Jeep/Dodge Having Problems Selling???

[TheNewGuy]

4xe sales numbers are a loaded statistic.
Several states now require them, so they are all that is on the dealer lots (as mentioned earlier). The average American car buyer knows nothing about special ordering, wants it "right now", is swayed by stupid things (in this case the dumb ass blue accents/tow hooks), likes the tax credit, takes the instant financing of 8%+ on an 8 year note and all that matters is they 'gotta Jeep' and they're takin' it home today.

I have personally talked to two separate 4xe owners who daily drive their Wranglers that didn't seem to even know you could plug them in.

You would see the exact same "increases" with soft top sales if dealers could no longer put hardtops on their lots.

1. ignorance - "I'll just buy what's on the lot"
2. can't or don't want to wait for an order - "ill just buy what's on the lot"

The point was, and still is, that saying that "nobody wants one" is a misnomer commonly used by the people who are anti-EV simply because they dont want one.
There is proof right in this forum that there are plenty of people who do want them and even custom order them.

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[SaintNick]

That's kinda like...My wife got fat and I'm not attracted to her, so we don't make out, and we're not having any kids, so I'm saving money.

Are you really saving money if she got fat?

 

[tomk62]

The point was, and still is, that saying that "nobody wants one" is a misnomer

You're right, we are being too literal. More accurately, it's "most people don't want one".

 

[roaniecowpony]

Are you really saving money if she got fat?

'pends on where she's chowing. Spago in BH, probably shoulda just made out. Smashburger, you made the right choice.

 

[SoK66]

As an auto industry veteran I’ve seen this situation quite a few times over the years and it never works out easily. The COVID production decline naturally led to an inventory shortage that lasted about 24 months. During that time dealers started jacking up prices with ADM, add-ons, etc. Stellantis went overboard with price increases that matched their retailers’ margins, thinking people would accept the price levels as normal. They also think they can make Jeep a luxury brand. That hasn’t payed out. Pricing is way too high, and we are suddenly hit with very high interest rates. Buyers are staying away and it will be fascinating to see how Jeep responds. They were offering 20%+ discounts to clear out ‘23s and I see no reason they won’t have to do the same with the 24s in a few months.

Stellantis just replaced the Jeep COO with an outsider. This is likely a really dumb move, typical of auto companies in the process of rearranging the deck chairs on the Titanic while water is coming over the bow. Will be fun to watch to see how they get their heads either out of their keesters or handed to them.

 

[cripton805]

Still a bunch of 2023s on the lot at my local jeep dealer. This, in southern California, the largest automotive market in the world.

Ventura Crown has 2022 Gladiators market under MSRP and $7,000 worth of accessories. These dealerships are literally fighting the manufacturer in getting these off their lot. If Jeep lowers the price even further. The dealership marks up the accessories even more.

Dealerships are literally killing their brand.

 

[roaniecowpony]

As an auto industry veteran I’ve seen this situation quite a few times over the years and it never works out easily. The COVID production decline naturally led to an inventory shortage that lasted about 24 months. During that time dealers started jacking up prices with ADM, add-ons, etc. Stellantis went overboard with price increases that matched their retailers’ margins, thinking people would accept the price levels as normal. They also think they can make Jeep a luxury brand. That hasn’t payed out. Pricing is way too high, and we are suddenly hit with very high interest rates. Buyers are staying away and it will be fascinating to see how Jeep responds. They were offering 20%+ discounts to clear out ‘23s and I see no reason they won’t have to do the same with the 24s in a few months.

Stellantis just replaced the Jeep COO with an outsider. This is likely a really dumb move, typical of auto companies in the process of rearranging the deck chairs on the Titanic while water is coming over the bow. Will be fun to watch to see how they get their heads either out of their keesters or handed to them.

The rugged image will only tilt the scale a bit against the JD Power, Consumer Reports, and other consumer watchdog orgs.

 

[Xcoaste]

Some dealers are giving big discounts on certain models. I think Wranglers are still selling well and I'm not seeing big discounts on them.

We just picked up a 2024 Jeep Grand Cherokee Limited 4x4 with a $4500 manufacture incentive and the dealer took $7200 off. This is after the recent MSRP drop of around $2000 on this model/trim. This dealer didn't add a bunch of crap on either. No dealer installed stuff. The doc fees were reasonable. OTD (including 7% tax) was $52K on a $60K vehicle.

Financing sucks right now though.

I just got 2.9% for 48 months.

 

[autotragic]

If there were 2.0 gassers or 3.6s on the lot, the sales for 4xes would be lower.

Bingo.

I think a lot of people are forgetting that for something like 13 states they don't even keep a gas Jeep on the lot.

 

[2nd 392]

Bingo.

I think a lot of people are forgetting that for something like 13 states they don't even keep a gas Jeep on the lot.

All 18 CARB states + DC
California
Colorado
Connecticut
Delaware
Maine
Maryland
Massachusetts
Minnesota. *
Nevada. *
New Jersey
New Mexico. *
New York
Oregon
Pennsylvania
Rhode Island
Vermont
Virginia
Washington
Washington DC
3 new added for 24- *

 

[MayThe4x4BWU]

The Jeep dealer near my house has 89 of them, 63 Wranglers and 26 4xe's, all 2024's

No idea if this is a good or bad thing, because they seem have a notorious reputation among other local Jeep dealers for ordering using "customer" orders to allow them to go beyond their allotment or something.

 

[autotragic]

All 18 CARB states + DC
California
Colorado
Connecticut
Delaware
Maine
Maryland
Massachusetts
Minnesota
Nevada
New Jersey
New Mexico
New York
Oregon
Pennsylvania
Rhode Island
Vermont
Virginia
Washington
Washington DC
3 new added for 24-

Well that explains 4xe sales if it's the only thing you can buy then of course that's what you're going to end up with and sales are going to look even better.

 

[RubiSc0tt]

Generally speaking inventories haven't even reached pre-2020 levels yet. Do people just forget how full of cars lots were before covid?

This is sort of an industry "wish", from what I've read and seen from the various independent sources I've seen: Dealers want to have a limited number on hand for people to test drive and buy; Anything else will be special order. This reduces inventory cost for already "burdened" dealers, and can maximize profits/ incentives from OEM's.

The lots are completely jammed packed full of 4XE's that nobody asked for and nobody wants.

There are a TON of 4xe's running around here in upstate NY. Lots of all trims too, but less Rubi's lately. Honestly most of them are probably leases by Jeep "tourists"- People who wouldn't normally buy Jeep Wranglers are now looking because they can lease a hybrid for $260/mo- So they can look cool and get a 4wd vs. a CRV or something. Granted, some of them bitch and complain and trade it in at the end of the lease, but that's another story.

I have a buddy who did exactly that. Bought a used '21 4xe, then realized 2 years later with the current Jeep lease deals: he could trade it in and lease brand new 4xe Rubi's for him and his wife for the price of the payment of his '21, and reduce his debt profile (because it's a lease, not a loan). They don't wheel, they do a fair amount of driving, and are active outdoor people who live between 2 major metro cities and commute in all weather. OF course, the difference is he's at least 12 years on in owning Jeeps, and they both love them.

Jeep is not doing as well as they should or could if were not for a group of 14 states only allowing dealers to stock EV or Hybrid vehicles on their lots...hence so many 4XE's on lots. Now while a customer can still (so far anyway) order an ICE vehicle from the dealer, fact is most people buy new vehicles from the inventory on dealers lots.

Along with high inflation (how else can you explain nearly an 20% increase from my '20 JLR to a comparably equipped '24JLR?) and higher interest rates...
Merely stating the facts, not trying to get political so please, lets not go there...

I'll back this up by saying this was discussed in depth a few months back on the Truck Show podcast. Sean P Holman goes into the terms of it and why Stellantis had to do this vs. Ford/ Chevy/ Etc due to CARB/ CAFE states.

1. ignorance - "I'll just buy what's on the lot"
2. can't or don't want to wait for an order - "ill just buy what's on the lot"

You forgot "BuT yOu WoNt GeT a dEaL If u OrDeR!!1!!" but other than that, Pretty spot on.
Even back in 2018 when I bought my JLUR, I went over prices, showed people the documents- they still didn't believe me. It's shown me how truly terrible people are at math.

Ventura Crown has 2022 Gladiators market under MSRP and $7,000 worth of accessories. These dealerships are literally fighting the manufacturer in getting these off their lot. If Jeep lowers the price even further. The dealership marks up the accessories even more.

Dealerships are literally killing their brand.

I've said it elsewhere countless times on this forum and others, but the dealership model is terribly flawed. It's an industry standard that 80% of dealer revenue needs to come from parts and service or the lights don't stay on. This was in my industry training while slinging code for a marketing agency that dealt exclusively with car dealers, and has been discussed in the same various independent auto blogs I mentioned earlier. This is also why OEM's are attempting to push subscription program and data sale features: it's a revenue stream to replace lost revenue on parts/ service as the industry attempts to shift to EV's which do not have as freqent service intervals.
Don't get me wrong, I despise most dealerships. Part of the reason the subscription feature thing hasn't taken off yet other than consumber backlash is it violates dealer franchising agreements as well as some consumer protection laws. There was talk of lawsuits because dealers felt they were being cut out of the profit if they don't get service/ service plans/ parts/ extended warranty sales.

So until that gets sorted, I'd guess we're going to continue to see this yoyo of OEM's slashing prices, and dealers marking them back up by plastering them with shit parts, ADM's, and all sorts of BS service plans and extended warranties and "free for life car wash and oil change" deals that you're actually paying for when you buy one of these plans that they will likely not stand behind if your vehicle is modified (based on my experience), just to make a profit back.

 

[RicRecon]

Ventura Crown has 2022 Gladiators market under MSRP and $7,000 worth of accessories. These dealerships are literally fighting the manufacturer in getting these off their lot. If Jeep lowers the price even further. The dealership marks up the accessories even more.

Dealerships are literally killing their brand.

Seriously, they still have NEW 2022 Gladuatirs in the lot in Ventura? They have 23s on lots in Sacramento but I haven’t seen any 22s

 

[RicRecon]

I just got 2.9% for 48 months.

Through Chrysler or private financing? That’s an unbelievable rate these days.

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