Big price increases??

cripton805

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I bought my JT Gladiator at 17% off of MSRP last week. I don't know if cost increases are Wrangler specific. I bought a leftover 19' VW Jetta under 20% MSRP last year and now I don't see any of them being discounted.

I think I got really lucky on my Gladiator.





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stil2low

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When world oil prices increase, we pay more at the gas pump. When world oil prices decrease, we pay less at the gas pump.

Do you expect the cost of Jeeps to decrease when world steel prices decrease?

I am expecting the yearly price increases to continue until some real competition enters the market.
That’s like comparing apples to oranges
Steel does fluctuate up and down but unlike oil, manufacturers don’t adjust their costs when our prices drop since they now will get a bigger profit margin.
Oil also stops drilling when prices drop, in an intergraded steel mill we can scale back production but we cannot simply turn off our blast furnace and cokeovens so we have to suck up the loss when steel drops below 450 a coil (currently at 1360)
 

BeeLDub

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That is false in the FCA order documentation there is a clause #2 in fact that says they have the right to change the price at any time during the production process, however it also say you would be entitled to a full refund if you decided to decline the new price. Some folks that ordered over the weekend are learning today they have to pay the increase if they want their ordered Wranglers even though they on paper ordered before the increase.
I don't know what papers you signed, but my papers do not have any such clause.

That sounds like a clause applicable to the dealer themselves, but it is not on a single paper I signed. Every paper I signed contains the agreed upon selling price, and is the reason for all of the signatures and initials.

Dealer prices will not change much, few hundred at most. The major price increase on these Jeeps is not the MSRP/Invoice, but what the dealerships plan to ask for them. Instead of giving 8% below invoice, you're lucky to get 2%, if not, just full MSRP. And that's because they can't sell the volumes they used to.

Plus, my deposit is 100% refundable regardless of any price changes.
 

Jamrock

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Steel does fluctuate up and down but unlike oil, manufacturers don’t adjust their costs when our prices drop since they now will get a bigger profit margin.
This is exactly my point. FCA will increase its prices when there is a temporary increase in component costs but they will not decrease them when there is a decrease in component costs. They will use the temporary changes in component costs to justify the permanent changes in their pricing.

So the yearly price increases will continue until something fundamental changes in the market.

The only hope on the horizon, in my opinion, is a successful roll out of the Ford Bronco. It that doesn't put downward pressure on Jeep prices, they will continue to rise each year for some time to come.

If my memory serves me correctly, 10-15 years ago, there was significant downward pressure on steel prices as Asian manufacturers got into the business. The increased competition drove down prices and a number of US steel makers were forced out of business.

Were you around during that period or is my memory faulty?
 

Jeeperz Kreeperz

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Dealer prices will not change much, few hundred at most. The major price increase on these Jeeps is not the MSRP/Invoice, but what the dealerships plan to ask for them.
That’s the exact opposite from what others are reporting. We’re hearing that the actual MSRP has increased by roughly $2,000 as of earlier this week.

EDIT: Correction, I mistakenly thought the conversation was about the price increase on the 4xe models (which have increased by roughly $2K).
 
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BeeLDub

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That’s the exact opposite from what others are reporting. We’re hearing that the actual MSRP has increased by roughly $2,000 as of earlier this week.
Is that not just on the 4xe? I did not see/hear that about the entire line of Wranglers?

Edit to add: Jeep.com still shows my MSRP about the same as when I ordered in April, but Jeep.com is obviously not the most reliable source.
 

stil2low

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This is exactly my point. FCA will increase its prices when there is a temporary increase in component costs but they will not decrease them when there is a decrease in component costs. They will use the temporary changes in component costs to justify the permanent changes in their pricing.

So the yearly price increases will continue until something fundamental changes in the market.

The only hope on the horizon, in my opinion, is a successful roll out of the Ford Bronco. It that doesn't put downward pressure on Jeep prices, they will continue to rise each year for some time to come.

If my memory serves me correctly, 10-15 years ago, there was significant downward pressure on steel prices as Asian manufacturers got into the business. The increased competition drove down prices and a number of US steel makers were forced out of business.

Were you around during that period or is my memory faulty?
The price increase is across the board through all the manufactures, not just FCA. Just like coffee, price goes up when the bean cost more but never goes down

The last major crash of steel prices since the early 80’s was back in 08 when the housing market crashed everything. The latest mini crash was just few years ago when Trump applied tariffs to imported steel.
The tariffs hurt a lot of steel manufacturers state side ( I’m Canadian) because a lot of the manufactures are mini mills which have a EAF furnace or were just slab castors that had slabs come in from their oversea parent company. The tariffs allowed US steel and AK to set a very high price on steel because buyers were now trying to purchase within the states. This crashed about 6 months later because even with tariffs applied we could still provide steel cheaper. We made a lot of money that year lol
North American steel has always had pressure from China as they dump steel and tubes into our economies, but the tariffs were a joke to simply make the government money and look good to the outside world that doesn’t understand the steel market. They claimed national security yet we have a on going contract with the US DOD to provide armor plate
 

Jeeperz Kreeperz

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Is that not just on the 4xe? I did not see/hear that about the entire line of Wranglers?
Yes, sorry for the confusion. I thought you were referring to the price increase on the 4xe models. I’ll go back and make an edit to my prior post. Thanks!
 

Low_Spark

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This is exactly my point. FCA will increase its prices when there is a temporary increase in component costs but they will not decrease them when there is a decrease in component costs. They will use the temporary changes in component costs to justify the permanent changes in their pricing.

So the yearly price increases will continue until something fundamental changes in the market.

The only hope on the horizon, in my opinion, is a successful roll out of the Ford Bronco. It that doesn't put downward pressure on Jeep prices, they will continue to rise each year for some time to come.

If my memory serves me correctly, 10-15 years ago, there was significant downward pressure on steel prices as Asian manufacturers got into the business. The increased competition drove down prices and a number of US steel makers were forced out of business.

Were you around during that period or is my memory faulty?
Steel is a bubble right now... The benchmark Hot Rolled Coil Steel is over 1500 per ton right now. Its being fed by overspeculation driven by low interest rates, and a spike in demand as the economy restarts. Lumber is in a very similar situation. At some point the demand curve will level off and likely even regress, and when that happens the bubble will burst and the commodity prices will return to normal.

To your point, as long as people are willing to pay increased prices, prices will continue to increase. I would caution people though, coming out of the pandemic there is a lot of cash that will hit the markets, but that surge of spending is not going to be sustainable. I would anticipate a major correction at some point in the next 6-18 months.
 

LeaN69

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Steel is a bubble right now... The benchmark Hot Rolled Coil Steel is over 1500 per ton right now. Its being fed by overspeculation driven by low interest rates, and a spike in demand as the economy restarts. Lumber is in a very similar situation. At some point the demand curve will level off and likely even regress, and when that happens the bubble will burst and the commodity prices will return to normal.

To your point, as long as people are willing to pay increased prices, prices will continue to increase. I would caution people though, coming out of the pandemic there is a lot of cash that will hit the markets, but that surge of spending is not going to be sustainable. I would anticipate a major correction at some point in the next 6-18 months.

So in other words, but crypto because USD is overprinted garbage. lol

Im in manufacturing and for a few months now we've been hit by 3x price increase in raw materials, that' carbon, steel, galv. even powder coat. Some exotic metals we cant even source at this time.
 

Jamrock

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I suspect that some price increases will be driven by lower supply. The supply chains have to make changes to production lines for social distancing, work from home, etc. I would expect production levels to be down quite a bit.

The price increase is across the board through all the manufactures, not just FCA. Just like coffee, price goes up when the bean cost more but never goes down
I know a bit about Blue Mountain coffee prices. Those prices fluctuate quite a bit, depending on supply and demand. For the last few years some farmers were going out of business because of the fall in coffee prices. Others were trying to increase the size of the farms and get more economies of scale in order to compete.

I think there was increased competition coming out of Latin America. At one time Jamaican Blue Mountain coffee was a specialized brand that commanded higher prices. Not so much any more.

Prices are determined by market conditions. More by supply and demand than by costs of production. Costs of production determine whether you can stay in business or not.

( I’m Canadian)
Yeah. I know. I watched a lot of your trips up and down old mining trails. I haven't seen any recently, though. Due to the pandemic lock downs I figure
 

BigGreen

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It's a sellers market for new vehicles. Dealerships are empty. And its a crappy situation too, under normal conditions you could just wait 1-2 years and buy when everything normalizes, but if inflation is what everyone is expecting, it'll be cheaper to buy at inflated prices now.
 

BuyHold

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On another thread, @tampahoosier shows pics of a “check box” that dealers can select to add price protection to an order:

https://www.jlwranglerforums.com/fo...for-2021-jeep-wrangler-4xe.71274/post-1495047

This might have some bearing on why some dealers are claiming an old order is price protected, and others are not.
Assuming prices only increase or stay flat, why would a dealer NOT check this box. Does it cost them to check it (i.e. some sort of price insurance premium)?

A customer service oriented dealer can check it and then stick with their agreed upon price if non-contractual.

A dealer who entered into a contractually agreed upon price can check it and make sure the margin that they thought they would have at time of order is preserved.

A non customer service oriented dealer can check the box and then, at delivery, say "Jeep raised prices" and then charge more... but still pay the lower invoice price to Jeep at order time thereby making higher margin on the sale.

Is it only ignorant dealers who wouldn't check the box?
 

dgoodhue

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I suspect the price increase is across the line up but I have not been able to confirm it. It seems like some Wrangler models are discontinued as well. We should see a new order guide soon to confirm the changes.
 

Jeeperz Kreeperz

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Assuming prices only increase or stay flat, why would a dealer NOT check this box. Does it cost them to check it (i.e. some sort of price insurance premium)?
I was thinking the same thing. If price protection is available on every factory order, there would seemingly be no reason for a dealer not to select it (and therefore, no reason for it to even be an option, as it should occur on every single order by default). That’s what led me to the speculation that there‘s a cost to the dealer each time they check that box. But I have absolutely no idea how it really works. Just deducing based on what data we have here.
 

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