JEEP SALES DOWN : Reading the Tea Leaves

wayoflife

wayoflife

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Compared to this time last year, FCA sales have fallen by quite a bit and that includes the Jeep brand which fell by 12% overall. The biggest losers were the Cherokee which was down by 37%, in spite of generous incentives and the Compass which fell 24%. Surprisingly, even Jeep's flagship vehicle and breadwinner, the Wrangler fell by 7%. In fact, the only vehicle in the Jeep line up not to loose sales was the Renegade and amazingly, its sales were up by 30%!

So, what does all this mean? Well, if I could read the tea leaves, I'd have to think that JK Wrangler sales are falling due to people starting hold out to see what the all new JL Wrangler has in store for them. Of course, that could all change once they do see it but historically, that doesn't typically happen. The other wild card could be that people are finally starting to weigh the extreme cost and value of a JK Wrangler when compared to something like a RAM pickup truck and the proof of that is their sales are up by 8%.

In addition to the Compass not being the best looking vehicle in the line up, it's also getting replaced with a much sexier version next year and I'm sure it's going to be hard to unload what's on dealership lots now. And, speaking of the newly designed Compass, it really is what the Cherokee should have looked like and I'd have a hard time not believing that potential Cherokee buyers are now waiting for it to be available. I could be wrong on this but looking at the significant drop in sales for both models, it's hard not to come to that conclusion.

Of all this news, Renegade sales being up is what really took me by surprise me especially being that full size truck sales have really taken off in America and that smaller vehicles are starting to fall out of favor again. Even I was starting to question whether or not it would ever take off but I will say that I am starting to see more and more of them on the road.

With all that said, I'd be interested in hearing what you all think of this news as well as my reading of things :cool:

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http://www.allpar.com/news/2016/12/us-retail-stable-fleets-plummet-35410
 
I think the JL has something to do with it. But I also think the cost of a new vehicle is so expensive anymore compared to what people are actually making. If you aren't a cash buyer, you've got a payment, insurance, registration, cost of fuel, maintenance. Granted it's always been that way when financing a vehicle, but so many domestic vehicles are now starting at the 30k mark and I just think it's unsustainable for a lot of people when you throw normal cost of living in with it (mortgage/rent/insurance). I have a feeling that new car sales are going to start declining over the next few years in general. Just my thoughts.
 
I agree with WJCO on this. The other issue is, in my opinion, the elections. I think people are holding out to see what will happen to rates with the current presidential elect candidate Donald trump. Add to all of it and it makes people less likely to buy what many think of typically as a play toy more than a serious vehicle

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I mean to be honest I think the new jeeps have a crazy price tag so I'm not surprised people aren't buying them, I saw a sport at a dealer ship a few months back with a teraflex lift and 20 inch wheels and 37inch tires for 62k [emoji15][emoji15] who would buy that. Still sitting at the dealer I'm pretty sure.


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Tylersilverjku said:
I mean to be honest I think the new jeeps have a crazy price tag so I'm not surprised people aren't buying them, I saw a sport at a dealer ship a few months back with a teraflex lift and 20 inch wheels and 37inch tires for 62k [emoji15][emoji15] who would buy that. Still sitting at the dealer I'm pretty sure.


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It was brand new too right off the line the dealer said. Didn't see any miles.


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Tylersilverjku said:
I mean to be honest I think the new jeeps have a crazy price tag so I'm not surprised people aren't buying them, I saw a sport at a dealer ship a few months back with a teraflex lift and 20 inch wheels and 37inch tires for 62k [emoji15][emoji15] who would buy that. Still sitting at the dealer I'm pretty sure.


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Wow. That's a crazy price tag for that. Some poor sucker will do it.

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http://wayalife.com/showthread.php?p=621404
 
I agree that the elections had something to do with this. I think both sides are/were holding onto their money. I've also noticed that there isn't anywhere near the shopping traffic this year at the malls. We went out Black Friday afternoon and honestly, it was dead.
To possibly further make the Wranglers slightly less desirable was OPEC cutting production the other day meaning gas prices will start to go up. $2 a gallon gas makes it kinda easy to justify getting 15 mpg. Start paying $3-4 a gallon again and that adds up.
 
A base JK Rubicon unlimited in Canada is starting out at $46,740.00 before 13% sale tax for most and still a number of fees to be tacked on by our wonderful government. Ouch!!! Glad I bought mine in 2012.


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i paid close to 37k for my rubicon. i would never pay that much for a vehicle, but i do not ever intend to get rid of this one.
 
The economy sucks, election year, IDK. I talked to a guy who owns a great, local restaurant, and he said his business had been down, all year. I would say, judging by the Christmas shopping I've seen, that everyone is hurting for sales. The bright side is, maybe there will be some killer rebates on, for potential buyers.


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Well coming from a p.o.s. new cherokee to my wrangler I can see why the cherokee is down in sales. A simple google search of cherokee issue will explain what I'm referring too. And as for the compass and patriot, you can get a low mileage used one for 10k or less. So, why would you pay 25% more for a new one.
 
Look at June, July, aug and sept sales... they matched all time highs for previous years. The down trend could be because of uncertainty with a new president... but more likely, this is the time of year that dealers are clearing out last years models with big incentives and a downtrend might simply suggest that there are less of those models available causing a dip in sales


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I'm on the bubble myself, should I get a 17 or wait for the new Jl. Probably going to do something this time next year
 
Auto business. Good stuff. Lived in it my whole life, worked in it for a while. Always ups and downs.

My two cents....

If anyone is going to finance a vehicle and a percentage point or two is going to make or break you, buy your vehicle now.
 
Don't get an 18, that's for sure. It always takes a year or two to shake out production issues. Left bank cylinder 5 anyone?


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ScoobyCarolanNC said:
Don't get an 18, that's for sure. It always takes a year or two to shake out production issues. Left bank cylinder 5 anyone?


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I dunno. We ordered our 2007 back in 2006 and got one of the very first JK Rubicons which you might now know as Moby and amazingly, it's been surprisingly reliable and problem free since getting it. On the other hand, our 2012 has been having quite a few problems including needing 2 cylinder heads replaced.
 
I think you are on to something with the truck sales. The fact that you can get a 1500 with the ECO Diesel was a consideration for me. Its well over double the MPG. Yes its not as capable off road but for most of us its more than capable enough.
 
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