Yes, we know that runaway prices for everything are not news these days. But the price increases seen by both Jeep and Ram trucks are staggering. Like 29 percent staggering for Jeep. Year over year, both brands have jacked up prices. The average price increase industrywide is 16 percent. And the average price paid for Ram pickups is now $62,313.
This is why used trucks cost so much
“We’re able to command strong pricing right now,” Ram brand CEO Mike Koval told Automotive News last month. “Obviously, this imbalance of supply and demand, that’s not going to last forever, so we need to stay very disciplined and keep our fixed costs under control because at some point that’s going to end.” Now you can see why the alternative, used trucks, are so high.
Part of the rise in Jeep prices is because Stellantis is moving the brand to a more premium offering. That is apparent with its three-row Grand Cherokee L and Wagoneer. The Grand Wagoneer sells for $96,802, while the Grand Cherokee is now $51,471.
Why are Ram prices so high?
For Ram trucks, it’s buyers that want more expensive options in their 1500 pickups. Both brands see buyers that want all of the amenities that come with luxury vehicles but in a truck and Jeep. And the appeal is that both brands are considered mainstream, for customers that don’t want to flaunt their wealth. And Stellantis has expressed that it feels these transaction prices prove it is making what buyers want.
The other thing that has changed is buyers are ordering what they want. Rather than taking a vehicle off of the dealership’s lot as the dealer optioned it, they’re getting everything they want. In days past, dealers would always stock a few vehicles with less, that they could advertise for less. Now, with the prices jumping up, any advertised price is higher. So buyers are used to seeing the higher prices.
Will Ram and Jeep prices go down when demand levels out?
And with loaded vehicles becoming more of what consumers want, neither Ram nor Jeep plan on lowering prices when the boom times end. They may or may not sneak in an incentive or two if the market goes soft. And that’s the other reason transaction prices are higher. With demand having outstripped supply, incentives are almost non-existent right now.
Even slower-selling new vehicles like Camaros don’t have incentives associated with them anymore. That wasn’t always the case as demand for the sporty car has waned over the years. Now, it commands top prices because there are so few new vehicles available.
While we’re happy for Ram and Jeep, consumers can add vehicle sales as just another price increase that is getting harder to swallow. In the truck market, new truck buyers are scooping up cheaper Ford Mavericks and Nissan Frontier trucks. As for affordable vehicles like a Jeep, where is the Suzuki Jimny when you need it?