cncpt2prod!

It has to do with the customer's willingness (and ability) to pay. The first run of cars are targeted at those customers who are willing (and able) to pay a big price for the car (where price is less of a factor to them). Dodge thinks there are about 4,500 of those customers out there, and they're probably right. The dealers get this, and they mark up (they have every right). Then, Fall 08 kicks in and Dodge manufactures a bunch of cars with options (5.7L, RT SRT, colors, etc.). These cars are targeted at Challenger, Mustang and Camaro customers. This is when competition heats up. This is a group who watches price much more closely. The dealers see this and start targeting volume by talking people out of Mustangs and into Challengers (and so on). Late 08, the 08s and the 09s should be reasonably priced at MSPR or something a little less. This is evident because of the MSPR of the first 4,500 SRTs. That price is set for eventual mid-high volume / low per-car profit margin (the Viper is the opposite). I'm waiting until the "price-is-no-option" group of 4,500 gets their cars, then I'm going in! I'm guessing November/December 08 there will be some "normal" deals out there.

bluestang50

Well considering I have grown up at dealerships since I was about 6 and the fact that my father has been managing dealerships for around 30 years might give me a little insight. For some reason he has always been able to make the dealerships turn very good profits without taking advantage of people. Like i said before, there are dealers (meat market dealers) that will screw you out of every penny they possibly can to earn extra money, and then there are the respectable dealers that know how to effeciently run a dealership to make large profits without screwing people. One of the dealerships he is currently over has a vehicle that other dealers are selling for 5k to 10k over MSRP but they are selling theirs for MSRP. Have you ever noticed when you buy a car there are doc fees? At the dealerships he is over the doc fees are only $150. Other dealers around the area of the same brands are charging $500 to $600 for doc fees. If you can't see there are two different types of dealerships then you have your eyes closed. Meat market dealers are across all brands and give dealerships bad names.

BootCamp

There's also a "saturation" philosophy to be considered (what bluestang50 refers to):

"I can create a lasting/lifetime relationship with a customer by treating them with respect and giving them the deal I would want for myself - OR - I can gouge all of the customers in an base/area ONCE and then move on".

Which type of dealership do you want to
1) work for?
2) do business with?
3) own?

With the exception of "recent brands" (like Kia, Hyundai, Saturn, Lexus, Infiniti, Scion, Hummer, etc.), most of the dealerships in my area are long-term / family owned. Maybe that's because there's enough population to warrant multiple dealerships for each brand with "competitive pricing" and "honest service" playing a large part in keeping them in business - maybe more than "convenient location" or "being the only game in town".
With the internet playing such a large part in nearly every business now, people are more willing to look for a better deal a little further away than if they had to do all of their research by "foot traffic".

In a society that wants "instant gratification", it's not surprising that there are still a few who are too lazy, ignorant, or intimidated by dealers that they'll get harpooned without much resistance. Fortunately, they ARE few and far between - at least more so than in the past - and the "gouge'em" dealerships have a much smaller customer base to victimize.

I understand that the prices is always what the market will bear. I also understand that people buy a car because they WANT it OR they NEED it. The Challenger is a "Want it" car. I WANT it, but I'll wait until the "market softens" and I can bear the price.

hemicuda

Nice attitude. Personally, I hope those things rot on your lot before take advantage of people by selling them over MSRP. Taking advantage of people just because you can doesn't make it OK. Statements like in your last sentence aren't going to win you many friends or potential Challenger buyers on this forum.

dodgesales

Well for bluestang50, you are right there are alot of dealers that charge alot for "doc fee's". I would consider $150 alot for a simple doc fee. The store I work for only charges $30 for those fee's, now ask your dad what those fee's consist of.
My store will charge $10,000 over MSRP. The main reason is so that the car can sit for awhile so that the majority of customers can come and look at the new Challenger. If someone wants to buy it then great they can but at a price!
Like I said before, don't expect Chrysler to over produce this car, they will only produce what the dealers order and no more.

dodgesales

Hemicuda, I have enough friends, I'm not trying to make friends. I am hear telling you the honest truth, the way things really are. Find me a dealer that is going to sell there first Challenger at or below MSRP. Do that and I will show you one stupid dealer. If you have something for sale that is rare are you going to cheap sell it? No! Not trying to piss anyone off at all, just telling you the truth.

cncpt2prod!

I don't think dealers are going to minimize their orders to try to keep the price above MSPR (especially after this first batch of cars is sold). A normal dealer will order as many as he can sell above his invoice price. If the dealer can make a profit on each unit, they're ordering it and selling it. They better, otherwise Ford and Chevy will share the sales amongst themselves. I have faith in the dealers appetite for maximizing their profits! I wouldn't panic!! Unless you got the big bucks, and/or can't wait...my guess is there will be plenty to pick from in late 08. They need inventory so they can cover a broad spectrum of tastes (colors, engines, etc.). That's when deals begin.

bluestang50

Those help pay for the 12 people working in the accounting office. Do you know anything about washing deals? I do considering I have done it and it isn't the simplist of tasks. Your doc fees may only be $30 but you probably have less people to pay and more sales volume. This is a higher end dealership that doesn't move near as many vehicles as a dodge chrysler jeep store can. Like i said other dealers of the same brand are charging $500-600.

mac

What is the name of your dealership and location so I can tell all my friends not to purchase from you? Okay got that out of my system and will say I will not purchase this car for over MSRP from any dealership. If others want to, then "go for it". A fool and his money soon part and after a year of driving the challenger, the coolness will begin to fade, more of the cars will be on the street and the realization that you paid 10,000 over MSRP will begin to settle in for most people.

Also I hope dodge dealerships will allow people to test drive the vehicle. I test drove a MB slk 350 by myself and the dealership had no problem with this (56,000 dollar car) and have done this with BMW 3 series and lexus. The challenger is a cool car, but not expensive enough to be treated badly by a dealership. I am use to being treated very well at dealerships and will not put up with being treated poorley by a "Dodge" dealership. I have also found that using internet sales is the way to go since you can E-mail numerous dealerships, ask for the best prices, then send the best deal to the other dealerships to see who will go lower or offer free items.

Will this car become a classic? It might but could take 30 years for it to catch on, in the mean time, the car depreciates to a low point until it starts to go up again.

DSkippy

Dodgesales, never mind people who don't understand simple micro-economics and supply and demand. Charge what the market will bear. Right now there is very little supply and tons of demand. Anyone who is whining about how people are making profits right now are naive. I agree with the observation of mSrp and the fact no one is above expecting to pay less.

People who can afford to pay the premium will. People who cannot will not. People who are mature and understand business and who cannot afford the premium, will not and be knowledgeable enough not to cry about the purchasing decisions of themselves and others.

Anyone who buys any of these at any premium, enjoy it. You've paid a lot and I hope the happiness is there. I will be waiting until 09 and I will find the right one then. Until the time I buy mine, I'll be happy to point to friends and say "That's going to be the car I buy shortly".