Will Jeep and Ram Truck Prices Take a Steep Dive Soon?

[AbleGuy]

It might be time to dust off your plans to buy a new Jeep or Ram pickup, yah?

Hot Off the Press Today:

Stellantis cuts 2024 profit outlook as US sales crisis deepens​

Reuters
Updated Mon, Sep 30, 2024


“PARIS (Reuters) - Stellantis (STLA, STLAM.MI) cut its 2024 profit forecast on Monday and warned it will burn through more cash than expected as Europe's No. 2 carmaker pledged to reduce output and offer big discounts to revive its U.S. business, wiping billions off its market value.
…

BIG INVENTORY​

Stellantis' current problems are centred on the United States, where selling costly Jeeps and pickup trucks has until now been the company's profit engine.

But as demand softened, it has been stuck with high inventory, forcing it to lower prices. That cut its operating profit 40% in the first half of the year.

The owner of the Chrysler, Dodge, Jeep, Fiat, Citroen and Peugeot brands said on Monday it would increase consumer discounts in the United States to speed up dealer inventory reductions…”

Stellantis cuts 2024 profit outlook as US sales crisis deepens

Stellantis cut its 2024 profit forecast on Monday and warned it will burn through more cash than expected as Europe's No.2 carmaker pledged to reduce output and offer big discounts to revive its U.S. business, wiping billions off its market value. The world's fourth biggest automaker by sales...

finance.yahoo.com

 

[ThundahBeagle]

Can some tycoon from the United States just buy back Dodge Ram Jeep already, and do everything that should have been done since the 1980's with them?

First, make a solid car. Make it not terribly expensive and leave out some of the bloat to reduce prices, without skimping on quality

Quit making Grand Cherokees that run quarter mile in x flat. A Jeep driver generally doesn't care about that. We want good, solid dependable Jeeps that are dependable.

My girlfriend's 2013 GMC Terrain Denali is in the body shop after someone tapped it in the grocery store parking lot. So they gave her a 2021 (?) Jeep Grand Cherokee Trailhawk for a courtesy vehicle. It's nice. Its comfy. There's a lot of technology. The ride height is adjustable.

And I would still rather drive and go camping in that base 2016 Toyota 4Runner I rented for a trip to Florida that time

 

[Ozarker]

I've got a bad taste in my mouth with our Jeep Cherokee Trail Hawk, when the light turns green it has to think about going, mpg isn't near what they claimed, had to replace a couple coils around 60,xxx miles and when it's time to change the oil it just shuts off leaving you stranded on the road for 15 minutes.
Wish I had my old Dodge Dakota, 318, 4x4 back again.

Hopefully the contemplated tariffs won't go into effect next year on imported vehicles as that will increase prices overall as competition is reduced for domestic brands. While Dodge/Jeep might clear out inventory, prices will go back to market rapidly.

 

[ExpoMike]

Honestly I think ALL car/truck companies need to get a grip on their pricing. It is sad that our 2016 RAV4 is likely the last new car we will buy. Most likely will buy used in the future and even then prices are insane for used vehicles....

 

[crazysccrmd]

Honestly I think ALL car/truck companies need to get a grip on their pricing. It is sad that our 2016 RAV4 is likely the last new car we will buy. Most likely will buy used in the future and even then prices are insane for used vehicles....

Inflation is a bear.

It also doesn't help car prices when everyone wants the latest and greatest tech crammed into them along with a 32" flatscreen TV on the dash. No one will ever be happy with what they have. The new Tacomas are a great example. People have ************** for years about Tacomas being slow, having crappy low torque engines, not having disc brakes, not having nice cabin tech, not fitting big tires, etc, but as soon as Toyota fixes all of those complaints it's onto bitching about how the little 4-banger is going to blow up before the almighty v6 of the previous years.

(language cleaned up as per the terms of use of these forums) - Admin

 

[AbleGuy]

The story about declining, lackluster vehicle sales from another current article;

“Carmakers posted five consecutive years of at least 17 million vehicle sales through 2019. Many analysts and dealers point to affordability as the primary reason why sales haven’t marched back to those levels.

The average new vehicle in the U.S. sold for $44,467 in September, down nearly 3% from last year as automakers and dealers offer more discounts.:.

But that figure is up from about $34,600 at the end of 2019, reflecting years of sharp inflation during the pandemic, when a shortage of computer chips and other car parts crimped vehicle production.”

https://www.wsj.com/business/autos/auto-sales-idling-as-prices-remain-high-c4674e67?mod=RSSMSN

Cross post for those w/o WSJ sub

MSN

 

[Todd780]

Inflation is a bear.

It also doesn't help car prices when everyone wants the latest and greatest tech crammed into them along with a 32" flatscreen TV on the dash. No one will ever be happy with what they have. The new Tacomas are a great example. People have for years about Tacomas being slow, having crappy low torque engines, not having disc brakes, not having nice cabin tech, not fitting big tires, etc, but as soon as Toyota fixes all of those complaints it's onto bitching about how the little 4-banger is going to blow up before the almighty v6 of the previous years..

I find it hard to blame inflation for the current truck prices.

MSRP on my 22 F150 was 67K. Same truck in 24 is 81K. That's just leftover Covid greed. I get a bump of a few hundred or a g note year over year but a 14K increase in TWO YEARS?? C'mon.... And Ford isn't the only guilty one. 60K here for a basic SR5 Tacoma?

 

[ThundahBeagle]

Honestly I think ALL car/truck companies need to get a grip on their pricing. It is sad that our 2016 RAV4 is likely the last new car we will buy. Most likely will buy used in the future and even then prices are insane for used vehicles....

I havent bought new since 2006. Even before that, I didn't really buy new. Just that 06 Honda Civic Si, just that one time.

 

[ThundahBeagle]

I find it hard to blame inflation for the current truck prices.

MSRP on my 22 F150 was 67K. Same truck in 24 is 81K. That's just leftover Covid greed. I get a bump of a few hundred or a g note year over year but a 14K increase in TWO YEARS?? C'mon.... And Ford isn't the only guilty one. 60K here for a basic SR5 Tacoma? Get bent.

Right?!

 

[driveby]

my concern is if I get a screaming good deal but there a no dealers left to update all that software...... But I agree, it's more than just inflation causing prices to go up. That is fixable when sales slow down, demand goes down, supply is up therefore the only fix is lower prices to increase demand. But dealers have to survive that roller coaster and my guess is many can't.

 

[Todd780]

my concern is if I get a screaming good deal but there a no dealers left to update all that software...... But I agree, it's more than just inflation causing prices to go up. That is fixable when sales slow down, demand goes down, supply is up therefore the only fix is lower prices to increase demand. But dealers have to survive that roller coaster and my guess is many can't.

Yep. In order for dealers to sell, manufactures either need to drastically drop MSRP's or offer huge rebates.

83K for a mid level XLT is insane. Even if they offered a 10K rebate it's still 6K higher than the same truck 2 years ago.

Not only that but Ford has decontented their trucks. So you're not even getting the same level of equipment anymore.

For example, you can no longer get the Sport pkg with a crew cab 6.5 box like I could in 22. So, you lose the body color bumpers, door handles, bucket seats, console shifter and get stuck with chrome wheels. On top of that, you can no longer get the Max Tow package on the super crew with a 6.5" box. How does that make sense? And you can't get Max Tow AND FX4. It's one or the other where mine has both. If I wanted to add power pedals like I have in my '22 it forces me into a higher package with other crap I don't want. So to get close to what I had in 22 for a 67K MSRP the truck is now 83K. And it STILL doesn't have the onBoard Scales or FX4 like mine has.... And these are still 2024 prices. Ford's 2025 build and price isn't out yet in Canada so I bet the 2025's will be even more $$$$$$.

At this point I could get a pretty well equipped gas pot Silverado 2500HD LT Z71 edition for 6K less... /rant.

 

[ThundahBeagle]

Yep. In order for dealers to sell, manufactures either need to drastically drop MSRP's or offer huge rebates.

83K for a mid level XLT is insane. Even if they offered a 10K rebate it's still 6K higher than the same truck 2 years ago.

Not only that but Ford has decontented their trucks. So you're not even getting the same level of equipment anymore.

For example, you can no longer get the Sport pkg with a crew cab 6.5 box like I could in 22. So, you lose the body color bumpers, door handles, bucket seats, console shifter and get stuck with chrome wheels. On top of that, you can no longer get the Max Tow package on the super crew with a 6.5" box. How does that make sense? And you can't get Max Tow AND FX4. It's one or the other where mine has both. If I wanted to add power pedals like I have in my '22 it forces me into a higher package with other crap I don't want. So to get close to what I had in 22 for a 67K MSRP the truck is now 83K. And it STILL doesn't have the onBoard Scales or FX4 like mine has.... And these are still 2024 prices. Ford's 2025 build and price isn't out yet in Canada so I bet the 2025's will be even more $$$$$$.

At this point I could get a pretty well equipped gas pot Silverado 2500HD LT Z71 edition for 6K less... /rant.

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Go with the Silvy then. Kick-ass more hauling in a 2500 than a 1500. If you use a 2500 for what you use a 1500 for, it'll last forever

 

[ThundahBeagle]

Watch traffic some time and count how many two door trucks and Jeeps you see in traffic. Most metros, that is now a rare sight. We've optioned our way up to a point where Americans can't afford it any more, and the bubble is close to deflating. The declining middle class salaried couple has become so debt laden it's a roulette wheel of payments. Chickens will come home to roost.

Most of the cars on the road today are not new, ten years old is common, and many simply have no better options. I just replaced the transmission in my '05 F150 because it was the least worst decision. Anything else would have cost double, and many Americans can't do it. It's NOT getting better, the track over the next five years I won't be surprised to see the Jeep SUV's gone and the Jeep itself moved UP even higher to a luxury class attempting to compete with Mercedes. Common sense says they should offer a stripped down model for the entry level buyer but I don't see Corporate doing that any more than GM offering a budget 'Vette. It's all about social prominence now. Count the two doors, and tell me what you see.

Alright. Agree with all this. Just did the transmission in my 14 GMC Sierra a little over a year, year and a half ago. Least worst decision for my pocket. Like you said.

Two door vehicles? Can't find them. I was a big fan of the full size Chevy Blazer, which only ever came in 2 door variety, until '95 when they made it 4 door and called it the Tahoe. I had two of those 2-door, full size GMT400 based Chevy Blazers and loved them. Nice tight turn radius, and still all truck.

Yes. Yes, I know. 4 door is easier to get the rug-rats in and out of. AND, easier for fire department to get people out of the back seat after a wreck. These might be the biggest reasons why everything is 4 door now. Even the Bronco revival.

However, the idea of a stripped down version of a Wrangler with even a decent 4 cylinder and manual transmission, something I could hose the mess out of...my 91 Chevy Truck (didn't call them Silverado back then, that was a trim level) had rubber floor, shifting transfer case and manual trans.

I feel like if they could get back to that, so much money would be saved by the manufacturer and the customer. Make it a low cost option and see them fly off the shelves

 

[ThundahBeagle]

^^^ Right now the last bastion of that type of vehicle is renting a uhaul work truck Silverado. Single cab, 8 foot bed, 2wd.

 

[driveby]

Fleet trucks aren't really all that profitable per unit is my guess. Stripped down vehicles are a volume play. Consumers aren't a volume play. Toys, bells and whistles sell. And there is margin in those toys bells and whistles. How many times here to you see a post that starts with "I found a new xxxx for $$$, is that a good price?" and then everyone says, "wow what a rip off, go find a near new used unit that has all the toys for the same $$"