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Dodge Challenger Hellcat Allocation Rules Help Buyers Save Money, Burn Dealers

The order banks have opened for the 2015 Dodge Challenger SRT Hellcat and this leads many to question how Chrysler will decide which dealerships get Hellcat models during the early rush – and today we examine the allocation rules that will likely help keep dealerships from adding a huge markup while helping buyers save money.

The trickiest part of rolling out a car like the 2015 Dodge Challenger SRT Hellcat is coming up with a fair way to decide how to allocate the first units to the many dealerships around the country. All of the 2,300+ Dodge dealerships in the country would like to have the 707hp Mopar muscle car serving as eye candy on their showroom floor with a monster price tag that features an even more monstrous dealership markup. This huge dealership markup has become very common and this has a couple negative effects – including slowing sales of these high end models while also making them affordable only to the people who aren’t likely to take the cars out and drive them. After all, if you pay $100,000 for a car with an MSRP of $63,000, you are far less likely to spend much time with it at the drag strip or road course.

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Chrysler wants people to be out on the road and on the track, pushing the 707hp Hellcat Challenger to its limits, but a massive dealership markup and a failed allocation process will prevent the company from selling as many units as they would like while also keeping the cars in the hands of collectors rather than drivers.

To fix this process, the Chrysler Group is introducing a unique three phase allocation process that should help keep the dealership markups on the 2015 Dodge Challenger SRT Hellcat lower than expected, meaning that buyers won’t have to shell out the huge money that some were claiming would prevent the Hellcat Challenger from flourishing.

Tim Kuniskis Speaks With Automotive News
The folks at Automotive News, who broke the news of this allocation process, had a chance to speak with Dodge brand CEO TIm Kuniskis about the upcoming sales efforts for the 2015 Hellcat Challenger. This was what he had to say about this restrictive allocation process:

“If you want to market-adjust the car, that’s your right. But if your days-on-lot goes above what the other guys that are selling them at MSRP is, they will end up earning the allocation because their days-on-lot will be lower. They’re turning the inventory,” said Kuniskis. “Some dealers are going to have heartburn with that. I want this car out in the marketplace so that somebody is sharing it with 50 of their friends and elevating the brand. That’s what I want; not sitting in your showroom with a rope around it. I want people driving these cars, talking about them, revving the engine and having everybody go ‘I want one of those.’ That’s why you build a halo car.”

The Three Phase Allocation Process Explained
When the first group of 2015 Dodge Challenger SRT Hellcat muscle cars roll off of the assembly line and clear the quality control process, the Chrysler Group will begin shipping them out to those dealerships who want them. To decide who gets the first Hellcat Challengers and who gets the most Hellcat Challengers, the company will look at Dodge sales from the last 180 days. Not just Challenger or performance car sales – all Dodge vehicle sales over the past six months. The dealerships that have done the best job of selling Dodge brand cars, minivans and SUVs recently will get the first and most Challenger Hellcat models. This process will be used to deliver cars from the point when the Hellcat cars begin shipping until December, when phase two begins.

ALSO SEE: Here is How to Build Your Hellcat Challenger Today

Phase two looks at the Dodge brand sales figures from the nation’s dealer network for September, October and November and, like phase one, the second part of the allocation process will send Hellcat Challengers to dealerships based on their Dodge brand sales numbers.

Hellcat Galleries:
The 2015 Dodge Challenger SRT Hellcat in TorRed
The 2015 Dodge Challenger SRT Hellcat in Sublime
Live images of the 2015 Dodge Charger SRT Hellcat debut

Finally, once dealerships around the country have gotten their hands on the 2015 Dodge Challenger SRT Hellcat, the Chrysler Group will begin watching the “days on lot” figures to decide where to send the units built next year. This means that if a dealership gets a Hellcat Challenger over the next few months and it doesn’t sell it for whatever reason while another dealership on the other side of town has received 2 and sold them both, that second dealership will get first shot at the Hellcat models coming off of the assembly line in Canada. With this approach, dealerships in areas with no demand for a 707hp muscle car won’t have multiple units sitting on the lot while consumers in other areas wait for their Challenger to be built.

The Allocation Process Saves Hellcat Buyers Money
The allocation process for the 2015 Dodge Challenger SRT Hellcat will help prevent dealerships from sitting on inventory while prospective buyers wait, but it will also prevent dealerships from applying massive markups. While there will most certainly be some dealerships that tack on $10,000-20,000 to those folks willing to pay big money for one of the first Hellcat Challengers, that crowd is quickly diminished and once those deep pocketed buyers are gone – dealers are left with cars on their showroom floor with an excessively high priced Challenger and no one to pay the price. With some allocation processes, dealers could get their hands on the Hellcat models and jack the price up of every unit in their inventory. Other dealers that don’t have problems getting cars would do the same thing and that means that most of the Hellcat Challengers would have a big markup. However, with the sales success of the Hellcat Challenger itself being factored into the allocation process after the first few months, dealerships will not be able to apply huge markups and have cars sitting on the lots while they wait for a buyer…because other dealerships that are selling the 707hp beast for a lower price will be moving units and getting the right to future models.

In theory, if a large Dodge dealership that did big business over the past six months was to get a couple Hellcat Challengers early on only to price them at $80,000, they will be unable to sell them when people like Bob Frederick are selling cars at MSRP as quickly as he can get them. Dodge doesn’t care about dealership markup…they only care about sales…so anything that they can do to help move units more quickly will help the company while preventing the dealerships from adding huge markups and gouging the buyers.

In the long run, this allocation process isn’t likely to be popular with those dealerships that planned to tack on $20k to the MSRP of the 2015 Dodge Challenger SRT Hellcat and while we are likely to still see some markups – the Chrysler Group’s approach to allocating Hellcat models should keep those markups lower and it should prevent them from existing beyond the first three months of sales.

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It will be interesting to see if this approach works, but on paper, this looks like the kind of move that will help keep markups low and help the Chrysler Group move as many 2015 Dodge Challenger SRT Hellcat models as possible.

Source: Automotive News


Alan (not verified)    September 10, 2014 - 7:56PM

I tried to order a Dodge Hellcat at four different dealerships yesterday and not one of them would take my order. The reason, because they had been told by the Northeast Territory Manager that they were not to take any orders and deposits in any way, as they would not get any.
The dealerships had also been threatened that if they did place an order in the system, they would be punished by having their allocation on other vehicles cut and the order would be deleted.
One dealership called the Northeast Territory Manager while I was there, after the call was finished he turned to me and said I'm not risking allocations of other vehicles to order you a hellcat.
This is manipulation in my opinion by the Territory Manager for having allocations sent to bigger dealership and not allow true buyers of this halo car get them in our region.
Another dealership I tried to order with said they had one allocated to them that they would not and could not take my order by direction of the Northeast Territory Manager. And the one hellcat they had allocated to their dealership, if I wanted to bid on the car when they auctioned it off I was welcome to do so. This was a clear violation of what Tim Kuniskis had planned for this car and how it was to be sold.
I'm still searching for a dealership to place an order with and even used the website to have my order request recognized by a dealer.

Peter (not verified)    September 11, 2014 - 12:11AM

In reply to by Alan (not verified)

Hey Alan, I've got two on order from the dealerships with conformation of my order. I'll sell you one if you're interested. Reply back to me and I can get you my information.

Alan (not verified)    September 11, 2014 - 6:30PM

In reply to by Peter (not verified)

Hi Peter,
What color do you have on order and what is the interior color, and the options?
If you don't mind me asking how were you able to order two cars when plenty of us are not even able to get a dealership to enter an order for us on a future allocation.

Dan (not verified)    September 11, 2014 - 12:21PM

In reply to by Alan (not verified)

To chime in no dealer will take my order not one I am willing to wait I don't have to be the first guy the area with the car. I can't even place an order so I feel your pain, I'm done 4 dealerships today just requesting the right to order and wait and they are all refusing one dealer told MSRP plus 30K they can keep it.

Peter (not verified)    September 11, 2014 - 3:05PM

In reply to by Dan (not verified)


The reason that they are so hard to get is because they are only going to make around 1,200 this time around is what the dealerships i ordered from are telling me. I have had my name on 4 dealerships lists since they announced the specs on the hellcat. One dealership had 32 people on the list, and only got 2.

Alan (not verified)    September 11, 2014 - 6:26PM

In reply to by Dan (not verified)

Hi Dan,
I'm thinking that They should maybe rename this the the Challenger Hellno, hell no we don't want to take orders or sell cars. The Halo branded car at this rate will be a "Helno" we don't like to have the best available to all.
I'm sure they will not like these comments, but in my opinion this should be the new branding on this vehicle until they prove otherwise to the serious buyers who want these and at the MSRP promised.

Daniel Carter (not verified)    October 29, 2014 - 3:42PM

In reply to by Alan (not verified)

Here in Hawaii, the dealerships are adding a $24k markup for the hellcat and know they will get sold because we have no where else to go that won't do the markup. I can't leave work to go to the mainland to get one from the 1st build and ship it out here which would only cost approx $1,200.

Dan (not verified)    September 10, 2014 - 11:01PM

I can relate I have been planning to purchase this vehicle for 6 months and the dealership claimed no markup the entire time the day I was called to place my order 20K markup. I tried 5 other dealership before I gave up. I now understand why US auto makers were in the position that they were in a few years ago. I purchase vehicles every 2 to 3 years I have owned every SRT product, but I just can't take the Dodge dealers anymore I am going to start researching the new Z06 or the GTR.

Peter (not verified)    September 11, 2014 - 12:09AM

In reply to by Dan (not verified)

Hey Dan,

I've got two on order, because I had reservations, If you contact me I'll sell you one.

Reply back to this and I can give you my contact information.

Alan (not verified)    September 11, 2014 - 6:33PM

In reply to by Dan (not verified)

Hi Dan,
They had only opened the order banks for automatics, the manuals will be available at a later date according to the dealers I spoke with.

Alan (not verified)    September 11, 2014 - 11:08AM

In reply to by Dan (not verified)

Hi Dan,
I went on dodges website yesterday and built the Hellcat using their online submital to dealers looking for a quote. I had one dealership contact me about 45 minutes from me. I had more knowledge on the ordering process then they did. After speaking with them and telling them what I had encountered to date they said let me look into it and get back to you. I spoke with the dealership this morning and they had the same result to tell me as the previous dealerships in the area, they were not to place or take any orders per the Territory Manager of the Northeast. Said they would love to sell me the car but their hands were tied, they could not go against what was be dictated to them.
Again how does Tim Kuniskis expect to sell cars that he wants in peoples hands when his own sales force is going against what he is promoting.
I'm a buyer who can't even get an order placed into dodge for a future allocation on a Hellcat. Like yourself I may give up and never buy a dodge product again and I currently have 4 dodges in my garage, one of which is a 2008 SRT8.

Patrick Rall    September 11, 2014 - 12:14AM

Again, keep in mind that this is the very beginning of the allocation process of the most powerful American production car ever. There were people leaving deposits with dealerships months ago...paying up front to guarantee that they got one of the first units and those are the guys eating up the allocations. if you waited until the company started taking orders, youre already too late to get one of the first units...but once they get into the third phase of allocation, where the deliveries are based on previous hellcat sales, you will see more showing up at the lots that moved theirs the quickest.

Dan (not verified)    September 11, 2014 - 10:48AM

In reply to by Patrick Rall

I thought I had my deal in place months ago I offered a deposit they told me no there was no need. That was my fault i'm old school I still believe in taking a man at his word. At one point they called and said I would need to leave a deposit I was fine with it, then the owner said I didn't need to do that because I have purchase so many vehicles through them. Then greed kicked in, the Hellcat is a great vehicle and Dodge corporate is shaping up to be very customer friendly. Dodge dealerships over the years have been the weak point they have a lack of product knowledge, absurd markup and overall bad experiences with service over the years have soured loyalist away from the brand.

Alan (not verified)    September 11, 2014 - 10:57AM

In reply to by Patrick Rall

Hi Pat,
I don't have a problem not getting one of the first allocations, my problem is that I can't even get a Dealership to enter an order into Dodges system for an order on a future allocation. It seems to me that if this car is supposed to be availabe to all they would want to see all the actual orders from buyers they can. Again either Tim Kuniskis is blowing smoke as a publicity stunt or his Territory Managers and sales force are not doing as he is promoting.
If he wants to sell cars then dealers should be taking orders for as many true actual buyers as myself, not being told by Territory Managers to not take or place orders and be penalized if they do.

robert schell (not verified)    September 11, 2014 - 6:17PM

This whole process has been extremely frustrating! On the phone with nine dealerships in last 2 days. Seem to know more then most of them. None of the dealers in my area that had my name on their call file for a hellcat ,are getting one.had to scramble and call bigger dealers that met allotment requirements. Might get lucky with one of them but many fighting for one car! Just starting to seem ridiculous! The corvette stingray is starting to look better all the time!

Johnny eindeer (not verified)    September 11, 2014 - 11:15PM

I ordered mine today ! The dealer was allocated only 2 cars and I paid the mark up thanks to my friend at the dealership ! The list to buy this is long , this will be one hard car to get for the time being , or maybe for a long while ! Even the big dealerships are only being allocated 2-3 cars ! Expect a 10-20K mark up if your lucky to get one! Good luck ! Johnny

robert schell (not verified)    September 12, 2014 - 8:31AM

Also seems like two many people willing to pay over MSRP. I dont think this is necessary. Dealer I am using right now is strictly sticking to MSRP. It is also well known that you can order from bob frederick at columbiana dodge at MSRP. Just way to far from where I live. Their are some honest dealers out there. This happened with the new corvette last year. People where paying 10,000 over MSRP and now you can get dealers to come down sevetal thousand under.but at least you could order one at will. I could easily wait till december, just let me order one!

Dan (not verified)    September 15, 2014 - 7:53PM

Well I placed the order for my Hellcat today at MSRP anybody that pays more than that on this car is giving away money. Take your time make some calls gentleman, dealerships are not losing money selling these cars at MSRP they are making $5400 a car for a manual Hellcat and around $5700 for an automatic. 10-20K mark up is criminal I can't believe people would feed into the dealerships BS.

Scott (not verified)    September 17, 2014 - 7:08PM

I feel the pain of all of the Loyal Dodge guys here. Here is a story for you all. I was on the list for 2 years. My dealer was allocated only 2 STR Hellcat units at this time. I was number 2 on the list and got the call to come in and place my order. So I left work early to go and get the order placed and paperwork done. I was with my salesman working out the deal, and it was sent to the Sales Manager. I sat there for 3 hours chatting with my Salesman who has sold me several cars including my 2013 SRT Challenger in Plum Crazy. Well we decided a lot of time had gone by and went to inquire as to what was going on, well come to find out another salesman sold the car to a guy that had 78K Cash Money that just walked in off the street. 10K over MSRP. Sat there for three hours and the Sales Manager said "SCREW THAT GUY" I can make 16K and get cash right now. This how the Hellcat is going to be until the New Hot Thing wears off. Sad that Chrysler has no control over what Dealerships do or how they act. And the saddest thing is all of the ones sold early will be on E-Bay the day after delivery. Should be like Ferrari......Got to own one before you can get any of the Special Editions.....

fred (not verified)    September 19, 2014 - 9:41PM

If any dealers in the upstate NY area have a hellcat for MSRP, I'm or call me

Look me up @ The Transmission Clinic