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Tuesday, September 8, 2015

End of credit union discount - Another General Motors backdoor price hike on Corvette C7 Stingray

Over the years, it has been a tradition that +General Motors would offer a shitload of manufacturer sponsored financial incentives to somewhat offset price hikes on their cars, including Corvettes.  Typically, as the sales slow down, the incentives intensify, hopefully motivating the prospective buyers to finally pull the trigger and allow GM to maintain the sales figues, anticipated by its book keeping department and stock holders.

This cycle has been no stranger to the newest Corvette, C7 but it apparently gained a strange twist, clearly pointing at the GM's inability to employ more price hikes on the car while attempting to generate profits, with sales dwindling.

Among the major discount programs offered on C7 Corvette such as employee, supplier and military programs, there was one that was especially popular.  That program, called credit union discount program allowed many potential buyers, stopped by a few grand on the bottom line, to make their purchase and keep the sales alive.

The requirements for the program were pretty simple, amountin to credit union membership and cooperation of the GM dealer.  The program, currently in its seventh year, offered a healthy discount, equaling (more or less) the supplier discount (about 8.8 %). 

On July 15, 2015, things have changed, with GM trimming this readily available discount to a measly $750.  The difference was the ability for select buyers to add this discount on top of other discounts, especially the supplier discount.

As of 9/30/2015, things are going to change again, with the credit union discount eliminated and the entire program suspended indefinitely.

Will the very popular CU program be replaced by an in house equivalent or will the buyers be forced to perform the oral activity on the GM dealership financing experts?  This is still to be seen but the entire thing and its timing seems pretty peculiar.  There are plenty of 2015 Stingrays and Z06's left unsold and to top it off, the winter is coming shortly along with the Corvette owners in the snow belt states already making the annual preparations to tuck their precious possesions in the winter cave, until the spring comes.

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