Jeep Gladiator Falls Prey to Vicious High Dealer Markups
Everyone is excited about the Jeep Gladiator – and dealers are capitalizing on that excitement with price increases.
It’s the classic lesson of a free market economy: when supply is low and demand is high, prices for goods shoot up. In the case of the hot new Gladiator pickup, prices have shot way up. Thanks to being either loaded to the hilt with options, or subject to exorbitant dealer markups, the average transaction price for a Jeep Gladiator in May was $56,400.
That news comes to us from Car and Driver, who themselves got the info from Cox Automotive. Just 2,584 Gladiators were sold in May, according to Cox. Clearly, there are more Gladiator buyers than Gladiators. That means that opportunistic dealers are poised to capitalize on the opportunity.
In this case “capitalizing on the opportunity” means marking up the price. While the most expensive Gladiator Overland comes in around $62,000, Car and Driver states that they’re seeing Rubicons – which max out around $57,000 – selling for close to $80,000. They did not provide any links to trucks for sale, however.
According to Cox Automotive, there are around 3,600 Gladiators currently in dealer inventory. While there’s a wide variety of trucks, trims, and equipment on offer, most are the range-topping Overland or Rubicon spec. Some dealers are installing accessories such as Mopar lift kits, custom wheels, and off-road tires to drive up prices further.
The most expensive options added to the Gladiators, though, might be a dealer markup. Known as a “market adjustment,” some dealers are adding four or even five-figure increases to the price. Why? Because they know some people will be willing to pay for the supposed privilege of having the first Gladiator on their block.
We’ve been just as eagerly awaiting the arrival of the Gladiator as you have. However, or advice is to take it easy for a while. By waiting patiently for the initial furor to die down, you can avoid having to pay dealer markups. As an added bonus, supply will likely increase, and you’ll have a much better chance of buying the Gladiator you actually want, instead of choosing from a few limited options.
Photo for JK-Forum by Derek Sheikhi