Internet Roasts Corvette Z06 Auctions From Chevy Dealers Markups | Panda Anku

2023 Corvette Z06

2023 Corvette Z06
picture: Chevy

Dealer premiums remain prevalent. While some traders are still making money from these hefty markups, the internet and the general population have managed to step in and pin traders against the wall, forcing them to price things more fairly. It happened to a dealer who decided to capitalize on his Corvette Zo6 allotments by auctioning off a seat to own one. And the internet has rightly turned on this trader and stopped the nonsense in its tracks.

road & track reports that some Chevy dealers participated in the practice of auctioning off Corvette Z06 allotments to the highest bidder. The latest markup scam-like action was first noticed on the Corvette forums. Posted in a thread From user ElFingers, the commenter shares that he was recently contacted by the local merchant where he had a Z06 deposit. The call was to inform him that the dealer only had one Z06 allocation and would be auctioning it off.

ElFingers says there were no further details about the auction at the time of the call – the manager said he was awaiting more information from the dealer owner. But what they did know was that they expected someone to drop $75,000 for the sticker for a chance to be the first to own a Z06 in addition to the auction. From the forums.

I got a call from my dealer (Classic Houston) and the news wasn’t good at all. You have an allotment in the current cycle that costs $75,000 over MSRP. I think they are dumping deposits on the people on the waiting list for the opportunity to shop at this insane premium. The reasoning I received was that it was “…customer fault…” because flipping with the C8 Stingray and the insane ADM these vehicles have garnered created a bubble that is now popping up the Z06 has manifested; and of course supply chain issues, material constraints, etc. Umm…ok. Mind you, I’m #5 on what should be a @MSRP listing (for over 2 years; with a $2,000 deposit). The next thing that will happen is the next 3 or so allotments the trader can get: “…go to the auction…”. Presumably on EBAY or by pitting people on the list against each other via a bidding war? I really don’t know how this is going to work and the dealer’s Corvette stockist wasn’t sure himself until the owner(s) gave him some clarification. In connection to the Round then they will go down the list from top to bottom offering people attributions based on what the market is holding in terms of ADM at the moment clients are contacted.

Classic Chevrolet Houston was not alone. Site friend Zerin Dube posted a tweet with an email from another dealership, Classic Chevy Sugarland, specifically stating that an auction would be held for the Z06.

Worse is the wording in bold: “The amount you bid is not the final purchase price for the vehicle.” So, to sum up this money grab, these dealers get their money from the bid you placed just for a spot in line. If you win, your bid is not included in the price of the car. Instead, it’s for a spot in line. In addition, they want you to swallow the impact they will hit the car with once it reaches the dealer. If this were any other industry, something like this would most likely be illegal or raise a class action lawsuit.

This all gets more interesting when you consider that GM has asked dealers to stop putting absurd vehicle markups on their cars. early 2022– GM President of North America Steve Carlisle sent out a letter to dealers outlining three key things they should not do with sales of the new Z06: Forcing customers to pay more than the $1,000 reservation fee that GM had set; no direct sales to brokers; and no markings. He called these things “detrimental to the reputation of the dealer, General Motors or its products” and “compromises our common interests and generates negative press that reflects poorly on GM’s brands and your dealership.” But a letter and a simple request did nothing to curb this behavior, which is why it still occurs.

While GM is being easy on dealers due to franchise laws, the internet decided to take a stand.

A letter received by a customer and dated Corvette Forums by Mac Haik Chevrolet shows the dealer trying a more direct approach to the increasingly absurd markups. This letter contains some of the wildest terms of sale I have ever seen from a dealer. Focus Mac Haik Chevrolet:

“To place a 2023 Corvette Z06 Sold Delivery Order, Mac Haik Chevrolet needs $6,000 non refundable Deposit from customer once your order is accepted by Chevrolet. In the event that the customer does not take delivery, this fee will be used for re-fitting, marketing and merchandising the Corvette to the general public.

The $6,000 deposit will be taken when the 2023 Corvette is delivered to the customer. Vehicle is being sold for $90,000 above MSRP.

Insanity. The letter quickly made the rounds on social media and the retailer got it drawn. Some people swore not to buy a car from the dealer. Others wondered how and why GM would put up with something like this. It escalated further when someone found the identity of the dealer’s GM. He must have been inundated with messages because not long after this message was shown:

Image for article titled Internet roasts Chevrolet dealers for Corvette Z06 allotment auctions and absurd markups

picture: Mac Haik Chevrolet Facebook

Another screenshot of a message from the dealer was posted on Twitter showing that the dealer would sell the cars at MSRP, and the GM again said they “didn’t want to cause any problems”:

This should be a lesson to all traders using the market right now. While there are still people who will happily pay those insane mark-ups just to be the first to have something, most of us just won’t put up with that kind of greedy behavior anymore. It just goes to show that the right thing can be done when people come together.

note: I have contacted Classic Chevrolet of Sugarland for more information on the Z06 auction and to see if they are going ahead with it. They haven’t responded yet, but I’ll update this post if and when they do.

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