How Dodge Aims to Keep Demon Pricing at MSRP

FCA has rolled out information on how the 2018 Dodge Challenger SRT Demon will be allocated to dealerships, and how the company hopes to keep prices down.

The 2018 Dodge Challenger SRT Demon officially went on sale this morning, as FCA opened the order banks a day or two after dealerships around the country received their allocation numbers. Yesterday afternoon the company released a statement explaining how the allocation process worked while also explaining how the automaker hopes to prevent huge dealership markups without violating any federal trade laws.

“We learned a lot when we launched the wildly popular SRT Hellcats,” said Tim Kuniskis, Head of Passenger Car Brands, Dodge, SRT, Chrysler and FIAT—FCA North America. “We’ve taken that information and created an allocation plan that is clear and concise, builds on Demon’s position as the Dodge//SRT halo and makes it easy for our customers to understand how they can put a Demon into their garage and, ultimately, out on the drag strip.”

Allocation
While this really doesn’t apply to consumers, here are the guidelines for dealerships to receive at least one 2018 Dodge Challenger SRT Demon:
-The dealership must have sold at least 2 (more than 1) Dodge Hellcat cars (Challenger or Charger) in the past 12 months to even apply for allocation

-Once the company had figured out which dealerships wanted to sell the Demon and met that first requirement, the allocation numbers were based on a combination of Hellcat sales and non-Hellcat Challenger and Charger sales. Hellcat sales account for 60% of the equation while non-Hellcat Challenger and Charger sales account for the other 40%. Those dealers with the highest numbers of Challenger, Charger and Hellcat sales will get the most Demons while those dealers which met the first requirement, but sold very few of those qualifying cars are likely to only receive 1 Demon.

-Dealerships can only order as many Demons as they are allocated at the beginning of the process. In other words, once dealership A has sold all of their allocated units, they cannot order more by buying an allocation from another dealership.

MSRP-Based Build Priority
Now for the good stuff which applies to consumers.

“The 2018 Dodge Challenger Demon represents the best of what Dodge//SRT stands for – performance capabilities that are second to none, iconic styling and a heritage built on pushing the boundaries of what is possible at a price that is attainable,” Kuniskis added. “We know some dealers may be tempted to sell to the highest bidder, but we are encouraging them to leverage the Demon as a halo for both the brand and their dealership, to bring customers into their showrooms and see everything we have to offer.”

When a dealership submits an order for a 2018 Dodge Challenger SRT Demon, in addition to the normal paperwork, they must also include an “acknowledgement document”. This document has all sorts of legal disclaimers that the buyer must initial, but more importantly, it has a section where both the buyer and the dealership sign off on the agreed upon purchase price.

Those new Demons ordered at or under MSRP will receive build priority, so they will be the first built, the first shipped and the first delivered while also having the lower serial numbers. Vehicles sold over MSRP will not be built until all of the MSRP cars are completed, so anyone paying over MSRP will have to wait (possibly until sometime in 2018) and they will have the higher serial numbers.

In short, in case paying a huge markup wasn’t unpleasant enough, those dealerships who hit their customers with a big markup will be making those folks wait longer than the people who paid less – thus giving buyers a real reason (beyond saving money) to push for MSRP.

Finally, to simplify the intricate ordering process a bit, Dodge has set up the Demon Concierge program. This is a phone number which buyers and dealerships can call for ordering information or with questions on the progress of their order. In fact, those people ordering a Demon today are already able to call the Demon Concierge line with questions, and the FCA representative will walk them through the purchasing process.

Production of the 2018 Dodge Challenger SRT Demon starts later this summer and deliveries are expected to begin this fall – starting with those cars which were purchased at MSRP.

Patrick Rall

"Before I was old enough to walk, my dad was taking me to various types of racing events, from local drag racing to the Daytona 500," says Patrick Rall, a lifetime automotive expert, diehard Dodge fan, and respected auto journalist for over 10 years. "He owned a repair shop and had a variety of performance cars when I was young, but by the time I was 16, he was ready to build me my first drag car – a 1983 Dodge Mirada that ran low 12s. I spent 10 years traveling around the country, racing with my dad by my side. While we live in different areas of the country, my dad still drag races at 80 years old in the car that he built when I was 16 while I race other vehicles, including my 2017 Dodge Challenger SRT Hellcat and my 1972 Dodge Demon 340.

"Although I went to college for accounting, my time in my dad’s shop growing up allowed me the knowledge to spend time working as a mechanic before getting my accounting degree, at which point I worked in the office of a dealership group. While I was working in the accounting world, I continued racing and taking pictures of cars at the track. Over time, I began showing off those pictures online and that led to my writing.

"Ten years ago, I left the accounting world to become a full-time automotive writer and I am living proof that if you love what you do, you will never “work” a day in your life," adds Rall, who has clocked in time as an auto mechanic, longtime drag racer and now automotive journalist who contributes to nearly a dozen popular auto websites dedicated to fellow enthusiasts.

"I love covering the automotive industry and everything involved with the job. I was fortunate to turn my love of the automotive world into a hobby that led to an exciting career, with my past of working as a mechanic and as an accountant in the automotive world provides me with a unique perspective of the industry.

"My experience drag racing for more than 20 years coupled with a newfound interest in road racing over the past decade allows me to push performance cars to their limit, while my role as a horse stable manager gives me vast experience towing and hauling with all of the newest trucks on the market today.

"Being based on Detroit," says Rall, "I never miss the North American International Auto Show, the Woodward Dream Cruise and Roadkill Nights, along with spending plenty of time raising hell on Detroit's Woodward Avenue with the best muscle car crowd in the world.

Rall can be contacted at QuickMirada@Yahoo.com

Facebook   Twitter