Supply & Demand has led to a $100K 392

[LJ_3M121318]

So I went on Autotrader and filtered for Dealers with the 392 and basically one-clicked all the Dealers to see if they really had it. Hit up at least 40 dealers across the US. I would say I had email exchanges with about 30 of them within the first hour. Almost all of them said what was shown was already sold and they don't have any in stock. Of the ones that did have stock, it wasn't the color/option I wanted, but they were still charging MSRP+$5K.
Then I came across one that was exactly what I wanted (black w/Sky Touch), dealer responded back that it's available, and for a second I was about to put a down payment and buy it. However, they are selling it for $100K. Not a typo, they straight out said it's because they see other dealers charging +$20K MSRP and there is no inventory, so they are selling it for $100K. BTW, this is the owners 392, so it probably has a few more than 10 miles on it.
Way out of my price range but with the supply situation that it is now, I wouldn't be surprised to see more of this.
https://www.glendalechryslerjeep.net/all-inventory/index.htm?search=7389

Also, of all the dealers I spoke with, they say their reps say a build will take 90 days, but they all personally believe it's more like 6 months at least.

If more stock doesn't come available, I think they will sell that for $100K, as I started debating it for a second. So if I was willing to consider it, I'm sure more people with more money will go ahead and pull the trigger.

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[GreenLantern]

It's simple price gouging.

More stock will come.

People are so impatient.

If you're impatient, you shall be parted with your money.

 

[HungryHound]

Guys are telling me that the 6.2 Hemi is only a 100,000 mile engine. That's a lot of cash for a short-lived machine. Buy an old TJ and drop a SBC350 in it for a faster, more reliable machine at 1/4 the price.

 

[VTACH]

Not to get overly technical but is it really possible to price gouge a luxury, non-essential 470hp Wrangler? This isn’t a necessity by any means. It sounds more like supply / demand economics to me (as op described in title).

 

[SurfJeep]

Guys are telling me that the 6.2 Hemi is only a 100,000 mile engine. That's a lot of cash for a short-lived machine. Buy an old TJ and drop a SBC350 in it for a faster, more reliable machine at 1/4 the price.

If your’re truly talking about the 6.2, maybe that has to do with the supercharger and the at least 707 HP it puts out?

If you meant the 6.4, I think that’s something you have to take with a grain of salt. The 6.4 hit the road in 2011. I know plenty of people with them in their cars with much more than 100k.

 

[Notorious]

I think they will sell that for $100K, as I started debating it for a second. So if I was willing to consider it, I'm sure more people with more money will go ahead

I hope it NEVER sells at that price point. $100k may not be much money in Los Angeles, but elsewhere, that’s a significant amount of money.

I am all for dealerships making a profit but a dealer asking THAT price for that vehicle is out of line. Anyone seriously considering dropping their hard earned money on a 392 with a grossly artificial and overly inflated $100k price is just obscene.

 

[asuperheat]

I guess it is worth what someone will pay for it. For me personally that number is MSRP. I called many and spoke to a few personally before I picked a dealer and placed a order. One dealer told me 1K over invoice but they did not have a allocation, One dealer told me MSRP over the phone and added 10 K just before I gave the deposit at the dealership and wasted my time then gave me a bunch of BS about how you could take it straight to auction and make 20-30K on it. UM no, no you cant.

The following week I happened into a different dealership and walked up to the sales pin. I spoke to someone abut the 392 Rubi and what was the deal with the dealer trying to mislead and add 10k to the deal after the question was asked up front over the phone and in e-mail correspondence. They did not have one to sell me so I guess they tried to explain it to me. Basically told me most likely my original contact at the other dealership did not know but the strong suggestion to add 10K to the 392 was coming from the Jeep rep. Telling the dealers they should add that because if they get a allocation they probably will not get another this year and may never get more.

It makes sense and I believe it was honest. It frustrated me that it was pushed from corporate Jeep but if you think about it it makes sense. It creates demand by making people want it more and implies to buyers value is more than MSRP so if you don't get one this year next year you will be happy to pay MSRP next year when you do find one.

I believe it is a high profit vehicle for Jeep and they will sell as many as they can build until new regulations make it not work but while production ramps up from a business stand point why not run the numbers up and get everyone wanting and talking about them. What better way than charge more than MSRP. Some dealers are going beyond that and trying to get more than the 10K, I think that's what we are seeing.

 

[Comac90]

If your’re truly talking about the 6.2, maybe that has to do with the supercharger and the at least 707 HP it puts out?

If you meant the 6.4, I think that’s something you have to take with a grain of salt. The 6.4 hit the road in 2011. I know plenty of people with them in their cars with much more than 100k.

A bit off topic from the original post, but I’m in the same boat here. Also, the 6.4 crate motor is higher performance and different from the 6.4 that’s in the 392 Rubicon. The 6.4 crate may very well be only a 100k mile motor, I don’t have much experience with it. But, the Rubicon 6.4 has a reasonably good track record if maintained.

as for MSRP+ pricing, I agree with what’s been said ... supply and demand. If the collective doesn’t buy higher than MSRP, then guess what ... dealers won’t sell above MSRP. I really would like one, but if my dealer adds $ to my MSRP, I’m a hard no. 25 years of buying all kinds of cars, several being niche vehicles, has taught me there is always another deal ... always. Just gotta exercise some discipline and patience.

 

[Goin2drt]

It will sell no problem. People are spending money right now like drunken sailors and that is probably a rounding error for a lot of people.

 

[conFUcius]

Sounds similar to what’s happened with the Gen 2 Raptor; every dealer I went to was adding market adjustments to the MSRP.

 

[LJ_3M121318]

I guess it is worth what someone will pay for it. For me personally that number is MSRP. I called many and spoke to a few personally before I picked a dealer and placed a order. One dealer told me 1K over invoice but they did not have a allocation, One dealer told me MSRP over the phone and added 10 K just before I gave the deposit at the dealership and wasted my time then gave me a bunch of BS about how you could take it straight to auction and make 20-30K on it. UM no, no you cant.

The following week I happened into a different dealership and walked up to the sales pin. I spoke to someone abut the 392 Rubi and what was the deal with the dealer trying to mislead and add 10k to the deal after the question was asked up front over the phone and in e-mail correspondence. They did not have one to sell me so I guess they tried to explain it to me. Basically told me most likely my original contact at the other dealership did not know but the strong suggestion to add 10K to the 392 was coming from the Jeep rep. Telling the dealers they should add that because if they get a allocation they probably will not get another this year and may never get more.

It makes sense and I believe it was honest. It frustrated me that it was pushed from corporate Jeep but if you think about it it makes sense. It creates demand by making people want it more and implies to buyers value is more than MSRP so if you don't get one this year next year you will be happy to pay MSRP next year when you do find one.

I believe it is a high profit vehicle for Jeep and they will sell as many as they can build until new regulations make it not work but while production ramps up from a business stand point why not run the numbers up and get everyone wanting and talking about them. What better way than charge more than MSRP. Some dealers are going beyond that and trying to get more than the 10K, I think that's what we are seeing.

That's crazy if the Jeep reps are the ones behind it. They don't just make that decision on their own so they are getting that direction from corporate.

 

[flot]

I made some casual inquires in February, got one answer $5k over sticker and another answer $1500 over sticker.

I told them both to let me know when they're selling at invoice.

They are welcome to sell them for whatever they want. Just like they sell tens of thousands of wranglers at MSRP every year. But I'm not buying at those prices.

 

[VTACH]

I think this video hits on some interesting points. It’s dealing with exotic cars but some things are still relevant to the 392.

 

[F800]

 

[Vinman]

How much over MSRP was the Gladiator selling for when it first became available?

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