Dealer Markup on Delivery?

[PandaHigh]

Ordered a fully loaded JLU Overland (fancy Sahara) for 52,000 euros back in September 2021. Dealer called last week to tell me there would be a 3,000 EUR markup on delivery because "the dealership has already absorbed a lot of price increases so far" but this final one is on me.

I just realised there's a clause on the contract that says any pricelist increases from the order date until the delivery are passed on the customer. Now Wranglers start at 57,500 EUR, so a 3K increase seems tame in comparison... but still, I ordered the vehicle for 52K before the price increases.

Is there any way out? Anyone else got delivery markups?

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[RandyMarion CDJR]

Did you give them a nonrefundable deposit or significant down payment upfront? You aren't obligated to purchase that Jeep from them at all! You can completely drop the order and not worry about it if you so wish to do so. They will most likely sell it fairly quickly due to the current state of the market. I would let them at least know if this is something you plan to do, but you aren't obligated to purchase in anyway unless you've signed paperwork outside of what is normally presented stating otherwise.

 

[PandaHigh]

I did put down a deposit but really, I just want my Jeep.

I was wondering whether this kind of delivery markup is considered normal or legal, and if there's any way around it.

 

[Jank4AU]

I highly doubt they absorbed any markups on your vehicle since it's built at the prices listed when ordered. The window sticker will show up with any increases since the order went in; however, pretty sure the dealership is only getting invoiced for the price on the VON when submitted. I'd walk, personally, as there are other dealerships out there that price protect orders. I personally think this is shady and just them trying to pull one over on you to make more money on their end. There are also other dealerships that price protect and don't require a deposit.

 

[PandaHigh]

Sadly, they're the only dealership on my small island. It too sounds shady.

Should I inform Stellantis/FCA about this? Is there anything they can do?

 

[SH556JL]

Did you give them a nonrefundable deposit or significant down payment upfront? You aren't obligated to purchase that Jeep from them at all! You can completely drop the order and not worry about it if you so wish to do so. They will most likely sell it fairly quickly due to the current state of the market. I would let them at least know if this is something you plan to do, but you aren't obligated to purchase in anyway unless you've signed paperwork outside of what is normally presented stating otherwise.

They are in Europe, so their rules and market conditions could be different then ours…

Sadly, they're the only dealership on my small island. It too sounds shady.

Should I inform Stellantis/FCA about this? Is there anything they can do?

It probably wouldn’t hurt. I know Ford and Subaru are both taking a stance on dealers in the US charging a markup… But being he only dealer on your island, they maybe very well have you over a barrel If you really want the Jeep.

 

[foxredlab]

Sadly, they're the only dealership on my small island. It too sounds shady.

Should I inform Stellantis/FCA about this? Is there anything they can do?

I would reach out to Stellantis for clarification. My dealer here in the states advised me that all “sold orders” are price protected at the time of order.

 

[Jank4AU]

I think you could always ask them to see the invoice to prove they took or are having to pay a markup.

 

[Rjstevens]

People recommending you walk away is not a good idea. If you walk away from the one you already have ordered and re-order, you’re going to absorb the price hike anyway, and now your wait is a lot longer! Unless you can find a dealer that’s willing to give you a better price than the one you already received, which doesn’t sound like that’s going to happen.If you are still paying below MSRP, it’s going to be a good deal.

 

[Jank4AU]

They are in Europe, so their rules and market conditions could be different then ours…

I'm pretty sure Europe has better consumer protections but I could certainly be wrong. Also, if they're the only game in town (Cypress), depending on how badly the OP wants his Jeep and whether or not he cares to pay up, it might also just be the better course to try to negotiate with them. Hope it works out in his favor at the end of the day, whichever direction they go.

 

[Chocolate Thunder]

If the contract you have states that the buyer pays any markups between order and delivery, and you state that the list price is now 5.5K euro more than when you ordered, and the dealer is asking for 3K, it sounds like you’re getting a 2.5K discount, not paying more than you agreed. If that rubs you the wrong way then walk away from it. You might be even more upset when you’ve got no Jeep and they sell it to the next guy for 60K euro.

It’s not ideal, but if that’s what’s in the contract then it is what it is. I don’t see how you have any recourse if you want to buy it. Did I miss something?

 

[PandaHigh]

People recommending you walk away is not a good idea. If you walk away from the one you already have ordered and re-order, you’re going to absorb the price hike anyway, and now your wait is a lot longer! Unless you can find a dealer that’s willing to give you a better price than the one you already received, which doesn’t sound like that’s going to happen.If you are still paying below MSRP, it’s going to be a good deal.

Yeah, paying below MSRP... April MSRP, not September when I put my order through.

I think you could always ask them to see the invoice to prove they took or are having to pay a markup.

I'll ask for the invoice and my VIN number tomorrow - great idea.

If the contract you have states that the buyer pays any markups between order and delivery, and you state that the list price is now 5.5K euro more than when you ordered, and the dealer is asking for 3K, it sounds like you’re getting a 2.5K discount, not paying more than you agreed. If that rubs you the wrong way then walk away from it. You might be even more upset when you’ve got no Jeep and they sell it to the next guy for 60K euro.

It’s not ideal, but if that’s what’s in the contract then it is what it is. I don’t see how you have any recourse if you want to buy it. Did I miss something?

Well in that case they could just jack prices up to any level they want and I'd still have to pay it or walk. Which makes zero sense to me. And this invalidates any original price at the time of order, which seems kinda fraudulent to me.

Plus, the contract states delivery in 6 months, but it'll be over 7 months when the Jeep arrives. They don't hear me demanding freebies or a discount for being late.

 

[JL Diesel]

My dealer made me pay the markup of MSRP between my Dec order and March delivery. I felt so lucky that I actually had my Jeep instead of it sitting in D to D1 to D or KZS purgatory I just paid it. Also hadn’t negotiated or asked for price protection so figured it was on me for being nieve.

 

[RandyMarion CDJR]

There shouldnt be a markup for the dealer in this case due to prices rising in the market. If this were the case not only would your local CDJR dealer know about it but as would all other dealers. Stellantis/FCA have a standard rule set that is effective for all dealers at the time of implementation. I personally have not heard that they intend to upcharge us on orders previously done. This goes against the entire image Stellantis/FCA is trying to create & I just don't see it being a reality.

As a dealer in the states, the price we give at the order of the vehicle is the price you will get (except state taxes + SET/non-changing dealer fees). We advise of the additional prices that may be included up front as anyone should. When ordered as a "sold order" unit, the price we give is the price we get regardless of market condition. Not only this but we also have the option of added incentives/discounts for the month the Jeep arrives to add, for a even better deal.


I speculate that your dealer was able to get a nice Jeep in & they decided that they didn't want to "lose" money on a vehicle they could easily sell for the markup to someone else. Is there lot relatively empty or do they seem as if they were prepared for the shortage? This is a key factor with a lot of dealers in my area. They aren't giving good deals or holding to their word because they weren't prepared for the shortage, and are playing a huge game of catch up. Let me know how everything plays out!

I wish you the best in getting a fair price on your Jeep, as you are entitled to it.

 

[Heimkehr]

Ordered a fully loaded JLU Overland (fancy Sahara) for 52,000 euros back in September 2021.

Dealer called last week to tell me there would be a 3,000 EUR markup on delivery because "the dealership has already absorbed a lot of price increases so far" but this final one is on me.

I just realised there's a clause on the contract that says any pricelist increases from the order date until the delivery are passed on the customer.

Is there any way out? Anyone else got delivery markups?

You'll want to investigate what Cypriot consumer protection laws, if any, can be brought to bear here. Your mention of a signed contract being in place between you and the dealer may give the advantage to the dealer.

As part of my pre-purchase due diligence, I asked my dealer in very plain terms if I'd have to absorb any cost increase(s) between the order and delivery dates of my new Jeep. They replied in the negative, and did in fact keep their word when the window sticker on my new JLU illustrated a price that was higher than it was when I signed the Priced Order Confirmation and tendered my [refundable] deposit check.

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