Worrisome Predictions for Future Canadian C8 Prices

[DenisC8]

Base price of Canadian C8 Stingray can reach $110,000 from the current $79,000

We already know that the 2024 Canadian price change was not a price "increase" for the product, but a "correction" to the USD to CAD exchange rate as $1 USD costs $1.35 CAD

Here is what I predict:
1. There is more exchange rate price corrections coming for 2024 model year as the exchange rate will get as bad as $1 USD to $1.40 CAD
2. A)When the UAW strike is over and they get a 25% pay increase in USA that will equal to 35% increase in Canadian price so C8 will see multiple price increases going forward.
B) Once UAW get their 25% increase, that will set precedent for 25% pay increases for parts manufactures and suppliers.
3. Currently, the used Canadian C8s are the cheapest they will ever be due to:
A) End of driving season
B) Record high 8% interest rates
C) Flippers dumping their "investments"
4. Global C8 Stingray production will decrease with start of E-Ray and Z06 production on Monday Oct 2nd and will never comeback to previous levels
5. Canadian allocations for 2024 C8 Stingrays will be the lowest of all past years.
6. the C8 will go down in history as the best sports car for the money.

In conclusion:
If you are happy with your C8, hold on to it for as long as you can.
If you want to get rid of your C8, wait until at least May/June 2024.
If you want to custom order a new C8, don't delay and order ASAP.
If you want a new C8 that is already on the lot, scour the entire country for available 2023 model.
If you want a used C8, don't delay and buy one ASAP.

 

[Roughrider]

Agreed!!

 

[MKC8]

Long, long, ago (2013), in a galaxy far, far, away (known as the Harper Nebula), the Loonie and the Greenback were at par.
There were even a few weeks back then where the Loonie was valued higher.
It's a shame things have gotten so bad economically in Canada, after a period of relative stability, post great 2008 global recession.
As the shockwaves from 2008 rolled out across the globe, I remember thinking "how could it get any worse?"
It did.

 

[Cariboocreek]

Long, long, ago (2013), in a galaxy far, far, away (known as the Harper Nebula), the Loonie and the Greenback were at par.
There were even a few weeks back then where the Loonie was valued higher.
It's a shame things have gotten so bad economically in Canada, after a period of relative stability, post great 2008 global recession.
As the shockwaves from 2008 rolled out across the globe, I remember thinking "how could it get any worse?"
It did.

And it will….

 

[scraze66]

I remember buying my very first C7 which was a 2LT Z51 for $42,500 when it was just 2 years old in the winter time. This was back in 2016. That same car is selling for $65,000+ in 2023.

You’re lucky to get a 2 year old Civic these days for $40,000. Times sure have changed.

 

[MKC8]

I paid $18500 for a 4 year old C4 in 1990. Turned out to be a money pit I wasn't prepared to deal with back then.
I am glad I had it for a few years, though. Completely different animal than the '73 Mustang Mach 1 convertible, I wish I had kept.

 

[DenisC8]

I paid $18500 for a 4 year old C4 in 1990. Turned out to be a money pit I wasn't prepared to deal with back then.
I am glad I had it for a few years, though. Completely different animal than the '73 Mustang Mach 1 convertible, I wish I had kept.

C8 owners who will sell, will look back in 1-5-10-20-30 years and will kick themselves for letting it go, but many will be priced out of the market at that time.

 

[MKC8]

C8 owners who will sell, will look back in 1-5-10-20-30 years and will kick themselves for letting it go, but many will be priced out of the market at that time.

Spot on.

 

[tyho]

Lots of C8's in the classifieds ... none of them cheap. Maybe some are being "dumped" as investments, but still demanding high prices.

 

[JOHNNY MAC]

Lots of C8's in the classifieds ... none of them cheap. Maybe some are being "dumped" as investments, but still demanding high prices.

Interesting how not long ago many on this forum were predicting a soft market for pre owned C8 units.

 

[ScottyR]

C8 owners who will sell, will look back in 1-5-10-20-30 years and will kick themselves for letting it go, but many will be priced out of the market at that time.

This is me. I know if sell mine I will never buy another one. The MY24 price increase has just put a new one out of my comfort zone. If I didnt get my 23 when I did, I would probably have a 24 Mustang GT Conv or something similar on order.

The resale value of C8s hinges on how much alottment Canada gets for MY24. I agree that Stingray will be in short supply as ER and Z06s will take priority and the plant can only build so many cars per year.

I dont think Canada will see its alottment increase dramatically until there are "stock - unsold units" sitting on dealers lots in the USA. Once guys like Coughlin have a row of 25 C8s on their lot, then GM will start giving Canada more units.

If I was thinking about selling mine, I would 100% wait til the spring at this point.

 

[1500cc]

We already know that the 2024 Canadian price change was not a price "increase" for the product, but a "correction" to the USD to CAD exchange rate as $1 USD costs $1.35 CAD

It seems like there's more to it than just that. MSRPs are generally set to what the market will bear, which is why cars in Canada are often cheaper than in the US: because we have less disposable income. Also, exchange rates are constantly fluctuating (many will recall when CAD was well over 1 USD), so to say the increase corrects for the exchange rate, well it's just going to be incorrect again in a few weeks/months/whatever, making it kinda pointless if that was the goal. Plus GM exports a lot of vehicles from Canada, so that two-way flow kinda balances out any differences in exchange rates.

1. There is more exchange rate price corrections coming for 2024 model year as the exchange rate will get as bad as $1 USD to $1.40 CAD

Of course no one knows for sure where exchange rates are going; they could just as likely improve as get worse. Regardless, I don't think GM is going to constantly change MSRPs just to keep up with exchange rate swings.

2. A)When the UAW strike is over and they get a 25% pay increase in USA that will equal to 35% increase in Canadian price so C8 will see multiple price increases going forward.

Percentages don't work that way; a 25% increase in USD is still just a 25% increase in CAD.

B) Once UAW get their 25% increase, that will set precedent for 25% pay increases for parts manufactures and suppliers.

It's possible, but not all suppliers are unionized, or have as strong a union as the UAW. Plus suppliers are under long term, generally fixed-price contracts so any supplier labour cost increases won't be felt for a while.

Overall, it seems like GM has had a change in strategy where they just want to maximize short term profit/unit, without regard to volume or marketing considerations. My guess is that maybe we don't see too many increases over the next couple of years, as they perhaps let the Canadian MSRP drift back down closer to its previous relative position. Especially in a fickle market like sports cars, where demand tends to cool significantly in the final few years of a given generation; the higher sticker price is just going to make this worse.

 

[Jack Raccoon!]

I think y'all need to go outside and play...

 

[1st Vette]

It seems like there's more to it than just that. MSRPs are generally set to what the market will bear, which is why cars in Canada are often cheaper than in the US: because we have less disposable income. Also, exchange rates are constantly fluctuating (many will recall when CAD was well over 1 USD), so to say the increase corrects for the exchange rate, well it's just going to be incorrect again in a few weeks/months/whatever, making it kinda pointless if that was the goal. Plus GM exports a lot of vehicles from Canada, so that two-way flow kinda balances out any differences in exchange rates.



Of course no one knows for sure where exchange rates are going; they could just as likely improve as get worse. Regardless, I don't think GM is going to constantly change MSRPs just to keep up with exchange rate swings.




Percentages don't work that way; a 25% increase in USD is still just a 25% increase in CAD.



It's possible, but not all suppliers are unionized, or have as strong a union as the UAW. Plus suppliers are under long term, generally fixed-price contracts so any supplier labour cost increases won't be felt for a while.

Overall, it seems like GM has had a change in strategy where they just want to maximize short term profit/unit, without regard to volume or marketing considerations. My guess is that maybe we don't see too many increases over the next couple of years, as they perhaps let the Canadian MSRP drift back down closer to its previous relative position. Especially in a fickle market like sports cars, where demand tends to cool significantly in the final few years of a given generation; the higher sticker price is just going to make this worse.

EvenForex traders don’t have an exact idea of where a given currency will be in six months time. If they did they’d all be rich and retired!

 

[CamsC8]

There's one vital item you left out...

Lux Tax.

This tax has fundamentally changed how everyone will consider purchasing a new 2024. The price increase combined with the lux tax has thwarted flippers (which most will agree helps supply) but it also affects resale because now residual values will decrease with many more being offered to purchase new. I know of two Z06 (1 inbound) already cancelled. Folks just aren't willing to pay such a high price for the Z06 and E-Ray.

Having just returned from Atlanta this past week I was able to see a few car dealerships and there's loads of C8s for sale. I'm sure that in lieu of high asking prices folks are dropping their pants to sell. With so much supply both in the U.S. and Canada those numbers will impact resale and I feel we have not seen the bottom just yet...wait until spring...I suspect at least a 20% decrease.

 

[1st Vette]

There's one vital item you left out...

Lux Tax.

This tax has fundamentally changed how everyone will consider purchasing a new 2024. The price increase combined with the lux tax has thwarted flippers (which most will agree helps supply) but it also affects resale because now residual values will decrease with many more being offered to purchase new. I know of two Z06 (1 inbound) already cancelled. Folks just aren't willing to pay such a high price for the Z06 and E-Ray.

Having just returned from Atlanta this past week I was able to see a few car dealerships and there's loads of C8s for sale. I'm sure that in lieu of high asking prices folks are dropping their pants to sell. With so much supply both in the U.S. and Canada those numbers will impact resale and I feel we have not seen the bottom just yet...wait until spring...I suspect at least a 20% decrease.

Just another government cash grab. Undeniable. I am glad that we have no HST here. The extra 10% savings makes up for it. Are they charging Lux Tax on EV’ s over 100 K ?

 

[JOHNNY MAC]

There's one vital item you left out...

Lux Tax.

This tax has fundamentally changed how everyone will consider purchasing a new 2024. The price increase combined with the lux tax has thwarted flippers (which most will agree helps supply) but it also affects resale because now residual values will decrease with many more being offered to purchase new. I know of two Z06 (1 inbound) already cancelled. Folks just aren't willing to pay such a high price for the Z06 and E-Ray.

Having just returned from Atlanta this past week I was able to see a few car dealerships and there's loads of C8s for sale. I'm sure that in lieu of high asking prices folks are dropping their pants to sell. With so much supply both in the U.S. and Canada those numbers will impact resale and I feel we have not seen the bottom just yet...wait until spring...I suspect at least a 20% decrease.

When one trades in vehicle there is a benefit of not having to pay pst/gst on the trade value for the new purchase, which totally makes sense. However, there is no comparable credit for the thieving Federal Luxury Tax. Absolute cash grab and very punitive.

 

[Murray20c8]

However, there is no comparable credit for the thieving Federal Luxury Tax. Absolute cash grab and very punitive.

I wouldn't say all that. It's definitely a supposed message to the masses that the rich will pay. We know it's a spit in the ocean, but perhaps the masses don't. What percentage of the population can afford a car, let alone a $100,000 car? I've never seen a politician that doesn't pat themselves on the back more often than they change their underwear! LOL

 

[JOHNNY MAC]

I wouldn't say all that. It's definitely a supposed message to the masses that the rich will pay. We know it's a spit in the ocean, but perhaps the masses don't. What percentage of the population can afford a car, let alone a $100,000 car? I've never seen a politician that doesn't pat themselves on the back more often than they change their underwear! LOL

There are better ways to impose a message to the masses that the rich will pay than Luxury Taxes, as often its not the rich that are hit hard —like many that save for a car that was once affordable and is getting more difficult (has been substantially discussed on this forum)

 

[Murray20c8]

There are better ways to impose a message to the masses that the rich will pay than Luxury Taxes, as often its not the rich that are hit hard —like many that save for a car that was once affordable and is getting more difficult (has been substantially discussed on this forum)

Ya, I agree with you, but I think that is what it's for.