2021 Escalade

[TonyZappone #2624]

A good friend who is also a retired GM dealer wants a new Escalade.  He found the color he wanted at a S. Florida dealer.  Upon inquiry, he was informed that they had one, it would be $20,000 OVER sticker.  He told them to stuff it, good for him.  Tried a local dealer, who would order one, they only wanted $10,000 over sticker.  Moreover, neither would accept the GM certificate my friend has.  Here we go with the same crap as other scarce models from years past.  Finally he found a dealer up North that would order one for him and honor the GM certificate.  Can't believe it

[Bobby B]

Q: Why would anyone pay anything OVER Sticker price?

I never understood this logic. Don't you just go to the dealer once they're available and either buy one off the lot or order it. I don't buy new cars so I'm out of this loop, therefore, can someone please enlighten me on this phenomenon. Thanks,
                     Bobby

[Big Apple Caddy]

Q: Why would anyone pay anything OVER Sticker price?

I never understood this logic. Don't you just go to the dealer once they're available and either buy one off the lot or order it. I don't buy new cars so I'm out of this loop, therefore, can someone please enlighten me on this phenomenon. Thanks,
                     Bobby

MSRPs are suggested retail prices but ultimately, dealers set selling prices.  Usually selling prices are below MSRP and often have incentives but If a car is in high demand/short supply, some dealers will attempt to charge a premium above MSRP.  Sometimes you'll even find these "hot" models as used cars (from dealers or private parties) with asking prices above original MSRP.  As long as there are buyers willing to pay above MSRP, they will sell.  When demand and/or supply changes, sellers won't be able to demand premium prices.

The new Corvette is another example of a GM model that has recently been seeing above MSRP asking/selling prices.

[fishnjim]

He better hope that dealer can actually deliver.   
I (pre)ordered a new GM truck a few decades back before the new models actually hit the market.  Dealer priced it off his info, no real discount.   Took the down money.   This was reported in the WSJ, the GM whizkids came up with this computer program, that allocated inventory/production by sales and profit.   It was a hot redesigned model and selling fast.   I wanted a special model.   All I got for 6 months was "run-around de jour" til I finally pulled out and bought from the competition off the lot.   Got my deposit back but no interest.   Last time I bought a truck from them.

[chrisntam]

I ordered a '21 Corvette, an overwhelming number of dealers are selling them for sticker.  Just move on to the next dealer.  Those dealers that are selling for over sticker are being avoided.  A few new owners are reselling them (asking) for +10k to +20k over sticker.

As always though, our economic system is based on supply and demand.  If you don't want to pay the asking price, pass and move on or pony up.  A few Corvette buyers have ponied up. I won't, MSRP is already too high.

[e.mason]

Years ago, I was good friends with the new car manager of a local Cadillac dealership.  I would frequently stop by the dealership to chit chat.  At one visit, they had a beautiful '78 Seville with a dealer custom paint job.  They basically took a delivered yellow Seville and painted the top 1/3 white.  Really looked stunning. It sort of reminded me of a lemon meringue pie.  Naturally, they added on an added cost for the "custom paint".  And yes it was exuberant.  I asked my friend.  Who would pay so much for so little?  He then gave me a quick lesson on how to sell cars.  He simply replied, "In selling cars, you must remember there is an ass for every seat".

Dealers know that out there somewhere.  Someone is willing to pay whatever it cost to have the newest and or the rarest.  I say more power to them.  If they want something and have the money to spend on it. Then by all means be my guest. 

[Big Apple Caddy]

Years ago, I was good friends with the new car manager of a local Cadillac dealership.  I would frequently stop by the dealership to chit chat.  At one visit, they had a beautiful '78 Seville with a dealer custom paint job.  They basically took a delivered yellow Seville and painted the top 1/3 white.  Really looked stunning. It sort of reminded me of a lemon meringue pie.  Naturally, they added on an added cost for the "custom paint".  And yes it was exuberant.  I asked my friend.  Who would pay so much for so little?  He then gave me a quick lesson on how to sell cars.  He simply replied, "In selling cars, you must remember there is  for every seat".

High markup aftermarket items were also a way for dealers to show larger discounts on paper or in advertising.  Also, possibly pad the trade allowances.  A typically equipped 1978 Seville may have had an MSRP of $16k but throw on a roadster roof, custom grille, custom wheels, etc. and the adjusted "list price" or "dealer list" could balloon to $20k or more.  Instead of advertising a $2k discount on the car without add-ons, they could advertise $5k+ in discounts with the add-ons thanks to the large markups.

[TJ Hopland]

What is the certificate thing that was mentioned?   I assume some sort of 'employee discount' deal?   If that goes against the dealers cut at all I could see that not helping especially when dealing with a hard to keep in stock car.

[TonyZappone #2624]

That is exactly what it is new to when we sold out in 2002.   Not familiar with all its characteristics

[Big Apple Caddy]

What is the certificate thing that was mentioned?   I assume some sort of 'employee discount' deal?   If that goes against the dealers cut at all I could see that not helping especially when dealing with a hard to keep in stock car.

My guess is that when a dealer is unwilling to sell a car under one of GM's special pricing programs (e.g., employee pricing), any related rebate certificates can't be applied.

[79 Eldorado]

I ordered a '21 Corvette, an overwhelming number of dealers are selling them for sticker.  Just move on to the next dealer.  Those dealers that are selling for over sticker are being avoided.  A few new owners are reselling them (asking) for +10k to +20k over sticker.

As always though, our economic system is based on supply and demand.  If you don't want to pay the asking price, pass and move on or pony up.  A few Corvette buyers have ponied up. I won't, MSRP is already too high.

Chris,
I recently heard they extended production of the 2020 Corvette. Normally the new GM models start around July of the prior year which would have meant the 2020 would have started around July 2019 and should have concluded July 2020. I wonder what that means for the 2021.

I'll need to take a look at the new Escalade. Did they introduce the next generation? Is the GMC version the same situation?

Scott