Chevy offers incentives to prevent Corvette Z06 flipping: would this work for Rolex?

[Newt]

This seems like something that might really work for Rolex given the amount of loyalty that they have?

https://www.autoblog.com/2022/07/25/...vent-flipping/

[dannyp]

No. Would never work. Chevy already has incentive and rewards programs. Those are “on-brand” (since they aren’t corvette-specific, either). For Rolex they aren’t.

Now, they could do other things, like extend warranties or offer first post-warranty service included but only for original owner. But couldn’t/wouldn’t look like the Chevy program.

[Tim Plains]

Chevy should focus efforts on preventing dealer markups instead of what customers do with their property.

[bluestreak]

Originally Posted by Tim Plains

Chevy should focus efforts on preventing dealer markups instead of what customers do with their property.

Dealer markups do more to prevent flipping than any incentive program possibly could.

I’ve got no problem with this. This isn’t Chevy trying to dictate what customers do with their property; People are free to tell Chevy to kick rocks. But I’ve got no problem with them offering incentives to flip.

Rolex could offer extended warranty if you’re still in possession of watch, ADs could require bringing in the watch for future allocations. I like it when companies take proactive steps.


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[huncho]

Originally Posted by bluestreak

Dealer markups do more to prevent flipping than any incentive program possibly could.

I’ve got no problem with this. This isn’t Chevy trying to dictate what customers do with their property; People are free to tell Chevy to kick rocks. But I’ve got no problem with them offering incentives to flip.

Rolex could offer extended warranty if you’re still in possession of watch, ADs could require bringing in the watch for future allocations. I like it when companies take proactive steps.


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are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

[904VT]

Originally Posted by huncho

are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

Good point Huncho as one also isn’t buying limited Porsche or Ferrari without first having purchased an adequate number of standard production vehicles. Same thing here.

[mountainjogger]

Originally Posted by huncho

are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

Agree.

[Laostuh]

Originally Posted by huncho

are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

At least in the watch game you're paying for a physical item as opposed to the car game, you're paying for air.

[bluestreak]

Originally Posted by huncho

are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

Originally Posted by huncho

are dealer markups not the same as forcing someone to buy a gold watch or jewelry to get a steel model? in both scenarios you're overpaying just in different ways

The closer you pay to the market price, the less likely that arbitrage will take place.
If the car lists for 60K and sells on open market for 120K, making the consumer pay, say, a 30K markup is going to do more to prevent flipping than anything else possibly could.
There are many reasons why a company might not want to do this, but in terms of stopping flipping dealer markups are effective.
As with watches, the inherent problem is the large delta between retail and market price.


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[huncho]

Originally Posted by bluestreak

The closer you pay to the market price, the less likely that arbitrage will take place.
If the car lists for 60K and sells on open market for 120K, making the consumer pay, say, a 30K markup is going to do more to prevent flipping than anything else possibly could.
There are many reasons why a company might not want to do this, but in terms of stopping flipping dealer markups are effective.
As with watches, the inherent problem is the large delta between retail and market price.


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cars are just not as flippable as watches. a $10k watch is affordable and a lot of people get lucky with no purchase history to get one. even if you had to spend 30k to get the chance to buy a steel rolex you can sell the gold one for a small loss once you walk out. a $100k car is just not nearly as liquid (crazy hassle to buy and sell one) or affordable for most people, not even gonna go into the ones that would be worth flipping (the gt3s, limited ferraris, etc). all of those have a large delta between msrp and market price but they're just unaffordable to the majority of the public. not to mention that cars by nature get worse over time and use and a rolex doesn't. a quick service and polish makes it like new which isn't possible with cars

[Carguy87]

Originally Posted by Tim Plains

Chevy should focus efforts on preventing dealer markups instead of what customers do with their property.

I hear you, but on the the other hand once the car is invoiced to the dealer it’s effectively their property, so if you believe that someone should be free to do with their property what they please, then you shouldn’t you support a dealer’s right to price it as they see fit? If it’s priced too high then the free market will decide
that for the dealer and they will lose profit paying interest on the vehicle while
it sits in inventory. Plus, automotive dealers are punished by manufacturers for how long cars sit in inventory by way of reduced allocation for their other models. This is why you don’t see very many Shelby GT500’s, C8’s, Bronco’s, or any other hot model just sitting in inventory rotting on the lot. They may indeed sell well above MSRP but the goal of any dealer is to maximize profit while selling units quickly to earn more allocation.

To me it would make more sense if Rolex adopted the automotive retail model. Then, you’d be able to buy the piece you really want brand new from an AD within a reasonable timeframe for market value instead of being forced to buying a “used” one from a grey dealer and hope that everything is on the up and up. And, for good customers with longer histories and multiple purchases the AD could discount from the market price to MSRP or any price they’d like for a repeat client. No more multi-year waitlists, no more buying models you don’t want to get one you do. No more empty display cases at your AD while the grey dealer around the corner has every model in the catalogue. Just pay a price someone else will pay and you’re out the door with your new piece.

Maybe I’m way off base but that’s my two cents. I know we all love buying a piece at MSRP and know we “made” money walking out our AD’s front door, but honestly I’d rather be able to walk in and pay a little more for the watch I want from an AD than have to play the games or buy one second hand and hope everything is legit.

[Trailboss516]

I just keep reading this as Chewy

[brandrea]

Originally Posted by Trailboss516

I just keep reading this as Chewy

I’m glad I wasn’t the only one

[TheVTCGuy]

Originally Posted by Trailboss516

I just keep reading this as Chewy

Originally Posted by brandrea

I’m glad I wasn’t the only one

It is an easy mistake to make, since Chewy has a very similar program that he manages. He offers incentives on Corvettes, (Mega) Yachts, private jets and countless other items.

[28mm]

Originally Posted by Trailboss516

I just keep reading this as Chewy

It's not Chewy? Makes more sense if it were.

[Rado63]

There could be a contract to sign that may have penalties for selling as there once was on the Ford GT. Don't really know if these contracts are done anymore on performance cars or are they enforcible?

[rmwill]

Ford lost in court. So will GM when push comes to shove.

Originally Posted by Rado63

There could be a contract to sign that may have penalties for selling as there once was on the Ford GT. Don't really know if these contracts are done anymore on performance cars or are they enforcible?

[904VT]

Originally Posted by rmwill

Ford lost in court. So will GM when push comes to shove.

Didn’t John Cena get sued for selling his Ford GT and ended up making an out of court settlement/solution where he had to pay Ford? If that happens to John Cena that has his own PR team, imagine how the average Joe will get steamrolled.

[omar-rye]

Flipping F-150’s and Corvettes? I’m not an economist or anything but it seems like a recession cycle is what everybody needs

[904VT]

Originally Posted by omar-rye

Flipping F-150’s and Corvettes? I’m not an economist or anything but it seems like a recession cycle is what everybody needs

Even watch flippers imo don’t understand what they’re doing nor take into consideration sunk costs and cost to carry. I like your contrarian perspective lol imo it’s a good perspective to have. The resellers seem to have finally caught on, though wish they would’ve earlier. It never makes sense to hoard inventory and have low inventory turnover when running a business. Perhaps you want some models to display at brick and mortar or online stores but low inventory turnover is still never ideal.

[Db7566]

Originally Posted by omar-rye

Flipping F-150’s and Corvettes? I’m not an economist or anything but it seems like a recession cycle is what everybody needs

It’s been coming for a while.


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[TunaTuna]

Originally Posted by Newt

This seems like something that might really work for Rolex given the amount of loyalty that they have?

https://www.autoblog.com/2022/07/25/...vent-flipping/

Sorry but how would Chevy incentives affect the Rolex situation??

[Chewbacca]

I have nothing to do with car dealers!!!!!

[tgyberg]

Originally Posted by Chewbacca

I have nothing to do with car dealers!!!!!

That's not what this security cam shows!

[Chewbacca]

Originally Posted by tgyberg

That's not what this security cam shows!

I don’t know what you’re talking about that’s not me I don’t look like that who’s the guy in the other seat I can’t even drive I have a chauffeur and Rolexesssws and a wife who loves me and yachts and mansions oh my god my life is a mess please help me I can’t fit in a size 64 waist size or tie my shoes

[DoctorsOrders]

Rolex just needs to get serious banning flippers from purchasing again, create a central database of people not allowed to purchase from any AD.

[Tools]

Rolex doesn't really care that much about flippers and really doesn't know who is or is not flipping.

Rolex is concerned about the Grey Market, which is not flippers or used resold watches. It is importing watches, bypassing their distributor and AD network. This has an adverse affect on Rolex Dealer networks, so is their main concern.

If flippers are buying from an AD, then both Rolex and the Dealer make their money, there is no downside for Rolex concerning flippers/resellers.

[jlovda]

mistake

[jlovda]

Originally Posted by Tools

Rolex doesn't really care that much about flippers and really doesn't know who is or is not flipping.

Rolex is concerned about the Grey Market, which is not flippers or used resold watches. It is importing watches, bypassing their distributor and AD network. This has an adverse affect on Rolex Dealer networks, so is their main concern.

I'm confused. Rolex does not (to my knowledge) sell any watches outside their AD network. The grey market gets its watches either from a flipper who bought it from an AD or out the back door of an AD. The AD and Rolex made money. Same thing can be said about an AD in Brazil selling watches to someone in the US or China unless Rolex USA gets mad. How many worldwide Rolex subsidiaries are there?

[Chewbacca]

This was a Corvette inventory management thread and you all ruined it for the OP by bringing up Rolexeses when the OP clearly wants a Corvette.

(I’m the only one who cares around here)