August 8, 2022

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Chevrolet offers Corvette owners $5,000 not to sell their cars: what it says about auto market

2 min read

Chevrolet has a problem: the used car market is so lucrative that its customers are turning a profit by flipping their little red corvettes, and it’s making the Detroit giant seem like it’s price gouging.

So how does a $5,000, uh, incentive sound to keep those flips unflopped?

The General Motors unit is prepared to give owners up to $5,000 to hold on to their 2023 Corvette Z06. In an email to individuals interested in buying a said car, Chevy practically pleaded for prospective buyers to not flip their vehicles after purchase, stating that individuals would receive 500,000 rewards points if they kept their Corvette for a year after buying.

Supply chain issues and a chip shortage have plagued the vehicle industry since 2021, leading U.S. dealerships to fall behind in catching up with buyers’ demands, so with less new cars coming to market, the price tags of used vehicles that are being sold have skyrocketed.

“As the supply has gone down, we’ve seen prices go up for new vehicles, and that trend is continuing,” Nick Woolard, senior director of business analytics at TrueCar, a website that provides pricing information for new and used cars, told Fortune in June.

Enter Chevrolet’s plan to fix its pandemic-era image.

We will pay you to not sell your car this year

While Chevrolet isn’t offering straight-up cash, it’s giving out thousands of dollars in rewards points that can be used toward the purchase and payment on the vehicle, explained Kelly Blue Book.

The used car market has become a battle-ground for prospective owners. Prices for used cars went up by 45% in January  2022, compared to just a year ago, according to Cars.com. Adding inflation, the little (used) red corvettes have been propelled into more of a luxury than before.

“New-car-shoppers-turned-used are creating this amplification of pricing on the used car front, and it’s been winding up pretty steadily over the past 12 months,” Kelsey Mays,…

Chloe Berger

2022-08-01 15:17:43

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