Corvette Pricing - A Commentary

[Rob]

It's kind of interesting to listen to Corvette enthusiasts talk about the pricing of the new C6 Corvette, and the possible price of the upcoming 2006 Z06. In a way, I find them humorous and forgive me if my following comments may seem rude or out-of-line, but there's a lot of irony in what I'm seeing lately.

European automobiles have always been heralded by the U.S. as being high quality, extremely refined, precision built automobiles, etc. This can easily be seen in the sales figures of BMW, Audi, Lexus, Porsche, Mercedes, etc. in this country. All of the manufacturers I just listed have models that range anywhere from $40,000 all the way up beyond $100,000 (like Porsche).

Since the birth of the Corvette, the marque has always been well known for its performance, and bang for the buck, as well as it's crappy build quality. Over the years, we've seen the build quality of the Corvette get better and better, and lets face it, build quality and refinement of the C6 is pretty damn near that of European specs - at least what I've seen on pre-production prototypes back in May.

So, when I sit here and read what's to come in the 2006 Z06, 500hp, various carbon fiber body panels, and all the supposed goodies and interesting technology that may be coming on this car...I find it ironic when current Corvette owners and enthusiasts start *****ing that the price of the car may reach or exceed $70,000.

Take a look at the price of the competition. The Porsche 911, Viper, Ford GT, Ferrari, Lamborghini, etc., all exceed $80,000 - the Viper being the cheapest out of the bunch. The Porsche 911 starts to hit around $100,000 and although the Ford GT stickers for around $150,000 good luck trying to find one for that price. The Lamborghini Gallardo - $150,000....the Ferrari F430 - :L

So...I can't help but laugh reading all the comments from people about how Corvette is supposed to be bang for the buck, and they ***** and complain about quality of the Corvette. They spend ridiculous amounts of money on these luxurious European behemoths, and yet, when it comes to the thought of paying nearly $70,000 for a Corvette that is clearly aimed at giving the proverbial middle finger to all the European high performance sports cars, with high quality and refinement, people *****. And...some of these same people spend thousands of dollars on modifying their Corvettes.

Some Corvette owners go out and buy a brand new Corvette and bring it to Mallett or Lingenfelter for major enging upgrades etc. These upgrades, are NOT cheap and I'm in no way trying to bad-mouth the aftermarket companies. They've got some incredible stuff on the market.

It just seems really ironic to me, that as soon as rumors start flying about a high-end Corvette starting to hit $70,000 people start *****ing. Yet, they also ***** about the quality, and the increased need for better engineering in terms of engine options, carbon fiber etc.

Technology does not come cheap. Personally, I am not made of money, and I work my ass off for what I have, but I have always been one that is willing to pay for quality. You get what you pay for, and I just can't help thinking that a lot of Corvette owners are starting to become whiny tight-wads who want something for nothing.

Can I afford to pay $70,000 for a Corvette...or any other car for that matter? No. If I had the money, would I? If the quality is there, and it meets or beats the competition that is several thousands of dollars more expensive - you bet I would. Regardless of whether or not it's a car, gas stove, a HDTV, whatever - if the quality, refinement and reliability is there, I'll pay for it.

Soapbox off. Let the flames begin.

 

[DRTH VTR]

Rob, I agree with you. I just hope to be able to afford the new Z06.

 

[MRANT212]

Couldn't agree with you more Rob!!! The Corvette is and has always been one dynamic supercar that the europeans are frustrated with. Think about resale never mind current new car pricing. Although new Vettes depreciate as rapid as any other new car look at the long term. Ever see a 67 911 Porsche sell for over 100k!!!! Corvettes always seem to possess an interesting long term investment approach over time!! I know I'll be driving mine for a long time!!! Also we are pleasant group of owners that like to wave!!!!!!

 

[OLDGOAT]

100% agree. Since dealers have not been able to reap a premium over MSRP on the C6 watch for them to REALLY lay on the "market adjustment" early in the life of the Z06. If I could afford it would I buy it? No, it's almost certainly too much car for me. Do I feel any shame in saying this? No. I am an OLDGOAT now and know my limitations. But for those hotbloods who can handle it....more power to you...literally!

ps. It's about time that the Viper gets the tar beaten out of it by a bowtie-right off the showroom floor....and the Z06 will do it with 8 cylinders not a piggish 10.

 

[Vinn]

Rob,
I agree. Also, I feel that Chevrolet knows they must pay close attention to their target market when pricing the new Z06. The Corvette is always noted for being such a performance bargain, and I feel some people are simply concerned that it does not lose this status. I think it would be awesome if Chevrolet produced an $70,000 Corvette. However, in Corvette tradition, this car should not only meet, but totally exceed all competitors in this price bracket in virtually every category (i.e., the Dodge Viper). Our current C6 almost does that for just over half this price. Therefore, if Chevrolet created a $70,000 Corvette, I believe Corvette followers will parise this car as another performance bargain, if it is not only compared to the Viper, but its performance and quality begins to creep up on even more expensive cars, such as the Ford GT. But overall, this is basically what you've said in the first place :L

Take care,
Vince

 

[the dean]

Rob:
Nicely stated. We tend to forget that the Corvette is built to a price point so that we can buy it. While I would like to have BMW 7 series carpet, I do not think Chevrolet could do it for the price we pay.
I have owned a number of cars during my driving lifetime and have been able to find something I would have liked to see improved with each of them(the list for my Morgan plus 4 was a long one, but was it fun!!!).
One other advantage the Corvette has over its more expensive rivals--A Chevy dealer and UPS/FedX can get you back on the road in a short period of time even from the remote areas of Montana and Alberta. Woe to you if you have a Porsche.
Thanks again for your comment.

 

[KOPBET]

Aww, let 'em rant. What's the harm? These guys just see something they desperately would like to have and the price point puts it out of reach (me too). I don't blame them that much really. I bet it won't be too many more years before we have to take out a 10 year or more loan just to buy a dd, much less a Corvette. Yikes! Looks like I'll be buying used for a long time, at least until my ship gets here.

 

[Mac]

Looks like you're preaching to the choir, Rob.

Allow me to play (blue) devil's advocate. Let's say two guys... let's call them Mac and Rob... have the wherewithall to purchase new sportscars due to recent lottery wins.

Rob selects a 2006 Z06 for $75K (just had to have a/c & leather) where Mac buys the newly redesigned 2006 Porsche 911 Turbo for $115K (dreamer :eyerole). Just to make the comparison fair, let's say Rob invests the difference ($40K) at today's interest rates.

Fast-forward five years. If each vehicle has been well maintained without incident, Rob will own a car which will likely be worth about $30K and $45K in the bank for a total of $75K. Mac will own a car which is still worth $100K. Like it or not, the Vette loses the depreciation war.

-Mac

ps: Before anyone starts p*ssing and moaning about my figures, I guess-timated all of them. If you care enough to look them up, fill your boots!

 

[jimmyb]

OK Mac, I'll bite. Here are the numbers, straight from Kelly Blue Book. I looked up a 2004 (New) Porsche Turbo (no Options), retail $120,465. A 2001 Porsche Turbo (No options) with 30000 miles in excellent condition, retail $87,185. The Porsche held 72.3% of it's original retail over three years. Now, a 2004 (New) ZO6 (no options) is $52,985. A 2001 (no options) with 30000 miles in excellent condition, retail $36,665. The ZO6 held 69.1% of it's retail value over three years. I used 2001 as this is the first year of both models and new car prices as the fair starting point. No ****ing and moaning here, just thought I'd sling some facts around since guess-timations seem to be like opinions.

 

[Mac]

Thanks for cracking the books and looking it up, jimmyb, and correcting my guess-timations! Please don't get the impression that I hold the Porsche in higher esteem than the Z06 as such is not the case; I'd love to have either one but on my salary, the lottery win is the only chance of that ever happening. Remember the comment about playing devil's advocate? I meant it.

Three years is a pretty short turnover. I wonder how the margins would look at five and ten years? I was right in that the Porsche fared better but not by as wide a margin as I thought. Here in Canada, the margins are somewhat wider, according to my Porsche friend when he tried to talk me into buying a 911 Turbo and the prices that I saw seemed to bear that out.

-Mac

 

[bossvette]

I don't see many Porshes around here and two were being loaded on flatbeds along the interstate but I wonder how many get driven as often as our Corvettes do?

When the ZR-1 was introduced and sold it was at a substantially higher price the the base C-4 I don't see any reason to complain about any price GM puts on it. From what I hear about it you will get your moneys worth

I most likely will never own one, but one day may buy the ZR-1 I always wanted and when they came out I said I would never be able to afford it.

you are correct to get on the box Rob, hail to the chief

 

[Erik S. Klein]

I don't see many Porshes around here and two were being loaded on flatbeds along the interstate but I wonder how many get driven as often as our Corvettes do?

I see LOTS of expensive cars on the road, and on the side of the road. Fewer Corvettes per capita, to my naked-eye inspection.

As it stands I've had my Vette flat-bedded exactly as many times as my Mercedes. . . once each.

The Vette needed a new gas tank (I didn't want to drive it with the leak.) The Mercedes needed over $5,000 in engine work. . .

Still, the one thing to consider when pricing the Corvette is this. When all is said and done, it's still a Chevy. . .

 

[motorman_mp3]

Ok,I am new to owning a vette, It is used.
If I could buy a $70,000 vette I would,but I did not buy my vette because I could.It was because I wanted it. It is a peace of American history,and if you want to ***** about quility. All I can say is buy a B.M.W. or what ever else, but you can not get what a vette gives you.
Just my opinion.

 

[Gorgon]

The complaints are that the "price" (everyone's guess at the price) has jumped significantly from last years model. No matter how you slice it $15k is a huge chunk of change from the '04 Z06 to the '06 Z06 no matter what the performance. The gripe is that GM is bringing some great performance to the Vette and then pricing it out of the range of the people that could afford the Z06 in the past. Many that were drawn to the raw driving experience of the Z in the first place will be forced to "settle" for a base C6 and will not be as happy with the car. I personally believe the car will come priced at $59,999 optioned and expect a base price of $55k.

Let's look at the Z16 which was a little more than $4k more than the base Z06. This car had a carbon fiber hood, which people expect to be expensive (which it is compared to the normal composite material). It seems that everyone believes the $4k upcharge is for the "expensive" hood but it is actually for the "Commemoritive" package. GM loves to upcharge for paint packages as we also saw in '03 with the Anniversary model. The difference between the coupe and convertibel Commemoritive packages for '04 and the Z16 package was ~$500. Based on the pricing scheme we've seen for the C6 coupe and convertible I expect the base Z06 price to be close to where it is now and optioned around $60k.

One other item. A Z06 at $70k will seriously hurt their volume potential in sales which will result in less revenue. It would hurt the Corvette program to jump to a $70k priced Corvette. Despite the improved performance you will not see huge numbers of Porsche guys running over to buy the Corvette.

Leon

 

[LoyalSince72]

Whining Has Become A National Pasttime

Rob:

I TOTALLY agree with you. Only in the US does a guy win the lottery and complain about having to pay taxes on his windfall.

I'm the proud owner of a C6 (VIN 723), two Mercedes CLK cabriolets (a 2004 and a 2002) and a 2005 Honda Oddysey. My C6 has almost 6,000 miles on it (including 2,060 driving back from the NCM Delivery), yet it's the ONLY car in my fleet that hasn't been back to the shop for warranty repairs. The Honda, which we hear about as the Alpha and Omega of vehicle design and construction, has THREE problems/defects that were apparent before the vehicle topped 2,000 miles. And the stupid Honda cost me $39,000 - only about $14,000 less than my loaded C6 with two more cylinders, 2.5 more liters, 145 more horsepower and a whole herd of additional features.

A buddy of mine was driving a 2003 MB 500SL when he took delivery of his C6. He can tell you that his "6" has fewer problems than his $102,000 Mercedes.

I tend to only go online about once a month, because I just overdose on whiners after about an hour. You'd think the XM antenna was 7 feet tall by the way these guys write about it.

It just drives me nuts. Maybe we need a "non-whining" forum.

 

[Bob Chadwick]

GM has defined a price range for this car. Can they get the $70,000 figure that is being kicked around? Absolutely. Can they get it next year with one big jump? I don't think so; not without alienating a lot of the diehards and I have to agree with Gorgon that the performance people are going to lock into a car and not necessarily make the transition even should the performance be similiar.

 

[OLDGOAT]

Hey loyal, by the sound of your post it appears you are the lottery winner. Ya know, some people consider bragging crass. sorry though , I'm not impressed.

 

[LoyalSince72]

Hey loyal, by the sound of your post it appears you are the lottery winner. Ya know, some people consider bragging crass. sorry though , I'm not impressed.

Like I care what you think, eh?

 

[Vettelt193]

I really could care less if they make the new supercar 70 grand or even more... as I won't buy it anyway. If I pay that kind of money for a car, I want it to be unique... Corvettes are not that unique anymore. the C6 has ideas taken from a bunch of other cars, as did the C5... on top of that, new Corvettes are all over the place where I live...

I really would prefer if they made a base model Corvette for the rest of us. I never had a problem with my 250 HP 1987 'vert. It was fast enough for the street, nimble enough to throw into a corner now and then, and rode well enough to be a daily driver. With technology, making a "new" 1987 corvette should be pretty cheap.

The new GTO is about 30k pretty well loaded; give me a Corvette (smaller car) with cloth seats, manual windows, basic stuff for under 30k and I would consider buying a new Vette.

 

[JoeMackin]

The price of your toys

I think some of us have lost sight of why so many people drive and buy a Corvette. Whether you paid 10k or 100k for an exotic Corvette. When you sit down, close the door and turn the key. It's just amazing. You can't find that in any foreign car. Most people who buy Corvette's and sell them regret it. I even saw a guy almost come to tears telling me his sad story. A Corvette is about passion and freedom. I like my Corvette more than just about any foreign I have seen (all I have is a 03 vert all stock). Given the chance I think most people would buy their Corvette again in a heart beat and most people who buy something else wouldn't.