Anyone else see Stellantis is talking about a 35 percent price drop?

This would be epic or the death knell to the company. (they are way over priced now, though)

Stellantis, Ram, Dodge and Chrysler BLOWS UP the Entire Car Market with 35% MSRP CUT OFF

Stellantis, Ram, Dodge and Chrysler BLOWS UP the Entire Car Market with 35% MSRP CUT OFFð Subscribe Now With All Notifications On For More News and Updates ...

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[RamHondo]

That’s what I heard also some dealerships are not doing it , greedy dealers, don’t do business with them!

 

[GTyankee]

Dealers were forced to take something like twice their normal inventory in the last 3 or 4 months.

I kind of think that .......

They want Stellantis to take back the excess inventory

They will do anything that they can, to mess with Stellantis.
Until they get some kind of satisfaction

 

[mboymopar]

Interesting to see how this turns out for the dealers, how much are the dealers expected to eat of the 35%?

 

[NCRaineman]

That would about match the amount they've increased prices since 2020.

I figured something would give. Dealers are sitting on unsold 2023 inventory. It needs to move in order for new models to come in.

 

[Sandevino]

Look to see all kinds of dealer adds on anything they take 35% off of in the new year that’s been sitting for over a year.

Don’t buy anything new unless you have to until this shakes out.

 

[NCRaineman]

Look to see all kinds of dealer adds on anything they take 35% off of in the new year that’s been sitting for over a year.

Don’t buy anything new unless you have to until this shakes out.

I'm just wondering if they are going to be low balling on trade-ins too.

IMO a better move would have been to bring back 0% financing through Chrysler Financial on all 2024 or prior models. Keep the prices up and just give everybody free financing. Do it for 84 months if you need to.

 

[Sandevino]

I'm just wondering if they are going to be low balling on trade-ins too.

IMO a better move would have been to bring back 0% financing through Chrysler Financial on all 2024 or prior models. Keep the prices up and just give everybody free financing. Do it for 84 months if you need to.

0% has always been in lieu of rebates and incentives and in very few cases benefits the buyer.

Here’s an example…

A 35% discount on a $70k vehicle is $24,500 bringing the sales price to $45,500.

Financing the $45,500 at 6.9 over 72 months equates to $774 / month. Interest at 6.9% will cost $10,200 which equals out to $15,300 in savings if you take the 35% discount. You will owe $17,900 after 4 years.

Financing the $70,000 at 0% over 72 months equates to $972 / month. No interest cost but you are paying $15,300 than you should and IMMEDIATELY have 35% (or more) negative equity compared to the market. You will still owe $24,000 after 4 years which is $6k more than the buyer that took the discount and is paying the higher interest rate.

If you played the refinance game, you could refinance the $45,500 at 3.9/48 or 4.9/60 and still come out ahead of the buyer that took the 0% offer.

Long story short, take the discount as the amount financed and OUT THE DOOR price is what matters.

 

[HEMIMANN]

Yep - you need to do the math to figure which is the better deal, they are rarely co-equal.

Compare total pricing for both offers - (1) lower price @ interest rate; or (2) higher price at 0% interest rate
People get dazzled by the number zero instead of just treating it like another number. Dealers know this psychology and rely on it to screw people over on the amount needed to finance (i.e. - no, or little price discount).

Don't be that guy.

 

[GTyankee]

What would be the discount, If you tell them that you will pay CASH Today,
If you tell them that you will ONLY pay 10% over dealer cost ?

That is what the Friends & Family discount is

That is what i paid for both of these trucks

2009 & a 2016

 

[HEMIMANN]

Dealers no longer reveal costs anymore. The factory invoice game is long over. It is a secret hidden inflated number. Read this some years ago on various financial sites. Now they will only discuss % from MSRP.

it's all bogus, just the lowest price you can negotiate - no longer how much profit we will allow.

 

[Rlaf75]

The fact that they still can't keep water out of the cab I'd say they are way overpriced.

 

[Black1500Ram]

I'm just wondering if they are going to be low balling on trade-ins too.

IMO a better move would have been to bring back 0% financing through Chrysler Financial on all 2024 or prior models. Keep the prices up and just give everybody free financing. Do it for 84 months if you need to.

I have to vehemently disagree here.
The only thing that matters is price.

Financing is the cost of money, should be considered separately, and doesn’t affect depreciation or value.

Who wants to have an obligation to a depreciating liability for 84 months?
A vehicle is not a financial asset IMO.


I feel way too many people buy things based off of “monthly payment” which leads to poor decision making about value or affordability.

 

[etbrown4]

According to some of the best known youtube guys Stellantis started 35% off in late Dec on the west coast, and will, according to them, move it cross country.

But there's a catch. I called a Ram dealer in Los Angeles today. He claimed the deal is evolving and not close to 35% yet, and only applies to lower trims, not Laramie and above.

Cutting to the chase, he said on a $63k Big Horn msrp, Stellantis would today give about $6500 and the dealer about $6500, so there's just $13,000 off on $63,000. While a good discount it's Nowhere near 35%.

As we say down in the country, it seems "There's some dog in this cat," so we'll have to wait and see if the 35% ever materializes.

Maybe in a few weeks this may become fully rolled out, however at present there seems to be no such thing as 35% off, and may never be.

 

[clay282]

According to some of the best known youtube guys Stellantis started 35% off in late Dec on the west coast, and will ostensibly move it cross country.

But there's a catch. I called a Ram dealer in Los Angeles today. He claimed the deal is evolving and not close to 35% yet, and only applies to lower trims, not Laramie and above.

Cutting to the chase, he said on a $63k Big Horn msrp, Stellantis would today give about $6500 and the dealer about $6500, so there's just $13,000 off on $63,000. While a good discount it's Nowhere near 35%.

As we say down in the country, it seems "There's some dog in this cat," so we'll have to wait and see if the 35% ever materializes.

Maybe in a few weeks this may become fully rolled out, however at present there seems to be no such thing as 35% off, and may never be.

That 13k off can be had CURRENTLY, Louisiana, Arkansas, Missouri and Tennessee.

 

[Docwagon1776]

I'm just wondering if they are going to be low balling on trade-ins too.

IMO a better move would have been to bring back 0% financing through Chrysler Financial on all 2024 or prior models. Keep the prices up and just give everybody free financing. Do it for 84 months if you need to.

If new prices go down, used prices are going to tank. Why pay more for a used truck if the gap between used and new is tiny?

See: Tesla

 

[Docwagon1776]

What would be the discount, If you tell them that you will pay CASH Today,
If you tell them that you will ONLY pay 10% over dealer cost ?

Dealers make less money when you pay cash, they get a kickback when you finance through them.

I sure AF wouldn't brag about 10% over cost, but I'm sure that's an easy "deal" to get. Places like Mark Dodge will do an order *well* under that price.

 

[GTyankee]

Stellantis has constructed 2 new buildings down at the Saltillo Mexico property
each building is 1640.42 feet long , ( half-kilometer )

Oct 15 (Reuters) - Chrysler parent Stellantis is expanding its factory complex in northern Mexico to build Ram 1500 pickup trucks, the Wall Street Journal reported on Tuesday.
Stellantis has been building additional factory space next to its existing plant in Saltillo, Mexico, the report said, citing people familiar with the matter.
Two roughly half-kilometer-long (0.31-mile-long) buildings have been constructed in the past several months, according to satellite images reviewed by the newspaper.

Remember, this is while the old boss was running things
Plans may be changing .......................

 

[Hagar1]

Dealers no longer reveal costs anymore. The factory invoice game is long over. It is a secret hidden inflated number. Read this some years ago on various financial sites. Now they will only discuss % from MSRP.

it's all bogus, just the lowest price you can negotiate - no longer how much profit we will allow.

The factory invoice thing has never been all-that-straight. What they won't tell you is the the "invoice price" is not the dealer's true cost, there is this thing called "holdback" ...... it is a percentage of the invoice and the factory pays it to the dealer a month or few after the vehicle is sold.

 

[HEMIMANN]

The factory invoice thing has never been all-that-straight. What they won't tell you is the the "invoice price" is not the dealer's true cost, there is this thing called "holdback" ...... it is a percentage of the invoice and the factory pays it to the dealer a month or few after the vehicle is sold.

That changed per the info I stated - there was also dealer profit built into the invoice in addition to the holdback incentives for number of vehicles sold. It is now a meaningless number.