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No new inventory going on a month now

aldo98229

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I talked to a dealer by me who’s a small place but the oldest in the country. Said he didn’t expect inventory for at least 6 months and expects only to have a few in the future for test drives and moving to orders only
Right now every automaker is saying that they don’t want to go ever again back to stocking hundreds of units on dealer lots.

But just wait until demand slacks a little, and automakers refuse to slow down the assembly lines. Next thing you know, there will thousands of every type of vehicle to pick from, and thousands of dollars in rebates.

The reality is the auto industry is mired by overcapacity, and the land to park new vehicles is still relative cheap in most parts of the country.
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ReimundKrohn

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ya same in my area and more on the way. but ive never seen a markup over msrp in canada in my almost 30 years of car buying. think its an american thing
Oh, it is here in Canada too. Anywhere the market allows it…. “Profit aint a four letter word.” An old boss of mine said.

There is an 2021 JLU Islander up around Edmonton right now priced over $70K. Yes, the dealer prettied it up with a Rubicon lift and white Steelies and Running boards, but that is still crazy money for a dolled up Sport S.
 

ReimundKrohn

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Right now every automaker is saying that they don’t want to go ever again back to stocking hundreds of units on dealer lots.

But just wait until demand slacks a little, and automakers refuse to slow down the assembly lines. Next thing you know, there will thousands of every type of vehicle to pick from, and thousands of dollars in rebates.

The reality is the auto industry is mired by overcapacity, and the land to park new vehicles is still relative cheap in most parts of the country.
If the automakers make the decision to effectively follow a Tesla business model, expect Tesla wait times. Who is looking forward to settling on an overpriced used vehicle or waiting 3-4 years for a factory order?
 

ReimundKrohn

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Oh ya, same here. There must be some sort of law in place. And rightly so. It floors me that Jeep can set a price and individual dealers can just be like "nope, I'm a greedy prick" and add on $10k.
Stellantis doesn’t pay the Dealers bills. They are on their own for leased space / mortgages, property taxes, insurance, wages, parts inventory, etc etc. Dealer costs go up and their inventory and turn over rates go down. So what, they are supposed to sell themselves into bankruptcy to “be nice” to the customer? It doesn’t work that way. And if it did, we’d have very few dealers left.

If you could purchase direct from Jeep, don’t think for a moment the price wouldn’t soar. It would. Because Jeep doesn’t currently factor in any costs beyond production. The rest is on the dealers.
 

Dyolfknip74

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Stellantis doesn’t pay the Dealers bills. They are on their own for leased space / mortgages, property taxes, insurance, wages, parts inventory, etc etc. Dealer costs go up and their inventory and turn over rates go down. So what, they are supposed to sell themselves into bankruptcy to “be nice” to the customer? It doesn’t work that way. And if it did, we’d have very few dealers left.

If you could purchase direct from Jeep, don’t think for a moment the price wouldn’t soar. It would. Because Jeep doesn’t currently factor in any costs beyond production. The rest is on the dealers.
I could accept that, except up here, it never happens. Our dealers costs don't go up? What's different about Canada?
 

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KAB96F

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Lots of complaints about markups. When inventories are normal, do you pay MSRP, or ask for a discount? It's supply and demand.
While I understand this at the highest level, it's bizarre that when a hurricane hits and fuel production is impacted, we've got AGs all over the country threatening criminal and legal action for price gouging, yet when dealerships are making absurd profits we just fall back on the supply/demand argument. Articles this week are showing dealerships are making a lot of money right now. If that's the case, is there an incentive to return to "normal"?

PS - I just want to order a 2022 Rubicon! LOL
 

csjlu

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The US dealer model is a four-legged business model. New vehicle sales comprise "only" 25% of the profit pool. Service bays, used lots and aftermarket parts are also meaningful revenue and profit drivers for dealerships. Granted, lower new vehicle sales can slow things down in those other areas, and new car salesman may not get comped from these other areas, but these segments can sustain a dealership through some thin times. In fact, I've read several market surveys from dealers who have attested to 2021 being one of their most profitable years ever, even with the decline in units sold, because of more full-price selling as well as people choosing to reinvest in servicing their used cars to keep them running well for another year or three.
 
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csjlu

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While I understand this at the highest level, it's bizarre that when a hurricane hits and fuel production is impacted, we've got AGs all over the country threatening criminal and legal action for price gouging, yet when dealerships are making absurd profits we just fall back on the supply/demand argument. Articles this week are showing dealerships are making a lot of money right now. If that's the case, is there an incentive to return to "normal"?

PS - I just want to order a 2022 Rubicon! LOL
It's usually just meant to be a reminder that someone is watching. More jawboning than anything. Oil prices are set on global market exchanges and cannot be controlled by state AGs. Its just meant to intimidate people from doing anything egregious. Nothing ever comes from it.

But in the 1980s the US Congress did enact a "windfall profit" excise tax to prevent companies from benefitting from the price spikes resulting from OPEC oil embargoes. The rationale was to remove the benefit of coordinating with industry cartels.
 

AVGeek99

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The most effective way to generate awareness and interest for an all-new vehicle is to have them driving on public roads and parked on private driveways.
You should go work for Ford, you could teach them a thing or two. :giggle:
 

aldo98229

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The US dealer model is a four-legged business model. New vehicle sales comprise "only" 25% of the profit pool. Service bays, used lots and aftermarket parts are also meaningful revenue and profit drivers for dealerships. Granted, lower new vehicle sales can slow things down in those other areas, and new car salesman may not get comped from these other areas, but these segments can sustain a dealership through some thin times. In fact, I've read several market surveys from dealers who have attested to 2021 being one of their most profitable years ever, even with the decline in units sold, because of more full-price selling as well as people choosing to reinvest in servicing their used cars to keep them running well for another year or three.
I think dealers were making tons of money in the first six months of this year. But as shortages crimp their ability to continue selling vehicles, things aren’t looking so rosy now.

Car salespeople in particular are starting to look a bit desperate. Well, more than usual... 😫
 

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Not my dealer. Every Wrangler, Gladiator, Grand Cherokee and Ram has a big fat markup, so they have a decent supply of them sitting on the lot.

What I don’t understand is who are these buyers supposedly paying above sticker. Judging by the amount of vehicles in stock, clearly there aren’t many of them.

By contrast, the Toyota, Honda and Subaru lots are completely bare.

The Subaru lot a couple days ago.
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The Jeep dealer has plenty of Wranglers, Gladiators, Grand Cherokees and Rams, all with big, fat markups
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People are tired of the mark ups . These Dealers don't sell the lights go out and they starve end of subject .
 

ECP

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Yep I'm waiting this crap out. I've seen this before and have no issue waiting a year or 2 until the prices come down. It is a sellers market right now.
I don't think the msrp would come down - would it? Those always seem to go up. But I can see bigger discounts to "lower" the price.

I'm waiting on delivery on mine, i would have held out, but a totaled truck and a falling apart hatch make a new vehicle almost a must. I Looked at used cars/trucks/Jeeps and the prices for those are almost worse than new!
 

CFC4953

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I had been looking at a new grand cherokee limited to add to the garage. One dealer i went to was selling them at 3k over invoice. Ended up ordering one for a fair amount under invoice plus they have 4k in incentives now. Ord 9/21, build date 10/12. Got a email last night from jeep wave that said it should be at my dealer first week of nov.
How does Jeep Wave work? They can update you on build status?
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