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.

[Trailboss516]

I just keep reading this as Chewy

[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.


Sent from my iPhone using Tapatalk

[brandrea]

Originally Posted by Trailboss516

I just keep reading this as Chewy

I’m glad I wasn’t the only one

[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.


Sent from my iPhone using Tapatalk

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.

[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?

[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??

[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.


Sent from my iPhone using Tapatalk

[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?

[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.


Sent from my iPhone using Tapatalk

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

[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.

[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

[bluestreak]

Originally Posted by huncho

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

But doesn’t this make my point? Cutting down the potential profit will have an outsized effect on flipping. Because it’s a pain, the margin has to be astounding to make it worth it. If it’s merely good, much fewer people are going to play.

[huncho]

Originally Posted by bluestreak

But doesn’t this make my point? Cutting down the potential profit will have an outsized effect on flipping. Because it’s a pain, the margin has to be astounding to make it worth it. If it’s merely good, much fewer people are going to play.

i just meant the barriers to entry are much higher when it comes to flipping cars. anyone who gets offered a steel rolex can just swipe one with their credit card and flip it within an hour and this was the main issue. most people just couldn't say no to any opportunity to buy a rolex at msrp because it was guaranteed profit, even if it was 5-10%. whereas with cars, even if you get the chance to buy a corvette at msrp and make 30-40k, not everyone can afford to blindly say yes and flip it. the demand is naturally much smaller so you see less flipping

[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)

[mgsooner]

For...reasons...I recently made some calls on Corvettes. Encountered markups as high as 50K over MSRP.

[Michael T]

I embrace what they did on the Z06. Why it will not work for watches is they are not titled vehicles where one can verify if it resold.

[fsprow]

I believe Rolex is quite happy with things the way they are.

[gesus]

The fact patterns in the US between car and watch dealers are different, however the end result is nearly identical - the buyer will always pay more than listed price for a "scarce" item.
It's just the way an open market works, if there's a buck to be made, people will make it.