Jeeps are Getting Expensive

[UncleJimmy]

I've said it before and I'll say it again. Jeeps aren't that expensive compared to other vehicles. The problem is that most of us don't want a Jeep... we want a loaded Jeep. And, yeah, once you get away from the base model 2-door Sport they get increasingly expensive... shocker. But the great thing about a Jeep compared to a lot of other vehicles is that you can buy that base model and upgrade it over time thanks to a huge aftermarket.

Absolutely correct!

My experience in Toyotas shows me that, buy Base model, cheaper yes. Then add:
5 wheels and tires $3500
Ft Coilovers: $2500
Rear springs: $1000
UCAs: $800
Lockers: $3000
Sliders: $800
Skids: $800
Total: @$12-13k

Plus no warranty or insurance coverage for all that stuff, and when you resell you don't get anything back whereas Jeep retains more value.

So I will go a step farther, if looking at cost from purchase to eventual sale, the Jeep Wrangler is actually LESS expensive!

Having said that, there are serious issues in society and the economy which is where the problem is at. People increasingly can't afford the American dream.

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[stumblinhorse]

First the pandemic and now inflation have allowed the automakers to try and hide their greed. Stellantis is right at the top. There is no way that any Jeep should be over 60K fully optioned. It’s beginning to bite them in the backside.

Not sure it is bitting anyone, the 4xe is the number 1 selling PHEV on the market. Stellantis had more than enough inventory to wait out the UAW for as long as they want.

They can’t fill orders fast enough to keep people from posting on here that 8 weeks is too long to wait for a custom order.

The only ”evidence” that there is a problem is the click bait YouTubers saying “automakers are screwed!!!”

 

[agpr2016]

Apologies if this was posted already, but the article was just suggested on my Chrome’s feed:

Some Of Jeep's Best Customers Simply Can't Afford A Jeep Anymore

The Jeep Wrangler’s average transaction price was $59,000 in September.

Jeep has been on a premium push the last few years. Products like the Grand Cherokee and Wagoneer have turned Jeep into a premium off-road brand. That upmarket push however has come at the expense of sales to some of the brands loyalist customers as Bloomberg reports.


Sales for the brand are down across the board. Data from Bloomberg shows that the brand has gone from selling 267,000 vehicles in 2018 to 181,000 as of this summer.


The problem is that Jeep’s vehicles now simply cost too much. The Wrangler, for instance, has seen its prices rise 40 percent more than the industry average of 31 percent according to data from Cox. Popular trims like the Wrangler Rubicon can easily go for over $60,000 sometimes $70,000. And it’s leaving buyers out.

“Their portfolio has lost touch with the mainstream consumer, and therefore the whole Jeep portfolio is less attractive,” former product planner at Fiat Chrysler Mark Kudla told Bloomberg.

Jeep has tried to get a hold on the situation by lowering prices in a way. The brand introduced a base version of the Grand Cherokee that starts at just over $38,000 with destination. And the Wrangler’s $32,000-$36,000 starting prices are still reasonable, but good luck finding one for that at the dealer. Data from Cox Automotive shows the Wrangler’s average transaction price was $59,000 in September.

In a statement, Jeep’s North American head Jim Morrison tried to turn these negatives into a positive by saying the brand is making moves.

He left out that the Wrangler 4xe starts at over $60,000.

I hate this too. How many 4 by 4 convertibles are there aside from the Jeep and the Bronco though?

I'm planning to get a Jeep hopefully next year 2025 model...for now I will keep downgrading.

I want a 2 door manual willys. I use to have eyes on a ruby. Things get to expensive? I'll go down to a sport. It'll meet my needs.

Is there a line? Of course. I hope it doesn't get there...but if it gets too crazy I might have to look at something else.

Pains me to think about it.

We will see what happens.

From another perspective, perhaps there will be bigger discounts for factory orders.

Happens all the time in other industries. As funny as it might sound...take startup niche fragrances for example. When a new cowboy prices themselves out of the market, lowering the price is the wrong marketing strategy, they just have their product discounted all the time massively or find a way to offer an easy discount.

 

[2nd 392]

Today: “UAW Expands Strike as 6,800 Workers at Stellantis Pickup Truck Plant Walk Out”

No intended offense to anyone, IMO this is a prime example of not only JEEP, but to all out of control pricing. With UAW Buick & Cadillac paying +$40 hourly wage + benefits to most line workers, fast food workers @+$18, most construction trades and many other businesses unable to fill their help wanted (needed) positions, albeit fewer folks desiring to physically work, what can we expect?

On rising prices & losing sales, strikers now leaving the Ram plant could be bad timing. Yearly sales down 8%, while full size GMC up 28%, Tundra up 24%, Ford up 23%, Chevy up 9%, Ram has a problem like Jeep does ( midsize Glad down 31%) . Likely a good inventory of unsold Rams. ?

 

[ek1]

There are a few well known factors that are contributing to current pricing

1. It's not just Jeeps that are getting expensive. ALL vehicles are getting expensive across the board. There are thousands of articles out there with statistics, like this one. For those not wanting to click, here is a simple graph - and this is in JUST 10 years:

2. Without discussing whether 4xe is good, bad, efficient, etc. - the reality is this....the ONLY way that 4xe is still selling in the numbers it's selling is the massive amount of federal, state, factory and dealer incentives that it's eligible for. Someone I know got a 4xe Sahara in CT for a total of ~$14K+ off MSRP back in September. MSRP was around $61K and he paid around $46K, which is not that bad. Also do not forget that the 4xe weighs more that 6,000lbs, which makes is eligible for accelerated depreciation under Article 179, which makes it attractive to business owners. Now, if someone chooses to pay a full MSRP for a 4xe, that's on them, but it's definitely not a requirement.

3. Nobody cancelled laws of supply and demand. If a product is grossly overpriced in the market (compared to competing products), it will not sell well. The fact that Wranglers are still selling (although slower) indicates that something is still driving demand. I think that most of it is the "not that you would, but you could" message where a lot of people buy these as "Go anywhere" vehicles and then never take them off road and the appearance of the Wrangler reinforces that. This is similar to people buying those home gyms, imagining themselves to be the next king of fitness and abandoning them in a month because it requires commitment, discipline and effort. If the market demand for Wranglers takes a REAL dive (let's say it's projected to hit 150,000 units for a given year), you can be sure Stellantis will start quietly throwing cash on the hood (rebates, zero APR financing, etc). For example, a zero % APR loan on a $50K vehicle saves you ~$9,400 in the interest alone over 5 years). Or they can do a subsidized lease with an artificially low money factor and artificially high residual value, making the cost of the Wrangler lease lower than competitors like Bronco, 4Runner, etc. Once they dumped enough inventory to hit the annual figures, the offer expires and it's back to full price.

 

[Maverick909]

crazy at the cost of them. my 18 JLU sportS i was able to work it to 32K with fee etc. before DP. that 59K is holding me back from buying the wife a jeep currently that on top of crap interest rates. Its a no Brainer that Jeeps sales are down yet again. they need to really look lowering the cost and stop gouging the customers.

 

[Cutterone]

2.5 years ago I paid about 45k for a 2021 Sahara, 6sp, HT, LED, cold weather, alpine. I just went on the build and price and for that same 45k I could now get a base sport with HT and I threw in the auto and step rock rails...they are definitely reaching the point where I may not be able to justify one for my next ride, which admittingly won't be for quite some time, well into the next gen phase anyway...

 

[258_T18A]

There are a few well known factors that are contributing to current pricing

1. It's not just Jeeps that are getting expensive. ALL vehicles are getting expensive across the board. There are thousands of articles out there with statistics, like this one. For those not wanting to click, here is a simple graph - and this is in JUST 10 years:

2. Without discussing whether 4xe is good, bad, efficient, etc. - the reality is this....the ONLY way that 4xe is still selling in the numbers it's selling is the massive amount of federal, state, factory and dealer incentives that it's eligible for. Someone I know got a 4xe Sahara in CT for a total of ~$14K+ off MSRP back in September. MSRP was around $61K and he paid around $46K, which is not that bad. Also do not forget that the 4xe weighs more that 6,000lbs, which makes is eligible for accelerated depreciation under Article 179, which makes it attractive to business owners. Now, if someone chooses to pay a full MSRP for a 4xe, that's on them, but it's definitely not a requirement.

3. Nobody cancelled laws of supply and demand. If a product is grossly overpriced in the market (compared to competing products), it will not sell well. The fact that Wranglers are still selling (although slower) indicates that something is still driving demand. I think that most of it is the "not that you would, but you could" message where a lot of people buy these as "Go anywhere" vehicles and then never take them off road and the appearance of the Wrangler reinforces that. This is similar to people buying those home gyms, imagining themselves to be the next king of fitness and abandoning them in a month because it requires commitment, discipline and effort. If the market demand for Wranglers takes a REAL dive (let's say it's projected to hit 150,000 units for a given year), you can be sure Stellantis will start quietly throwing cash on the hood (rebates, zero APR financing, etc). For example, a zero % APR loan on a $50K vehicle saves you ~$9,400 in the interest alone over 5 years). Or they can do a subsidized lease with an artificially low money factor and artificially high residual value, making the cost of the Wrangler lease lower than competitors like Bronco, 4Runner, etc. Once they dumped enough inventory to hit the annual figures, the offer expires and it's back to full price.

On your third point, the tables may be turning:

https://www.bloomberg.com/news/arti...ayments-americans-struggle-with-monthly-bills

Auto loan delinquencies are at their highest rate in 30 years. Part of that is due to interest rates, but new car prices becoming untethered from reality is a big component as well.

 

[five9dak]

When it all falls apart, just remember y'all are buying $30k jeeps with $30k in options.

 

[Wbino]

I remember when bread was a nickel ?

 

[dz6t]

First of all, lets look at the discount on 4xe this year:

Option 1: lease a 4xe and the leasing company gets about $12K federal and state tax credits that will apply to the cost of the vehicle. But if you intend to keep the Jeep after the lease, the total cost of the vehicle after you purchase it at the end of the lease makes the incentive disappeared.

To simplify this, it means “leasing with the option to buy” has no saving vs purchase the car outright despite $12k incentives. It also brings up the hidden cost of leasing a vehicle, leasing is costly and only should apply to Audi, Land Rover etc, which are money pits after warranty.

But if you just want to keep it for 3 years, go for it and it is a great deal.


Option 2: purchase the Jeep outright and you will get $3750 tax credit when you file the 2023 tax return. If you want to keep the Jeep for more than 3 years, this is a better way to go as it basically knocks $3750 off MSRP. Buy you need to owe more than $3750 in tax to get the credit.

 

[dz6t]

Now look at the weight of 4xe, it is little bit over 5000 lbs, with fully loaded with 5 passengers and cargo, it is eligible for Section 179 business deduction for 2023 as the GVW rating is at 6500 lbs.

 

[BXFXJeep]

2.5 years ago I paid about 45k for a 2021 Sahara, 6sp, HT, LED, cold weather, alpine. I just went on the build and price and for that same 45k I could now get a base sport with HT and I threw in the auto and step rock rails...they are definitely reaching the point where I may not be able to justify one for my next ride, which admittingly won't be for quite some time, well into the next gen phase anyway...

Canadian market and dollars.

Yea my 2021 Sahara 4xe was $63,070 MSRP paid $61k, it came with a few things standard that isn't standard in the 2024 Sahara 4xe

Standard in 2021
Leather
Alpine + Nav - I don't use Nav
Side steps

My options were SOT + cold weather + proximity + colour.

Now for me to get a 2024 with exactly the same options I'm at $78,595 MSRP, the tax payer "EV" bribe to buy this gas guzzler masquerading as a planet saver is $2k, no bribe in 2021.

$2,259 tech group just to get the Alpine.
$595 - side steps
$2,495 - leather

Cold weather and proximity is now standard, I think that was $1,000 and $500 in 2021.

 

[laroo]

First of all, lets look at the discount on 4xe this year:

Option 1: lease a 4xe and the leasing company gets about $12K federal and state tax credits that will apply to the cost of the vehicle. But if you intend to keep the Jeep after the lease, the total cost of the vehicle after you purchase it at the end of the lease makes the incentive disappeared.

To simplify this, it means “leasing with the option to buy” has no saving vs purchase the car outright despite $12k incentives. It also brings up the hidden cost of leasing a vehicle, leasing is costly and only should apply to Audi, Land Rover etc, which are money pits after warranty.

But if you just want to keep it for 3 years, go for it and it is a great deal.


Option 2: purchase the Jeep outright and you will get $3750 tax credit when you file the 2023 tax return. If you want to keep the Jeep for more than 3 years, this is a better way to go as it basically knocks $3750 off MSRP. Buy you need to owe more than $3750 in tax to get the credit.

Nope, wrong on option 1. Purchase price at end of lease is the residual, which doesn't change based on discounts. Incentives are applied to capitalized cost, at least with CCAP.

 

[c20040215]

2.5 years ago I paid about 45k for a 2021 Sahara, 6sp, HT, LED, cold weather, alpine. I just went on the build and price and for that same 45k I could now get a base sport with HT and I threw in the auto and step rock rails...they are definitely reaching the point where I may not be able to justify one for my next ride, which admittingly won't be for quite some time, well into the next gen phase anyway...

According to Smart Asset Website and its calculator, the 45K 2.5 year ago equals to about $50,720 in today's money.

You take that $50,720 to the Jeep site, you can do a fully loaded 4 door sport S 2024, which would give you more features than a 2021 sahara minus the painted fender flares (and maybe a couple of small differences).

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