JEEP Dodge & Ram ARE SCREWED! DEALERS LOSING MILLIONS, GOING OUT OF BUSINESS
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- Опубліковано 15 бер 2024
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Ray and Zach pull in evidence from all over the Internet - pictures of overflow lots, Twitter testimonials from dealer execs, and EXCLUSIVE insider info - to make their case that Stellantis and CDJR dealerships are IN TROUBLE! Who knows how much longer they'll last? - Розваги
I don’t feel bad for them one bit, especially what they pulled over the last couple years with the mark ups
They're not the ones it hurts. It is you. Look into agenda 2030. You will own nothing and be happy. The best way to make sure you own nothing is to make sure nothing is for sale. Wake up and educate yourself. You're celebrating your own loss.
What about the idiots that overpaid for those cars?!
@@ricklp1861 Serious long-term consequences.
Google review them 1 star
Im actually grateful, after choking when seeing their antics I reconditioned an old impala using youtube videos, now I will never buy another used car and they dont even get to service work from me. I just changed all the shocks on it. Big thanks to the predatory motor corporations for teaching me self reliance.
Well, I'm not shedding any tears, two years ago they were jacking prices up 4-5k over MSRP. Also, anyone spending 110k for jeep product(ie. Grand Wagoneer) should have their head examined.
AGREED.
Well said
Dude, please I was interested in GW😅 but I totally agree they are 15-20k overpriced by what they are offering. I still couldn't get my heads around they think GW deserves a higher starting MSRP than Caddy Escalade😂 LoL
Yep, I think these people they are totally out of their minds. IDK if they have so much money they do not know what to do with or spend it on or if they are drugged up or what. But kind of disagree on 1st part you said, Chrysler and Dodge was screwing the consumer citizens for decades now, way longer then past 2 years ago. But seems like good news now. With videos like this now days, seems like glory days of bad car dealerships and bad sales people is over and now its biting them.
@ravencorvus67 Specifically, what exactly do you say is wrong with the Grand Wagoner? I know two individuals who own them -- one is a first year with a 6.4L Hemi, the other is a '24 and has a twin-turbo Hurricane. Both owners absolutely love them and the guy with the V8 has driven his from OH to FL twice this winter. Neither owner has a problem that they mentioned to me. They are beautiful inside.
What are those old sayings, “the chickens have come home to roost “, “what comes your way goes your way”, “you get what you deserve” I take glee in the pain the dealerships are experiencing. They took tremendous advantage of buyers over the last 3 years.
* 60 years
Looking forward to many Chapter 7 filings.
Ageeed!
"Yes, but we will give you almost half of what your trade in is worth, and our air in the tires fee is only $499 now."
You reep what you sew
Hard to feel sorry for an industry, that when supply was low, they looked to screw over their customers and now that supply is high and demand low, they still look to screw over the few remaining customers they have left!
I went to a Chevrolet dealer to buy a new truck. They have a lot full of trucks that have been on the lot for many months. They offered to sell me one for $4000 over MSRP. LOL
In January I made an offer for a new '23 Jeep Renegade Upland for $25k out the door at an AutoNation dealership in Roseville, CA. The sales manager was offended, saying my offer didn't come close to the value of a new Renegade. It's still on their lot, priced at $27,411.
Autonation is no haggling? Per their website. Did I miss something?
@@shekharmoona544 They are going to have to haggle if they want to move vehicles off their lots. The Renegade I made an offer on has been on their lot for almost 250 days.
Never buy a Fiat.
You saved yourself a lot of headaches
@@remzomehinovic4571 I've had a Stellantis Jeep before, they are alright if you don't keep them more than 5 years. I would only pay bottom dollar for them though. It's worth it just to have a new car warranty.
A $55,000 to $65,000 Jeep Wrangler is a problem. Let alone a $110,000 Grand Wagoneer. This is like a Sears charging Nordstrom's prices not going to work.
High prices and poor quality a deadly combination !!
The prices are very high but in my opinion in owning a 2021 RAM 1500 I haven’t had a problem since owning it. I love the comfort and looks of the truck. Unfortunately my lease is up this month and because of ridiculous prices I’m returning it and not getting a new one….HOLD THE LINE
And not to mention also very bad and corrupted sales people and very bad and corrupted dealerships to add on to it.!
@lchange1200, Leasing is not same as buying it and owning it for years and years afterward with medium or high miles on it, explains on why leasing it of the chances of any mechanical or any major mechanical problems are very slim and low under 36,000 miles on it. I wished this Chrysler, Dodge etc...went under decades ago. And unfortunately in past I had Dodges embarrassed to say, GMC and Ford. And I almost went with Toyota a few times. But GMC and Ford is probably not perfect, but with my experience its way better then Dodge, Chrysler. @@Icanchange1200
@@Icanchange1200 Wow, three whole years and no problems? That's incredible. Surely, it's a new record for Stellantis?
You just explained every governmemt employee.
Crazy how they put a $60k MSRP on a $35k Jeep and nobody wants to buy them…
exactly
Crazy how they put a 10.00 sticker on a 3.00 Big Mac isn’t it. People want more pay shit is going to cost more. That goes right down the line to the people making the bolts to put these cars together.
@@wallywanker7435Found the car salesman ^^^😂
@@wfk3rd durrrrrr your not as smart as you think you are. I just actually understand how things work. Just cause people like you that don’t have a pot to piss in ,can’t afford something dosent make it overpriced duh. If you have a ground beef wallet don’t be looking at the fillet and bitch about the price. Go shop at the Mitsubishi dealer instead of Jeep.or better yet cheap sams buy here pay here.
@@wallywanker7435 Big Mac isn't the money pit Jeeps are.
Selling overpriced junk directly to consumers is not a solution.
after what some of these bastards did with thier markups during covid and beyond i couldnt care less if they go under as a matter of fact im happy to see those types of dealerships go under .
I agree 100 percent
There are some dealers still doing the same shady crap, see my previous comment. It's unbelievable they are still doing theses shady practices.
👍
💯.. need to similar with housing , greed off charts
But, but what about all those over paid pampered union workers? They'll be out of a job, and being union, will never find a job in the private sector where actual work is a mandate.
The dealers were not crying when they were fleecing customers with $25k + mark ups for years...I don't feel bad for them at all and the reap what the sow.
Do you know why they did that ? Cause they could and people paid it. If people didn’t pay it they wouldn’t do it. People like you make me laugh if you were selling your car for 20k more then it was worth and someone was willing to buy it would you ? Of course you would , you wouldn’t say oh wait this guy just came in crying i will pay you 20k less cause that’s what it’s worth and sell it to him. These guys are there to make money and they are unscrupulous as long as there is people bending over. It’s changed now you can actually get cars under sticker and get rebates. You know why ? Cause people stopped buying over sticker.
How is it "fleecing" when it is a VOLUNTARY transaction between buyer and seller and the buyer can walk away at any point in the process to look for a better deal?
If you insist on buying from a dealer with an ADM tag… that's on YOU, the BUYER.
They were crying all right......tears of joy cashing those checks!!!!
Not fleecing if a customer is willing to pay
It's not just the price. The product is rubbish
True! Has been garbage since the mid 70s.
Bingo.
I agree 100%
Most American cars have been for the last few years.
You can say that about pretty much all domestic brands
I am having a really hard time being on a sympathetic mindset when it comes to the dealer principals and sales management of these products. Because of the greed and markups I am sad for the rest of the employees, from the service and parts departments. You knew what was coming when parts were on backorder for months at a time. Several of my friends and acquaintances have left CDJR dealers in droves (parts and technicians.) They saw the writing on the wall about 8 months ago.
Price is one thing, poor product to start with is lose,lose.
When a truck MSRP was 46k in 2019 and for the comparable model is now 72k for a 2024 we have a problem. They dropped the MSRP now with new stickers but let's be honest they think people will buy it now at 65k. 😂
Dodge might be struggling but a lot of brands are still selling. That's why they won't lower prices. Ford selling like 10,000 F-series trucks per week. Sales are slowing somewhat and the dealers have more inventory... Ford could cut prices to sell more trucks but how much more? 2,000 more trucks a week? The problem is if you lower the price and sell 12K units they have to also discount the 10,000 trucks they were going to sell anyway at the higher prices without a discount so it doesn't make any sense for Ford. I assume they have bean counters that stare at numbers all day.
@jonathantaylor6926 Alot of f150 sales are fleet sales. As the economy slows so will sales strictly off economics.
Yeah, and the quality is lower... PLUS ....all the new gadgetry and software looks like trouble.... and don't forget about the spyware, and trackers, and kill switches, it's unreal
78k for a new tradesman ram 3500 Cummins diesel is what I got quoted. That’s outrageous pricing.
That should be 65K. I don't know Dodge too well but I know for Ford the diesel option adds like $12-14,000. But what most people don't think about when you build a truck (a f250) in my case the price will be $54,000. The diesel "option" makes it $66,000 but the $54,000 base prices INCLUDES a gas engine in that price... so when you switch from gas to diesel you don't only give Ford $14,000 you also give them a 6.8L gas motor too..
I got quoted $59k for a 3/4 ton hemi cclb 4x4...told the salesman it's a $40k truck
@@jonathantaylor6926he is correct. I am keeping my 95 Ram Cummins forever, had it 25 years already, it’s way more reliable and simpler to work on than these newer shop queens 😂
@@melissasmess2773 and no dealing with DEF either
Plus the 3500 is junk nothing but problems with them
I am a cash buyer for any normal car but I didn't make my money overpaying for anything. It comes down to new vehicles having ridiculous prices to begin with. I don't care why. I hear a guy "saves" 15,000 on a Jeep Gladiator Diesel that was nearly $62,000, I see a fool for paying $45,000 to go to work and back. This generation loves to tell me how the "American Dream" is dead while they roll into work (that I provide) in their leased cars they can't afford, while living with their parents. The same $60k is the down payment on the house you're never buying if these are the fiscal decisions you're making. I apologize for the rant fellas, I can't voice these facts in real life. My two cents.
"There is iron in your words of (truth) for all (car buyers) to see and so there is iron in your words of (wisdom). No signed paper can hold the iron. It must come from men. The words of Ten Bears carries the same iron of (truth) and (wisdom)."
I've been in the market for a HD pickup to tow a travel trailer between spring and fall...here I am laughing at all the dealers thinking they're going to charge me well over 50k for a work tuck trim level vehicle.
💯 truth my brother
Bingo. I've been wanting to upgrade my 2015 Accord for 3 years now. Prices are coming down but no way would I pay what they still want on a depreciating asset. I'll keep driving the Accord I bought that was two years old in 2017 for around half MSRP.
Of course you can voice your opinion. I have several employees myself and have told tell them how stupid they are when they buy new vehicles they can't afford. My top superstar employee makes 150K a year and bought a fully loaded Dodge power wagon 2.5 years ago during the height of the market. He tried buying it without me noticing but the bank called me to confirm his income. I told him not to buy it but he wanted it so bad and signed the deal. Now he pays something like $1700 a month in truck payments plus insurance, fuel and maintenance. His truck alone costs him over $2500 a month and has almost 6 years still to go on the payments. His rent is something like $3500 a month and now he just had his second kid. He makes more than most people in the country and is completely broke and in credit card debt up to his eyeballs.
I have been a life long Mopar guy. I currently own 6 Dodges. All 6 have been great vehicles. I've owned many others that were great. My parents have owned many brands and the Dodges always gave them the best service. Having said that, I have probably purchased my last new Chrysler product. I'd consider a new Ram truck, if I could get a good deal on one, but they are priced much higher than I'm willing to pay. Other than the pickup and the Pacifica, I see nothing I want to buy. The Jeep Gladiator I sat in was overpriced and it made me feel claustrophobic. I paid just under $40k out the door for a 2019 Challenger 392 T/A in October 2019. There's no way I'd pay $65k for the same car now. When I replace the wife's Caravan, I'll probably look at the Kia/Hyundai, Toyota, and Honda dealerships. You'd never have dreamed I'd say that 5 years ago. I have a friend who was a diehard GM guy. If he won't buy a GM product now, nobody should.
I've owned tow MOPAR products. That's out of probably 55 or 60 new car purchases. Yeah I'm old. I don't know if I just got lemons, but they were easily the worst cars I've ever owned. My Charger threw a rod and my 300M was so poorly built i was too scared to drive it. I kept it for a year. I didn't do enough product research which is on me 100%.I won't even look at anything they make ever again.
@GLHS592 Same here... I'm a mechanic and therefor appreciated MoPar engineering from the 60's up to around 1990. That was basically when Chrysler 'Died' from a case of 'Mercedes Flu' I wouldn't even consider buying ANYthing that Stellantis builds, no matter how much they discount it.
The pricing plus lousy quality control on any new GM is outrageous! Looked at a '24 Canyon ATX4 fully equipped nearly touching 60K! Back in 1996 I bought a '96 Sonoma with the Hirider option nicely equipped with the options I wanted xtended cab with the 3rd door option for just under $24 thousand dollars. This stuff out there in 4x4's either the GMC or the bowtie is way out of my price range.
I am a car hauler mainly for Ram. it’s affecting me, and so many others in this line of work. From what I’ve heard Ram stoped or slowed down production at their Saltillo, Mexico plant. So far it’s been 6 weeks since I haven’t moved a single vehicle for Ram. Hopefully stellantis realizes where they went wrong… so many families depend on them for work.
I think the government is behind all of this.. dealerships are getting backdoor money somehow..
That’s the collateral some don’t realize comes from something like this. Hope things improve for you.
@@BT-be8rh
This is what I'm talking about. Manufacturer and dealership greed has hurt so many people who are involved in the chain of moving product from point A to point B, it's sad. The collateral financial pain they caused is astounding.I feel for you my friend. It might be time to consider other things to haul. Change is hard, but sometimes we have to embrace it to survive. God Bless and good luck going forward.
@@user-fv5yo5fi5c thank you brother! Unfortunately the freight market in general has been awful for the past 2 years. Eventually it will get better I just pray that it’s sooner than later. In the mean time we just need to keep working.
I have loved my 2012 Jeep JK Sahara that has been trouble free. Bought it 2yrs old for $27k in Canada.
If Jeep think I am paying $75k to replace it, they and their corporate greed are kidding themselves and I care not if they go bankrupt
🇨🇦
Excellent! Keep that bad boy serviced and up and running. We're doing similar.
Believe me, Jeep do not care what do you think, will you buy their new car or not. It all up to you what to drive and how much to spend for it.
The price of Jeeps in Canada is mind boggling!!
I guess their overflowing lots are indicative of the price for not caring.@@AK.__
I have been talking to a number of RAM dealers across the country for weeks about a 1500. I currently have offers out to three dealers on a truck and none of them is interested. I based my offer on CarEdge's pricing. One of the trucks has been on the market for over 7 months.
Don’t buy nothing from any of them
Same situation except I am trying to buy a BMW SUV. They basically won't budge.
Try finding a family owned dealership that has been in the game for a while. Just took home a Ram 5.7L 4x4 BigHorn $9 UNDER dealer invoice not MSRP. They are dealing. Looked at two Ford Dealers... only 2023's with a lot of dirt and several had dead batteries. Ford still wouldn't deal.
@@rocinblues one of the three BMW dealerships in my area is family owned, and I think they are the most reluctant to do a low margin deal of the three
Both the author of the comment and myself were discussing Ram Trucks. No other dealer brand that I'm aware of is even considering talking a deal. Good luck on a new BMW! @@sliceserve234
I've been a Jeep Wrangler owner for 20 years, and I will always be. But their current prices are outrageous. So, I refuse to play their game.
Right on! Stellantis has injured the brand by trying to turn Jeep into some luxury item, but they just overpriced the existing product. Jeep needs to get sold to folks that know how to market Jeeps.
Not very bright, are you?
So you will be but you won't be??? This is why they're loosing capital. They're customer base is too slow.
Those prices are still too high.
Even after 15k “off”, so many people can’t afford these.
Even if I 'could', I 'wouldn't'.... Stellantis products are CrAp!
I do believe this is no mistake from the manufacturers. I do believe this is a plan to reach direct to customer sales. There is no way, manufacturers do not understand the pressure dealers are under.
This is no mistake, this is plan in action.
Interesting theory. You may be correct. American car company Tesla is disrupting both drivetrain technology and sales channels. Buy American, buy Tesla.
You might be on to something here.
Not a stretch at all.
Couldn't agree more, especially given how Stellantis has chosen to not offer the 2 Door DIESEL Wrangler, in all of North America, for the past 7yrs and counting. And if that's not odd enough, Stellantis is considering dropping the Wrangler name (by 2025) in favor of (wait for it) "Cougar!??" If this isn’t a devious agenda, with financial suicide written all over it, I don't know what is.
I see your angle, BUT who is going to want dog shit product from a dealer, OR direct. They’re hurting their reputation with junk product as well. I will personally do my best to not buy junk, online, or in person. You follow?
"not all CDJR dealers will survive this". I love how Ray just says it like it is.
Ray's business experience in this industry is terrific insight. Great topic and video. We looked at a Grand Cherokee Summit L 2023 close out and OTD price was $50,500. I asked for a few thousand more off and then walked away. Dealership was empty, BTW the entire time I was there.
I took my Bronco in for routine maintenance in the Dallas-Fort Worth area (Five Star Ford). I remember a couple years ago they had to space vehicles apart to make it look like their lot was full. Now they are double-stacked. I counted 122 F-150's. They even had about 6 Broncos sitting on the lot.
Here in Illinois Broncos with rare exception are stacked deep in literally most every trim except for the Raptor. My local store looks like they have 75 or 80 on the lot when you drive by.I can't even imagine what they have on their oveflow lots
Looks like CDJR needs another Lee Iacocca!!
Yes, and that's part of the problem... The CEO's of these companies are not car guys. Iacocca was a car guy. He understood engineering, marketing and manufacturing. He also understood the financial side too. These current people do not have a full box of skills and add this to a not understanding and neglect of the customer you have this mess here All of them might go belly up.
K cars to the rescue....LOLOLOL
Lee "Ford Pinto" Iacocca
@@user-fv5yo5fi5c I liked the K-Car, the '85 my job had was a decent rig as a company car and withstood all our abuse.My hooning was so bad I got reported to the boss 🙂 It was still moving under it's own power the last time I saw it in '95.
@@user-fv5yo5fi5c K Car was the BiC pen of cars.
What it boils down to is corporate greed. Supply chains got tight around COVID, so auto manufacturers thought it'd be a great idea to crank their prices by 15 grand or more. In Canada a basic Ram 1500 with a 5.7 hemi and the crappiest wheels, no options, worst stereo, worst everything available is selling for 70+grand. It's ludicrous! And now they're complaining that no one is buying them. You don't have to be Nostradamus to have seen that one coming. Your average family needs to be dual income to function, did they just assume middle America/Canada has 140 grand just kicking around to toss down on base vehicles to get to work? Unless all of North America gets a $30,000/year raise overnight these vehicles are going to sit.
I was told that as soon as you drive that new truck of the lot you loose $18000 hence the price should be at least that much lower then they are asking for them.
Yep! True of every other consumable product as well. All we heard was ''supply chain'' problems. Well, maybe they should have considered what making everything in China/overseas would amount to. Our forefathers WOULD NEVER have allowed a bunch of foreigners control our ability to make things. The last 2 generations of CEO's are too F'ing globalist.
I bought a 2021 Grand Cherokee before they started jacking the prices. They gave me a good discount, better than average trade-in value on the vehicle I traded, even 0% financing on the remainder. About 4 months later they started calling since they wanted to buy the truck back and offered to give me what I paid for it. I’ve never had an issue with the GC and I’m loving it 3 years later. 😊
Huge discounts ? Where...not around here...they are still asking MSRP on some of the 2500s and will not negotiate. Total joke.
Agreed, I'm looking at used ford f250s and nobody will negotiate price, several offers I've made have been met with no deal no negotiation and me walking away
It takes time.
Think of it this way.
If a dealership sales have only slowed and not halted like other places, it will take time.
I work for a large Credit Union in CO. Have seen $9,000 rebate on that model truck.
@@gmartin03 Used is (almost) an entirely different animal. I assume you guys are actively searching the web in your area/region. When I purchased my used truck in 2019 (after web search), I first drove about 70 miles east. Nissan dealer was a total dishonest turd. Tried the old "hide the keys for his trade" trick to delay my leaving. I ripped their arses right there in the showroom. Their truck was also garbage and misrepresented in the web listing. Anyway, week or two later I drove 50-70 mi south to a Toyota dealer who had a similar, but better (Nissan) truck I was interested in. Much better experience (and truck). I bought the truck same day and drove it back. Still happy with it.
They think a 10% markdown after 3 years of 20% markups is a “great deal.”
Cool when is the 80 percent off fire sale
It's inconceivable to even think that Stellantis could fail, and yet, this video makes the case for it being plausible.
I do think you know the meaning of that word.
I don't think that word means what you think it means. g
My, aren't we snarky!!!@@NVRAMboi
They make junk, I am not sure how they don’t fail.
Want to know what new vehicles are terrible? Ask a tow truck driver. I got into a conversation with one last week, he tows about 3 newer Sierras a week. He said they all have fueling issues and they wont strt so they cant be put in neutral. Very informative guy.
Ford storing a bunch of F-150's on overflow lots also.
There were over 800 Ford F-150's at a vacant lot (former Adesa Auto Auction) in Lee's Summit Mo. for several months but those are gone and now full of the Ford Cargo vans
Michigan International Motor Speedway.
F150 are stored in almost every empty lot around kansas city right now
15,000 brand new Ford Explorers being stored at Route 66 Raceway and infield in Joliet illinois. Ford paying Joliet $50 per vehicle per day.
@@christopherjohansen1672 They must be 24 models ,as Ford didn't change over till Jan for the 24 models.. now dealers are over loaded with 23 models.. so stupid to make. old models so late in the year, why ??
I’ve been in the market to buy gladiator for the last three years. The one thing that has kept me from pulling the trigger is that I am not going to pay 6000 to $8000 for adaptive cruise control and an automatic. I don’t care what the vehicle is, there’s no stupid stamp on my forehead, and I refuse to look myself in the mirror after doing something like that
They could sell the cars if they stop ripping people off. Markups turned people away. I went to my local CDJR and almost all their vehicles were marked up or had junk fees with overpriced options.
I helped a dealer reduce his inventory and lose money. Took advantage of the discounts and purchased a 2024 Ram1500 5.7l 4x4. Loving it!!
Crown Dodge is local to me and I've been watching their prices and inventory since the "chip shortage" and I don't feel bad for a second. I won't buy another vehicle from them ever.
Every car on the lot had at least a $5K markup and that's not including the $10k, $20k and $30k accessories they added on top. They had a 1500 for over $100K at one point!
As of today they have 37 2022 models still on the lot and 113 2023 models. Don't get me started on the Crown Classics they started too.
I hope they go under.
That many 2022 tells a story in itself. Wow!!!
Sounds like they've got a substantial car collection.
In another post I talked about how our company usually buys 4-6 pickups each year. We usually buy one ton diesel trucks. The price that all US based manufactures wanted last year was 50% more than we were quoted two years ago. We decided that we did not need all one ton trucks. We bought smaller Tundra pickups. We gave half what we had been giving and love the vehicles. We just ordered six more. Toyota gave us several different discounts because of us buying that many trucks at one time with zero trade-ins. We priced the US makers and they we not even will to give much of a volume discount. 3/4 ton to 3/4 ton truck and Toyota was $25K cheaper on each truck. I am not joking $150K cheaper on the total package. This also is for freshly manufactured vehicles not lot rot ones. Also Ram was the worst deal and the snottiest dealer too. I think that there are too many brands right now anyway. I think some companies will go under not just dealerships.
Good move on the Tundras, I am looking to buy one soon for personal use. If you need a heavy duty pickup buy a Mitsubishi Fuso or an Isuzu N series. I have both for my business and love them. They are not cheap or the most comfortable vehicle but they last forever. My older 07 Fuso has almost 600,000 KM on it and is still going strong after almost 20 years of abuse in the construction industry. There is no way any north American truck will last even half that long.
Out of all the vehicle brands C,D,J, R are the most expensive and least sought out vehicles to drive by majority of consumers.
Number three of the three genuinely domestic MFRs. They don't seem to understand that.
Great. It's working.
YOU GUYS ARE AWESOME! GOD BLESS YA. 😇
I had an interaction with a dealer on a vehicle that was advertised on CarGuru's which said it was a great deal. But when I got to the dealership the price was $2000 higher than what was listed on CarGurus PLUS there was another $2000 "market adjustment." This was a used 2022 Nissan Frontier which isn't a rare vehicle. Plus there were other BS fees that made the out the door price $9000 higher than what it was listed at on CarGurus. Why do dealers continue with these shady practices?
Because someone (apparently several 'someones') is ignorant enough to pay it. "Over 17% of new car payments are over $1,000.00 per month." There were a lot of dumb consumers in late 2021 and all of 2022 and 2023. Ignorance is not bliss. Ignorance is horribly expensive.
@@NVRAMboi I agree. If people weren’t stupid enough to pay these prices and fees the dealers would have to discontinue the shady practices.
If you want to change things stop buying new vehicles. The manufacturer is dictating the rules and we as sheep follow. If you go to buy a new vehicle and you do not like the price tell them to keep the vehicle. There are lots of good used vehicles. We the consumer have the control .
and then they wonder why everyone despises them and calls them crooks
I’ve been to alot of dealers,had alot of rams,feel like dodge ram jeep has had it coming the way they treat thier customers
A lot it’s a lot, you Genius
I'm not sure the dealers or Stellantis fully appreciate this.
I think everyone is missing something. Prior to Covid all the big trucks were 20k sticker price less than they are currently. They also had huge incentives at that time. Fast forward Covid. Supply issues etc but the biggest raise in price IMO is they’re offsetting the billions they are losing in EV development and sales. These prices are way up to offset EV development and losses
Exactly. Ford has said they are loosing 35k per EV sold - where is that going to come from? You got it, ICE vehicles.
Meanwhile anyone that wants an EV buys a Tesla. Legacy auto is screwed.
Just took a look at my local CDJR dealer, they have over 50 wranglers in stock with another 30 something on the way... just the wrangler. total inventory in stock is over 700 units. and over 800 when you include in transit units.
Strokin the yuge check for the floor plan, yessir...... (ouch)
Well, CDJ of course have cars that people want. Unfortunately, their prices is insane. Many times I tried to own or buy a jeep. I can’t do it due to the insane $$$$$. Not that I can’t afford but, not worth of paying these insane prices.
exactly.....we can afford it, but we refuse to get ripped off. Hope these dealers learn how to eat fenders.
Ray, what happens to inventory if a dealer does go out of business? Does the bank liquidate that inventory? Does it go back to the manufacturer?
New car inventory is financed and the banks hold a security interest. Bank can liquidate the inventory or at least has the right to the proceeds.
No one wants the 4XE's; I see a sea of blue tow hooks on all their lots. I finally saw my first Dodge Hornet the other day going down the road. Edit: for me, personally, are the 3 cooling systems all the 4XE's have: what can possibly go wrong?!
It's the most ridiculous vehicle ever. What kind of idiot would actually go wheeling with a battery operated toy?
@@philanders3705 you know its a hybrid right
@@kidamere2408 I think he meant to say, "What kind of idiot would actually go wheeling with a hybrid re-badged Alfa Romeo?" What could possibly go wrong? Electronics, batteries, water, mud, Italian design and quality control.
@@kidamere2408he does know it's a hybrid, but the battery is still there. And batteries don't mix with water -- one drop does it. And even Toyota hybrids riding on flat roads have issues (watch AMD treatment of plugin Prius). Here we are talking off-roaders conceived to snorkel. Haha. Hard no.
those 4xe's are ridiculously expensive. Walked around a dealer lot on sunday afternoon, and every one of them with those blue tow hooks were high 60's and 70s.......no thanks.
I feel bad waiting for the next big price cut on Jeep Gladiators, like a shark circling a person adrift at sea. I have pretty liberal needs for my Gladiator so I feel no sense of urgency to grab a certain model or color. Locally (within 20 miles) I have found 30 gladiators that I would buy. If I go out 50 miles, there are 55 gladiators that fit my needs. There is no reason to buy today, I'll wait for them to become more desperate. EVEN if I miss out on a 2023, I'll just wait until they become desperate on the 2024's. If you can wait, the deals SHOULD keep getting better.
Smart I think. There's no immediate reason (looking forward) to think there will be a magical surge in sales. Don't feel bad. It's either you or them in this situation. They can absorb less profits easier than most buyers can deal with paying too much. Good luck!
Don't wait for the cut make the cut yourself. I went to a Ford dealer recently with my nephew and ground them into submission on his new ranger. It took a couple of weeks talking to multiple dealers but I finally got them to come down to the price we wanted to pay. We saved thousands and got a low interest rate compared to the initial offers.
This is no joke. I have a 2020 Dodge Challenger GT. Bought it in 2021 brand new. It currently has 11,000 miles on it. It's in almost perfect condition cause I take very good care of the car and only drive it on the weekends. Only owe about $15,000 on the car.
About a month ago on KBB, Carvana, and Carmax it had a trad-in value of $29,000. Today it's down to $24,600 and dealers won't even accept a trad-in value of $20,000 but with 3 different current values for the car with the lowest being $24,300, there's no way I'm accepting less than $23,000 for the trade-in.
They want absolute top dollar for the cars they're selling because they believe there's nothing wrong with the vehicle market right now. So I asked, wait, why are you low balling me on my trade-in if it's going to be hard to sell but won't come down even a penny on the car you're trying to sell because the vehicle market is still very strong? I just walked away from the deal.
I've seen the same Dodge cars sitting on the lot for for the entirety of 2023 and yet they wont' come down on the price even a little, citing a very strong vehicle market right now. I thought to myself, yeah, probably in fantasy land.
similar experience.....i have a 2017 Cherokee Trailhawk with only 68K miles, in great condition; they low balled me at 13K for trade in on a Grand Cherokee, which they are asking top dollar for. I would drive it off a cliff before i accepted 13K; so I just bought 4 new tires for it, and I'll wait until next year when the dealers are on their hands and knees. I can wait. I wonder if they can? 😁
We are currently looking for a new car. We went to Subaru, Honda, Toyota and Hyundai all in one morning here in Connecticut. Not a single other person was tying up any salesperson in any of those 4 dealerships. Each time, we were the only ones coming in to buy a new car. Ouch for them.
Great job as always, love you guys.
I know how they can turn this around! Put HUGE markups on already hyper inflated MSRPs. Particularly when interest rates are high.
Poor dealers reap what you sow
Karma is a MFer........
Maybe if Jeep products didnt FAIL everyime you put the key in the ignition, they might sell more units,,,,,,,,,,,,,,,,
They don't have keyed ignition anymore....
I have had 5 jeeps and no issues
I had two. The last one was two years old and falling apart. Back to Toyota
And yet the tow truck drivers say not to buy anything GM, because they haul them far more than any other brand.
True story@@wlm2618
The nail in the coffin for many dealerships will be the inability to refinance their commercial debt and/or their short term credit lines getting yanked. Lenders can pull their line at any time on the inventory debt and the debt on their real estate and long-term capital items usually has a term of 5-7 years. Their lenders are not stupid and they are closely monitoring the situation. For the dealers lucky enough to get their long-term debt refinanced, it will be at double or triple the rate it was previously at. In short order we could quickly see a repeat of 2007 when lines were pulled overnight and only the strongest companies with the best cash positions survived. I've warned my clients to be ready and in a strong cash position to weather the storm the next time the crap hits the fan and those that listened will survive. Most do not listen and if the lenders flinch, look for a massive shakedown in the new car dealership industry. Stellantis will be able to get rid of dealers a lot faster than you think.
Stalantis to eliminate CDJR
Fire sale. !!!
Fire Sale only applies to their EV vehicles.😀
@@garfieldsmith332all of them. They are all overpriced
@@djkenny1202 EVs catch fire; Ergo "fire sale".
@@garfieldsmith332 good times! Yeah. Got that
I have a 2018 Jeep cherokee that is loaded. It has only 36,000 miles on it. I just upgraded the original radio system to a new Sony touchscreen with wireless Apple Car Play. Southern Chrysler Jeep in Chesapeake, VA is LOADED with vehicles. Their entire lot is full. Every time I bring my car in for service I get a phone call, email or something in the mail asking me to trade in my vehicle for a new one. I had a six year warranty on it which expires in April 2024 but I already purchased a new 3 year warranty from EasyCare so I have no plans to purchase a new car.
Cherokee or Grand Cherokee?
I have ZERO sympathy for automotive dealers and their sales staff! They had NO sympathy for the poor customers buying a vehicle during 2020 - 2023 when they were GOUGING them for THOUSANDS of dollars over MSRP and laughing all the way to the bank. When THEY were on the upside, their opinion was "it's just supply and demand baby" - well, now THEY have the supply and they can choke on it. What's good for the goose is good for the gander.
Fair enough.
18 months ago had a Toyota salesman bragging in the office about how in 25 years of selling cars this was the most lucrative time he has ever had with the least effort. People put down payments on cars we have coming in, if they change their mind or back out, we keep 50 percent of the down payment park it in the lot and it sells in a few days. His entire tirade lasted only a few minutes but it will never escape me.
I ordered a SRT Durango during this time period and was told i’ll get the Dodge discounts for the month it’s delivered. When it delivered 4 months later in December they wouldn’t give me the discounts and wanted MSRP. I didnt buy it.
yep.....i hope these dealers learn how to eat fenders.
- Per Google - There are 2,413 Chrysler dealerships in the United States as of February 27, 2024. The state and territory with the most number of Chrysler locations in the US is Texas, with 187 dealerships, which is about 8% of all Chrysler dealerships in the US
I'll never pretend to be a car guy, but it seems there is a huge disconnect between manufacturers and dealers on how ecosystem works with economy and buyer demand. I think buyers are sitting back after see super-high markups and $1000 monthly car payments.
I’ve been a loyal JEEP owner for +20 years and have owned 3 JGCL. My current 2017 JGCL cost 32K OTD. No way I’m paying +40K for a new JGCL. My next car this summer will be a Ford Maverick XLT - affordable.
I'd ask you to have a look at the Nissan Frontier (for what that XLT will cost). If you're not a fan of import brands, then maybe consider the Chevy Colorado or Ford Ranger. Just a thought. I like the Maverick, but I do wonder about long-term durability (powertrain, unibody construction). The Frontier has a 3.8L V6 naturally aspirated - no turbos, no cylinder deactivation, only "tech" w/be the direct injection. It's a truck pretending to be a truck. Love my older one. It's a truck too. Boring and honest.
After all the dealer markups in the past and the huge price increases...couldn't happen to a nicer bunch.
Stellantis declared war on the dealers with insane price increases and lowered margins then dealers declared war on the customers with insane mark ups and slimey sales tactics, and they forgot that in the end, the customers will win by just walking away and going elsewhere. This is such a great example of this and should be a warning to all automakers of the meaning of FAFO!
I went into a local ram dealer and they added 5K in fees and wouldn't take them off...I walked out. Are they that stupid????? No one asked Stellantis to agree to a record UAW contract that would put them into this situation....I guess the top colleges didn't teach basic economics in controlling their expenses for reasonably priced products.
Ray/Zach Part 2 of this video should be how long does it take the CDJR dealerships to actually sell thru all the inventory on their lots today without accepting any new inventory. No one buying new cars means no CDJR cars going into their service bays. More lost revenue streams.
The UAW contract is not the problem. In fact, it's only a drop in the bucket when compared to the biggest issues such as astronomical executive pay/bonuses, stock buy back costs, and corporate greed.
I remember back in 1979 -80 chyrsler was just building cars to keep the assembly lines running, and then the government bailed them out. They didn’t learn anything
Well, the EcoDiesel is a well known bad engine, so the Gladiator diesel discount sounds normal.
The bigger the discount the bigger piece of trash it is.
Ray is totally making sense on this video. Except the focus on used car sales to pail the dealerships out.
Service will keep dealership afloat.....Used cars will keep sales staff with some cash flow. Ray makes some great points.
I think Ray's used car point is valid. It's not a silver bullet, but it gives the staff a way to chip away at getting some of those profits back over a longer period of time maybe.
What about all the customers that are going to be financially ruined by the negative equity in their recently purchased cars?
You don’t hear the dealers crying about that.
If anything they perpetuated it with their lackluster ability to recognize these cars were not worth what they were asking for.
Very sad they’re getting fleeced with the negative equity, but that’s what poor decision making gets you.
Just sold my Cherokee and wanted to upgrade to Wrangler, but the $50k price tag was unreal. Ending up getting a Bronco. Extremely happy but even more with 1.9% interest rate.
Awww poor babies. They spent the last three years raking their “brotherhood” (customers) across the coals and now they want mercy? Should have saved all those ill gotten gains for the storm that’s approaching!
Bingo!
I predicted 35 years ago that eventually car dealers would just be a small office with brochures. This was way before the internet.
Now they're just elaborate glass cathedrals with tons vehicles that have flat-spotted tires and weaker batteries.
Great insight as usual
This is absolutely the best news 🙌
My nearby dealer Marlow Jeep, Ram Dodge, Front Royal VA is really slashing prices and they have more 2023 inventory in stock that 2024 !!! and this is March. Ourisman dealership have tons of 22 and 23 inventory in stock also .. not sure if they are slashing prices as much .. but they should.
I am familiar with them, I have friends that live in Winchester and Stephens City.
You should be able to get a good price for a 2022 model year vehicle. Two years' depreciation on a $60k vehicle should be between $15k - $20k.
Can yall do a video of the heavy duty truck (ram, gm,and ford) market please?
Our local Jeep dealer has dropped prices by $5000 across the board a few weeks ago. Yesterday, they discounted all Jeep and Dodges on their lot another 15% off just to get sales.
Getting my Jeep serviced the other day. There were Wranglers all over the place! $55,000-$72,000 each. They had used ones too. Inventory all over the place. This was in central New Jersey
People have greatly shifted to Toyota. This is because of dependability.
Hard to feel sorry for them after all the mark ups over the last few years!
It's not just jdc, there's a ford dealer by my house that is overflowing. A few miles down the road there's an old used car dealer lot that is full of brand new fords
It’s simple. They need to lower prices. They need to offer more inventory on lower to mid grade vehicles. Paying $60k for an entry level jeep wrangler is absolutely nuts. Lower the cost , build cheaper trims, and they will sell more vehicles.
“Market adjustments”…. I’ll never forget. No tears for dealers from me.
I'm a dodge jeep owner and talk to my local dealer quite often. They say 90% of their sales are used cars and they are doing fine and don't really worry about new vehicles?
That truly sounds like a car salesmen answer.
In the East Tennessee town I live in, there are many used car lots full of used Jeeps and Rams. People don’t keep them
Maybe the previous owners couldn't keep up with the payments, as in they were totally under water and decided to abandon a sinking ship.
Saturday, March 16th, 2024, around 3 p.m., I've been to a CDJR dealership in Santa Fe NM. They didn't have any customers trying to buy a car.
Has anyone here had success offering one of these dealers well under invoice (minus rebates) for a new vehicle? I know their excuse will be, "We have ____ amount in this vehicle." However, if a customer is upside down on their trade, does the dealer give them their payoff amount or what the vehicle is worth on the open market? Obviously it's the latter, and it should be no different for new vehicles.
In Jan I offered $25k out the door for a new '23 Renegade Upland at an AutoNation dealership in Roseville, CA. It was priced at $27k, down from original MSRP of $33k and some change. It had been on their lot for more than 200 days (per Car Gurus) when I made the offer. They flatly refused, treated me as if I weren't serious. I checked after watching this vid, it's still there, priced at $27k.
Like Ford, decades of very low quality, combined with stupidity of high prices.. Why the confusion!
I guess excellent quality is what led to GM and Chryslers bankruptcies. They also have high prices.
Stellantis is also consolidating their parts distribution facilities.
Sad part is, is instead of getting back to the initial say 2019 prices they will stay high prices and wait for a government bailout AGAIN and get it.
Just design them to be rock solid instead of pieces of junk. I would pay more for a reliable car than a POS that's going to leave me stranded. I wanted to pay for stress reduction NOT a dead power train or some pos computer problem. Lol
These old Vehicle manufacturing companies have more people drawing a retirement check than on the payrolls. So they have to place a high price on their products!!
These companies have been making millions for years and did not care about the people they were hurting. Pay back. 😊
Good! Really hope so.
No amount of incentive would make me want to buy a Dodge
Jeep’s that are actually Dodges, and VW’s that are actually Chrysler,s , 😂, what a joke on the consumer.
Wow it's hard to believe they don't get it . They're just so focused on Greed they can't even see straight
Great video. Several times you mention that manufacturers might want this to happen to dealers so they can go to a direct to consumer model. If so, who will service the cars? Especially under warranty?
Contracted shops
They say if the discount is tied to how you pay then you may not be saving anything at all off the sticker .. Most will agree that if a dealer lowers the selling price below the msrp because they applied a 3k trade loyalty discount but then offers 3k below trade value for the trade then the buyer is still actually paying msrp in the end. this has been the oldest scam to date and it is easily caught by those that know the actual trade value before visiting the dealership