C82021

Highly unusual situation. A highly acclaimed "$60,000 affordable to the masses supercar"--that ISN'T that price and isn't really THAT affordable. In the REAL world with REAL money--$60k is the C7... NOT the C8! Talk about having your cake and eating it too if you're GM!

Here's the deal. WE have VOLUNTARILY raised the price of the C8. NOT GM.

Fact: the AVERAGE sold C7, latest model, came in (quite ironically) at about $60,000.
Fact: Buyers lined up to buy the new C8 at an average price OF $75,000 TO $78,000.
Fact: The average new C8 is loaded to the hilt: now averaging $86,200 in Feb--BEFORE the price hike.

The C8 is now typically 43% more expensive than the C7 it succeeded. Actual cars sold. Not a silly advertised base price. Affordable?? Hmm...compared with Lambo, sure. But really???

See what's happening? The price is rising big time. "$60K affordable car" is the c7. NOT the C8.

GM is letting US increase the price--they don't need to.

So...watch for a VERY MODEST base hike, with modest increases in popular options. Its just too intoxicating for GM to be able to pound its chest at $60,000 when the real price is 43% higher, Why ruin that game?

WE will push the average cost to just under $90K. GM will continue to gloat about a maybe $62K car--that few customers buy.

LIE2ME

Also keep in mind that GM needs to space out the base prices of the various C8 models/packages. It hurts sales for the prices to run together too easily My best guess at base price of the coupe will probably looks like this:

1. Stingray: $61,000.00 with an average of $15,000.00 to $20,000.00 in options.
2. E-Ray : $75,000.00 with an average of $15,000.00 to $20,000.00 in options.
3. Z06: $90,000.00 with an average of $20,000.00 to $30,000.00 in options.
4. ZR1 (Zora): $125,000.00 with an average of $20,000.00 to $30,000.00 in options.

Anyway, my 2c

C82021

Bingo. I think you're right in the ballpark.

Mr Snappy!

Wrong.
Simple supply and demand. More demand than supply means the supplier WILL raise prices. It is much better to raise the price now while the car is hot and then offer incentive and rebates later if sales drop off.
The "raised" price you state is not a raised price...it is adding additional options which also have a cost associated with it to GM.

My guess is that the base car will go up $2500 and almost all options will increase by some amount. Look for the Z-51 package to increase by another $1000.

RVAC8

I don't think it will even go up that much. I think it will go up $1500.

C82021

I don't see why you say I'm "wrong" when you're saying essentially the same thing. Options have huge margins so adding options raises the price. This is simple economics. I think you'll see a $1995 to $2495 hike on base. I won't argue with your $2500. It WON'T be the $5K I hear people worried about...
What's happening is this: you got a stripped down version selling just above its cost. EVERY incremental add-on juices profit. So when the new, more affluent buyer floods GM will purchases--it drives the price higher, but drives the profit through the roof. A $75.000 C8 is modestly more profitable to the dealer compared to the base but MASSIVELY more profitable for GM. And NOW that buyer is paying $86K on average . Again, BUYERS choice. Its all good. Buyer gets car he wants GM makes massively more money. De facto price increase--thats voluntary.

foo.c

This ignores the supply chain. Input prices are going up.

On the demand side they have orders in excess of capacity.

All that adds up to price increase.

Mr Snappy!

I think the difference in our points is that you seem to say that because they are making a killing on options, that they won't raise the price further. They will.
Also, everyone is using the $86K "average" price. While it is true, people forget that include a huge amount of Vert's that has a $7500 higher price right off the bat.
It does not matter how much profit GM is currently making...which is substantial. What matters is can they get more? The answer is very much yes. Although we agree that the base will probably go up around $2500, I do believe the "average" increase after all the options will be around $5000 if people keep equipping like they currently are. And while people will complain, it wont change a thing when it comes to the THOUSANDS still waiting for a spot on the production line.

msm859

The difference in price between the base and GS on the C7 was $10k. I think they will keep the same spread between the base and E-Ray. They are going to want to sell more of the E-Ray's to increase the average MPG of the Corvette line. They will NOT be marketing it that way but instead be marketing the superior performance. It will not costs GM $10k to add the hybrid parts.

Phil1098

I guess the fact that my car was $63,280 doesn't count, and I'm one of the no ones?

Mr Snappy!

Weird flex...but ok. You are by far in the minority but it does not matter if you are happy with your choice.

RKCRLR

My guess is all cars are going to go up in price, not just C8s.
The pricing strategies were set before the strike, COVID, chip shortages, etc. I'm sure automaker profits are not aligned with what they projected before COVID.
Companies are not working as efficiently as they were prior to COVID. There are losses that they will want to make up for and ongoing inefficiencies that need to be accounted for. These increased costs will ripple through the supply chain and ultimately drive an increase in MSRP beyond what was initially planned.

BobG

Welcome to something probably most working aged adults have never experienced: major price inflation. Back in the 70's, it was the sudden, and very large increase in the price of oil, that is used in so many different ways in our modern lives, that was the spark that lit the forest fire. The costs of this virus, and what it's done to the cost of manufacturing goods is going to have to be borne by someone...and I'd bet most of it by the end user. I'm not smart enough to know how much Corvette prices are going to go up, but I think prices of everything will continue to go up, more than many of us have become accustomed to.

Phil1098

My point was, while I know lower optioned cars are the minority, it's false to say no one buys them because they do.

thill444

I fully expect a price increase. I believe it will be somewhere between $1500-3000, but no more than that. I doubt it would put a dent on sales due to continued supply and demand issues.

Having said that I expect some improvements with that increase or perhaps making things like the rear view mirror camera standard. GM has done this historically with the Corvette. As the price slightly increases they offer improvements/more standard features. If they raised the price $1500 but made the rear view camera and or blind spot monitoring standard, I bet most people would be fine with that.

Zymurgy

Your analysis ignores the fact that the early years of a new model are always skewed to the Z51 and 3LT segments. You need to compare 2014 average selling prices, not 2019 and then adjust those for inflation (or use the 2019 prices on the 2014 model/option mix). Once the other models are out (Z06, e-Ray, whatever) the Stingray will trend towards the lower optioned, lower trim levels and the higher trims and options will be seen on the upper models. To use your words: Fact.

C82021

Not a “no one”...but a “smart one”. You’re $23k under blended average of ALL cars. A surprisingly small number of C8s are 1LTs. Damn good cars.

C82021

Well, we’re later in year 2, admittedly not “normal” years and there’s no drop off in 3LT demand. The lists I see on MM, anecdotally seems to show an increase in 3LTs if anything, and roughly only 10% or so of 1LTs...AND....

The average sales price is HIGHER, quite substantially in 2021 MY vs. C8 2020 MY...BEFORE the 3/1 price hike. So, perhaps we do revert to that trend you point out and yes it’s very pronounced in previous cycles, but there’s no indication of it so far. Maybe year 3..My money is on HIGHER average price rather than lower. Or maybe it softens in year 4..

Id like to see 2015 average sales prices relative to same period C8 2021...I agree that would be more apples to apples. I think, even inflation adjusted, it would be rather telling....

C82021

Excellent points! GM will play the PR game with a modest press release number. Then you go build your car and it’s “hey, WTF that’s 6 grand more than I expected!”.
And, yes, no matter how you slice it a stressed supply chain, with higher prices across the board, demands higher prices.

RockSolid

There is no sign prices for used C8's are softening: Manheim dealer auction Phoenix sold this morning a 2020 white 2LT with 3100 miles for $98,500.