Wrangler is currently #2 most price marked up (over msrp) new vehicle on the market. How can people be paying this much!

[aldo98229]

On the topic of paying ‘sticker’ or a certain amount above or below MSRP… stop thinking that way. It is simple… the market decides the price. The price is ‘set’ and then supply/demand kicks in. MSRP is a starting point.

It’s not that simple, though. Overpaying has long-term consequences. It can leave you upside-down, with negative equity for a very long time. Moreso if you finance a vehicle over 72 or 84 months.

There are millions of US households right now that bought in the past 2-3 years, who overpaid and now are stuck with tens of thousands of dollars in negative equity.

Some, like those overpaying for Broncos, do so out of idiocy. But many had no choice; they really needed a vehicle.

Dealers —and banks— are happy to transfer that negative equity from one vehicle to the next in order to get the deal. But this only prolongs a poor financial decision.

Auto News had a real story of a woman who paid $35,000 for a Ford Escort that wasn't worth more than $10,000. The thing then broke down and the shop wanted thousands more to fix it. She really needed the car. The poor woman was literally stuck between a rock and a hard place...

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[aldo98229]

PS - my local Jeep dealer has a used, base 2021 Ford Bronco 2-door listed for $70,000. They have had that thing in front, up on a ramp, for two months now.

At this point, that dealer is literally fishing for some poor idiot to bite....

 

[SoK66]

Stupid is as stupid does. You pay sticker and you’re being hosed. You pay over stick and……. Back in the day, when vehicles were a Fraction of todays costs, it was always said that when you drove it off the lot you lost $1k ( and that was when vehicles SOLD new for $4-$5k). Pay over sticker for ANY vehicle and you are seriously into negative equity the moment you take delivery. I’m amazed that anybody’ll even finances such a deal (but hey, I’m old. I still remember having $20, filling up the Chevy, taking the girlfriend of the moment for dinner and a movie and still having a couple bucks left when I got home. Now $20 won’t get two of you into a movie )

I'm in agreement. Defaults on new vehicles is at an all time high. I saw an ad for a Ford truck the other day touting 72 month, 2.9% financing. At an average 15,000 miles per year the damn thing will have 90, 000 miles on it when it's paid off, and given the current marketplace's general low vehicle quality much of that time will be spent in the shop. I'm of the impression the banks won't finance additional dealer markup, and I don't know who will, so the buyers must be paying the ADMs out of their own pockets. Worse, if the dealers are actually getting these premiums the manufacturers will increase their MSRPs to match the marketplace average transaction. I was just looking at some Wranglers and Gladiators at my local dealer, every one of the Rubicons was over $60k. Sorry, I'm out.

 

[Bayrat]

It’s not that simple, though. Overpaying has long-term consequences. It can leave you upside-down, with negative equity for a very long time. Moreso if you finance a vehicle over 72 or 84 months.

There are millions of US households right now that bought in the past 2-3 years, who overpaid and now are stuck with tens of thousands of dollars in negative equity.

Some, like those overpaying for Broncos, do so out of idiocy. But many had no choice; they really needed a vehicle.

Dealers —and banks— are happy to transfer that negative equity from one vehicle to the next in order to get the deal. But this only prolongs a poor financial decision.

Auto News had a real story of a woman who paid $35,000 for a Ford Escort that wasn't worth more than $10,000. The thing then broke down and the shop wanted thousands more to fix it. She really needed the car. The poor woman was literally stuck between a rock and a hard place...

There's an old saying about a sucker being born every minute. Unfortunately, the crooked used car dealer who sold that lady a car for three times its value, probably has a reputation for doing so. In today's world of the internet, it's quite easy to arm yourself in advance with blue book and retail relative to used iron. Anyone who purchases an expensive, rare, and overpriced new vehicle simply because they need a new ride for their job at the King, is a special kind of stupid. It's always a good idea to watch after folks/relatives/friends, especially the elderly, when they are shopping. Those crooks are still out there preying on uniformed folks.

 

[dragoneggs]

It’s not that simple, though. Overpaying has long-term consequences. It can leave you upside-down, with negative equity for a very long time. Moreso if you finance a vehicle over 72 or 84 months.

There are millions of US households right now that bought in the past 2-3 years, who overpaid and now are stuck with tens of thousands of dollars in negative equity.

Some, like those overpaying for Broncos, do so out of idiocy. But many had no choice; they really needed a vehicle.

Dealers —and banks— are happy to transfer that negative equity from one vehicle to the next in order to get the deal. But this only prolongs a poor financial decision.

Auto News had a real story of a woman who paid $35,000 for a Ford Escort that wasn't worth more than $10,000. The thing then broke down and the shop wanted thousands more to fix it. She really needed the car. The poor woman was literally stuck between a rock and a hard place...

Totally agree. I think where many go wrong is to give too much credence to MSRP and supposedly its connection to the value of a vehicle. Most buyers aren’t diligent to try to understand value and fair price because they get emotionally attached. I’m guilty as well… when you want something bad enough, you tend to overpay.

 

[SofiaGirl]

A rather ridiculous post. Whining about a vehicle thinking it's overpriced. They all are, considering the profit auto manufacturers make. Antiques are overpriced, high quality meats are overpriced, fine restaurants are overpriced, fancy hotels are overpriced, lake property is overpriced. Either you can or can't afford what you want. Buying something that is overpriced, then complaining about it is rather redundant. You only live once. My 2023 Sport Altitude was the most I ever paid for a new vehicle. Overpriced? Yes, but I'm not whining about it. I wanted one and now have one. Buy the damn Jeep! When you're lying on your death bed someday, you will regret not buying that overpriced Jeep in 2023.

Agreed. I would shop around to get a better price between dealers but if you want the Jeep, buy it.
Ever since the JK came out with 4-door model I've been jonesin' to own one.
The one thing that had stopped me was I never could imagine paying more than $25K for a car ... I sucked it up
finally and paid about 45K for my 2021 Sport altitude .... And the ROI is through the roof.
You can't put a price tag on happiness & contentment .... Even if it's only for a few minutes a day.

 

[SofiaGirl]

Agreed. I would shop around to get a better price between dealers but if you want the Jeep, buy it.
Ever since the JK came out with 4-door model I've been jonesin' to own one.
The one thing that had stopped me was I never could imagine paying more than $25K for a car ... I sucked it up
finally and paid about 45K for my 2021 Sport altitude .... And the ROI is through the roof.
You can't put a price tag on happiness & contentment .... Even if it's only for a few minutes a day.

One qualifier, buy within your means ...
If you absolutely cannot afford it then don't ... Just wait until you do ... I did knowing how over priced the Jeeps are.

 

[Alan_Hepburn]

Saw this on facebook last week - you want to talk about dealer markups...

Dodge Challenger Demon

 

[BeachNJeep]

It’s not that simple, though. Overpaying has long-term consequences. It can leave you upside-down, with negative equity for a very long time. Moreso if you finance a vehicle over 72 or 84 months.

There are millions of US households right now that bought in the past 2-3 years, who overpaid and now are stuck with tens of thousands of dollars in negative equity.

Some, like those overpaying for Broncos, do so out of idiocy. But many had no choice; they really needed a vehicle.

Dealers —and banks— are happy to transfer that negative equity from one vehicle to the next in order to get the deal. But this only prolongs a poor financial decision.

Auto News had a real story of a woman who paid $35,000 for a Ford Escort that wasn't worth more than $10,000. The thing then broke down and the shop wanted thousands more to fix it. She really needed the car. The poor woman was literally stuck between a rock and a hard place...

Dealerships in Southern California rarely go more than $4k in negative equity on a deal...and that's dictated by the lenders.

We were cross shopping a new Wagoneer and a Tahoe a few months back. The Tahoe had a $6k mark up, the Wagoneer was at sticker. We passed on both, knowing that both cars weren't worth that much.

A few months later, we picked up a '23 Rubi 4xe and traded in my '21 RAM 1500 Built to Serve. I got $1k over what I owed on the truck and $4k off the sticker of the Rubi, plus all the State and Federal incentives.

I agree, the market dictates what pricing will be offered, but these extreme mark ups will have to be factored in to increased down payments to offset the mark up. Banks aren't going to lend 120%-130% of a car's value. There's no recouping the loss if it becomes a repo.

The poor souls with bad credit will always get a predatory loan, usually from the used car dealer, itself, and that same dealer will be the one to repo it and then resell it to another poor soul with bad credit.

Bottom line, if you want a car you can't afford, don't buy it.

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