New Lower Prices?

[BullMoose1776]

Yahoo seems to think new vehicle prices are going to drop due to oversupply.

Thoughts?

https://finance.yahoo.com/news/car-market-prices-plummet-due-153706713.html

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[rcadden]

There is approximately a -47% chance that FCA actually *drops* prices YoY.

I *could*, however, see the various volume dealers across the country increase their % discount offers back to pre-COVID levels, but MSRP is absolutely not going down anytime soon.

 

[John VonJeep]

Average MSRP on Jeep may “drop“ because Jeep produces, say, more Sports and Willys, and fewer Rubicons. Thus, a lower average base on allocation. But sticker prices won’t go down.

You’ll just be getting less for less.

 

[Bleda2002]

Sticker price is just that, sticker, it can go up or down but in a normal car market you arent paying sticker. Transaction price will definitely continue to decline due to over stocking, they already are as you can get a gladiator for 12.5K under sticker price where a year ago you were paying msrp+ so while they may raise MSRP because of inflation and such what you are actually paying is only loosely tied to it.

 

[guarnibl]

Jeep will include more standard equipment before lowering the price. Won’t happen.

 

[Carbonalpine]

Are we talking about the same people that are charging over $100k for a 392? Ain't gonna happen

Best chance is finding a dealer willing to sell 7-10% under invoice. Which on the 392 I'm having trouble finding

 

[MayThe4x4BWU]

Jeep is going to need to make up for the money they aren't making on the sagging Wagoneer sales numbers

 

[R3TRO]

Jeep is going to need to make up for the money they aren't making on the sagging Wagoneer sales numbers

I haven't seen any numbers... so they are not doing well? I was disappointed they didn't go retro with it an instead just sits in line with the Escalade, Navigator, etc.

 

[MayThe4x4BWU]

I haven't seen any numbers... so they are not doing well? I was disappointed they didn't go retro with it an instead just sits in line with the Escalade, Navigator, etc.

I was just skimming, but remember reading that '22 wasn't a good year for the big SUVs

https://www.motorbiscuit.com/jeep-grand-wagoneer-chevy-suburban-sales-sinking/

https://carfigures.com/us-market-brand/jeep/grand-wagoneer

It looks like all the large SUV sales are getting dented. I still have no idea why Jeep decided to get into the niche market of oversized SUVs. I thought the Grand Cherokee L was a bit much, but going full blown Escalade and Navigator hunting with the Wagoneer and Grand Wagoneer at those skyreaching prices was a stretch by Jeep. Jeeps will never been seen as "luxury" vehicles. They should've split the Wagoneer off as its own brand or something, like what GM did with Cadillac and Ford with Lincoln.

 

[J.Ferreira]

Yahoo seems to think new vehicle prices are going to drop due to oversupply.

Thoughts?

https://finance.yahoo.com/news/car-market-prices-plummet-due-153706713.html

If there was an oversupply the local dealerships would have some loaners when I need warranty work ?

 

[Gossamer]

I haven't seen any numbers... so they are not doing well? I was disappointed they didn't go retro with it an instead just sits in line with the Escalade, Navigator, etc.

They have terrible lease pricing. A standard wagoneer sign and drive starts at $900/month for 36 months. Stepping up to the grand, you're talking $1,500/month for 36 months. About a month ago, saw an article that both wagoneers and gladiators had over 100 day supply. Not good when there are still, claimed, supply chain issues.

 

[Opus]

Jeep is going to need to make up for the money they aren't making on the sagging Wagoneer sales numbers

What??? I can't imagine why people aren't lining up to pay $100,000 for a rolling brick...

 

[Canucklesammich]

IF prices do drop, they'll likely follow the petroleum philosophy- drop it 3%, raise it 5%, drop it 4%, raise it 7%, etc. Might take a couple adjustments to retake their profit, but they'll never drop significantly.

 

[TheRaven]

They have terrible lease pricing. A standard wagoneer sign and drive starts at $900/month for 36 months. Stepping up to the grand, you're talking $1,500/month for 36 months. About a month ago, saw an article that both wagoneers and gladiators had over 100 day supply. Not good when there are still, claimed, supply chain issues.

Full-size SUVs lease terribly - even the untouchable GM big boys are going to be $700-800...the sticker price is just far too high.

The full-size SUV market is locked down by the GM triplets. The ship has sailed. You can see it when you compare the Tahoe to the Silverado - why the hell can GM get $80k for a Tahoe but the corresponding Silverado is $65k? Because the Tahoe has no competition...the Silverado has FIERCE competition.

I was a full-size SUV guy up until this year - i've had nothing but Tahoes and Yukons as my "trucks" for over 20 years. But I drew the line at $60k. The only way I was getting a Tahoe or Yukon under $60k now was to go 3+ years used. I said no thanks.

To the subject of the thread - MSRPs will come down...but it's going to be awhile. It will take a couple years of manufacturers having to pile on huge incentives. Then prices will come down, but with them so will equipment levels.

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