The Rising Price of Jeep Vehicles Could Be the Automaker’s Downfall
Jeep is one of the most influential automakers of all time. Not only has it produced some of the best midsize SUVs on the market, but Jeep has become a brand that has branched out into other segments of the automotive world. However, there has been a decline in Jeep sales over the last few years, and many tie it to the automaker’s rising vehicle prices.
Jeep Vehicles have increased in price more than many rivals
Of course, the average cost of all vehicles is up. This is regardless of whether the buyer wants one of the best midsize SUVs like the Jeep Wrangler or if they want something a little less rugged. However, Jeep sales are more than likely down because the vehicles have gotten too expensive for many who would have bought them before the significant price change.
According to Jalopnik, Jeep has increased the price of the Wrangler, its flagship vehicle, by about 40% in recent years. However, the industry average is about 31%. Of course, many of Jeep’s most popular vehicles can easily cost over $70,000 after adding packages and selecting higher trims. Price-wise, some Jeep vehicles have pretty much turned into luxury options.
In truth, sales for the automaker have been sagging since 2019. According to CarEdge, Jeep only sold 642,924 units in 2023, which is its lowest figure in about 11 years. Of course, the low Jeep sales mean the automaker has issued steep discounts. Unfortunately, this hasn’t gotten very many more people through the doors of Jeep dealerships, which means there are tons of unsold Gladiator and Wrangler models.
Reasons Jeep sales might be down
There are many ways to explain Jeep sales decreasing the way they have in recent years. One is that perhaps fewer people are willing to forgive Jeep’s shortcomings. People love their Jeeps, but some of its vehicles aren’t regarded for their reliability. In fact, it’s a running joke that buying certain Jeep models means you’ll spend an arm and a leg on repairs(and modifications.)
Another explanation for the decline in sales is an increase in competition. For quite a while, people who wanted a rugged SUV almost had to resort to Jeep. Now, most automakers have options that can do pretty close to what a Jeep Wrangler does. The Ford Bronco is a solid example. Not only is it one of the best midsize SUVs for off-roading, but it’s highly customizable.
There’s one more problem. Jeep prices have increased over the years, but the vehicles don’t have some of the same features as even some less expensive vehicles. People want value for their money, and it seems maybe Jeep is still catching up to what most buyers want. This is especially the case as the novelty of owning new Jeep vehicles isn’t where it once was.
Buyers should note that the Jeep Compass, the brand’s cheapest vehicle, costs close to $30,000. Before this, the Renegade was the most inexpensive, but the subcompact SUV recently got the axe in many parts of the world. Most automakers have options that cost far less than what the Jeep Compass does.
Of course, Jeep is here forever. Surely, the company has a few tricks up its sleeve to win back buyers. However, these high prices aren’t moving things in the right direction.
