Automotive News, Media & Press - How could Camaro markups be avoided?

I was wondering if GM could do like the Scion dealers have been forced to do(correct me if I am wrong on this)...sign a document that stated that they would sell the Scions for a no haggle price. If GM said you will only get the Maro if you sell it for MSRP, then Maro's would be everywhere in a few months and people would start buying them like crazy. Is this feasible? Thanks!!!

I wish. That stupid ass mark up that they do will be the only thing keeping me from getting one. I refuse to pay it.

Just be patient, IIRC the GTO markups were gone shortly after they came out; ya know, when it was apparent they weren't going to be as hot as the dealers thought.

I get the feeling the new Camaro will be hot for the first year and then sales will drop.

JMO

One other thing:

I would'nt expect to get a "deal" on a new Camaro anytime soon. There is gonig to be a "one of a kind" mentallity at dealerships for a while.

If you are looking for a deal, keep these point in the back of your mind. (I've worked at Chevy Dealerships for over 7 years)

1. GM gives each dealer an allotment of new cars depending on the previous years sales. Call around (probably within 100 miles) and find the dealer with the most models to choose from. They are the dealer most willing to deal. The dealer that gets the least allotment will want to keep the cars there longer to take advantage of the free advetrising built in with the "New _____".

Example: If joe's chevrolet only gets 1 corvette, the general manager or owner will likely have a "sticker only" policy on that car. (My general manager paid sticker for the first SSR we got on the lot -- and then kept it in the showroom for ~ 4 months until the second one arrived)

2: Any special or limited editions (SS/Z06/etc.) are exempt from deals in most cases.

Example: When the duramax diesel came out, we (as employees) were not allowed to purchase these on our discount (I.E. sticker only), for the first 6-8 months until we had suffucient stock on the lot.

Just a heads up on the "inner workings" that go on at a new car dealership :)

I'm hoping they do what they did with the Solstice release: They had a limited quantity of special editions (2500 units if memory serves), which were offered at a set price (essentially sticker) on a first come, first served basis for preorder. If they can do a special early release (say, 40th anniversary), that could be a huge hit.

I would'nt expect to get a "deal" on a new Camaro anytime soon. There is gonig to be a "one of a kind" mentallity at dealerships for a while.

Not if I can help it. My sister works in the automotive industry. She'll hook me up :)

I bet there will be like, a $3-5k markup on the first year or so.

I realize that the way it is now there is a markup, but the objective of this thread is to talk up some options on how to avoid the markup. I do believe if GM said you must sell this car at this price or you will not get any, the dealers would toe the line just like with the Scion. If Lutz is serious about selling the number of Maro's he wants with a Ford and DC rival he better keep the price down and I think this is an actionable and viable strategy.

The problem is enforcment on any policy put in place. Once the dealer has the car it's thiers to "do with as they please".

Markups killed the GTO. They better not mark them up cause it might kill the camaro too

All enthusists want the new Camaro in production(myself included) but being a 45 year old family guy,I dont mind waiting for the second year of production,as with all models,let the first year kinks get worked out and thanks to the rich guys with buying up the first run and us regular joes get year 2 models at sticker or less :)

If the dealers sign a binding document then they are forced to do as they signed.

What are the chances GM makes them sign a document?

If nobody buys it because of the mark-ups, then they'll have to lower the cost.

So nobody buy the camaro when it first hits the dealers.

And, if sales bog at the light we could be looking at never seeing an LS7 Maro, a 1LE-esque type options or anything cool. We cannot afford to have this car have slow sales, too much depends on this car. If this car does well we could have GM RWD of all variety (Impy's and the like). GM also needs a RWD car like the 3 series, and this RWD platform could offer such a thing...

I'm not trying to hurt GM, but i want to hurt those asshole dealers that like to mark up the cars

and I could see maybe 1-3K but $10K-$20K

I wonder how all those Miata and PT cruiser people feel now, maiking payments on their $35000 car that should have only cost $14000 :D

If GM makes a document that dealers cant mark up prices, they would sell a lot of camaro's.

But of course thats never going to happen.

GM could be forced to make a document to be signed if we lobby them hard enough, heck, we have a Maro for that reason. Customers speak and they have to listen.

I was wondering if GM could do like the Scion dealers have been forced to do(correct me if I am wrong on this)...sign a document that stated that they would sell the Scions for a no haggle price.

Well, it wasn't so much that Scion (Toyota) really forced its dealers into anything. Toyota was starting the division from scratch, and it was simply part of the deal. Same thing with Saturn back in the late 1980s -- new division, and that was the way the operation was set up from the start. No choice for prospective dealers. They either accepted no-haggle pricing, or didn't get the dealership.

It's that "brand-new-division" aspect that's really the key. Once dealers get the power to make prices as they want, they don't want to give it up. Not too many years ago, GM and FoMoCo came to the conclusion that they needed to institute no-haggle pricing in all divisions, all dealerships. Seemed like a good idea at the time but a lot of dealers raised holy hell about it, claiming they were being robbed of their right to set prices as they saw fit.

So, the only choice GM and Ford had was to try and buy the dealerships, so the corporations could run them as they wanted -- complete with no-haggle pricing. Well, then a lot of dealerships pitched a fit again, claiming GM and Ford didn't have the right to force them to sell out.

Long story short, GM and Ford wrestled with it for a year, maybe two, before finally giving up. And now neither really has no-haggle pricing.

Now, as for what can be done to prevent price premiums being charged by dealers for Camaro, generally the only strategy that seems to work worth a crap is to simply build enough cars to fill demand. It's tough to charge three-grand over sticker for a car when the dealer down the street has extras and wants to move 'em.

Of course the tricky part of that is guessing what demand will actually be. A crapshoot. I'm sure Chevy will wring their hands a lot about it.

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I don't think it matters - in fact, if they mark it up, so much the better. People want what they can't have. It will only increase demand.

And those who don't have to be first on the block can wait 6 months for the supply to rise and buy it under sticker.

If I were GM I would say "sell it at my price or you do not get the car, the other dealer will." The new Maro will be a hot item and dealers do not want to lose those sales.

If you order the car through the dealership can they still add the markup?

I would think that if enough concerned enthusiasts send letters/petitions to GM about "market adjustments" and cite the effect it had on initial GTO sales that GM might implement a new distribution policy. Also, LS1tech could keep a list of dealers that put a markup on their camaros, and those that don't.
Also, the BBB could be contacted about price gouging, and don't forget to remind dealers that markup, that the internet means you can buy your camaro anywhere in the country. That always seems to put the fear of lost sales in the eyes of salesmen I talk to, they quickly follow with "oh, we can ship from anywhere getting the car/truck you want won't be a problem".
Vista Ridge Pontiac in Carrolton had GTO's marked up 2500 I checked teh internet and dealers in the midwest were offering invoice, not MSRP, for their GTO's. I told the salesman I wasn't going to pay that for a car I could get for almost 4000 less elsewhere.

For what its worth,
Josh

Just an FYI for you...MSRP means Manufactures SUGGESTED Retail Price..in this country a company like GM or Ford cannot dictate what a dealer can sell a car for. They can sell them for less than MSRP like in the case of most vehicle purchase transactions..or thay may sell them for what ever price they want to ask. That is the way it is in the land of the free and the home of the brave. I suggest you choose to do your business where you feel the most comfortable and get the best service and price..... :)

they'll be plenty of dealers selling camaros.


thing is if a dealer is getting what they're asking for a certain vehicle then theres no reason to lower the price.

when i bought my GTO i shopped around.


2 dealers wouldnt move off sticker and a 3rd did.


guess what? i bought it from them. :)


dealers should be allowed to charge what they want. its their right.



it also our right to look for the best deal or not to buy at all. just be patient and prices will come down.

Markups killed the GTO. They better not mark them up cause it might kill the camaro too


Nope boring car with a GTO decal (grand prix front end honda accord ass end) is the reason for lack of sales and it priced 5K too high to begin with.

If you order the car through the dealership can they still add the markup?



When you order a car you should have signed a buyer's order with a real bottom line on it. The only deveation would be on putting a deposit to secure a place in line to order a car. The wording should read that you will pay the agreed upon price wether it is a particulr discount off MSRP, MSPR, or an amount of dollars above MSRP. If you do not do this you are waisting your time and prepare to be screwed when the car arrives...

You seem to be worried about something that may or may not happen in 3 years. The soonest you' ll see this car is 09. Hell in 3 you may not even want the car any longer.