Yet another dealer trying to price gouge.

[wibornz]

I have nothing to add here except for the awesome use of the word rapacious!

I have added that word to my vocabulary.

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[wibornz]

I chuckled as I read about people waiting four or five months to get their Jeep. I waited three years from the time I decided I was buying a Jeep until I ordered it. Then I was a little bit irked that it came in so fast. I was expecting it to be 8 to 10 weeks out before I received it and it came in 5 weeks.

 

[JEEPIDON]

You do realize that Toyota was founded in 1937…4 year before Jeep? Not that I agree with the argument of Jeep’s being valueless in the future, but Toyota does in fact have a pretty good 80+ year track record in the business.

"Prius" , was not commenting on Toyota.

 

[tools44]

I chuckled as I read about people waiting four or five months to get their Jeep. I waited three years from the time I decided I was buying a Jeep until I ordered it. Then I was a little bit irked that it came in so fast. I was expecting it to be 8 to 10 weeks out before I received it and it came in 5 weeks.

Ok, I'll bite. Why THREE years? Also, was it your first jeep? And why would you be irked it came early?

 

[JEEPIDON]

So, two things.
1. The $9995.00 adjustment is over 10% of value. Isn’t that “profiteering”?

2. While at the dealer I overheard a snippet of a financing conversation. He was talking to a young couple, like early 20’s.
“That would be the payment on 96 month financing.”

Profiteering is usually associated with "illegal" ways of making money or getting over on someone. The dealer owns the vehicle and can sell at any price they want to.....just like you and me. Nothing illegal by being a greedy bastard.

I'm not advocating adding huge dealer markups, but we surely do not complain when they apply huge 'discounts'.

Different marketing conditions can drive strange behavior.

 

[JEEPIDON]

In my view, price gouging is generally limited to a necessity - like inflated gas/food/generator prices during a natural disaster. On a nice-to-have product like a Jeep, it's capitalism. I thought that we had decided, as a nation, that we liked capitalism. Or do we only embrace the concept when it's in our favor?

Buying a car probably isn't looked at as a "natural disaster" and seldom does anyone need a new overly priced vehicle to stay alive.

Food, water and shelter are in totally different categories and the pricks that try to take advantage of people trying to survive should be dealt with swiftly and harshly.

 

[JEEPIDON]

I'd let it sit for a long time. You can ask for anything...getting it is the trick!

 

[Rogue Toad]

In a way I can't blame them because dealers must be hurting with the lack of both new and used inventory to sell.

Nonetheless, these markups are short term thinking on the dealer's part. I don't see how an extra $10k or even $30K is really going to offset the lack of sales right now, and any buyer who sees that (short of the complete idiots) is going to remember it and avoid that dealer. Not to mention that now people also spread the word through social media.

When I see dealers that do that, or even ones that add their "scotch guard packages", I avoid them like the plague.

 

[SSWIM]

I'd let it sit for a long time. You can ask for anything...getting it is the trick!

You would be surprised at how many dealers ARE getting the ADMs now.

Sam

 

[wibornz]

Ok, I'll bite. Why THREE years? Also, was it your first jeep? And why would you be irked it came early?

I had Jeeps before. Was Jeepless at the time. I knew the JL was coming. I saw a video called the JK Experience Alaska and told the wife that we would be Jeeping in Alaska in retirement. I was three years out from retirement. I ordered the Jeep 2 weeks after I retired. I wanted the Jeep to come in after the first of the year as I had a month of traveling planned and did not want the Jeep to just sit on the dealer lot. The Jeep came in before the first of the year but before I left for some extended travel. So it all worked out okay in the end. I used the three years to stack money aside for the downpayment.

 

[Balimon]

Took my JLR to the dealer for its first free oil change and walked around the lot while waiting. They have quite a few new JL's and JT's on the lot, which surprised me...until I started looking at the stickers. ALL of them had this $10k-ish markup over MSRP. No wonder they have so many unsold. If the market drop that some financial guessers are predicting happens, I'll bet they'll wind up regretting their decision.

My experience when I got mine 2 weeks ago was that dealer was installing Mopar lifts on their inventory, and was trying to charge double the regular customary charge. I still think I overpaid for my 2” Mopar lift kit, but it’s a lot better than the $10k that dealer wanted.

 

[dgoodhue]

I agree, but there is likely some program benefit, even if minor. The average household income of a JLU buyer is ~ $122k per year. Stimulus checks went to families with household incomes of up to $146.4k. There is certainly some overlap in that Venn diagram.

For those who did not qualify for stimulus checks, the wealth effect tailwinds of raging stock and housing markets, paired with bigger year end bonuses from better-than-expected 2020 results, certainly underwrote some JLU purchases. I can speak with certainty regarding that.

And anecdotally, I heard of a neighbor who owns her own small business who took two rounds of paycheck protection funds and remodeled her personal house. This likely happened across the country, and underwrote car/boat/vacation/second house purchases of massive proportions. This will not likely happen again.

Finally, its not just the expiration of short-term stimulus and unemployment benefits that may soften the economy, consumer demand, or the availability of credit. The Federal Reserve likely begins "tapering" talk this fall, and they have ~ $4 trillion of excess liquidity they need to withdraw from the US economy. I'm not making a forecast, but I do work with money professionally and I worry that it **could** get ugly in a next few years should a negative wealth effect cool enthusiasm for higher ticket purchases. Time will tell.

I agree though I corrected the stimulus below. Another factor is the trade in value. I know a few people that between the family stimulus and high trade in value bought new cars.

The stimulus for all three rounds was $150K AGI before phasing out. The 1st one didn't phase out until $198K, the last one phased out at $160k. AGI allowed employer deductions such as 401k contributions, HSA, flexible spending and health coverage from their wages. One could technically could get to $200k with those deductions and get the full amount. I can guarantee that some households making $225K got some of the stimulus.

 

[viper88]

I chuckled as I read about people waiting four or five months to get their Jeep. I waited three years from the time I decided I was buying a Jeep until I ordered it. Then I was a little bit irked that it came in so fast. I was expecting it to be 8 to 10 weeks out before I received it and it came in 5 weeks.

Prior to the pandemic there were really fast delivery times. Just as easy as ordering a pizza and almost as fast. I placed my order via email and called in a $100 credit card deposit. Less than 2 weeks later I was driving it. My '19 JLR only took 11 days from order to delivery. This was back in March of 2019.

 

[viper88]

I am surprised no dealers have tried advertising a insane $100K ADM just for the publicity.

 

[#1 for me]

That's just crazy!

I don't know how these POS car salesman sleep at night

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