81Wayne

81Wayne

Regular
Jan 26, 2009
453
126
Winnipeg Manitoba
VetteCoins
1,195
Car
2016 Corvette Z06
This back ups my earlier statement and feelings. Why are US dealers getting so many Z06's on speculation when Canadian dealers have deposits on sold orders and can't get allocation to fill the orders. GM has this all backwards, in my opinion all Z06 orders with deposits and a customer name attached to the order should be built and filled first, After that dealers can buy extra for their lot. 387 Z0'6 available on
New 2015 Chevrolet Corvette Z06 Hardtop - Coupe in 58201 Area - on Cars.com

This isn't even counting ones not built yet or dealers who haven't' even got their Z06's advertised on here, such as Kerbeck's and other larger Corvette dealers. Watch that number continue to grow and in another 2 to 3 months watch discounts start appearing.
 
There are so many angles to approach this on, it is mind boggling. For instance, right now there is a dealer in Michigan with a Z07 and offering a 10K US discount on that car, a car not even an hour from the border. Even with that discount, we are looking at a 130K Cdn car after you tally up US tax, exchange, Cdn tax and all the incidentals. Until the exchange rate changes, I don't think we are seeing a drop in the pricing of US configured Z06s anytime soon, and then you still have the 12K mile warranty exclusion. Let's not forget that that US dealer will NOT sell you that car for export in fear of losing his licence with GM.

As for more coming into Canada, I think (my opinion) that this is a hard fought war because GM Canada has little or no place whatsoever when seated at the boardroom table with GM USA and discussing 'America's' greatest muscle car. We are right there beside GM Mexico as a matter of fact. I even think GM Canada has become creative in an attempt to try for additional allocations, both by updating the website well after all allocations have been spoken for and then bringing the 'Build Your Own Engine' program to Canada and promoting it. GM Canada wants more cars, has the need for more cars but the US has held their grip tight on the Z06; nothing has changed and there are still only the original allotment of low double digit Z06s coming to Canada.

Two things have transpired during this initial allocation that GM is very aware of, the exchange rate and the practice of twisting international exportation laws to get US version Z06s into Canada for sale. The most important point here is the fact that a typical Z06 will see a 9-10K US loss if configured for Canada; that's a million dollar loss per 100 Cdn Z06 configuration builds.

Right beside this, we are seeing something that we have never seen in history before, large allotments of brand new US Z06 models coming from respected US dealers to respected Canadian dealers and being sold here in Canada. This is highly illegal and breaks every Exportation regulation set by GM with respect to the agreements between GM USA and GM Canada, but it is a thriving practice. This is a financial windfall for GM and they would stop it in a heartbeat if it weren't so successful. They have the power to do just that with a phone call to these dealers.

Unfortunately, selling to Canadians this way means they don't lose a penny on each car sold, and in fact, creates a significant gain in the fact that every one of these cars is advertised and sold as 'used' in Canada and comes with a 12000 mile warranty exclusion. That warranty exclusion alone has the potential to save GM millions on a brand new model such as this, one that no doubt will work its way through a few bumps and grinds as it already has.

Myself, I would love to see another allocation of Canadian version Z06s but, I don't think GM Canada has any voice at the table more than hope and I really don't think GM would trade off the practice we are seeing for more Canadian allocations at 1 mil loss per 100 cars. Hopefully I am wrong.
 
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I don't agree that GM Canada has no teeth when it comes to Corvettes. GM USA does not lose a dime if they send an allocation to GM Canada. GM Canada gets billed for the car in US dollars.

However to sell it to the end consumers in Canada GM Canada has to take a loss on each vehicle. That would discourage any business owner/executive to make an argument for more allocations without first ensuring an equivalent price increase to still make it a viable business.

Besides it's not only GM that is keeping a close eye on the exchange rates. The buyers are too. We all saw a mad rush to place your order on GM workbench as price increase was expected any minute. Since after the price increase some people have delayed their purchase or cancelled it all together -- bring the supply and demand closer to where it's should be in my opinion.

BTW GM Canada has no authority or control to tell any GM dealer what used vehicle they can stock. If the demand was there and I had a client who wants a dodge viper from US with a used title then GM Canada can not intervene. It's none of their business. They can only discourage the practice by warranty exclusions etc. which they have.
 
Actually...great clarification that it would be GM Canada that has to deal with that loss. The question then goes back to when the dollar was even steven and allocation was still under demand I guess. I can't believe GM Canada wouldn't bring in as many as they could sell and, if so, their opportunity to gauge demand is right there in the order system. How many Z06 orders this year will sit at 1100 and never become reality?

Thanks for that Owais...slightly different perspective now with respect to GM Canada and their part in this.

As for GM not having the authority to control any dealers used car sales, that is the exact loophole I am talking about. We have to be logical in thinking that when truck loads of brand new corvette Z06s are being carted out of the US as used, GM would certainly have some say to control the selling dealer. Why would they though as each and every one is a new car sale at the beginning of the line. It is still a GM windfall.
 
GM Canada should just adjust the price to what it should be and try get more here.

$99,000 base price MSRP..... still an amazing car for under $100k

if you want a cheap Dodge. go buy a hellcat for cheaper..... the driveshaft twists like a paper towel cardboard does if you bolt slicks to the car. junk.

Once they get the bugs sorted out with the Z06 it should be an amazing car...

unless you are running a McLaren P1 haha........ https://www.youtube.com/watch?v=Cy6rRgMCD0w

Brian
 
447 new Z06s offered on cars.com

Today cars.com lists 447 new Z06s available at US dealers.
 
I don't agree that GM Canada has no teeth when it comes to Corvettes. GM USA does not lose a dime if they send an allocation to GM Canada. GM Canada gets billed for the car in US dollars.

However to sell it to the end consumers in Canada GM Canada has to take a loss on each vehicle. That would discourage any business owner/executive to make an argument for more allocations without first ensuring an equivalent price increase to still make it a viable business.

Besides it's not only GM that is keeping a close eye on the exchange rates. The buyers are too. We all saw a mad rush to place your order on GM workbench as price increase was expected any minute. Since after the price increase some people have delayed their purchase or cancelled it all together -- bring the supply and demand closer to where it's should be in my opinion.

BTW GM Canada has no authority or control to tell any GM dealer what used vehicle they can stock. If the demand was there and I had a client who wants a dodge viper from US with a used title then GM Canada can not intervene. It's none of their business. They can only discourage the practice by warranty exclusions etc. which they have.

Thanks ojamali and AllFlash for the interesting and useful help with would-be Z06 owners' questions. Can you help with the following?
1. A US dealer cannot sell a new Z06 to a Canadian, but he can sell a used one. What defines "used"? A state registration? 200 or more miles on the odometer? Or?
2. Re warranty exclusion in Canada, if one drives a Z06 in the USA for more than 12,000 km, then brings it to Canada, is the car under warranty the whole time?
3. Must the car also be more than six months old to qualify for warranty in Canada?
 
1. I don't think any miles whatsoever are necessary as we see the cars being brought in with next to no mileage. You are correct that it would have to be registered from new and then registered as used to come to Canada without incurring the wrath of GM Export rules.

2. I believe the warranty exclusion is only the first 12K km on the car, not from the date of import.

3. 12k Kilometers (I thought it was miles) AND six months

Automobile Protection Association | Canadian Warranty information on new cars bought in the U.S.
 
Today cars.com lists 447 new Z06s available at US dealers.

What did I predict, the numbers will continue to grow South of us. Eventually the demand will be met and discounts will follow. I don't care about what discounts dealers give down there, it's more so about how many Canadian SOLD orders won't get filled when there could have been easily more allocations sent here.
I for one had a deposit on one that won't get filled.. If I want to wait and risk a huge price increase on a 2016 I'm 1st in line at my dealer. Just don't know if I want to wait and go a summer without a ride. I guess one deciding factor will be is if my back up Z51 order, if there is a constraint again on Z51's then I guess I wait it out no matter what.
 
~4000 2015 Z06s to date

What did I predict, the numbers will continue to grow South of us. Eventually the demand will be met and discounts will follow. I don't care about what discounts dealers give down there, it's more so about how many Canadian SOLD orders won't get filled when there could have been easily more allocations sent here.
I for one had a deposit on one that won't get filled.. If I want to wait and risk a huge price increase on a 2016 I'm 1st in line at my dealer. Just don't know if I want to wait and go a summer without a ride. I guess one deciding factor will be is if my back up Z51 order, if there is a constraint again on Z51's then I guess I wait it out no matter what.

A quick survey of the 440 Z06s for sale today on cars.com showed the earliest VIN (used in Texas) 5600009 and the latest (new in Florida) 5603782. Apparently 2015 Z06 production is now on the order of 4,000 units.
 
Used 12KM

Sherwood Park was selling all there cars as used, they had about 12 KM on them,
They were also buying them thru a broker who was getting them from different dealers therefore they went from a dealer as new to the broker who bought them, then selling them to Sherwood park as used because the car has been bought and then resold.
 
Sherwood Park was selling all there cars as used, they had about 12 KM on them,
They were also buying them thru a broker who was getting them from different dealers therefore they went from a dealer as new to the broker who bought them, then selling them to Sherwood park as used because the car has been bought and then resold.

...interesting :sleep:
 
Broker fees

...interesting :sleep:

I've been in contact with the Sales manager for over the last month trying to work out a deal, on a Z06 Orange coupe, the reasons they are asking high US dollars is in part of the Broker fees and exchange rate. The US list price was 117K US the best I could get was 138K CAN for a car that was about 94K US MSRP.
When priced out in CAD MSRP was about 105K so about 33K CAN over MSRP
 
I've been in contact with the Sales manager for over the last month trying to work out a deal, on a Z06 Orange coupe, the reasons they are asking high US dollars is in part of the Broker fees and exchange rate. The US list price was 117K US the best I could get was 138K CAN for a car that was about 94K US MSRP.
When priced out in CAD MSRP was about 105K so about 33K CAN over MSRP
...supply & demand :canada:
 
Broker fees, state and federal taxes INCLUDING US gas tax, exchange on that total, HST, safety and then registration. There is no secret sauce to figuring out why US versions cost so much. Hey let's wait a month...will carbon tax be included. The ONLY US purchase I have to be amazed with is CharlieBrown's. CULLEN had used US money purchased close to when the dollar was even for that car's purchase and they passed that massive savings on to CharlieBrown....kudos to that.

I don't trust that sale (blue Z07 above) whatsoever but I gotta admit... That is a freaking hot looking car done up as such. That blue is almost as hot as DSOM is.
 
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If you price out that Laguna Blue Canadian car on the configurator and add Ontario tax, he's selling it for his cost. It's been a while since I bought a used car. Would HST have to be paid on the original sale AND the private sale? If so, the only one making money on that car is the government.
 
Yup...hst on both....but I think there is a provision for him to get his HST returned...or at least part of it.
 
If you price out that Laguna Blue Canadian car on the configurator and add Ontario tax, he's selling it for his cost. It's been a while since I bought a used car. Would HST have to be paid on the original sale AND the private sale? If so, the only one making money on that car is the government.

Seller has a Z07 vert on the way. Coupe passed thru dealer as a trade...as a result, NO HST on the new vert. New buyer pays HST on the coupe. Seller pockets the difference...makes some nice cash...very slick move to order 2 loaded cars. Everybody's happy.:D
 
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