Do dealers need an allocation for C7
 

Like the title says will dealers need to secure an allocation to order a C7?

Yes, they will. Dealer guidelines were set when the next generation Corvette was announced to dealers last year and the order guidelines were established for the end of the model year. Dealers need to have sold four Corvettes last year to even be in consideration for a C7 order and allocations will be distributed from that pool.

That sucks, been down that route with the ZL1 was not fun.

Those that sold the C6 aggressively like MacMulkin over the past two or three years are going to be rewarded with many profitable allocations for the C7.

On the other hand, though, I'm assuming this has nothing to do with ordering one from a dealer...

Ya, I waited a year with an allocation for a ZL1, and got tired of waiting. Other dealers would gets cars in an have them sit on a lot for $5,00 - $10,000 markup. But a sold order couldn't get priority.
The system puts dealers first instead of customers first.

Wrong, if you order from a low volume dealer you will have to wait longer for them to get their allocation. So plan accordingly.

I see. I assumed allocation was only counting vehicles shipped to be shown/sold at the dealership...not ordering.

Thanks.

When I ordered my C6 the dealer allocation was X amount of Corvettes per month. I ordered my car for a March delivery, my car arrived in March, right on time. I would think that system is basically still in place. Some dealers will not inform their customers about allotments and blame GM for lengthily order delays.

Wrong, all car that a dealer receives are ordered, some for stock, some pre sold. GM just does not just send them.

I see. So whether or not a car is for stock or to fill an order, the dealership uses one of their allocations for any order.

Would I be wrong to assume the number of allocations a dealership gets for a Corvette goes up as does their sales of all Chevrolet vehicles?

Actually no, it has everything to do with ordering one from a dealer. The allocation system basically gives higher volume dealers more allocations to order cars from the factory. These orders can be sold orders to a customer or orders for dealer stock. These are both treated as sold orders with customer orders taking a priority. A low volume dealer will get far fewer allocations (opportunities to order).

These are things to keep in mind as folks approach their dealership. They need to know if a dealer has an allocation. Without an allocation a dealer can place an order and it will go in to the system but it won't be picked up to be scheduled for production. While a high volume dealer will know when their cars are scheduled to be built. A high volume dealer can usually turn a car in 6 to 8 weeks for example where a low volume dealer could be three months, four months or six months. These no allocation orders get continuously passed over for scheduling in favor of orders to higher volume dealers.

The first C7's will be very hard to come by. They will most likely go to the dealers that sold the most C6's in the 2013 model year. What a dealer sold on the 2013 Corvette has a direct bearing on what their Allotment will be on the C7's. So, If you want to order a C7 from a dealer that you rarely saw a new Corvette at that dealership, I really have my doubts as to if and/or when the dealer will receive the new C7. Just my 2 cents worth. The way Chevrolet looks at things is, the dealerships are Chevrolet/GM's customers. We the buying public are the Dealerships customers.

We have not had a single dealer for three years. Seems like there never will be if this rule also applies to international dealers.

I agree, but I hate the system. I don't see why a sold order can't take priority over dealer stock allocations. It shouldn't matter what the size of the dealer is. A customer order is a sold car right away.

I went to a fairly big dealer, but not huge. They had 2 allocations for a ZL1 and I was the first in line. Waited about a year while KC and STL dealers got all the allocations in Missouri. It forces you to go to a big city to order a car if you want to get a first year Camaro or Corvette. And it hurts your local in town dealers because they can't get what you want, even with a sold order, without waiting a year.

Every dealer that gets a allocation must pay for Sales and Service training from GM

A good point. :iagree:

It almost sounds like a snowball effect--the more allocations you have, the more you sell, and then, BOOM, you get even more allocations. Meanwhile, the "little guy" is just trying to get his "snowball" started...

Seems like GM/Chevrolet would just let ANYONE sell a car and just get into the line.

To give a (simple) analogy, it's like saying Ticketmaster gets first dibs on selling concert tickets because they sell the most and if you are trying to buy a concert ticket from some small ticket broker, you have to wait for Ticketmaster sales to slow down. And, of course this priority in sales allows Ticketmaster to continue to be the leader in sales.

The allocation system is the way GM rewards dealers who have a record of moving a lot of inventory in previous years.

While that might be an inconvenience for customers who have a relationship with a low-volume dealer in a small area, it actually makes sense to send new C7s to the dealers who have the most C6 sales.

Presumably those dealers are more knowledgeable about Corvettes, have better Corvette technicians in the service department and will be able to offer better deals to consumers.

Most of the supporting dealers at Corvetteforum are larger, high-volume dealers and should be delivering orders on C7s pretty quickly after the cars become available.

If those high-volume dealers with large allocations are not in proximity to you, they sometimes can arrange courtesy deliveries for a fee with your local Chevy dealer. If not, they can arrange transport to you. Alternately, I like the Museum delivery option. It's a fun experience and you get to know your new Corvette on the drive home. :D

Kind of a side note...

That's an OK way to break in a new engine? My car said to avoid driving the same speed too often through break-in. (I'm thinking about being on an interstate driving back home from the NCM)

Is seems that if the small dealer can only get only get an allocation one or two cars, then you can almost guarantee that they will be marking them up 10k + and you probably won't buy from them anyhow.

If they only have a few cars they will try to make as much profit as they can.

You always have the option of varying your speed, even on the Interstate, but you might consider taking secondary roads. Lower speeds, slowing down for towns along the way and at the same time seeing some scenery you otherwise would miss. :yesnod:

Actually, my understanding is its not about the engine break in anymore. What with modern machining and rings, that is no longer a big issue.

Apparently, the issue now is the differential/ring gear. It needs to anneal from the heat of use and properly seat the pattern of engagement between the teeth on the ring and pinion gears. That is why the recommendation (at least on the C6s, obviously haven't seen the C7 owners manual yet.........:D) is to not exceed 55mph for the first 500 miles, and to vary the speed.

:cheers:

Part 1 is correct. Part 2 has been sometimes correct in the past. Allocations are sometimes based partly on sales of other GM products that might be slow movers themselves. As stated several times by others, large volume dealers will almost always get more allocations. From one week to the next, if a dealer doesn't get an allocation, he can't order the car regardless of whether it is for a Sold Order customer or for dealer stock. A dealer stock order can become a Sold Order anytime in the process before the car arrives at the dealership.

Interesting. Didn't know that. :)

When I muse about being able to score a 'Vette, I think about NCM delivery. It's not a big drive for me (I've been there once).

Should the cogs of the universe align just so that I can manage one, I think--being a photographer--I'd set the nav to avoid interstates and take the back roads home and spend a couple of days on the road.

Thanks. :)

Thanks. I have a better understanding now. :cheers:

I seem to remember that the 2009 ZR1 introduction program included an allocation system that took other GM product sales into account. It resulted in rural town dealerships getting ZR1s that I believed at the time should never have gotten them solely based upon corvette sales only.

I think customer sold orders should skip the allocation process and go straight to GM where you are put on a list. And they could tell you "you're #213 on the list and your car will be built around whatever date."
I know of a lot of people that cancelled their orders for ZL1's and got a different car b'c of the allocation crap. Me included. It is hurting sales, even if only a little bit.

Not sure of how Corvettes are allocated today? Before 2008 I think allocation was based on actual Corvettes sold. I seem to remember dealers getting 1 additional Corvette allocation for every X amount of Corvettes sold the previous year. I think they got 1 Z06 for every 6 regular C6 sold, and a ZR1 for every # of Z06 or C6 sold, or something like that? I spoke to the owner of a dealer and he said basically GM changed the game in 2008-2009 just around or after the GM bankruptcy. Maybe it was part of the GM restructuring? I thought he said GM changed Corvette allocations based on total number of any Chevy sold. I thought he said any super high volume Chevy dealer, even those with very low Corvette sales, would have more Corvette allocation then a smaller volume dealer who sold huge numbers of Corvettes? So a large volume dealer who sold 50 Corvettes per year would get more Corvette allocation then a low volume dealer who sold 250 Corvettes per year. I think some smaller high volume Corvette specialty dealers felt betrayed by this?

I am one of those that cancelled my ZL1 order after learning it didn't get picked up, that's how i got my vette and never looked back.

:iagree::iagree:

Why should some dealers have 50 cars in stock and you want to order your car from a small town dealer who you have done business with overs the years.

In 1999 I wanted a Hardtop Corvette and my local dealer who I bought 5 new Corvettes from along with other new Chevys couldn't get an allocation for a hardtop. I could order a coupe or convertible but no hardtop. I had to go 30 miles away to order the car.

GM is in business to sell cars. A sold retail order should be pulled and built over cars for dealer inventory no matter where or the size of the dealer.

GM has refined its intellectually bankrupt allocation process to the point where Corvettes are self allocating. Jacking dealers around for cars already sold to existing customers is just one more reason that GM has a hard time selling even a thousand cars a month. Their solution is to reduce production capacity.

On each of our NCM deliveries, we've taken the back roads on our way home. We've found this a great way to break in our new Vettes. There are some nice back roads with great scenery through Kentucky and Tennessee. Also, when on interstates for any length of time vary the car's speed by about 10 mph ever so often.