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Jeep drops Liberty prices

July 27th, 2010

With the 2011 model year, Jeep has followed the new Chrysler practice of pricing vehicles more competitively, instead of having relatively high prices coupled with large rebates, according to a reliable source:
Jeep Liberty Prices, 2010 - 2011

2010 List 2011 List 2011 Invoice
Limited 4x4 $29,485 $28,995 $28,023
Renegade 4x4 $28,610 $27,995 $27,093
Sport 4x4 $25,615 $25,610 $24,875
Sport RWD $24,005 $23,995 $23,343
Limited RWD $27,875 $27,395 $26,505

The spread between dealer invoice and retail price is fairly narrow, which gives dealers an added incentive to qualify for cash bonuses (which are based partly on customer service and mystery shopper results). The price drops are highly variable, but it appears that they are based largely on the cost of higher trim levels — so that the base model price drops by just $5-$10, but well equipped models come down by at least $500. This is also consistent with the new approach of throwing in more features and higher trim levels for free or at lower cost than in the past. That effectively lowers the price for most customers, who now prefer their vehicles “loaded,” while presumably making the corporate profit margin on different trim levels more consistent.

The 2011 Jeep Liberty will reportedly also add numerous standard features, including cruise control, Jeep-branded steering wheel, upgraded interior trim, and an optional navigation system with traffic, fuel prices, and weather updates. The entry-level Sport is expected to be the big seller, claiming nearly three quarters of sales (other lines are Limited and Renegade).

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