Thursday, June 22, 2017

Dodge / FCA announced a plan today to attempt to keep dealerships from marking up Demon's. Will it work? Will a dealership actually sell a Demon for MSRP around $90k?

Dodge said that its earliest production run of Demons will go to dealers who promise to sell them "at or below" the manufacturer’s suggested retail price.

Dodge will demand a notarized “acknowledgment document,” signed by both dealer and potential customer, that includes their agreed-upon contract price.

Those Dodge dealers finally have a gold mine, and they’re essentially being told by the parent company – which, by the way, is legally forbidden to dictate pricing to their independently-owned dealer franchises – that their Demon profits will be capped, or else.

But isn't it obvious that some will repeat what we saw with the Hellcat? Bought for reasonable prices, and sold for immediate profit to the 2nd owner who was more desperate and less able to obtain a Hellcat through a dealership.

So, why can't the dealerships set their own prices, and profits, at reasonable market prices (crazy profit in all reality for a Demon) instead of seeing a buyer drive off the lot and flip it for 50 thousand dollars profit. Do you have any idea how many lousy Dodge cars like the Dart and Aspen a dealership has had to move to make a profit at all? Compasses, Patriots, Caravans, 200s, etc on a Mopar dealership are sitting for months and months.

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