Will the Bronco cause a price drop for the Wrangler?

Squibbles

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So you can get a 2 door bronco with 35’s and front and rear lockers for under 35k. It may be IFS but you get a Dana 220 and a Dana 210 up front with 4.7 gearing and a 3:1 transfer case. Do you think Rubicons will drop in price?
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I could tell you, but then....
So you can get a 2 door bronco with 35’s and front and rear lockers for under 35k. It may be IFS but you get a Dana 220 and a Dana 210 up front with 4.7 gearing and a 3:1 transfer case. Do you think Rubicons will drop in price?
My guess is no, or at least not immediately. People have shown little reluctance to purchase a Jeep at their current prices for so long that the baseline has been established. If the overall Jeep sales take a hit while the Bronco's take off, they might do something, but if anything I'd say rather than lowering prices, they start packaging different options together or offering more/different choices to keep sales strong. After all, Jeep kicked off in 1941 and weathered the Bronco the first time. I'd say they (Jeep)are pretty confident they can do it again.

Just my thoughts.
 

DanW

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Yes, but only if sales slow in any significant way. But the sticker won't drop. They'll use rebates or incentives. There is plenty of room in the Wrangler's price for rebates or incentives.

Right now, they can't make enough of them. Our local dealership has been without a Wrangler on the lot for some time now. When a truck rolls in, it only usually has one or two and they get sold that very day.
 

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I think it’s more likely you will see more value than lower prices. More standard options and probably 35s from the factory and maybe lockers on non-rubicons.
 

aldo98229

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Gladiator sells at a premium over other midsize pickups. But I do see Gladiators selling for less relative than a comparably equipped JL. That right there suggests that competition drives prices down.

But, if JT is any indication, the price discount coming from competition is equivalent to roughly 1.5%-3% of MSRP, not more than that.

I agree with the above: FCA is going to resist lowering prices; they are more likely to increase the content to make it easier for shoppers to see the value and to help justify the price. JL prices have plenty of room for it.
 

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I'd posit that competition from the new Bronco will at least cause the Wrangler's year over year price increases (to the extent that they continue to occur) to contract a bit, to be lower than the historical trend.

As has been mentioned, there's easily observed headroom in the Wrangler's pricing structure to allow the foregoing to occur.
 

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Initially, Jeeps will be cheaper for most of the "similarly equipped" models, because there will be "some" discounts / incentives.

Any Broncos that make it to dealer lots in the first year or two will not likely be discounted.

Jeep could certainly adjust their option packaging to combat the Bronco's Sasquatch if they choose, but I'm not really sure they need to.

It will be interesting to see the take rate on the Bronco's Sasquatch package on lower trims. I would not be surprised if most buyers choosing the Sasquatch package are paying Rubicon prices.
 

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Squibbles

Squibbles

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Initially, Jeeps will be cheaper for most of the "similarly equipped" models, because there will be "some" discounts / incentives.

Any Broncos that make it to dealer lots in the first year or two will not likely be discounted.

Jeep could certainly adjust their option packaging to combat the Bronco's Sasquatch if they choose, but I'm not really sure they need to.

It will be interesting to see the take rate on the Bronco's Sasquatch package on lower trims. I would not be surprised if most buyers choosing the Sasquatch package are paying Rubicon prices.
The base Rubicon isn’t too expensive, it’s just once you start adding packages the price really rises and some packages are mutually exclusive like the steel bumper with the LED.
 

Dkretden

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To me, this its apparent that every single Bronco sold is one less vehicle sold by Jeep/Toyota (and maybe a couple of other brands). When Jeep starts to see market share decline, they will need to respond. That may come in the form of adding new features to existing models (and not jacking the price through the roof) or providing sales incentives of some kind — or both.

What happens if Broncos sell 50k units a year at some point in the near future? Most of those sales will have come from Jeep (but not all). If Jeep’s production falls by say.... 10% ..... as a result, I can guarantee that they will scramble to try to entice buyers..... and that’s very good for consumers.
 

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Yes, but only if sales slow in any significant way. But the sticker won't drop. They'll use rebates or incentives. There is plenty of room in the Wrangler's price for rebates or incentives.

Right now, they can't make enough of them. Our local dealership has been without a Wrangler on the lot for some time now. When a truck rolls in, it only usually has one or two and they get sold that very day.
Drive a short drive to Lexington. You can have your choice of every color, every option at all three of the local dealerships.

As for the original question, why? The price isnt going to drop and if it did it will be several years down the road. Many will buy the Bronco because it is the latest and greatest. The consumer will decide if they stay or go back to Wrangler. Jeep wont know for years so no need to drop their price now.
 

cosine

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i dont know if it will drop in price. but i can see some bigger rebates. i'm also thinking that jeep will offer a "off road package" such as 35s, a winch package.
 

KCBRUIN

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I think you’ll get more options included in the base of each trim but the actual base price of the Jeep will stay the same. So you’ll get more for your money, but it’ll still be expensive as all get out for a loaded Rubicon.
 

ThirtyOne

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To me, this its apparent that every single Bronco sold is one less vehicle sold by Jeep/Toyota (and maybe a couple of other brands). When Jeep starts to see market share decline, they will need to respond. That may come in the form of adding new features to existing models (and not jacking the price through the roof) or providing sales incentives of some kind — or both.

What happens if Broncos sell 50k units a year at some point in the near future? Most of those sales will have come from Jeep (but not all). If Jeep’s production falls by say.... 10% ..... as a result, I can guarantee that they will scramble to try to entice buyers..... and that’s very good for consumers.
That is not necessarily true. The Gladiator and Ranger entered the mid-size truck market and there was not a corresponding drop in sales from the existing brands.
 
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