Corvette's Base Price Falls, But There's a Catch
Corvette's base price falls, but there's a catch
Some standard features become costly options
By ROBERT SCHOENBERGER
rschoenberger@courier-journal.com
The Courier-Journal
The '05 Corvette will start at $45,045, versus $45,435 for the '04. But adding back former standard equipment, like racing seats and premium stereo gear, will cost about $1,400.
General Motors will drop prices on the 2005 version of its Chevrolet Corvette sports car, but you should probably hold off on breaking any piggy banks.
Built in Bowling Green, Ky., the '05 Corvette will start at $45,045, including an $800 destination charge. That's less than a 1 percent drop from the $45,435 starting price on the '04 model.
GM spokesman Bob Tripolsky said the price cut reflects changes in options — several features standard on the '04 models will cost buyers extra — and design changes that make the Corvette less expensive to produce.
Tripolsky said GM wanted to make sure the new Corvette was profitable, but "we don't want to price ourselves out of any sales."
The first major redesign of the Corvette since 1997, the '05 model will feature a 6-liter V-8 engine that produces 400 horsepower, 50 more than the standard '04 model. Other changes include a keyless entry system, a slightly smaller body, minor styling changes to the exterior and fixed headlights, ending 41 years of pop-up lights.
Gary Brown, dealer and part-owner of Brown Brothers Cadillac Chevrolet in downtown Louisville, said price has never been a leading factor for Corvette buyers. He said that's good because he believes buyers will end up spending more on the '05 model.
Adding back what was formerly standard equipment, such as racing seats and premium stereo equipment, will cost about $1,400, wiping out the lower price. A preferred-options package that includes a navigation system and other premium features will cost nearly $4,400, up from $1,200 for the '04 model, Brown said.
"Most of the people we've sold Corvettes to have opted for the preferred equipment group," Brown said. For those people, "It's going to come as a net
price increase."
Chevrolet did make one feature, a six-speed manual transmission, standard on the new vehicle. The six-speed was a $900 option on the '04 model, which came standard with a four-speed automatic. An automatic transmission is available as a no-cost option on the '05 model.
George Peterson, an analyst with AutoPacific in Tustin, Calif., said with a car as expensive as the Corvette, a few thousand dollars up or down is not really significant.
"Value has never been a huge part of what Corvette has offered, but it has been a part," Peterson said. "It has traditionally offered a lot of performance for the buck, and this pricing will let GM continue to argue that."
The Corvette is more expensive than entry-level sports cars, such as the Ford Mustang ($19,000-$29,000) and mid-level offerings such as the Nissan 350Z ($26,500-$34,500) but less expensive than ultra-high-performance offerings such as the 500-hp Dodge Viper ($82,000 and higher).
Peterson said GM probably decided against a price increase because automakers are trying to get away from large cash incentives on vehicles. Over the past several years, price increases have been matched or exceeded by cash-back incentives, hurting profitability, he said.
GM is offering $3,000 cash back on '04 Corvettes, Tripolsky said, to clear out inventory. Last year, the company offered a relatively modest $1,000 cash incentive.
Brown said with fans expecting a new model by summer's end, the only way to move the older Corvettes is to offer cash rebates and discounts. "I'm glad to be down to one," he said.
He expects the new Corvette to be a hit because fans have been waiting for a new model for nearly seven years.
"The early '05s, I wouldn't be surprised to see them show up on eBay and sell for $5,000 or $6,000 over list," Brown said. He said he saw offerings above list prices on eBay last year for the Cadillac XLR, essentially a luxury version of the Corvette.
The '05 convertible Corvette will start at $52,245, a slight increase from 2004. GM plans to start building the new Corvette this month.
