Another Stellantis Price Drop Video

[JS59]

Think about this...most domestic manufactures making about $10k profit on a full size truck. If MSRP is $85k, they are in all costs around $75k, dropping price 35% will never happen, no manufacture can do this with keeping same supply chain and suppliers in tact. TK and others are click bait YTers. He also said Hemi is coming back but fails to mention its only Durango that is getting this engine and this has been planned for over 2 years and has zero to do with Tim coming back.

Regardless of whether big drop in MSRP happens or not, this is not an accurate statement. Mark and Koons are both offering 10k discounts on 85k trucks - so if what you are saying is correct, they are not making a dime on those trucks - which we all know can't be true. Plus, just look online at many of the new 2024 and 2025 higher trim level trucks - many are discounted well over 10k. Time will tell whether the MSRPs are dropping - but there is no way these trucks actually cost 10k less than MSRP to build.

 

[KKurio]

Here's a new Stellantis price drop video, backing up yesterday's TK video about price cuts.

Price Cut

The video claims Stellantis is cutting prices by 35% across the whole line up of vehicles in "Q2" of the year.

A $100,000 fully dressed Tungsten would drop to $65,000.

My ordered RHO would drop into the $55,000 range.

What's important to know is how Stellantis/RAM define sales quarters.

New models usually release in September, so manufacturers run Q1 as Oct, Nov, Dec, meaning Q2 would be Jan, Feb, Mar...

If quarters run in a typical calendar format, Q2 isn't until Apr, May, Jun. The information getting out now doesn't support the April to June format. If that's the case nobody would buy anything from now to April 1st. Their sales would almost stop for three months.

Dealers need to tread lightly if these price cuts are true.

There's not one person here who wouldn't walk away from a $1000 deposit to save $25+++K down the road. That's just basic math.

Maybe with Mr.T back in office he will do something about inflation and bring the dollar back to what it should have been

 

[Gassywizard22]

Even if they do that, I can almost guarantee it won’t apply to the RHO. And when they say this they are talking about dropping the MSRP specifically. Then the demand for these will go way up and so will the price the dealerships are asking. MSRP will go down, dealer markups will make up for it. Just my opinion.

 

[RADA]

I'm going to play Devil's Advocate here...

If you look at prices in 2021 to 2024, RAM has increased prices by 27% to 35% except for the TRX, which increased by 56% going from an MSRP of $70K to $125k.

If there's only $10k in profit, then MD and others could never sell them for a $13K discount, they would lose money on every sale.

Plus, if Stellantis is dropping the price it means they are selling the vehicle to the dealer for less money. Then the dealer can, or won't, pass this discount on to the consumer.

It's all a moot point right now, because if RAM cannot solve the quality issues with the 3.0L 1500 line of trucks, they won't be worth the price of a Happy Meal...

 

[Ctech-Review]

I'm going to play Devil's Advocate here...

If you look at prices in 2021 to 2024, RAM has increased prices by 27% to 35% except for the TRX, which increased by 56% going from an MSRP of $70K to $125k.

If there's only $10k in profit, then MD and others could never sell them for a $13K discount, they would lose money on every sale.

Plus, if Stellantis is dropping the price it means they are selling the vehicle to the dealer for less money. Then the dealer can, or won't, pass this discount on to the consumer.

It's all a moot point right now, because if RAM cannot solve the quality issues with the 3.0L 1500 line of trucks, they won't be worth the price of a Happy Meal...

Generally speaking specialty vehicles have a higher margin for dealer and Manufacture per vehicle than the run of the mill vehicle. Also once you acrew all the engineering/R&D across such a small volume of these specialty vehicles they have to get higher margin to offset the costs of Development (RHO 25k trucks per year, standard Ram 1500 370k per year). As an example. When I got my Raptor R at MSRP I was told the Dealer made about $7k on the deal including holdbacks. I Feel confident Ford made 15-20k on that vehicle. With all this being said most Ram Dealers I am told right now are selling Ram 1500 bighorns/Laramies and making around a Max of $1500 per truck including holdback. I bet that MD selling a Ram 1500 RHO at $11k off MSRP isn't making but $2-3k tops per deal when its all said and Done. $11k off $85k MSRP is a ~12% discount which is huge.

-Some Food for Thought, I plan on doing another video soon talking about Inflation from 2017-2025 on Ford Trucks. MSRP on my 17 Raptor with sunroof was $72k, That same truck with more technology, better suspension, in 2024 was $85k MSRP. Thats less than a 2.5% price increase per year for 7 years. Now Imagine that you can get a RHO for $75k with more options than the $85k MSRP Raptor in 2024, and I was paying $71k in 2017.

 

[JS59]

Even if they do that, I can almost guarantee it won’t apply to the RHO. And when they say this they are talking about dropping the MSRP specifically. Then the demand for these will go way up and so will the price the dealerships are asking. MSRP will go down, dealer markups will make up for it. Just my opinion.

I'm skeptical on the RHO as well. On the other vehicles, your suggestion is that MSRP will go down - only to be replaced by dealer markups? I don't think that's reasonable. If prices don't come down, what's the point of any of this? These trucks aren't moving well - even with the large discounts. I'll make a wager that dealer markups won't make a showing on anything other than very rare models. I mean RHOs are selling at a 10k discount now - and I think we all know that's the hottest product RAM has right now.

 

[Speeder757]

I can't believe people keep believing this B.S. Stellantis already had price reductions on numerous slow selling vehicles for 2025 and none of them were even remotely close to 35%. No automotive manufacturer operates with a 35% profit margin much less has the ability to lower its prices 35% and still make a profit. Labor and manufacturing costs continue to increase not decrease. This has to be the dumbest trend and topic on YouTube and Forums currently or ever.

 

[JS59]

I can't believe people keep believing this B.S. Stellantis already had price reductions on numerous slow selling vehicles for 2025 and none of them were even remotely close to 35%. No automotive manufacturer operates with a 35% profit margin much less has the ability to lower its prices 35% and still make a profit. Labor and manufacturing costs continue to increase not decrease. This has to be the dumbest trend and topic on YouTube and Forums currently or ever.

Got a good laugh out of this -so thank you for that! i don't know what is real and what isn't - but I guess we will all know before long. One of the the other videos TK did said RAM was going to a 5 year, 50k bumper to bumper warranty. If he's completely full of it, seems like the dude will be outed pretty quickly! I will give the guy this - if he's making it all up, he sure does it with arrogance and conviction!

 

[Ctech-Review]

I can't believe people keep believing this B.S. Stellantis already had price reductions on numerous slow selling vehicles for 2025 and none of them were even remotely close to 35%. No automotive manufacturer operates with a 35% profit margin much less has the ability to lower its prices 35% and still make a profit. Labor and manufacturing costs continue to increase not decrease. This has to be the dumbest trend and topic on YouTube and Forums currently or ever.

Imagine having a YT channel that is trying to counter all this BS click bait lies about huge discounts available and auto industry is collapsing....its just not true.

 

[Ctech-Review]

Got a good laugh out of this -so thank you for that! i don't know what is real and what isn't - but I guess we will all know before long. One of the the other videos TK did said RAM was going to a 5 year, 50k bumper to bumper warranty. If he's completely full of it, seems like the dude will be outed pretty quickly! I will give the guy this - if he's making it all up, he sure does it with arrogance and conviction!

5 year 50k bumper to bumper warranty is not out of Question...they will be forced to increase quality based on new emission standards coming its going to force the manufactures to make more reliable powertrains based on the new warranty requirements of emission related components. Ford is already doing the same analysis to offering longer warranty from the factory.