YukonCornelius

I'm finding myself a little "confused" regarding these allocation letters - Please don't flame me!!!! Anyways, here's my story:
About 8 months ago, I went in to talk to Western PA's largest Vette dealer, the one that I've dealt with for a dozen years now. Rightfully so, the dealer told me that they would not be taking deposits until they were permitted to place the orders. I actually thought that was good business on their part. They didn't want to take my money with nothing to show... Okay, all is fine. I kept in contact with them and as the "ordering date" approached, the sales rep was excited for me to finally be able to come in. They did have a list (on which, I was second) for the Z06 orders. Unfortunately, I missed the first ordering date (went on Vacation and haven't talked to the sales guy for several weeks prior.) and when I did call, I learned that my salesguy left the dealership. Unfortunately, he took my name with him. His new dealership is tier 3. This one was tier 1.

After talking with some other sales guys who distinctly remember me,I learned that the first 4-5 allocated cars already have orders and deposits on them. They are receiving 5 in the first allocation. I am now first for their second allocation.

My question is simple: How does the allocation process work? Will this tier 1 dealership receive their second allocation before a tier 2 or 3 receives their first? Would it make sense to hold my position, or go to a 2nd or 3rd tier dealer?

hlv

I would stay were you are . Your order shoud go in july some time.
The tier 1 dealers will get cars every time the tier 2 or 3 guys get
theres. Your dealer should know about what his next aol. will be.

Z06LUST

I'd stay....try to work out a deal NOW--in writing for MSRP etc with being placed as number 2 on their 2nd allocation--and work with the main office..just not a salesman as they come and go

...2nd allocation letters will come in December (but if they are getting 6 for the 1st allocation you are pretty safe as the 2nd half should match those numbers...heck even if GM falls short and only gives them 4 cars for the first half...so you end up #3 for the second half your Z06 should still be obtainable during the 2nd half of the build year...so you might not get the car until March, April, May etc (being 1st off the line might not be great..let the boys and girls on the line gather a little expereicne)...just in time for spring/summer....sounds like you have a dealer you can work with....

Gary2KC5

Not July but probably January. the 2nd letter will probably mirror the 1st and haev 5 allocations for Jan-June. If you are next in line you would get the 1st allocation for 06'

Here is what you have to do. Put some cash down ($500 should do it). Have them fill out & sign a retail sales contract. write on it "msrp at time of delivery", "1st allocation to dealership for calender year 2006 build", "deposit refundable", etc. etc.

They won't take an order because Bowling Green won't accept it.
When the dealerships allocation arrives, BG calls the dealer and asked what they want, the dealer tells them, and if there are any issues, the dealer will call you to resolve (ie BG says they are not building yellow cars this week) If that was the case the dealer would say do you want a black car, or do you want painted wheels instead of polished etc. If you say no I want a yellow car or no I want polished wheels then your allocation is skipped, they build what they want and you wair until the next allocation comes up.

At least that's the way I understand it from several dealers I've spoke with.

blandcastle

Yukon, My dealer, where I am 6th in line, told me that I could move up in line if The person in front of me didn't come in when they were supposed to, to order. In other words, When the dealer calls, to get the customer to place their order, he said they have a limited amount of time to place that order or they lose it. So if someone in front of me goes on vacation or the dealer is unable to reach them, they go on to the next in line. Which makes good business sense to me. My dealer is also receiving 5 in their first allocation thru december. Hopefully someone will drop out or be unavailable and I will move up. Otherwise I am looking at january or so. Damn! I am not sure what the criteria for tier one dealers are, but I don't think my dealer is a tier one dealer and he is getting 5 thru decmber, too. But tier one dealers DO get theirs before the smaller dealers. Every month's production run has vehicles being shipped to tier one dealers.

Foosh

For some reason, I thought actual orders (colors, options, etc.) weren't being placed yet. My dealer has 2 through the first December allocation (June 16 letter), and I'm #2, but they haven't asked me to make my choices yet.

Kelly100

I think you need to call your dealer

Foosh

I did, and will hear something tomorrow, since the GM was gone for the day. I was just curious as to whether actual orders were in the system yet.

YukonCornelius

Thanks to everyone who answered! You guys (As always!) are a great help! I'll stick with my current dealer. They've always treated me VERY well. And, when I pull my Z in for service, I'm treated like a Cadillac owner, not a Cavalier owner. Anyways, thanks guys. Guess I have to wait it out!

blandcastle

As I understand it, as soon as the dealer gets word from the factory that they,(the dealer) have a "frame" available, the dealer has a certain amount of time to place the order. I think the time allotment is 48 or 72 hours, but I just can't remember. The dealer then contacts the customer to configure their order and submits it to the plant, within the allotted time frame. This is what my dealer told me. I am pretty sure orders can be submitted to the factory on july 26th. I saw that on this forum somewhere. Scissors would know. Let me know what your GM says. See if it squares up with what I have been told. I won't be getting mine until december or later, but its nice to be informed. Have a good one.

Gary2KC5

I think you are pretty much correct, but any order input before they have a "frame" is for the dealer's use/info and not Bowling Green. That's why the dealer will have the time frame to get the order square with the customer. (what I mentioned about about not making yellow cars or having polished wheels when your allocation is up)

It's pretty wacked that the factory will tell the customer is they can biuild their car when there number comes up...but I guess that's part of purchasing a limited production vehicle.

I wonder if it's that way for someone wanting to buy a Ford GT or a Porsche CGT?

Foosh

Thanks Bland............that's also what they told me.

camille

A simple question, but a challenging answer. The best source would have to be Ken's newsletter:

http://forums.corvetteforum.com/show...74&forum_id=71

According to this detailed post, a Tier 3 dealer will receive a Phase I car (first through third consensus cycles, June - August 2005) before any dealer (Tiers eliminated after Phase I) receives a Phase II car (consensus cycles from September 2005 onward). The number of cars will continue to be based on sales history, but the Tier system will no longer apply after completion of Phase I, August 2005.

I'm surprised that your Tier 1 dealer is only allocated 5 cars for Phase I. That sounds low, more like a Tier 2 outfit. Many here will be waiting a mighty long time for their Z06 if our Forum (Tier 1) dealers are allocated fewer than 10 cars in Phase 1.

Maybe the best approach is to be on both lists. It's probably the only way to create leverage at the time of final negotiations, when so many dealers seem to develop amnesia regarding prior agreements with customers. Good luck!

0Rick @ Les Stanford

Here is the distribution plan.

Distribution
Corvette Z06 Allocation Plan
Your Dealership Is Enrolled for the 2005 Corvette Certification Process
2005 Corvette Ordering Workbook
Corvette Z06 Allocation Plan

The 2006 Corvette Z06 allocation plan is a 2 phase process. While the details of each phase are shown below, there are some key points worth noting. First, not every Certified Corvette Dealer will receive a 2006 Corvette Z06 model. The Z06 model will have its own allocation group - Z06. And, Corvette Z06 retail production will be allocated to eligible Corvette Dealers using the most current 52-week total retail Corvette sales.

Dealers will be able to view current month allocation plus one month outlook
Each Dealer will be mailed a six month allocation outlook
In December, a four month outlook will be communicated based on the most current 52-week sales history
In April 2006, distribution will provide the balance of model year outlook based on the latest 52-week sales history for buildout
The above steps were established to discourage over commitment/selling
Phase I Details
• Dealers will be placed in Tiers based on their 52 weeks of retail Corvette sale
history (June 2004 - May 2005) for the first 3 consensus cycles.
- Tier 1 will be comprised of the 25 largest volume Corvette Dealers
- Tier 2 will include the largest 125 Corvette Dealers
- Tier 3 will expand to include the largest 300 Corvette Dealers
• Initial consensus:
- June 2005 (for production week 33)
- Exclusively to Tier 1 Dealers using the June 2004 - May 2005 sales history
• Second consensus:
- July 2005 (for production weeks 34 - 36)
- Exclusively to Tier 1 & 2 Dealers based on the launch sales data
• Third and final Phase I consensus:
- August 2005 (for production weeks 37 - 40)
- Distributed to Tier 1, 2 & 3 Dealers
• Consensed allocations will be "protected", so that Dealers cannot accidentally
loose their allocations. Pattern Z06 orders will be created as necessary during
weekly DOSP cycles.

Phase II Details
• Eliminates the assignment of Dealer Tiers. All Certified Corvette
Dealers with a June 2004 - May 2005 sales history will be comprehended
in the balance of allocation calculations.
• The allocation determined by the same formula in phase 1
• Begins with the September 2005 consensus (for production weeks 41 - 45)
• Due to the limited production of the Z06 model there will be no
guarantee that each Certified Corvette Dealer will receive allocation
for a Z06 model
• Consensed allocations will continue to be "protected", from accidental
loss. Pattern Z06 orders will be created as necessary during weekly
DOSP cycles.
• Z06 will not qualify for PEP, but will be eligible for EVP Drive & Buy
and GMS/Supplier when the current incentive program expires

blandcastle

You bet,buddy! I'm just glad I could help.

Grand Sport

Rick.....

Am I reading correctly that GMS will be available at some point on the ZO6?

Also, what Tier is your dealership and how many are you guys getting?

Are they all spoken for?

What is EVP Drive and Buy?

Thanks!

Grand Sport

????

0Rick @ Les Stanford

GMS on the Z may be available at some point but good luck in finding a dealer to offer it.

We are a tier 1 dealer and the #2 Corvette dealer in the nation so we will get the second largest allocation in the nation as well. What that will be will depend on how production goes. We as all large dealers have a long list and MAY sell out our entire allocation before the first one has been delivered.

I have no idea what EVP is.

Grand Sport

Rick...

So how many cars are you going to get?

I actually have had a deposit on a ZO6 since February at a small dealer in North Michigan. The dealer promised GMS if GM allowed it, or at least $$ off sticker.

Unfortunately they notified us that they will not be recieveing a ZO6 this time around.

Are all of your cars sold?

Thanks for your help!

0Rick @ Les Stanford

It is very hard to say because production will dictate how many we get. If it goes smooth we will get more if they have problems we will get less.