Looking Grim(er) For Stellantis

[Windshieldfarmer]

There's a school of thought advocating strict ceilings on automotive loan terms; e.g., 3 years. This would force the manufacturers to cool their heels on sky-high MSRPs and/or recurrent price increases.

The consumer market would no longer have the ability -- via 4 to 10(!) year loan repayment periods -- to drive home vehicles that they plainly can't otherwise afford. The term "Automotive mortgage" serves as a stark commentary on the self-sustaining state of inflated vehicle pricing trends.

That it's not difficult at all to spend $60K+ on a two door Wrangler is instructive. How many forum members would willingly admit that they wouldn't be able to drive the Jeep they currently do, but for drawn-out repayment periods?

While I agree with that concept philosophically, there is no way banks, credit unions, or captives are giving up the 84 month high interest lending gravy train.

Sponsored

 

[8ball]

When interest rates are this high most people who have to borrow for a car loan aren’t buying a $45K Jeep. When we bought ours last year even with an 800 credit score the interest was going to be 6.5%. I decided to write a check for the Jeep and buy it out right (screw the banks) but most people can not go this route. Glad they have a bunch sitting around the prices have gotten totally ridiculous. Time to eat some humble pie…

 

[BXFXJeep]

Chevy Trax is on fire, seems people don't want to pay crazy high prices for vehicles.

https://gmauthority.com/blog/2024/0...mbers-figures-results-second-quarter-2024-q2/

 

[Heimkehr]

While I agree with that concept philosophically, there is no way banks, credit unions, or captives are giving up the 84 month high interest lending gravy train.

Oh, no doubt. Shifting that entrenched paradigm would require a collaborative effort.

And I've been seeing a LOT of Chevy Traxes (Traxii?) lately.

 

[2nd 392]

There's a school of thought advocating strict ceilings on automotive loan terms; e.g., 3 years. This would force the manufacturers to cool their heels on sky-high MSRPs and/or recurrent price increases.

The consumer market would no longer have the ability -- via 4 to 10(!) year loan repayment periods -- to drive home vehicles that they plainly can't otherwise afford. The term "Automotive mortgage" serves as a stark commentary on the self-sustaining state of inflated vehicle pricing trends.

That it's not difficult at all to spend $60K+ on a two door Wrangler is instructive. “How many forum members would willingly admit that they wouldn't be able to drive the Jeep they currently do .”

At close to $18-20K higher, unless as reported the only 392’s you can actually order are the false Not “Final Editions” , then make it ~$26-8K higher.
uhh- in 3 years.
Nope-stretched the budget at the 21 price.

 

[Blues Fan 30]

Are you thinking that it's required to finance through Chrysler / Stellantis?

Not at all, but if stellantis wants to move vehicles offering a great deal on realistic finance terms would go a long way. 36 months is not realistic meaning you're then stuck with terrible rates. I looked at our local credit union which generally has the best rates in the area and a 60 month loan is 5.99%. At those rates I'm in zero hurry to pull the trigger on a new vehicle. If stellantis offered 0% for 60 I think we would be pulling the trigger asap. I can't imagine we are alone in that boat.

 

[john adams]

So my unreliable vehicle now has no resale value?

winning!

 

[GinaC]

Right? It never occurs to him that people might be getting five-figure discounts and paying cash.

Or people who pay cash because they've been driving their previous Jeep for 18 years.

 

[legacy_etu]

Chevy Trax is on fire, seems people don't want to pay crazy high prices for vehicles.

https://gmauthority.com/blog/2024/0...mbers-figures-results-second-quarter-2024-q2/

Huh, kinda like the Ford Maverick which turned into a sales success.. Who woulda thunk the market wanted an affordable, utilitarian vehicle that gets decent gas mileage ! You could blow me over with a feather.

 

[VKSheridan]

Or people who pay cash because they've been driving their previous Jeep for 18 years.

Paying an inflated amount for a new vehicle with cash doesn’t make the purchase better or intelligent, it just means you didn’t worsen the transaction with financing.

Said differently, buying a $17.00 foot long from Subway that only costs $5.00 during a promotion is financially foolish. Carrying that purchase on a credit card with 23% interest is even dumber. Even if you read Subway is going to raise the price to $25.00, paying $17 for a $5 sandwich is still insane.

Cheers!

 

[BXFXJeep]

Paying an inflated amount for a new vehicle with cash doesn’t make the purchase better or intelligent, it just means you didn’t worsen the transaction with financing.

Said differently, buying a $17.00 foot long from Subway that only costs $5.00 during a promotion is financially foolish. Carrying that purchase on a credit card with 23% interest is even dumber. Even if you read Subway is going to raise the price to $25.00, paying $17 for a $5 sandwich is still insane.

Cheers!

https://www.dailymail.co.uk/news/article-13706659/chicago-subway-dirty-feet-counter.html

 

[GinaC]

Paying an inflated amount for a new vehicle with cash doesn’t make the purchase better or intelligent, it just means you didn’t worsen the transaction with financing.

Said differently, buying a $17.00 foot long from Subway that only costs $5.00 during a promotion is financially foolish. Carrying that purchase on a credit card with 23% interest is even dumber. Even if you read Subway is going to raise the price to $25.00, paying $17 for a $5 sandwich is still insane.

Cheers!

If that $17 sandwich satisfies my needs and makes me giddily happy, I'll gladly pay full price for it as long as my budget allows. As someone upthread said, life is too short to be miserly. The way I drive and the way I maintain my vehicles, I foresee being very happy with my purchase for a long time.

That having been said, I do agree that Stellantis probably needs to do another post-Covid round of market research.

P.S. Writing "Cheers!" at the end of an insulting post doesn't make it any less rude.

 

[John VonJeep]

Huh, kinda like the Ford Maverick which turned into a sales success.. Who woulda thunk the market wanted an affordable, utilitarian vehicle that gets decent gas mileage ! You could blow me over with a feather.

Bring the Duster to America!

 

[Ratbert]

You could blow me over with a feather.

Anyone else waiting for the crude memes to flow in?

 

[blackwater]

I have a question, the people complaining about Jeep prices, where have you been? It is called inflation. I paid $3 for an avocado today and it was on sale. I like avocados so I bought it. Even if dealerships offer 0% financing, because prices are so high, many people will still be faced with a huge payment. As I mentioned previously, car manufacturers cannot sell vehicles at a loss. It is not about price gouging, it’s about survival. Below are some numbers I copied and pasted from a WSJ article.

INFLATION BY THE NUMBERS THE LAST THREE YEARS
1. Groceries +34%
2. Rent +24%
3. Automobiles +21%
4. Gasoline +27%
5. Alcohol +8%
6. Transportation +37%
7. Housing +25%
8. LPG +14%
9. Healthcare +30%
10. Natural gas +36%
11. Real income -3%

Not included in the list are parts necessary to build a vehicle, tires, transmission, nuts, bolts, wire, aluminum, all of which must be transported to the factory for assembly. Prices are directly related to inflation, if a person can’t buy a Wrangler they will be forced to buy a Yugo. Just like a house, if you can’t afford Newport Beach, you will be forced to live in timbuktu.

Sponsored