Carvana is shaking up the auto industry by acquiring its third Chrysler Dodge Jeep Ram dealership, aiming to change how cars are bought and sold. The hosts discuss Carvana's strategy of targeting lower credit quality customers and its focus on loan origination. They also delve into Jeep's new electric SUV, the Recon, which has a staggering starting price of $67,000, raising concerns about its market viability. The episode features lively debates about pricing strategies, customer demographics, and the implications for both Carvana and Jeep's future.
Today on CarEdge Live, Ray and Zach discuss the latest news from Carvana and Chrysler, Dodge, Jeep, and Ram. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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"Carvana, dad, purchasing their third new car dealership. They are shocking the auto industry"
Carvana is a company that sells used cars online. You can buy a car from them without going to a dealership, and they even have special machines that look like vending machines where you can pick up your car.
Carvana is an online used car retailer that allows customers to buy, sell, and trade vehicles through their website. They have gained attention for their unique car vending machine concept and home delivery service.
"...their third Chrysler Dodge Jeep Ram dealership, interestingly."
Chrysler is a car brand that makes different types of vehicles like cars and SUVs. They are one of the well-known American car companies.
Chrysler is an American automobile manufacturer known for producing a range of vehicles, including sedans, SUVs, and minivans. It is part of the larger Stellantis group, which also includes brands like Dodge and Jeep.
"...their third Chrysler Dodge Jeep Ram dealership, interestingly."
Dodge is a car brand famous for making fast cars, like muscle cars. They also make SUVs and trucks.
Dodge is an American automobile brand that produces performance-oriented vehicles, including muscle cars and SUVs. It is known for models like the Charger and Challenger, which emphasize power and speed.
"...their third Chrysler Dodge Jeep Ram dealership, interestingly."
Ram is a brand that makes trucks, which are big vehicles used for carrying heavy loads. They are known for being strong and reliable.
Ram is a brand specializing in trucks and commercial vehicles, known for their durability and performance. The Ram 1500 is one of their most popular models, often praised for its towing capacity and comfort.
"...the next dealerships we're gonna find out that they're buying are Nissan dealerships, okay? Because that's another brand that attracts lower credit quality people..."
Nissan is a car company from Japan that makes many types of vehicles. They are known for making cars that are affordable and popular with many buyers.
Nissan is a major Japanese automotive manufacturer known for producing a wide range of vehicles, from sedans to SUVs. The brand has a reputation for offering affordable cars that appeal to a broad audience, including those with lower credit scores.
"It's a 2025 Jeep Grand Cherokee L Altitude 4x4, MSRP of $48,630."
The Jeep Grand Cherokee L Altitude 4x4 is a larger version of the Grand Cherokee, designed for both on-road comfort and off-road adventures, equipped with four-wheel drive for better traction.
The Jeep Grand Cherokee L Altitude 4x4 is a variant of the popular Grand Cherokee, offering additional space and off-road capability with its four-wheel-drive system.
"MSRP of $48,630. It shows here $2,500 in incentives"
MSRP means the price that the car maker suggests you should pay for the vehicle, before any deals or discounts are applied.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends for the vehicle before any discounts or incentives.
"Again, the dealer advertised price is 46. Let's set it a little lower."
The dealer advertised price is what the car dealership says the car costs. You might be able to talk them down to a lower price if you want to buy it.
The dealer advertised price is the price a dealership publicly lists for a vehicle. This price can often be negotiated down, depending on various factors such as demand and inventory levels.
"It's 125 days supply in the market. All sorts of good information here."
Supply in the market means how many cars are available for people to buy. If there are a lot of cars, prices might go down, but if there are only a few, prices might go up.
Supply in the market refers to the number of vehicles available for sale compared to the demand from buyers. A higher supply can lead to lower prices, while lower supply can increase prices.
To negotiate means to talk about the price and try to agree on a lower amount when buying a car. It's a way to see if you can get a better deal.
To negotiate means to discuss the terms of a deal in order to reach an agreement. In car buying, this often involves discussing the price and other conditions with the dealer.
"They're brand new SUV. They're Recon. Now, did you see this, dad?"
The Jeep Recon is a brand new SUV that runs on electricity instead of gas. It's built to be tough and good for off-roading, which means you can take it on adventures while being kinder to the environment.
The Jeep Recon is a new electric SUV that represents Jeep's commitment to sustainability while maintaining off-road performance. It is designed to offer the rugged capabilities associated with the Jeep brand, but with an eco-friendly twist. This vehicle is significant as it marks Jeep's entry into the electric vehicle market.
"Then there's a $2,000 destination. Okay. So $67,000."
The destination fee is the cost to ship the car from the factory to the dealership. It's an extra charge that you usually have to pay when buying a new car.
The destination fee is a charge added to the price of a vehicle to cover the cost of transporting it from the manufacturer to the dealership. This fee is typically non-negotiable and varies by manufacturer.
"Is a $67,000 starting MSRP electric SUV? I mean, I was just bewildered when I saw this."
An electric SUV is a type of car that runs on electricity instead of gas. They are better for the environment and can save money on fuel.
An electric SUV is a sport utility vehicle that is powered entirely by electricity, rather than gasoline or diesel. These vehicles are known for being environmentally friendly and often have lower operating costs compared to traditional SUVs.
"...off-roading slowly, but securely in your electric EV, your Jeep, where do you charge that, Dan?"
An electric vehicle, or EV, runs on electricity instead of gasoline. This means it uses batteries to power the motor, which can be better for the environment and cheaper to run.
An electric vehicle (EV) is a car that is powered entirely or partially by electricity, using electric motors instead of traditional internal combustion engines. EVs are known for being more environmentally friendly and often have lower operating costs compared to gasoline-powered vehicles.
"Such a cool vehicle, a natural fit to smash the Broncos Sport. If it was a base model internal combustion engin..."
The Ford Bronco Sport is a small SUV that can handle rough terrains and is great for outdoor adventures. It's designed to be tough and stylish, making it a popular choice for people who like to explore nature while still needing a vehicle for everyday use.
The Ford Bronco Sport is a compact SUV that combines off-road capability with everyday usability. It is part of the Bronco family, which has a long history of rugged vehicles designed for adventure and exploration. Its significance lies in its blend of modern technology and classic Bronco styling, making it appealing to both new and loyal customers.
"...if it was a base model internal combustion engine for $45,000 then loaded with features..."
An internal combustion engine is a common type of engine that runs on gasoline or diesel. It creates power by burning fuel inside the engine, which is how most cars used to work before electric cars became popular.
An internal combustion engine is a type of engine where fuel is burned inside the engine itself to create power. This is the traditional engine type found in most vehicles before the rise of electric vehicles.
"...then loaded with features, we can start talking fifties..."
Features are the different options and technologies that come with a car, like safety systems, entertainment options, and comfort items. They can make a car more enjoyable to drive.
In automotive terms, features refer to the various options and technologies included in a vehicle, such as safety systems, infotainment, and comfort enhancements. These can significantly affect the vehicle's appeal and price.
Term
$67,000
"...but the price is $67,000."
$67,000 is the price of the Jeep Recon, which means it's a more expensive vehicle. Prices can change based on what features you choose.
The price of $67,000 refers to the cost of the Jeep Recon, which positions it in the premium segment of the market. Pricing can vary based on features and configurations.
"...typically find themselves suited more for subprime credit borrowers. Yes."
Subprime credit means having a lower credit score, which can make it harder to get loans. People with subprime credit often pay more interest when borrowing money.
Subprime credit refers to a credit rating that is below the average, indicating a higher risk for lenders. Borrowers with subprime credit may face higher interest rates and less favorable loan terms.
An electric Jeep is a type of Jeep that runs on electricity instead of gas. It's part of a trend where car companies are making more electric vehicles to help the environment.
An electric Jeep refers to a Jeep model that is powered entirely by electricity rather than gasoline. This aligns with the automotive industry's shift towards electric vehicles for sustainability and efficiency.
"These off-roading EVs kind of got, put some questions in my mind."
An EV, or electric vehicle, is a car that uses electricity to run instead of gas. They are often better for the environment and can save money on fuel.
EV stands for electric vehicle, which is a car that runs on electricity instead of gasoline or diesel. EVs are known for being more environmentally friendly and often have lower operating costs compared to traditional vehicles.
"...Okay, can I afford that monthly payment? Not, can I afford a $67,000 Jeep? Can that $67,000 Jeep come down to $400 a month?"
Dealer fees are extra costs that car dealerships might charge when you buy a car. They can include things like paperwork fees and other charges that aren't part of the car's sticker price.
Dealer fees are additional charges that a dealership may add to the purchase price of a vehicle. These can include documentation fees, preparation fees, and other costs that are not included in the MSRP.
"...Okay, can I afford that monthly payment? Not, can I afford a $67,000 Jeep? Can that $67,000 Jeep come down to $400 a month?"
A monthly payment is how much you pay each month when you buy a car with a loan. It includes the cost of the car plus interest and other fees spread out over time.
A monthly payment is the amount of money a buyer agrees to pay each month when financing a vehicle. This payment typically includes principal and interest on the loan, as well as any applicable taxes and fees.
"Then the customers at buying, they're gonna get repowed."
'Repoed' means that a bank or lender takes back a car because the owner didn't make payments. The car is then usually sold to get some money back.
'Repoed' is short for repossessed, which refers to the process where a lender takes back a vehicle from a borrower due to non-payment or default on a loan. This often leads to the vehicle being sold at auction.
"Oh, please update me when we have rebates and I'll get my ass back into that dealership."
Rebates are money back offers from car companies to encourage you to buy a car. They help lower the price you pay.
Rebates are discounts offered by manufacturers or dealerships to incentivize purchases, often used to promote specific models or clear inventory. They can significantly reduce the overall cost of a vehicle.
Retail bonus credit is extra money that dealerships can get to help sell cars. It can make buying a car cheaper for you.
Retail bonus credit refers to additional financial incentives provided to dealerships or customers, often as part of a promotional campaign. This can help offset costs or encourage purchases.
Loyalty retail bonus cash is money that car companies give to customers who already own one of their cars to help them buy a new one. It makes it cheaper to get a new car from the same brand.
Loyalty retail bonus cash is a financial incentive offered by car manufacturers to encourage existing customers to purchase or lease another vehicle from the same brand. This bonus is typically applied as a discount on the new vehicle's price.
"...own a Chrysler Dodge Jeep Ram Fiat or Alpha Romeo brand vehicle..."
Alfa Romeo is a luxury car brand from Italy that makes stylish and sporty cars. They are part of a larger company that includes Chrysler, Dodge, and Jeep.
Alfa Romeo is an Italian luxury car manufacturer known for its sporty vehicles and distinctive design. It is part of the Stellantis group, which also includes Chrysler, Dodge, and Jeep.
Jeep is a car brand that makes tough vehicles, especially known for their ability to drive off-road. They are popular among people who like outdoor adventures.
Jeep is an automotive brand known for its rugged vehicles, particularly SUVs and off-road vehicles. The brand has a strong reputation for durability and off-road capability.
"Make sure to fill up with Chevron with Tecron along the way, giving cars unbeatable mileage and helping to keep critical engine parts clean"
Chevron is a company that sells gasoline and oil products. Their fuel, called Chevron with Techron, helps keep car engines clean and running well.
Chevron is a major American oil company known for its gasoline and fuel products, including Chevron with Techron, which is designed to improve engine performance and cleanliness.
"Make sure to fill up with Chevron with Tecron along the way, giving cars unbeatable mileage and helping to keep critical engine parts clean"
Techron is a special ingredient in some gasoline that helps keep car engines clean and working better.
Techron is a fuel additive developed by Chevron that helps to clean and protect engine components, improving overall engine performance and efficiency.
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As the owner of her own dog rescue, that is.
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It's noon here in Ventnerson, New Jersey
and our nation's capital, Washington, D.C.
And this is Courage Live for Thursday, November 20th.
Well, the date of my brother's birthday
who was 83 years old today.
Whoa.
And acts as if he's, I don't know, 78.
But whatever.
Your host today are me, Ray here in Ventner
and that good looking young man, Zach,
in Washington, how are you today, handsome?
I'm doing well.
Happy birthday, Uncle Kenny.
I'll give him a call this afternoon.
83, man, Uncle Kenny is getting old folks.
My dad and I, for six years now with our incredible team,
have been building CarEdge.com.
I love our website because if you scroll down
a little bit, it says this,
CarEdge is built to help you buy a car,
not to help a dealer sell one.
Other car sites work for dealers.
CarEdge works for you.
I encourage everyone.
We're running it for another day or two here.
Our car buying service, $150 off
and CarEdge Pro, 15% off.
Please, yeah, 20 hours left on this promotion.
Please take advantage of this folks
and get a free consultation with our team.
See if it's a good fit to work with CarEdge.
It's not always and we are not offended.
We are simply here to help.
The big story this morning, dad,
car dealers nationwide are shaking in their boots.
Carvana, dad, purchasing their third new car dealership.
They are shocking the auto industry
and their third Chrysler Dodge Jeep Ram dealership,
interestingly.
We've also got some other Jeep news
that we're gonna talk about here in just a little bit,
but let's start here, dad.
Carvana adding their third new car dealership.
What the heck is Carvana doing?
Well, I think their hope is that they're changing the way
automobiles are bought and sold in this country.
You know, their first new car dealership that they bought
was in Casa Grande, Arizona, just south of Tempe.
It's about 45 miles south of Tempe.
And I can honestly say we've driven through Casa Grande
and it's a lovely town to drive through.
And so they bought a Chrysler Dodge Jeep dealership there.
Just casually throw in shade at Casa Grande.
Okay, I didn't see that coming.
Okay, let's see where this is going.
And so they bought this Chrysler Dodge Jeep dealership there,
which was a poorly performing Chrysler Dodge Jeep Ram point.
And I believe in the short time that they've owned it,
they have taken it to be the number one volume dealer
in their area, which is a pretty significant sales increase.
Now, why?
Why do they choose Chrysler Dodge Jeep dealerships?
Because the one they bought in Texas was a CDJR dealership
and the one they're buying in San Diego.
And I think if you were to dig deep,
I think the type of customers
that CDJR dealerships attract
are of the lower credit quality tiers.
And so these are the people that appeal most to Carvana
because realistically,
Carvana wants to be in the loan origination business
and not necessarily the car business.
The big thing for them is placing all these loans.
We know for a fact that in order to be able to qualify
for a loan at Carvana,
you have to have a minimum income of $5,000 a year.
A year, that's less than $100 a week, ladies and gentlemen.
So if that's the type of criteria they're using
to approve people for loans at Carvana,
my suspicion is they're using the same type of parameters
for their new and used car customers
at their new car facilities.
And the same sales practices,
which are the prices, the price, there's no negotiation.
Hey, step right up,
we're gonna put you in one of them 19% loans
and you're gonna be happy.
So your read on this stat is Carvana obviously
acquiring their third Chrysler Dodge Jeep brand dealership.
It is a little bit of like a wake up call,
hey, the price is the price, car shopping,
that's obviously resonating with customers.
But when you peel this back a little bit more,
do you think it's just their play
to get more and more subprime auto loans booked?
And ultimately that's the name of the game over at Carvana,
is to sell as many auto loans as possible.
My suspicion, strictly a suspicion,
but if I was running Carvana,
and this is what I was looking to do,
to buy dealerships that normally attracts people
with somewhat suspicious credit histories
and are mostly just payment buyers,
I think the next dealerships we're gonna find out
that they're buying are Nissan dealerships, okay?
Because that's another brand
that attracts lower credit quality people
and that are just payment buyers.
So I think that's their business model,
that's been their business model at Carvana.
The price is the price will approve you for a loan
when nobody else will.
Those loans are at a high interest rate
and then they are bundled and sold as asset-backed securities.
So they're just looking to originate loans,
sell those loans, reap the profits
from the little bit of profit they make from those loans,
plus the profit they make on the cars that they sell.
And what it proves is that there is a percentage
of the population that is very content
to not have to negotiate, okay?
And that percentage of the population that feels that way
is willing to not only pay a premium
for the price of the car,
but a premium for the interest that they're being charged
on the loan that they're getting.
It is, I think,
unless there's some accounting fraud going on
that I don't know about and I don't.
So I think at this point it's a business model
that seems to be working for Carvana.
So let's, you know, is it a wake up call
to other dealers out there that maybe,
just maybe you need to find a better way
of selling cars, perhaps?
Let's do my favorite thing, Dad.
Let's do a live experiment.
We're in Casa Grande, folks.
Everyone get ready.
We're in Casa Grande.
We're on Carvana's Casa Grande CDJR website.
Let's look at their new vehicles for sale.
Sure, we'll go Jeep.
Let me just view all the inventory.
Man, I love these car dealer websites.
They always make me feel good about our website.
They're always so hard to use these websites.
Okay, so let's see here.
These are some Intransit vehicles.
Let's just choose a random page.
Let's go to page seven, my favorite number one.
Only one thing.
Yeah.
I don't know much about advertising,
but I'm pretty sure that most of the manufacturers
would tell you that it's the front end
of the car that sells the car, not the ESN.
Okay, so let's take a peek here, y'all.
So this is one that said it was an inventory.
It's a 2025 Jeep Grand Cherokee L Altitude 4x4,
MSRP of $48,630.
It shows here $2,500 in incentives
and a selling price of $46,130.
Question for our community.
Do y'all want me to sick our AI agent on this vehicle?
Now, I wanna be very clear here.
The likelihood that I purchased this vehicle is quite low.
So I don't wanna waste their time
for wasting their time's sake,
but let me know in the chat.
If I should go back to our website
and we can look at it again tomorrow,
should I have the AI agent communicate
with this dealership and see what price we get?
Okay, we got one yes, that was all I needed.
Let's do it.
I'm a simple man, dad.
I'm a simple man.
Does not take much.
So I'm gonna come back over here to caredge.com.
I'm gonna click on shop new.
Give me a second here.
We're gonna put in the VIN.
Okay, here we go.
Image is coming soon, we love it.
All right, so what I'm gonna do, dad,
is I'm gonna click on get the real price.
Okay, so the dealer discount that we're suggesting
would be all the way down to $45,056.
Again, the dealer advertised price is 46.
Let's set it a little lower.
You know what, I wanna live a little bit.
Let's set it to 44,000.
Pretty aggressive price here.
They've had this for 34 days.
It's 125 days supply in the market.
All sorts of good information here.
All right, and I don't know how I'm gonna buy it yet.
So I'm gonna click on negotiate now.
Drum roll please.
My agent, Zach, is setting up,
analyzing the market data.
Love that, reviewing the inventory,
writing the opening message to the dealer.
Contact in the dealer.
All right, y'all, this thing just got kipped off.
I can't wait till they shine you up
for that 11.99% new car loan rate.
All right, well, we're gonna come back here tomorrow
and we're gonna see what actually happens.
All right, we'll check back at the end of the show.
But we've got now the AI agent
contacting a Carvana dealership.
This advertised price there does not seem low enough,
dad, between you and me.
Something tells me we can go lower.
But first.
The only discount is the incentives.
Yeah, exactly.
So I think we're gonna get a lower price,
which would disprove Carvana's business model,
which is one price selling.
At least that's what they do on the used car side.
But dad, we gotta take a second here.
I think the sponsor of today's program,
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Okay, so back to CarVonidab.
Their whole shtick is one price selling.
I think we're about to prove that for new cars,
it's definitely not one price selling
because the Out the Door price
is gonna have a dock fee under this,
via under that fee.
It'll be super interesting to see.
But so does I'm sure that they're used car locations.
They probably have a dock fee and everything else.
I would be curious if they come off the price at all
if they are truly a one price store,
a negotiation-free store.
It'll be interesting to see here, Dad,
because I should have updated my agent.
It has my Washington DC.
So we might have to try this again.
Yeah.
You know, yeah,
because I doubt this dealership's really gonna want
to sell this car.
They ain't reaching out to you.
Yeah, sure, let's get in touch with this moron
in Washington looking to buy.
Come on, now you, you know,
it's not still a dress or something.
As we move to the show here,
I will delete that negotiation.
I will restart it with the right address
or with the right zip code.
Yeah, all right.
Undeal on it.
When you go out there to pick up your,
excuse me, your new Jeep,
we could stop at the Lucid factory
and ask them if they'd give us a tour
so we could watch them build their 10 or 12 cars
that they build a month or whatever it is.
We could be onto something.
Now, the other story with Jeep
that I wanted to cover today,
so that's Carvana.
They've got their third Chrysler Dodge Jeep Ram dealership.
It is incredibly interesting what they're doing.
The other thing that I wanted to talk about
this morning, dad, is Jeep and Unveiled.
They're brand new SUV.
They're Recon.
Now, did you see this, dad?
Did you learn about the Recon at all?
I did not.
All right.
Well, then I wanna ask you this
and I'm asking the CarEdge community as well.
What do you think the starting MSRP is
for Jeep's brand new Recon SUV?
Bear in mind it is an electric vehicle.
So this is a brand new electric SUV from Jeep.
What do you think the starting MSRP is?
I'm gonna guess if it's an EV
and we know that the average price of an EV in America
is around $55,000.
So I'm gonna guess that Jeep wanted to be
at that, say that sweet spot.
All right.
So you think they're at what price?
$55,000.
Now, dad, you would be a good betting man.
However, you'd be wrong.
The starting MSRP for this vehicle is $65,000.
Then there's a $2,000 destination.
Okay.
So $67,000.
$67,000.
Isn't this absurd, dad?
Jeep's brand new.
Hey, we're gonna win customers back.
Is a $67,000 starting MSRP electric SUV?
I mean, I was just bewildered when I saw this.
There's no way that this is the winning recipe over at Jeep.
I mean, what is going on over there?
Well, the winning recipe,
they haven't had a winning recipe in six years,
for good to say.
Their sales have been going backwards for six years.
Their prices have been going up
and their sales have been going backwards.
I just, I have to ask this question.
Ask the question.
An electric off-road vehicle.
So, you know, you're in Moab, Utah.
I hear it's beautiful.
It's just beautiful there.
And you know, you're out gallivanting
around off-roading slowly,
but securely in your electric EV,
your Jeep, where do you charge that, Dan?
Do they have charging stations
in the middle of these national
and state parks out there,
somewhere in the middle of nowhere?
I mean, why would you want
an electric off-road vehicle?
It's, you know, if you have a gas
or a diesel-powered off-road vehicle,
you can travel with extra fuel in fuel cans.
You can't travel with, I don't know,
an extra charger.
What do you do?
I mean, well.
All right, everyone, let's talk about drinking and driving.
Hey, decision that will change your whole world,
things will never be the same once you get a DUI
because legal fees, time and court are just the beginning.
Getting into a crash is another way your world
could be irreversibly changed
after drinking and driving.
Your vehicle may not be the only thing
that gets damaged in that crash.
You could face a life-altering injury or even death,
but you're not the only one
who could face those consequences.
Your decision to drink and drive
could permanently change someone else's world.
Whether you injure them
or leave their loved ones grieving.
The next time you're out drinking,
call a rideshare, a taxi, a sober friend
or a designated sober driver.
Always plan for a safe ride home.
The only decision that will change your world for the better
is the decision to call for a sober ride.
It's never worth it to drive drunk, don't risk it.
Drive sober or get pulled over, paid for by NHTSA.
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10 years from today, Lisa Schneider
will trade in her office job
to become the leader of a pack of dogs.
As the owner of her own dog rescue, that is.
A second act made possible by the rescaling courses
Lisa's taking now with AARP
to help make sure her income lives as long as she does.
And she can finally run with the big dogs
and the small dogs who just think they're big dogs.
That's why the younger you are, the more you need AARP.
Learn more at aarp.org slash skills.
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Dad, we know, we know that electric
is part of the problem.
Obviously the other part of the problem is price point.
Look at this tweet that was shared
of this ex that was shared by a gentleman
who runs a Chrysler Dodge Jeep Ram dealership.
The first product drop of the new era at Stalantis
was the Jeep Recon.
Such a cool vehicle, a natural fit
to smash the Broncos Sport.
If it was a base model internal combustion engine
for $45,000 then loaded with features,
we can start talking fifties.
It's a massive hit and a momentum changer,
but the price is $67,000.
This does nothing to change the perception.
We are overpriced.
It makes the whole deeper.
$67,000 hurts Jeep.
$10,000 to $15,000 off our products
does not matter if no one is looking at them.
Caniscus and Filosa know better.
We have a top of funnel problem
and you are making it worse end of story.
I thought that was such a timely and relevant tweet.
It has, Dad, you could say it has something
to do with the powertrain.
I actually think it just has more to do with price point.
No one rates us.
But I think the lead is the price.
People don't wake up and say,
I want to spend 70 grand on a Jeep.
And we know this because they've run the experiment
before and we've seen them learn their lesson a little bit.
They saw $20,000 MSRP reduction
on certain Jeep vehicles here over a year.
Then they launched this brand new product
and it's at least 70 grand when you get the dealer fees.
And I mean, it's ridiculous.
Well, and they were being called out by a CDJR dealer.
Now, maybe the big shots at Stalantis know who he is
you know, other than just car dealer guy.
They know who he is.
And he's calling them out and rightfully so.
If I was the owner of a CDJR dealership
and our Jeep sales have been struggling for six years,
why would I ever, how could you ever be excited
at the fact that, you know, the first new model
we're really bringing out is 67 large?
I mean, that's just, that's crazy.
That's a number that doesn't resonate
with your customer base.
You know, Jeeps were-
Resonate, they can't even,
they can't even fathom spending $70,000.
Well, come on, people were buying Jeeps
when they were, you know, 25 to 40,000 dollars selling.
We just acknowledged at the beginning of this segment
that Chrysler Dodge Jeep and Ram typically,
typically find themselves suited
more for subprime credit borrowers.
Yes.
And I've got, you know, like what?
Subprime credit, getting approval
for a $70,000 car note on an electric Jeep.
I mean, I don't see it.
I just do not see it.
Well, I could see that happening
at the Corvada CDJR dealership
because that's, they just want to put you into a loan.
But, you know, most banks are not doing that.
And it's, let's face it,
those customers are looking for a payment
that's associated with a $67,000 vehicle.
I, you know, every major corporation out there
occasionally makes missteps.
Some major corporations out there
make many missteps and they're not occasional.
This is one of those cases
where it is an ongoing misstep
year after year, month after month,
sales declines year over year,
although I do believe Jeep sales
did tick up a little bit this year.
But still, this was an iconic American brand
that was selling, what, close to a million Jeeps a year
and is now selling somewhere
around 600,000 Jeeps a year.
How do you do that to your business?
And then say, okay, well, we're gonna bring it back
by introducing a $67,000 Jeep
and that's the starting price.
Yeah, we're not talking about loaded up.
That's the starting price.
We haven't updated this page in a while.
Maybe we will.
This was last updated in February of 2024.
Jeep prices have increased 61% in the past five years.
And if we go here, you can see this is a chart
of Jeep sales from 2018 to 2023.
And dad, you know me.
I love seeing charts go up into the right.
This one is going down into the right.
They had almost a million new vehicles sold in 2018
down to below 650,000 in 2023.
At the same time, the chart that shows prices,
average prices from 2018 to 2023,
up from nearly $34,000 to nearly $55,000.
And then again, the new leadership,
that's what makes us most damning
is there's new leadership at Stellantis.
The first product they bring to market
is the $67,000 recon.
Don't you think?
I mean, you know, I'm not the brightest guy in the world.
I always say that.
But don't you think as an executive at Stellantis
that you could look at those two charts
and see a correlation between your ever-increasing prices
and your rapidly-decreasing sales?
At what point, as an executive,
do you look at that and go,
oh, maybe there's something to raise in the prices
that's causing our customers to not be our customers anymore?
I mean, one of the reasons you're getting paid the big bucks
is you're supposed to have the intelligence
that interpret data like this
and go, we need to go in the opposite direction.
And here they are, new CEO in place,
new people brought back, the old people
to help build the brands back up.
And the first vehicle they come out with, it's $67,000.
And that's the starting price.
I'm pretty sure there must be packages that can go on it
or different trim levels to take it up even higher.
That's a form of corporate malfeasance,
at least in my opinion, as I always.
Just remember, folks, the opinions expressed by me
are strictly my opinions,
not the opinion or the thinking of car edge itself.
From Matthew, going above and beyond on that one,
pops, you said much more egregious things
than either that level of follow up.
But from Matthew, thank you, Matthew.
Remember, off-roading Death Valley,
definitely no charging.
Yeah, Dad, I think you're onto something.
These off-roading EVs kind of got,
put some questions in my mind.
But again, I would just say, for me, more importantly,
it's the fact that it's a nearly $70,000 starting price,
not even the powertrain.
I've always said, people could care less
about powertrain, they care about price.
If you had a $20,000 EV, it would sell off the shelves.
But I don't have anything 20 health.
It's not even the price,
they care about payment most of the time.
84% of customers out there are payment buyers.
That's what they wanna know.
Okay, can I afford that monthly payment?
Not, can I afford a $67,000 Jeep?
Can that $67,000 Jeep come down to $400 a month?
Yeah, with probably 60 grand down.
Yeah, we could probably get you there.
You're gonna wanna see this next Chrysler Dodge Jeep Ram
story, but before we go there, from CQA,
good to see you Brandon.
I guess I'll start seeing a lot of six-month-old Jeeps
being sold by Bridgecrest at the auction.
I think you're on to something, Brandon.
Yeah, I think you're gonna see a lot of these
show up at the dealer auctions.
They're not gonna be selling from the dealer level.
Then the customers at buying, they're gonna get repowed.
Like, it's just, ah!
I don't get it, man, I really don't get it.
And you draw the exact,
you know the exacts of Jeep get paid
millions of dollars a year,
and these are the decisions that they're making.
Yes, but the executives at Carvarr
are making a similar decision,
and they're saying, that's okay,
we'll get you into a payment range
that's comfortable for you
at an exorbitantly high interest rate,
or at least an interest rate
that is probably typically above
the average rates at the moment,
and we'll turn around and sell those
as an asset, as security,
so that we can wash our hands of them.
Okay, Dad, let's switch gears.
We're staying on Chrysler Dodge Jeep Ram.
On the count of three, I'm gonna show you something,
and I want you to give your visceral real reaction,
okay?
One, two, three.
Is that in the car?
That's in the car.
Get the, get the, get the hell out of here.
You know, I bought the car.
That doesn't mean I gave you the right
to advertise to me in the car
as I'm driving my damn car,
or when I turn my damn car on,
I bought the car.
I didn't buy an advertising package from you.
Oh, please update me when we have rebates
and I'll get my ass back into that dealership.
You know, this seat that I'm in
is getting a little uncomfortable.
I need a newer seat at $1,500 in loyalty.
Retail bonus credit.
Get that off of my screen, okay?
That's, if I'm paying $67,000 for a Jeep,
I want it to be ad-free, okay?
That is such BS.
I'm sorry.
For those of you that listen to the podcast
and don't tune in live here on YouTube,
it is a screenshot that we're looking at,
or a photo, excuse me,
of the infotainment section of,
I think this is a RAM,
but of a vehicle,
Chrysler Dodge Jeep Ram Vehicle,
and it says marketing notification just announced,
$1,500 loyalty retail bonus cash,
own a Chrysler Dodge Jeep Ram Fiat
or Alpha Romeo brand vehicle.
I guess you do because you're driving it.
Get $1,500 in additional bonus cash
on the purchase of a new Jeep brand vehicle,
valid $11,525 to $1,125.
This is in the infotainment of the vehicle.
Let's just riff off this for a second.
I mean, would you, Dad,
would you pay a monthly subscription
to not have ads in your car?
No, I wouldn't buy the car to begin with.
Okay, I would absolutely boycott the brand, okay?
You know, when I ran dealerships,
you know, when everybody does a survey,
there's always customer satisfaction surveys.
And, you know, just because I buy something
doesn't mean that I've agreed to or given you the right
to contact me, call me, email me, regular mail me
and ask me to fill out a survey.
I bought your product, leave me the hell alone.
Now, if you're asking me to spend $67,000 for a Jeep
or $20,000 for a Jeep
or, I don't know, $100,000 for a Grand Wagon ERL
or whatever the hell it is,
and you wanna be able to interrupt my commute
or my drive with messages and marketing messages
and advertisements, well, then you need to be paying me
on a monthly basis.
But if that's gonna be part of the deal, I'm not in.
I am not in just because I wanted to buy something
or yours doesn't mean I wanna continue to be advertised
to from you.
So I'm sorry, beat it.
No shame in my game, advertisement here from caredge.com.
You're expert car buyer on your side.
We got a promo run in y'all,
car buying service, $150 off car edge pro 15% off tomorrow.
I will re-initiate that negotiation
with that Carvana dealership,
that Chrysler Dodge Jeep Ram Carvana dealership
and I gotta figure out how to update my zip code.
So I'm gonna play around with that offline
and then tomorrow we will check in with the AI negotiator.
That's part of car edge pro.
You're not using the car buying service.
You should at least be using car edge pro.
Learn more about both back at caredge.com.
Dad, let's call it a show for today.
If that's a, okay, I've got an interview here
with a radio station in three minutes.
So I gotta get prepped for that a little bit.
But folks, we'll be back tomorrow
with more car edge live.
We appreciate everyone tuning in.
We appreciate our sponsor, DeleteMe.
Please check out.
Again, my dad and I both personally use DeleteMe.
So please check that out.
And pop's good takes today.
That was quite amusing for me.
I laughed pretty hard off camera.
Well, you know, I'm glad I could make you laugh.
And I hope I made a few other people laugh.
And my hope is that I've made the good folks
at Chrysler Dodge Jeep Ram cry.
We're back tomorrow, folks.
Love you, dad.
Yep, love you too, handsome.
Thank you, everybody.
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