Let's all take a deep breath and figure this damn price increase out....

Mr.Corvette

Mr.Corvette

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So I'm talking to one of my contacts today and a customer who recently ordered a 2024 3LT loaded Z51 coupe calls to cancel and the order is already sitting at 3000 status. For those that don't know, there is an inside way of pulling the car back but it knocks you down the list about 3 weeks usually. It gets me thinking, how do we soften the blow? What makes a person lose his $2500 deposit due to the price increase? So again, lets look at the numbers!
How many of you know that GM recently lowered the finance rate on Corvette's to 6.99% which is lower than prime and 1-2% less than it was a month ago. On a 100k loan that's going to save you over $4100 in interest over 7 years by just being 1% lower.
Now let's look at the price increase of 12K on a Stingray. How much did you put down, was it $2,000 or $2500? My thought is that money's been gone for 2 years and you don't even miss it by now so for argument's sake lets call it a 10K price increase. (For Cam and all the others waiting to order an E-Ray that ship has sailed. GM moved the production date back until after the strike date which is at least October 23rd, there won't be any allocations for E-Ray's until after the strike date so next Thursday is out for getting any allocations.) The math for E-Ray works here at a 10K price increase. Let's break it down and use $10,000 price increase after your deposit. At the current 6.99% the extra cost on a 84 month term loan is an extra $23.44/week. That's it.
You saved $11.39/week by having a 6.99% finance rate compared to a 7.99% finance rate and the net cost of the extra $10,000 is $23.44/week.
For those putting 100K down on the car if you finance the balance with GM it's going to cost you $34.83/week for each $10,000 you finance. These loans are open and can be paid off at any time. For me in the past, when I'm buying out a lease or financing a lease buyout I usually pay the tax to get it out of the equation. Here the luxury tax in Ontario adds 20% and this was here before the price increase, so for us that adds an extra $2400 on the $12,000 price increase + HST of 13% on the $14,400 = $1872 giving us a total price increase of $16,272. Works out to $56.67/week. So, if we all just sit down and crunch the numbers, I think most of will realize that we can handle it by paying off a little more tax in the beginning finance the difference below prime for a difference of $25 buck a week. For the E-Ray folks the price increase with both taxes works out to $47.23/week. If you pay the $3560 in extra taxes on the price increase and just finance the price increase, it costs $34.83/week extra.
For our friends in Alberta, your numbers are better and for BC folks, find a friend in Alberta and get a P.O. Box there because I feel sorry for you guys. If you've saved over months or years for this car are you going to bail over less than $25/week? I don't think so!!
Scott
 
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When is the deposit committed? So that cancelling forfeits it? Does it vary by dealer?
 
Would a dealer be better off refunding the deposit, and keeping/selling the car when it arrives, keeping that allocation? Or does that happen anyway?
 
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MKinOntario said:
Would a dealer be better off refunding the deposit, and keeping/selling the car when it arrives, keeping that allocation?
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No, they had to keep it as a 3LT coupe but changed the colour and some options and got it pushed back into the system at 3000 for the next customer in line.
 
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It’s not only the math, it’s the psychology behind it. Some guys have a million dollars in the bank and some guys are million dollars in debt and every degree of variation between the two. There is no right or wrong decision here.

With that said, I will be proceeding with my order for 2024 HTC 3LT with Z51 and mag ride because it’s hard to put a price on happiness (GM did)
 
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DenisC8 said:
It’s not only the math, it’s the psychology behind it. Some guys have a million dollars in the bank and some guys are million dollars in debt and every degree of variation between the two. There is no right or wrong decision here.

With that said, I will be proceeding with my order for 2024 HTC 3LT with Z51 and mag ride because it’s hard to put a price on happiness (GM did)
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I think I won't be getting a 2024, and will just stick to keeping my 2023 2LT HTC.
 
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You can do all the fancy calculus you want, it doesn't change the fact the Canadian Corvette hopefuls are staring down the barrel of record setting price increases which will in fact cause many to have their reach exceed their grasp. $35 a week is $140 a month in payments. Other spending sacrificed on the altar of the Corvette. My bride would “comment”.
 
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It has to do with the fact that GM doesn't care so much for the Canadian market, they actually want to supply less corvettes to Canada because they have a high demand in the US still and really high demand in Australia and Europe, and ppl are going to be paying much more in those countries.
 
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mightymohito said:
It has to do with the fact that GM doesn't care so much for the Canadian market, they actually want to supply less corvettes to Canada because they have a high demand in the US still and really high demand in Australia and Europe, and ppl are going to be paying much more in those countries.
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Maybe they realize we won't have any gasoline in a few more years, so the demand will drop off.
 
Cariboocreek said:
You can do all the fancy calculus you want, it doesn't change the fact the Canadian Corvette hopefuls are staring down the barrel of record setting price increases which will in fact cause many to have their reach exceed their grasp. $35 a week is $140 a month in payments. Other spending sacrificed on the altar of the Corvette. My bride would “comment”.
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The bottom line is this and I hated university calculus but had to do it, GM is not happy with the cars being exported from Canada to the US by flippers and this price increase is a direct result in an effort to stop it. They've estimated the this country will buy every Stingray, Z06 and E-Ray they send here and they want them to stay here. If we keep shipping them south they will cut our allocations and sell them to another country for a lot more profit.
mightymohito said:
I know nothing wrong with it. It's just I didn't get to spec out the 2023 (as it was already pre-spec'd when I bought it new). I wanted to choose my own colours and interior, etc.
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Speak to your dealer, your cars worth a bunch more now and come spring they would want it as a trade in. Just be cautious of the luxury tax because while it's here, it doesn't roll over.
 
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$30 a week doesn't sound like much but translate that into a year and your looking at $1560 and 7 years later that's $10,920. I look at the whole picture and not just a fraction of what the total cost would be. That extra $12,000 or $10,000 price increase does end up costing more than many originally planned when they saved for the C8. Rule of supply and demand. Demand is high, supply is low so hike the price.
 
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tyho said:
$30 a week doesn't sound like much but translate that into a year and your looking at $1560 and 7 years later that's $10,920. I look at the whole picture and not just a fraction of what the total cost would be. That extra $12,000 or $10,000 price increase does end up costing more than many originally planned when they saved for the C8. Rule of supply and demand. Demand is high, supply is low so hike the price.
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Has nothing to do with that see above!
 
Mr.Corvette said:
The bottom line is this and I hated university calculus but had to do it, GM is not happy with the cars being exported from Canada to the US by flippers and this price increase is a direct result in an effort to stop it. They've estimated the this country will buy every Stingray, Z06 and E-Ray they send here and they want them to stay here. If we keep shipping them south they will cut our allocations and sell them to another country for a lot more profit.

Speak to your dealer, your cars worth a bunch more now and come spring they would want it as a trade in. Just be cautious of the luxury tax because while it's here, it doesn't roll over.
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To be honest the dealers always try to give you low trade ins, so let's see when my time to spec it out comes. I'll see what my 2023 is worth then, and see if they are being fair or not. If they are not then I can always request my deposit back. I was planning on getting a 3LT HTC but if I do get a 2024 now I think I'll just go for 2LT HTC (due to the price increase).
 
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