Dodge and Stellantis Tackle Dealer Markups
Dodge, Ram, and other Stellantis brands are taking direct action to stop dealers from charging excessive markups on new cars. The strategy is simple but effective: set high MSRPs on new models, making it difficult for dealers to add their own markups and still attract buyers. This move is reshaping the landscape for muscle cars and performance vehicles.
In recent months, buyers have noticed that new Dodge and Ram vehicles, including the Charger and Daytona, are launching with what many consider “stupid obnoxious prices.” For example, a new Charger can start at $55,000, but with options like a glass roof, the price can climb to $70,000. However, few are willing to pay these prices, and as a result, dealers are unable to add their usual markups.
High MSRPs Lead to Incentives, Not Markups
As buyers refuse to pay inflated prices, dealers are forced to reduce prices and offer incentives. Stellantis then steps in with manufacturer discounts, lease incentives, and programs like “power dollars” to bring prices down to a level where customers are willing to buy. This approach ensures that the extra profit from markups does not go to the dealers.
For example, when Ram and Dodge released new models at high prices, sales stalled. Dealers had to cut prices and offer deals to move inventory. If the cars had been priced low from the start, dealers would have simply marked them up, taking advantage of high demand. By setting high MSRPs, Stellantis controls the pricing game and keeps markups in check.
Impact on the Automotive Market
This strategy is affecting the entire Stellantis lineup, including Dodge, Ram, and even models like the Hornet. Every new release under the Stellantis banner now comes with a high MSRP, followed by manufacturer incentives and discounts. As a result, dealers are unable to charge extra, and buyers can wait for better deals instead of rushing to pay over sticker price.
Meanwhile, the market is seeing fewer cases of buyers paying thousands over MSRP just to be the first to own a new performance car. The days of $10,000 markups on new six-cylinder Chargers appear to be over, thanks to this new approach from Dodge and Stellantis.
Why Buyers Should Pay Attention
For automotive enthusiasts and everyday buyers, this shift means more transparency and fairness in pricing. Instead of battling dealer markups, customers can expect to see official incentives and discounts directly from the manufacturer. This change is especially important for those interested in muscle cars and performance vehicles, where markups have been a major issue in recent years.
However, buyers should remain cautious about dealer add-ons, such as unnecessary extras for tint or accessories. The advice remains clear: never pay for add-ons that do not add real value, and always negotiate to get the best deal possible.
Looking Ahead for Dodge, Ram, and Stellantis
Stellantis appears committed to this pricing strategy. As long as new models launch with high MSRPs and are followed by strong manufacturer incentives, dealers will have little room to add markups. This approach could become the new standard for Dodge, Ram, and other Stellantis brands, especially in the competitive world of muscle and performance cars.
Overall, this move is a win for buyers and a challenge for dealers. The days of paying thousands over sticker for the latest Dodge or Ram may finally be coming to an end, thanks to a smarter approach from Stellantis.
