These days, nearly every automaker has been trying in some way, shape, or form to push their image upmarket. Two in particular, Jeep and Ram, have seen success in this approach, setting record high transaction prices for their parent company Stellantis.
In the case of Ram, the cheapest way to get yourself into one of their vehicles (excluding the previous-gen Classic that’s still being sold today) is a base Ram 1500 for $35,900. Despite that, Ram’s average transaction price for the first quarter of this year has nearly reached the $60k mark, coming in just shy at $59,678.
See Also: Ram Thinks It Can Take Advantage Of Being Late To The Electric Pickup Game
That’s quite impressive for a company that only sells pickup trucks, but not all that surprising according to Ram CEO Mike Koval. “We’re able to command strong pricing right now,” Koval told Automotive News. “Obviously, this imbalance of supply and demand, that’s not going to last forever, so we need to stay very disciplined [and] keep our fixed costs under control because at some point that’s going to end.”
But supply and demand isn’t necessarily the only factor in play when discussing these two brands’ recent success. Jeep‘s average transaction price crested the $50k mark, reaching $50,322, which is up a significant 29 percent from this time last year. In their case, their success came from buyers’ receptiveness to the brand’s push upmarket, which has been made apparent with vehicles like the Wagoneer/Grand Wagoneer as well as certain trims of the Grand Cherokee/Grand Cherokee L. Many of these vehicles’ buyers like what luxury cars have to offer, but don’t always want to put up with the perceived image of what those cars stand for.
Read More: Jeep Is Confident Dedicated Showrooms Will Help It Boost Sales
The idea was summarized nicely by Ivan Drury, senior manager of insight for Edmunds. “Some people don’t actually like luxury cars; they like luxury features,” he told Autonews. “They like luxury looks, but they see it as an unnecessary spend or that you’re being a little too flashy. I think that you can cater to that crowd with a Jeep-branded vehicle because it’s still technically mainstream. At the same time, it’s providing virtually everything a luxury purchase would.”
Overall, while prices might subside slightly when the semiconductor shortage reaches its end, the likes of Jeep and Ram could stay high overall thanks to their upmarket push.
As for Stellantis’ other brands, according to data from TrueCar Inc. in the first quarter of 2022, Alfa Romeo’s average transaction prices were up 12% compared to Q1 2022 at $46,516, Chrysler’s were up 15% to $45,321, Dodge’s increased by 23% to $46,444, and Maserati’s by 10% reaching $89,690.
