News

Cato: Twenty days, Vaughan. Twenty days!

Vaughan: Until you get to the point?

Cato: No, no. Data from the Power Information Network shows that it takes just 20 days for Jeep dealers to turn a Jeep Wrangler Unlimited — that's the four-door Wrangler, the one we took down the Rubicon Trail near Lake Tahoe. Remember? Northern California.

Vaughan: Twenty days is fast, lightning fast. Typically a solid model, one with a lot of appeal, turns — sells off the lot — in 40-60 days. Twenty days? That says Jeep has a huge hit on its hands.

Cato: Now in this space we're all about deals. I wanted to zero in on the Wrangler Unlimited because buyers, speaking with their wallets, say this Jeep is a deal.

Vaughan: Jeep, and its parent, Chrysler Canada, are not bribing buyers with fat cash handouts, cut rate financing deals and the like.

Cato: Right. According to the pricing service www.carcostcanada.com, Jeep is not offering a penny in cash incentives — not to customers, not to dealers — and the best financing deal you can get it 6.99 per cent over three years.

This at a time when many, many manufacturers are throwing around thousands in cash-back giveaways and 0.0 per cent financing is almost expected.

Vaughan: So the Unlimited is not what we'd call a "deal," in that there are no big promotions on it.

Cato: On the other hand, Reid Bigland, the president of Chrysler Canada, told us at the Detroit auto show that the Unlimited launched with a three-year residual value of more than 60 per cent. I think he said 63 per cent.

Vaughan: That means the Unlimited is projected to hold 63 per cent of its value after three years.

Cato: The Power Information Network data shows that 46.3 per cent of owners actually lease their new Unlimiteds, so a big residual is important — it reduces the lease payment.

Vaughan: In that sense, then, the Wrangler Unlimited is a deal. Not many vehicles with a base price of $25,245 come with such a strong residual.

Cato: The Wrangler Unlimited is a lesson for Jeep, for Chrysler, for the whole auto industry. Build a good vehicle, one that's true to its brand — the Unlimited is capable of doing the Rubicon — price it right and it will sell without handouts.

Vaughan: We talked to Jim Issner, the chief engineer, and over and over he said that the designers and the engineers truly listened to Jeep owners and devotees...

Cato: The Jeep crazies.

Vaughan: And came up with a more livable version of the small, bouncy Wrangler — an off-roader that had become too impractical for aging baby boomers.

Cato: The Unlimited obviously makes sense to the Jeep types who had walked away from the two-door Wrangler. The proof is in that 20-day turn rate.

---

2008 Jeep Wrangler Unlimited

Buyer's Age Range:

• 16-34 years: 25.6%
• 35-54 years: 60.9%
• 55+ years: 13.5%

Gender ratio:

• Female: 27.9%
• Male: 72.1%

Type of sale:

• Cash/non-dealer financing: 26.5%
• Finance: 27.2%
• Lease: 46.3%

Most popular colours

1. Black
2. Green
3. Red

Vehicle price: $31,476 (does not include taxes, license or title fees)

Days to turn: 20

Trade ins: 32.8% (does not include lease returns)

Top three trade ins:

1. Jeep TJ
2. Jeep Cherokee
3. Chev Cobalt

Average monthly payments: (includes PST & GST)

• Lease (48 month term): $589
• Finance (60 month term): $592

Source: Power Information Network