest performance available... well not so anymore!
I'm not sure dividing up the vette community by the cost of the cars is the best way to sell more vettes.. if indeed that's the end game.... You now have OP's that will say if I can't afford the BEST vette I'm not buying one at all............... Just something to think about!
03-06-2010, 08:46 AM
#62
I politely disagree.
Everything is relative. Find another model car with similar performance and amenities and you will pay more. I bought my car a week ago. A 2009 3LZ Z06 the dealer had for 18 months. I paid $63,500. Certainly one of the best deal out there. I could have gotten anything. Wife wanted me to buy a Ferrari but the maintenance cost would have ruined it for me. Before I found my car (which was exactly what I would have ordered for NCM delivery) I was ready to pay $7,000 to $10,000 more for a new car with NCM delivery. I am thrilled with my car.
The biggest problem car buyers have is patience. I have gotten anywhere from really good to world class deals. You may have to settle for a little bit different car than you originally wanted but there are good to great new prices out there. Now, if you want a new GS which is a new model today you won't get that great of a deal. Look at a 2009 or a 2008 that is still in the floor plan and you will do better.
Here is another example Dec 2008 I bought a White 4 door Ford Lariat F350 2WD Dually for the business. Tax, bed liner, goose neck hitch $42,150 out the door. Today this truck has depreciated zero and may be worth more than I paid for it. BTW, diesel was $4.50 a gal and it was snowing the day I purchased. You have to pick you times.
You just have to hunt. One hint, small dealerships in small towns sometimes get cars like corvettes they can't sell. Try to find dealerships which are not part of a company that owns lots of stores. They have less opportunity to sell higher end vehicles. Don't marry to the car. Be honest. If you want that car tell the salesman if they can't sell the car and are ready to accept my offer, call but don't call otherwise. Let him know you are shopping but in no rush and can take a year to find the car at the price you are willing to pay. If you are brave buy over the phone. Dealers have a hard time pushing you and playing games in this situation. I have done this twice without any problems.
By the way, I could not be happier than I am with my Z06 which I bought for the same price I would have paid for the GS I was looking at.
And I got them to throw in the Ipod adapter for free!!
Everything is relative. Find another model car with similar performance and amenities and you will pay more. I bought my car a week ago. A 2009 3LZ Z06 the dealer had for 18 months. I paid $63,500. Certainly one of the best deal out there. I could have gotten anything. Wife wanted me to buy a Ferrari but the maintenance cost would have ruined it for me. Before I found my car (which was exactly what I would have ordered for NCM delivery) I was ready to pay $7,000 to $10,000 more for a new car with NCM delivery. I am thrilled with my car.
The biggest problem car buyers have is patience. I have gotten anywhere from really good to world class deals. You may have to settle for a little bit different car than you originally wanted but there are good to great new prices out there. Now, if you want a new GS which is a new model today you won't get that great of a deal. Look at a 2009 or a 2008 that is still in the floor plan and you will do better.
Here is another example Dec 2008 I bought a White 4 door Ford Lariat F350 2WD Dually for the business. Tax, bed liner, goose neck hitch $42,150 out the door. Today this truck has depreciated zero and may be worth more than I paid for it. BTW, diesel was $4.50 a gal and it was snowing the day I purchased. You have to pick you times.
You just have to hunt. One hint, small dealerships in small towns sometimes get cars like corvettes they can't sell. Try to find dealerships which are not part of a company that owns lots of stores. They have less opportunity to sell higher end vehicles. Don't marry to the car. Be honest. If you want that car tell the salesman if they can't sell the car and are ready to accept my offer, call but don't call otherwise. Let him know you are shopping but in no rush and can take a year to find the car at the price you are willing to pay. If you are brave buy over the phone. Dealers have a hard time pushing you and playing games in this situation. I have done this twice without any problems.
By the way, I could not be happier than I am with my Z06 which I bought for the same price I would have paid for the GS I was looking at.
And I got them to throw in the Ipod adapter for free!!
Last edited by why1504; 03-06-2010 at 09:07 AM.
03-06-2010, 08:50 AM
#63
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I don't get it. Is $65k "out of the market" for my new 6 speed auto GS Convert.? Lets put in perspective against other 4 second convertibles:
Mercedes SL63: $150,000
Porsche 911: $100,000
Jaguar XJ: $95,000
Ford Mustang GT500 Convert: $59,000 (Can't get an automatic trans)
I think the price point for the corvette is right on the money.
Mercedes SL63: $150,000
Porsche 911: $100,000
Jaguar XJ: $95,000
Ford Mustang GT500 Convert: $59,000 (Can't get an automatic trans)
I think the price point for the corvette is right on the money.
03-06-2010, 08:58 AM
#64
Race Director
03-06-2010, 09:54 AM
#65
Le Mans Master
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I politely disagree.
Everything is relative. Find another model car with similar performance and amenities and you will pay more. I bought my car a week ago. A 2009 3LZ Z06 the dealer had for 18 months. I paid $63,500. Certainly one of the best deal out there. I could have gotten anything. Wife wanted me to buy a Ferrari but the maintenance cost would have ruined it for me. Before I found my car (which was exactly what I would have ordered for NCM delivery) I was ready to pay $7,000 to $10,000 more for a new car with NCM delivery. I am thrilled with my car.
The biggest problem car buyers have is patience. I have gotten anywhere from really good to world class deals. You may have to settle for a little bit different car than you originally wanted but there are good to great new prices out there. Now, if you want a new GS which is a new model today you won't get that great of a deal. Look at a 2009 or a 2008 that is still in the floor plan and you will do better.
Here is another example Dec 2008 I bought a White 4 door Ford Lariat F350 2WD Dually for the business. Tax, bed liner, goose neck hitch $42,150 out the door. Today this truck has depreciated zero and may be worth more than I paid for it. BTW, diesel was $4.50 a gal and it was snowing the day I purchased. You have to pick you times.
You just have to hunt. One hint, small dealerships in small towns sometimes get cars like corvettes they can't sell. Try to find dealerships which are not part of a company that owns lots of stores. They have less opportunity to sell higher end vehicles. Don't marry to the car. Be honest. If you want that car tell the salesman if they can't sell the car and are ready to accept my offer, call but don't call otherwise. Let him know you are shopping but in no rush and can take a year to find the car at the price you are willing to pay. If you are brave buy over the phone. Dealers have a hard time pushing you and playing games in this situation. I have done this twice without any problems.
By the way, I could not be happier than I am with my Z06 which I bought for the same price I would have paid for the GS I was looking at.
And I got them to throw in the Ipod adapter for free!!
Everything is relative. Find another model car with similar performance and amenities and you will pay more. I bought my car a week ago. A 2009 3LZ Z06 the dealer had for 18 months. I paid $63,500. Certainly one of the best deal out there. I could have gotten anything. Wife wanted me to buy a Ferrari but the maintenance cost would have ruined it for me. Before I found my car (which was exactly what I would have ordered for NCM delivery) I was ready to pay $7,000 to $10,000 more for a new car with NCM delivery. I am thrilled with my car.
The biggest problem car buyers have is patience. I have gotten anywhere from really good to world class deals. You may have to settle for a little bit different car than you originally wanted but there are good to great new prices out there. Now, if you want a new GS which is a new model today you won't get that great of a deal. Look at a 2009 or a 2008 that is still in the floor plan and you will do better.
Here is another example Dec 2008 I bought a White 4 door Ford Lariat F350 2WD Dually for the business. Tax, bed liner, goose neck hitch $42,150 out the door. Today this truck has depreciated zero and may be worth more than I paid for it. BTW, diesel was $4.50 a gal and it was snowing the day I purchased. You have to pick you times.
You just have to hunt. One hint, small dealerships in small towns sometimes get cars like corvettes they can't sell. Try to find dealerships which are not part of a company that owns lots of stores. They have less opportunity to sell higher end vehicles. Don't marry to the car. Be honest. If you want that car tell the salesman if they can't sell the car and are ready to accept my offer, call but don't call otherwise. Let him know you are shopping but in no rush and can take a year to find the car at the price you are willing to pay. If you are brave buy over the phone. Dealers have a hard time pushing you and playing games in this situation. I have done this twice without any problems.
By the way, I could not be happier than I am with my Z06 which I bought for the same price I would have paid for the GS I was looking at.
And I got them to throw in the Ipod adapter for free!!
I was a rookie state police officer 24 years ago and could still afford to buy a NEW vette. That would not not possible today with the present cost of a vette. It is what it is.. not saying there aren't justifiable reasons why a vette costs what it does! It may well be a bargain but nevertheless how many people can afford 55 to 60k for a toy? A new loaded vette takes a greater portion of my annual income then it did 24 years ago! Back then I could also fix almost anything on it.. not so with the costly electronics today!
There will always be people that can afford exotics, etc but I suspect the pool has actually been shrinking on how many people can afford new vettes. To many people bought them on a wing and prayer and have had to sell them or worse now. Credit was to easy and folks got into cars they clearly couldn't afford..... sure it was great while it lasted but I suspect those days are done. Look at the used vette market, look at total vette sales now? What do you see? For the most part a disaster....... it's exactly why you were able to make such a great buy on that car. Congrats BTW! It wasn't to long ago Z's were selling for 20k more than sticker! Think about that.... would you have paid 10 or 20k over sticker for your Z? Well lots of people did and some could ill afford to do it but credit was easy.
All I'm saying is GM has to study their market model for corvettes now. If they want to keep selling the number they had up to 2007 then some changes need to be made. Perhaps the vette will become a very limited production car which will further escalate prices. I'm certain GM is concerned about the long term viability of Corvette...
03-06-2010, 10:11 AM
#66
Race Director
and here's some food for thought. Back in the day if you could afford a vette you could usually afford the highest performance options offered by GM. I owned an L88 which wasn't outrageously more expensive than a base engine configuration. Sadly GM moved the bar way way out of my reach starting with the Z06 and now the ZR1. I can afford a regular vette but have ZERO chance at buying a ZR1 unless I want to live in it.Sure those high end vettes are great perhaps even a bargain of sorts but still out of the reach of most vette buyers. In a way it's fractured the vette community because of the cost and status of those models. Again I'm not saying it's all bad only that I believe GM has created an elitist class of vette owners... to some extent with the Z06 but especially with the ZR1. Many of those owners aren't really vette people but simply bought the ZR1 because of status and snob appeal in my opinion. Yea some could have even bought a true exotic but wanted the bragging rights of the ZR1.
Yes I'm well aware that mfg like Porsche has done this with it's many models for years but the vette was always a different market model. Anyone that could afford a vette could probably buy the highest performance available... well not so anymore!
I'm not sure dividing up the vette community by the cost of the cars is the best way to sell more vettes.. if indeed that's the end game.... You now have OP's that will say if I can't afford the BEST vette I'm not buying one at all............... Just something to think about!
03-06-2010, 10:25 AM
#67
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You just made my point! You are one of the very rare individuals that could have afforded a Ferrari. Great for you but I'm willing to wager the vast majority of people here CAN NOT afford an exotic even if the maintenance was free! Bottom line is there is a point at which corvette volume suffers because of the cost. It's a 2 seat nice toy for most folks.. not a DD! Obviously 60k isn't a big deal to you but I submit it's a major purchase for most people. You think young guys can simply afford a 60k car?
I was a rookie state police officer 24 years ago and could still afford to buy a NEW vette. That would not not possible today with the present cost of a vette. It is what it is.. not saying there aren't justifiable reasons why a vette costs what it does! It may well be a bargain but nevertheless how many people can afford 55 to 60k for a toy? A new loaded vette takes a greater portion of my annual income then it did 24 years ago! Back then I could also fix almost anything on it.. not so with the costly electronics today!
There will always be people that can afford exotics, etc but I suspect the pool has actually been shrinking on how many people can afford new vettes. To many people bought them on a wing and prayer and have had to sell them or worse now. Credit was to easy and folks got into cars they clearly couldn't afford..... sure it was great while it lasted but I suspect those days are done. Look at the used vette market, look at total vette sales now? What do you see? For the most part a disaster....... it's exactly why you were able to make such a great buy on that car. Congrats BTW! It wasn't to long ago Z's were selling for 20k more than sticker! Think about that.... would you have paid 10 or 20k over sticker for your Z? Well lots of people did and some could ill afford to do it but credit was easy.
All I'm saying is GM has to study their market model for corvettes now. If they want to keep selling the number they had up to 2007 then some changes need to be made. Perhaps the vette will become a very limited production car which will further escalate prices. I'm certain GM is concerned about the long term viability of Corvette...
I was a rookie state police officer 24 years ago and could still afford to buy a NEW vette. That would not not possible today with the present cost of a vette. It is what it is.. not saying there aren't justifiable reasons why a vette costs what it does! It may well be a bargain but nevertheless how many people can afford 55 to 60k for a toy? A new loaded vette takes a greater portion of my annual income then it did 24 years ago! Back then I could also fix almost anything on it.. not so with the costly electronics today!
There will always be people that can afford exotics, etc but I suspect the pool has actually been shrinking on how many people can afford new vettes. To many people bought them on a wing and prayer and have had to sell them or worse now. Credit was to easy and folks got into cars they clearly couldn't afford..... sure it was great while it lasted but I suspect those days are done. Look at the used vette market, look at total vette sales now? What do you see? For the most part a disaster....... it's exactly why you were able to make such a great buy on that car. Congrats BTW! It wasn't to long ago Z's were selling for 20k more than sticker! Think about that.... would you have paid 10 or 20k over sticker for your Z? Well lots of people did and some could ill afford to do it but credit was easy.
All I'm saying is GM has to study their market model for corvettes now. If they want to keep selling the number they had up to 2007 then some changes need to be made. Perhaps the vette will become a very limited production car which will further escalate prices. I'm certain GM is concerned about the long term viability of Corvette...
In 2007, they sold over 40,000 C6s. After that, they started to increase the price quite a bit. Just did a comparison of my C6 with same options today and the difference is ridiculous. 2010 invoice would be $54716, while my 2007 invoice was $50344 ($4400 in difference). And then I think about the people who bought a Z51 and to get same suspension, will cost them another $4-5K more. So its hard to expect people who have a 3-4 year old C6 to trade in/sell and buy a new one that cost $4-10K more than what they just paid 3-4 years ago. Sure the economy took a dive, and that is a huge part of it, and yes, there were people who really couldn't afford the C6 2-4 years ago and they had to get rid of them. But increasing car prices continually is just nuts in this economy.
So while I'm not priced out of the Corvette market yet, I can only afford to buy a new one every 5 years at best. Sure I could do it now or next year, but as much as I like new cars, the financial side of me just won't let me waste the money.
03-06-2010, 10:44 AM
#68
I agree with some of what you say. In my case I do not buy toys on credit. It wasn't always like that but 5 years ago I got out of debt and promised myself not to go back there. I only borrow money for houses and limited investments. I don't like credit at all period. Could I have purchased a Corvette 5 years ago? Yes. My banker would have loved it as I would have borrowed the money. I don't borrow money for cars. Let me add a little different perspective here. 30 years ago no one walked around with the latest PDA (notice this term is going away today) Phone. No one had more than 2 tv's in their house. While I was in college i had a Black and white tv no cable. I couldn't get a credit card but I could borrow money to buy a new corvette. Spin forward. Everyone has at least 2 flat panel tv's, cable, HiDef, PS3, Wii, iPhones, and credit cards that they use at Macdonalds to buy a hamburger but borrowing the money to but a high end car is much more difficult.
Honestly, with the government and the unions running GM I am somewhat surprised that the Corvette has lasted this long. Historically the Corvette has been a Marquee brand. An Identifier. But when non car guys begin running car companies that doesn't matter any more. I expect GM is loosing money on the corvette today. Will it survive? I won't offer an opinion here as it is politically biased. However, this business is changing for every car company and supplier out there. I remember when the 427's went away a long long time ago. The car business and it's customers moved into the darkest period in it's history until today. We customers have yet to suffer from the changes but it is coming and one of the reasons I have my Z06.
With regard to my choices, I found an equally good deal on a Ferrari as I got on the Corvette. And remember, in 72 when the Corvette was about $7,000 the 365GTB/4 Daytona that won the Canonball in 1971 by Dan Gurney and Brock Yates was offered to Gurney after the race for $15,000. What is that car worth today? I cant image but would love to make the run from NY to LA in 35 hours like they did!!
Honestly, with the government and the unions running GM I am somewhat surprised that the Corvette has lasted this long. Historically the Corvette has been a Marquee brand. An Identifier. But when non car guys begin running car companies that doesn't matter any more. I expect GM is loosing money on the corvette today. Will it survive? I won't offer an opinion here as it is politically biased. However, this business is changing for every car company and supplier out there. I remember when the 427's went away a long long time ago. The car business and it's customers moved into the darkest period in it's history until today. We customers have yet to suffer from the changes but it is coming and one of the reasons I have my Z06.
With regard to my choices, I found an equally good deal on a Ferrari as I got on the Corvette. And remember, in 72 when the Corvette was about $7,000 the 365GTB/4 Daytona that won the Canonball in 1971 by Dan Gurney and Brock Yates was offered to Gurney after the race for $15,000. What is that car worth today? I cant image but would love to make the run from NY to LA in 35 hours like they did!!
03-06-2010, 10:47 AM
#69
Melting Slicks
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yea no.. my house is worth less than a ferrari. (then again these days most peoples are it seems..)
consequently.. I dont have a yacht either.
I don't see my IT work getting me that far financially either. But hey, I'm comfortable where I am and I enjoy what I do.
I agree with Brisco (and cthusker.) I'd hate to see GM jack the price up and then say "well it's not selling all that well so we're just gonna get rid of it."
Had GM not made the decisions to can cars they've already made.. I may not be here right now.. but on the G8 forums instead.
consequently.. I dont have a yacht either.
I don't see my IT work getting me that far financially either. But hey, I'm comfortable where I am and I enjoy what I do.
I agree with Brisco (and cthusker.) I'd hate to see GM jack the price up and then say "well it's not selling all that well so we're just gonna get rid of it."
Had GM not made the decisions to can cars they've already made.. I may not be here right now.. but on the G8 forums instead.
03-06-2010, 10:54 AM
#70
03-06-2010, 12:45 PM
#71
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Bottom line... I honestly believe the vette is right at the cusp of what average folks can afford to pay for a toy! Yes the econ rots but I also believe vette sales were going to take a hit even with a better econ. I love the vette and have owned 8 of them! I'm going to keep my 06 because it's paid for and I don't want more debt. Yea.. if I piles of cash laying around I'd go buy a nice USED Z06! That's simply not happening so I'll drive mine and enjoy it.
I really hope the vette survives in it's present form. A car that many people can afford to buy, but I think it's getting close to being to expensive for most people to own... as a toy! Someone will pay 40 or 50k for a DD but not a weekend fun thing! Mine is strictly a weekend toy and garaged all winter. I simply can't justify spending 60 or 70k for something I put about 5000 miles a year on..... I also suspect there are lots of people in the same position I'm in...
BTW.. enjoy the new car! I've gotten a fair amount of track time in a Z06 and it's a really fun car to flog!
03-06-2010, 12:56 PM
#72
I think your dollar per mile cost is spot on! That's almost exactly what a friend told his F-car cost to run! Since he makes around 500k a year it doesn't matter to him..... for me... I'd be sleeping in the damn thing!
Bottom line... I honestly believe the vette is right at the cusp of what average folks can afford to pay for a toy! Yes the econ rots but I also believe vette sales were going to take a hit even with a better econ. I love the vette and have owned 8 of them! I'm going to keep my 06 because it's paid for and I don't want more debt. Yea.. if I piles of cash laying around I'd go buy a nice USED Z06! That's simply not happening so I'll drive mine and enjoy it.
I really hope the vette survives in it's present form. A car that many people can afford to buy, but I think it's getting close to being to expensive for most people to own... as a toy! Someone will pay 40 or 50k for a DD but not a weekend fun thing! Mine is strictly a weekend toy and garaged all winter. I simply can't justify spending 60 or 70k for something I put about 5000 miles a year on..... I also suspect there are lots of people in the same position I'm in...
BTW.. enjoy the new car! I've gotten a fair amount of track time in a Z06 and it's a really fun car to flog!
Bottom line... I honestly believe the vette is right at the cusp of what average folks can afford to pay for a toy! Yes the econ rots but I also believe vette sales were going to take a hit even with a better econ. I love the vette and have owned 8 of them! I'm going to keep my 06 because it's paid for and I don't want more debt. Yea.. if I piles of cash laying around I'd go buy a nice USED Z06! That's simply not happening so I'll drive mine and enjoy it.
I really hope the vette survives in it's present form. A car that many people can afford to buy, but I think it's getting close to being to expensive for most people to own... as a toy! Someone will pay 40 or 50k for a DD but not a weekend fun thing! Mine is strictly a weekend toy and garaged all winter. I simply can't justify spending 60 or 70k for something I put about 5000 miles a year on..... I also suspect there are lots of people in the same position I'm in...
BTW.. enjoy the new car! I've gotten a fair amount of track time in a Z06 and it's a really fun car to flog!
03-06-2010, 01:20 PM
#76
Melting Slicks
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St. Jude Donor '07-'08-'09-'10-'11-'12-'13-'14-'15-'16-'17-'18-'19-'20-'21-'22-'23-'24
A used car is always cheaper than a new car, Vette or otherwise. Those that buy used get used, and those that buy new get new. Duh.
One thing about a NEW Vette: you can get the Buyer's Tour and Museum Delivery, a couple of unforgettable experiences available with very few other cars. My Vette is MY Vette. I saw it being born and slapped it on its bottom. I paid more and I get more. That's how the world works.
One thing about a NEW Vette: you can get the Buyer's Tour and Museum Delivery, a couple of unforgettable experiences available with very few other cars. My Vette is MY Vette. I saw it being born and slapped it on its bottom. I paid more and I get more. That's how the world works.
03-06-2010, 02:44 PM
#77
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I get the logic behind that, but the number of situations where at 2 seat RWD sports car can be a daily driver is limited as it is...then when people want to trade convenience for a sports car, the price is in the 50s and 60s or higher it leads to less sales. The 48k starting MSRP for a 1LT with no options (even though you don't pay that) isn't cheap. If the starting MSRP stuck around 42k I think you'd see even more reachable deals if a fully loaded 3LT with Nav could be had for low to mid 40s. But thats just my opinion.
03-06-2010, 03:07 PM
#78
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Who can afford a new Corvette?
The word afford means different things to different people. To some, and I think probably most people, it means that they have good credit, a good job, and enough monthly income to afford the monthly payments on whatever they are in the market for. Previously I posted this;
Household Income Distribution
Bottom 10%
$0 to $10,500
Bottom 20%
$0 to $18,500
Bottom 25%
$0 to $22,500
Middle 33%
$30,000 to $62,500
Middle 20%
$35,000 to $55,000
Top 25%
$77,500 and up
Top 20%
$92,000 and up
Top 5%
$167,000 and up
Top 1.5%
$250,000 and up
Top 1%
$350,000 and up
And this;
Base prices of 2010 Corvettes
Coupe $49,880
Vert $54,530
GS Coupe $55,720
GS Vert $59,530
Z06 $75,235
ZR1 $109,130
And this example;
Down payments vari, but as an example, let's say someone was to buy a 2009 with 0% financing, and let's say the total OTD cost was $50,000, with a 10% down. That would be, $45,000 @ 0% for 60 mos. = $750 per month. I figure the D.M.V. + insurance + an oil change at my dealership = $1,200 per year, or $100 per month. Add that to this sample payment and it's up to $850 per month for an inexpensive, $45,000 Vette.
Then AO Roads posted a rule of thumb that "one shouldn't pay more than half of their annual income on a car.," I think this is high, I've heard one third of annual income. This got me thinking that for a lot of Vette buyers, the Vette is mostly a toy, and not their DD, so they need at least one other car to.
To bring this all together, it looks to me that any potential new Vette buyer, that is going to make payments, should be in at least the top 20% of household income earners. So that leaves out 80% of the population, and out of that 20% only a very small fraction would consider a new Vette purchase anyway. To move up to a Z06 with payments, we're almost talking the top 5% of earners, and to move up to the ZR1, we're talking the top 1.5% of earners. The stupid part of this, and right to the OP's point, is most real car guys in this country are not in the top 20% of earners. Make sense?
Of course there will always be guys that will try to shoe horn themselves into something they shouldn't be buying. There are also the posts from guys that bought used, or new '08, and '09 recession priced deals, but these recession priced deals do not reflect a viable, long term business model for G.M. going forward. There are also the guys that pay cash for their Vette, but if these guys were a large percentage of Corvette buyers, there wouldn't be any new Vettes. G.M. has priced out a whole lot of folks that would truly love owning a new Corvette, and I think the Corvette's biggest fans.
Household Income Distribution
Bottom 10%
$0 to $10,500
Bottom 20%
$0 to $18,500
Bottom 25%
$0 to $22,500
Middle 33%
$30,000 to $62,500
Middle 20%
$35,000 to $55,000
Top 25%
$77,500 and up
Top 20%
$92,000 and up
Top 5%
$167,000 and up
Top 1.5%
$250,000 and up
Top 1%
$350,000 and up
And this;
Base prices of 2010 Corvettes
Coupe $49,880
Vert $54,530
GS Coupe $55,720
GS Vert $59,530
Z06 $75,235
ZR1 $109,130
And this example;
Down payments vari, but as an example, let's say someone was to buy a 2009 with 0% financing, and let's say the total OTD cost was $50,000, with a 10% down. That would be, $45,000 @ 0% for 60 mos. = $750 per month. I figure the D.M.V. + insurance + an oil change at my dealership = $1,200 per year, or $100 per month. Add that to this sample payment and it's up to $850 per month for an inexpensive, $45,000 Vette.
Then AO Roads posted a rule of thumb that "one shouldn't pay more than half of their annual income on a car.," I think this is high, I've heard one third of annual income. This got me thinking that for a lot of Vette buyers, the Vette is mostly a toy, and not their DD, so they need at least one other car to.
To bring this all together, it looks to me that any potential new Vette buyer, that is going to make payments, should be in at least the top 20% of household income earners. So that leaves out 80% of the population, and out of that 20% only a very small fraction would consider a new Vette purchase anyway. To move up to a Z06 with payments, we're almost talking the top 5% of earners, and to move up to the ZR1, we're talking the top 1.5% of earners. The stupid part of this, and right to the OP's point, is most real car guys in this country are not in the top 20% of earners. Make sense?
Of course there will always be guys that will try to shoe horn themselves into something they shouldn't be buying. There are also the posts from guys that bought used, or new '08, and '09 recession priced deals, but these recession priced deals do not reflect a viable, long term business model for G.M. going forward. There are also the guys that pay cash for their Vette, but if these guys were a large percentage of Corvette buyers, there wouldn't be any new Vettes. G.M. has priced out a whole lot of folks that would truly love owning a new Corvette, and I think the Corvette's biggest fans.
03-06-2010, 03:34 PM
#79
Drifting
While I absolutely agree with you .... it does seem to work for some. Audi comes to mind. Its a damn VW for Christ sake.
03-06-2010, 04:26 PM
#80
Race Director
Is the vette over priced, not IMO. My truck's MSRP was the same as my vette's. I remember buy my Camaro in the 70's. I looked at the vette also but it was 3 times the money and I could not afford that. The vette is still 3 times the cost of the Camaro. Seems it is all relative.