By on July 19, 2010

The good news? GM is so desperate to move Corvettes, it’s decided to give you $3k back or 0% financing on every single new ‘vette, including the world-beating ZR1. The bad news? You have to build the engine yourself. Also, this won’t exactly help GM climb off its throne as the reigning king of incentive spending. But hey, if $106k for a Corvette was sounding a little ridiculous, at least the price point has effectively fallen to $103k. If you’ve been on the fence over that three thousand dollars, it’s time to adjust your spreadsheet accordingly. [ZR1 incentives explained after the jump]

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17 Comments on “What’s Wrong With This Picture: Incentivize This Edition...”


  • avatar
    blowfish

    Probably slow down during the summer mths, or all who can afford had got one already, rest are waiting for next yr model.
    One dude I knew bought one real good deal when a dealer in Vancouver switch to foreign brand, so the car was sold purty cheap. For some reason they didnt want to take the car to another dealer, they do have many dealers by same owner.

    Wonder how many dude would build an engine himself? U need time off to go there.

  • avatar
    gslippy

    Maybe the government should take advantage of the incentives, spend $50 million on the Corvette inventory, and give them to the Border Patrol as pursuit vehicles.

    That would be good for America.

  • avatar
    John Horner

    I wonder how many people take GM up on the >$5,000 option of having a hand in assembling their Corvette’s engine. It is a smart move on GM’s part to engage their most enthusiastic customers on that level.

  • avatar
    mcs

    I know another company with a similar assembly program. Ikea. The Ikea Furniture Build Experience. You don’t even have to fly to China to participate. They let you enjoy the moment in the privacy of your own home.

  • avatar
    Lokki

    Hmmmm –

    An engine built by non-union unskilled labor?

  • avatar
    jmo

    Question:

    Is resale value calculated from MRSP or from the actual final transaction price? Does this price include the value of 0% financing?

    • 0 avatar
      mtymsi

      depending on what you’re calling resale value,

      for a lease the residual (end of term) value is calculated as a % of the MSRP, the 0% may or may not be factored in dependent upon if the % was lowered at the same time the 0% took effect

      trade in value is usually determined by local/regional auction sell prices (Black Book) or a buy figure assigned by a wholesaler or another dealer at the request of the dealer taking the car in on trade.

      retail used value is market determined (i.e. a dealer or private owner will seek the highest possible price) financing companies often use the NADA retail book value as a cap (upper end) amount to determine how much money they are willing to loan

      wholesale and retail prices on late model units are usually effected by 0% but only for the time the 0% is in effect (i.e. a late model used vehicle with a normal finance rate still has to cost less than the new one at 0% otherwise there is no incentive to buy used

  • avatar

    Here’s the real travesty.. Corvettes in Canada..now up to $20k off the ripoff MSRP…

    Model MSRPPrice Adjustment
    Corvette Grand Sport Coupe – 1SA Package $74,875 $17,782
    Corvette Grand Sport Coupe – 1SB Package $80,420 $18,724
    Corvette Grand Sport Convertible – 1SA Package $83,655 $19,046
    Corvette Grand Sport Convertible – 1SB Package $91,870 $20,442
    Corvette Coupe – 1SA Package $67,050 $16,655
    Corvette Coupe – 1SB Package $72,595 $17,597
    Corvette Convertible – 1SA Package $76,955 $18,081
    Corvette Convertible – 1SB Package $85,170 $19,477

    • 0 avatar
      psarhjinian

      You want a rip-off? Check the price of the 370Z, which just kisses the base Corvette, as does the RX-8 and S2000.

      Now, I like the Z and RX, and I’d probably like the S2000 if I could get the door closed without crushing my knee, but pricing them within spitting distance of even the base Vette is not smart.

    • 0 avatar
      Stingray

      V8 > Rice

      /thread

      I just had to :D

  • avatar
    mtymsi

    0% financing does sell Corvettes mostly to longtime owners that have owned a number of them. GM has offered 0% Corvette financing several times since the “Let’s Roll” promo after 9-11. The savings realized by 0% 60 mos is enough to get anyone thinking about updating their current Vette to buy a new one. It seems as though psychologically they just can’t resist that 0%. Here in MI since Vettes are only warm weather cars and owned mostly by older buyers as a toy 3-4 year old ones usually have 15-25k miles on them so the O% actually does give them the incentive to buy a new one they don’t otherwise need.

  • avatar
    oboylepr

    I smell a rat with this build the engine yourself stuff. I can see it now, you go to your GM dealer looking for engine related warranty work and they tell you, “well you built it so you fix it!”

  • avatar
    dhathewa

    Just $3K off a fairly expensive car doesn’t erode resale or transaction prices all that much. Maybe this is just an effective way to calling attention to the Corvette. Maybe it would be the last little push necessary to get a 50-something who was thinking “crisis-mobile” to close the deal.

    It’s not such a good thing if it just pulls next quarter’s sales into this but if it’s a mis-step, it’s not such a big one.

    The “Build Your Engine” experience sounds sort of fun but expensive; it will be interesting to see how many take advantage of it. This reminds me of those “Fly to Europe to Pick Up Your (insert brand here)” programs.

  • avatar
    Steven02

    The model has been out since 2005, and the C6 wasn’t too different than the C5. I am guessing people are waiting for the rumored C7. That and the whole recession that we are in is causing fewer buyers.

  • avatar
    Robstar

    I’m actually tempted by this. I’ve always wanted a Z06. My trade-in is probably worth 15, and I could put down 10 and that would put me at almost $1k/month for 5 years.

    Basically my mortgage. Unfortunately I couldn’t justify that to the wife.


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