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

[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.

[Mystro]

Rolex sells all their watches and AD’s sell/bundle their junk jewelry for the opportunity to purchase a Rolex. It’s a win win by all the parties that could make any changes so why would they?? Wrap you head around the idea that it is the way it is for the Rolex consumer on purpose and by design.

[SDGT3]

Don't know what Chevy is smoking but there's dealer mark ups on almost every car out there right now including Camry and Accords let alone a hot new sports car.

[SlideRacker]

Just wait a few years til no one is taking about Z06s anymore. Everyone will be on to the C9.

[28mm]

Originally Posted by Trailboss516

I just keep reading this as Chewy

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

[Boopie]

Too much. Who cares if people flip their watches? Seriously. We are all adults, this is a free market, and Rolex watches are luxury goods that literally no one needs. I greatly enjoy them, have worn one daily for over 20 years, and am fortunate enough to own several of them, but I certainly don’t need them. There are baby formula shortages right now.

When I leased a very desirable Porsche model a few years ago, I had to sign an agreement that I wouldn’t sell it, especially overseas. The dealer told me that people were making a mint selling them overseas, which made up for any penalty incurred. We joked that it was probably unenforceable.

[Booth9999]

I don’t think anything needs to be done except wait. The market for all things will find equilibrium. The last thing we need is more games to play and try to “prove” your not a flipper.

[7enderbender]

I had no idea that those ugly hunks of junk get flipped for a profit. Stunning.

[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.


Sent from my iPhone using Tapatalk

[SDGT3]

Originally Posted by Db7566

It’s been coming for a while.


Sent from my iPhone using Tapatalk

Not if you listen to Janet Yellen or her current boss who are trying to redefine the definition of a recession.

[huncho]

Originally Posted by SDGT3

Not if you listen to Janet Yellen or her current boss who are trying to redefine the definition of a recession.

Yellen: I Don't See a Financial Crisis Occurring 'In Our Lifetimes'
June 27, 2017, at 4:53 p.m

never forget lol

[904VT]

Originally Posted by SDGT3

Not if you listen to Janet Yellen or her current boss who are trying to redefine the definition of a recession.

Sure seems like Yellen has a case of framing bias. That said i believe hers is with intent as she tries to influence markets. Recessions are a healthy part of an economic cycle. Something they seemed to have forgotten post Great Recession. No one wants the blame of 12+ years of quantitative easing. Not the first definition some of these folks have tried to change however. It’s always what’s best for their careers over health of the country’s economy and everyone sees it. I feel bad for the generations younger than the boomers as they have been disincentivized from saving. Instead it’s been pushing of indices and fractional shares meant to benefit the corporate and career political greed. At least with Greenspan we had consistency. Companies like AMC have gamed the market by becoming meme stocks and getting equity financing that wasn’t deserved. Keeping the uptick rule was probably all that is needed.


https://www.morningstar.com/articles...ecision-making

[SDGT3]

“If you look at history, there has never been a moment when inflation was above 4% and unemployment was below 5% when we did not have a recession within the next two years." Former US Sec. of the Treasury, Larry Summers.

To tie this into the current thread, there will be reductions in ADMs from Chevy and almost every other maker out there and have been since May. I believe they will continue as the economy starts to slow and interest rates take affect.

[904VT]

Originally Posted by SDGT3

“If you look at history, there has never been a moment when inflation was above 4% and unemployment was below 5% when we did not have a recession within the next two years." Former US Sec. of the Treasury, Larry Summers.

To tie this into the current thread, there will be reductions in ADMs from Chevy and almost every other maker out there and have been since May. I believe they will continue as the economy starts to slow and interest rates take affect.

I bet the true unemployment rate is much higher as well. Look at how low our workforce participation rate is. Multi-decade lows. Spending was driven by low rates and relief payments aka the earliest form of Universal Basic Income. But rather than permanent it was temporary UBI in effect.

https://www.bls.gov/charts/employmen...ation-rate.htm