Dealers shouldn't make more money on ZR1 than GM

[Dysert]

On principal, it just seems wrong when a local dealer thinks they deserve more profit on the ZR1 than the guys who put all the design efforts into the car and who ultimately hold the liability for the product. I'll probably get flamed for this but if they are going to charge 30 over they should at least include a Tahoe for that price. I know the dealers are in trouble too and I guess in their minds that makes it legit. Some will say the ultimate blame lies with us the consumers because we are stupid enough to pay those prices and they are probably right.....Still holding out for an MSRP car, black/black.

[jschindler]

I don't agree with you at all. GM is smart enough to know what the long term price point should be on the car. The dealers are simply taking advantage of the short term "gotta have the first one on the block" buyers.

The dealers are also on the hook for selling most cars in their inventory below MSRP. Do you want them to sell some cars below MRSP, but not have the right to sell others over MSRP? Or, like most people, do you want it to work in your favor all the time?

[vetteship]

It's not a question of who's deserving.
GM build the car, figures out what they invoice should be, allocate a number of cars to each dealer based on his/her previous sales performance. Dealer then finances the car(s) and figure out his mark up based on how "hot the car is" (MSRP or over or under). The longer the car sits on his lot the more it's costing him. The dealers deserves to get for the car as much as the customer is willing to pay for it.

[CORVETTEZL1001]

Originally Posted by Dysert

On principal, it just seems wrong when a local dealer thinks they deserve more profit on the ZR1 than the guys who put all the design efforts into the car and who ultimately hold the liability for the product. I'll probably get flamed for this but if they are going to charge 30 over they should at least include a Tahoe for that price. I know the dealers are in trouble too and I guess in their minds that makes it legit. Some will say the ultimate blame lies with us the consumers because we are stupid enough to pay those prices and they are probably right.....Still holding out for an MSRP car, black/black.

GM loses money on every car and truck they build to the tune of $75 million lost every day hence the bailout talks. should the dealers lose money on ZR1's?

[VETTRLZ]

Originally Posted by vetteship

It's not a question of who's deserving.
GM build the car, figures out what they invoice should be, allocate a number of cars to each dealer based on his/her previous sales performance. Dealer then finances the car(s) and figure out his mark up based on how "hot the car is" (MSRP or over or under). The longer the car sits on his lot the more it's costing him. The dealers deserves to get for the car as much as the customer is willing to pay for it.

No matter how much we hate it when it doesn't work in our favor, there's no fooling the good 'ol laws of supply and demand.

Adam Smith is alive and well.

[LPE385]

There are so many ways this could be looked at but it never fails people always find something to complain about. Ever since 2001 its been 0% for 60 or 72 months, Employee Pricing, GMS, Supplier. The dealer has to give away almost every single car. They get shopped to death, "sell me a car back of hold back" and you wonder why there are some many dealers closing. Now they can't make any money on the only hot car they have to sell. If they had it priced at MSRP, people would say "wait and you will buy it for invoice" It doesn't matter how cheap you price it most will never be happy. Simply amazing! I know guys that own Chev. stores that need fuel economy cars and GM makes them take trucks before they can get a Cobalt. You have people getting turned down with 800 beacon scores right now. If they don't try they will never know. If people want to pay over let them. Get upset at the way GM exc. are making millions when the company is loosing money, get upset at their corp. jets, get upset at GM reducing their margin from invoice to MSRP, get upset at the constant price increases when times are bad, etc. Not the dealer, were still in America are we not?

[Vietnam Vette]

Originally Posted by CORVETTEZL1001

GM loses money on every car and truck they build to the tune of $75 million lost every day hence the bailout talks. should the dealers lose money on ZR1's?

The dealers may be losing money, but not on the ZR1's.

[GOLD72]

Originally Posted by VETTRLZ

No matter how much we hate it when it doesn't work in our favor, there's no fooling the good 'ol laws of supply and demand.

Adam Smith is alive and well.

So true. But an educated buyer must know the market to avoid getting hosed at any given time. Even today, you can walk into Houston dealerships and see market adjustments on the window stickers of in stock Z06s.

[GN1270]

I am sure GM figured the dealer mark up into the price and they are making more of a mark up than you think. They jacked up the cost of a Z06 by almost 5 grand in 1 shot because they could.

[Onerareviper]

I think the wrong question is being ask.... Why are cars even sold in this fashion, in this day? Kind of 'Third World', where you negociate price on everything. Just price US cars at a reasonable mark-up and sell. None of this BS MSRP/Invoice game playing crap. First come, first serve on a hot items. Dealerships can then FOCUS on CUSTOMER SERVICE to obtain/retain their customers. Yes, CUSTOMER SERVICE!!! Not to mention in the day of 'those dang internets', people know what they should be paying anyway. Or are usually somewhat close.

I know... I know... I'm sure dealerships have some contract that says they can sell the cars at any price they want. My point is dealerships need to look at the big picture and work 'COLLECTIVELY' to sell cars. It's done at Walmarts across the country. When you REALLY think about it, a car is no different than any other commodity. A product you can buy at many different locations.

P.S. - Let's be honest, Saturn would not have sold one car if it wasn't for this exact reason.

[NYC_Z06]

Mgmt and union collectively run company into the ground, CEO for whom the "Blue Devil" was supposedly nicknamed (Duke) flys private jet to DC for handout, and dealerships want to price gouge on the flagship. A re-org's not sounding like a bad idea after all...

[Hot Z06]

Originally Posted by GN1270

I am sure GM figured the dealer mark up into the price and they are making more of a mark up than you think. They jacked up the cost of a Z06 by almost 5 grand in 1 shot because they could.

COULD THEY??

They are sitting

[Wayne88]

The dealers are also on the hook for selling most cars in their inventory below MSRP. Do you want them to sell some cars below MRSP, but not have the right to sell others over MSRP?

In this economy, if the dealerships can make some legitimate profit, from willing customers--let them make it.

[mkerouac]

One of the benefits of living in America is a free market economy. Yet all we do is whine when a dealer can actually make some money. If you all could have ordered ZR1's at sticker then sold them on ebay for a $30k profit, I bet the comments on here would all be about what a great country we live in.

It's not like GM has a monopoly on Super Cars. If you think the prices are too high or dealers are gouging, don't buy. If no one buys, prices go down. If supply meets demand prices stay stable, if there are more buyers than cars prices stay high. Simple supply and demand economics. If you can't afford to pay a premium or if your values simply won't let you pay over sticker, then just walk away. There are plenty of alternatives at or below sticker.

I personally paid a premium and I'm ok with it. I wanted the car now and it was worth the extra $$ to me. This is the best Corvette ever made, the new King of the Road and it kicks butt over cars costing $30k to $100k more. Even at a premium it's a bargain compared to it's peers. That's another reason why you see prices staying above MSRP.

[danl72]

Originally Posted by Wayne88

In this economy, if the dealerships can make some legitimate profit, from willing customers--let them make it.

It is a matter of supply and demand. If people are willing to pay the money, so be it. Dealers would not list the price if they were not selling them.