What Dealerships are Doing with the 2020 Unsold Jeep Vehicles

by Calyn Ehid

2020 brought with it a virus whose impact severely crippled, or collapsed, many businesses. Prior to the pandemic, Jeep production had been increased due to the popularity of the Jeep Grand Cherokees. Then the Coronavirus hit the world, and everything ground to a standstill. Consumers were not looking to purchase a vehicle and as a result too many Jeeps were produced and not sold.

This represents an epic deal for you if you are in the market for a Jeep. Dealers must sell off older inventory before they can offer their 2021 models. This places pressure on the lots to move the 2020 Jeeps off the lot as fast as possible. Dealerships are offering staggering rebates and incentives for those willing to do a little surfing on the internet. The Wall Street Journal agrees that vehicle purchases are down making it a buyer’s market when it comes to finding the Jeep of your dreams at a rock bottom price. Here’s how to score your next ride for pennies on the dollar.

The Impact of Covid-19 on Jeep Sales

Prior to the worldwide pandemic, Jeep manufacturers enjoyed a surge in demand for their vehicles. This was due in large part to greater numbers of individuals traveling and taking their vehicles off road. Jeep ramped up production to meet this demand, and then Covid-19 halted everything. No longer were consumers traveling, and as a result, no longer purchased vehicles. In fact, when Covid-19 first impacted the U.S. consumer confidence plummeted as the unsure nature of the virus brought everything to a standstill.

Even when consumer confidence was somewhat restored, buyers looked at cheaper vehicles, or vehicles that could be lived in if necessary. RVs saw a tripling of their sales during this time, but all other makes and models of vehicles suffered, Jeeps included.


Jeep Compass

Jeep Compass is a compact crossover SUV. All wheel drive hybrid car.


What Jeep Dealerships Were Forced to Do in 2021

As a general rule most car dealerships are franchises. This means they purchase their inventory direct from the manufacturer, then set their own prices. The dealership buys these cars from the manufacturer, so in essence they own them. They are not selling them for the manufacturer, but themselves. There is no return policy with the manufacturer, so all sales to the dealership are final. This leaves the dealership with a huge dilemma if they cannot sell all the vehicles they have purchased within that year.

In 2021, as a result of the 2020 pandemic, Jeep dealerships were left with a large percentage of their inventory still sitting on the lots. Some dealerships were forced to sell some of their inventory at auction, while others worked out deals with other dealerships who were willing to take on some of the unsold inventory. The best option for dealerships was to reduce the cost of the Jeep so consumers would be tempted to purchase them. While this means the dealers had to reduce their amount of profit, the loss is offset by the space they have gained on the lot for the 2021 Jeep inventory.

How to Get an Epic Deal on Unsold 2020 Jeeps

The fact that Jeep dealerships were unable to sell all of their inventory before the 2021 Jeep models came out gives the savvy consumer buying power. There are some strategies that can help you to get the best price on the Jeep of your dreams, and many of the strategies can be done from your couch. Start by researching where the Jeep dealerships are within a short driving distance of your home. Then, email all of them and ask what the “drive away” price or the “buyers purchase order” is for that make and model. Many sales people will tell you they must get you to come in first. Tell them you would be glad to if you can receive a best price in writing before you do. If they refuse, move on.

The time of year also gives you leverage with a Jeep dealership. Fall is the season when dealership owners become frantic because they are afraid they will not sell enough inventory to make room for the new models. This gives you leverage to negotiate a lower rate than advertised on the sticker price. Because of the coronavirus impact, Jeep dealers are still in that panic mode, and purchasing is predicted to be in the buyer’s favor through the summer. If you are patient you could score an extremely good deal when November and December roll around because Jeep dealerships who have not sold enough 2020 models, with 2022 nipping on their heels, will be well motivated to allow you to name your price. Increase your buying power by having a pre-qualification from your bank before you show up at the lot and watch the sales people vie for your business.