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swampass2 02-16-2011 10:40 AM

Orders and Allocation
 
I finally agreed to a deal to order an Overland. I'm scheduled to go to the dealer on Friday afternoon to place the order. The sales guy just called and said that the guy who places the orders is telling him that the order won't go through until March 1 due to the allocation process. My questions are:

1) Does this make sense? Reading through the boards, I thought the order would go to Chrysler immediately but the build scheduling could be affected by the dealer's allocation. Ultimately, it may not make much of a difference when the order is placed, but I'm curious about the details of how the allocation/order process works.

2) It's also unclear to me how a dealer's allocation affects sold orders vs. dealer stock orders. From what I've read, sold orders take precedence, but are they still prioritized according to the dealer's allocation?

mjw930 02-16-2011 12:55 PM

Re: Orders and Allocation
 
As explained by my dealer each dealership has a preset allocation for each model within a model year. That allocation can be met with either dealer stock orders of customer sold orders. As the year goes on those allocation numbers can be adjusted based on demand, supply, dealership performance, product mix, etc. Additionally, their regional rep can override the allocation numbers programmed into the ordering system on a case by case basis.

Distilled down to it's simplest form, a dealer is "allocated" a certain number of each model that they cannot exceed without special authorization. How they fulfill that obligation is somewhat irrelevant so if your dealer has already placed orders for their maximum allocation of vehicles they cannot order an additional vehicle (sold order) until that allocation number is increased or their regional rep approves it. I've also heard that allocation is broken down by quarter so that might explain the March 1st date.

I'm certain this is not the complete story as only someone who actually works at a dealership and knows all the details could answer all your questions but it sounds like they have reached their quota for the quarter and cannot place additional orders into the system until March 1st.

OTOH, what may be happening is a restriction meaning the model you want to order is on restriction so regardless their allocation status Jeep is not accepting new orders for that particular model/sub-model.

Jpjr 02-16-2011 04:23 PM

Re: Orders and Allocation
 
It does make sense. They do get an allocation and may have to wait for the next round. HOWEVER, to the extent the car has not been built, they can take a stock order from thier existing allocation and convert it into a custom order.

mjw930 02-16-2011 04:31 PM

Re: Orders and Allocation
 
Quote:

Originally Posted by Jpjr (Post 357289)
It does make sense. They do get an allocation and may have to wait for the next round. HOWEVER, to the extent the car has not been built, they can take a stock order from thier existing allocation and convert it into a custom order.

That's pretty much what happened when I ordered mine. The dealer had 5 orders in BG status, basically accepted but not in line to be scheduled. My order replaced one of those. Their overall allocation remained static.

swampass2 02-16-2011 05:20 PM

Re: Orders and Allocation
 
The converting a dealer order to a buyer's order thing is good to know. I wouldn't be shocked if the dealer doesn't mention that option, or plays dumb if I bring it up. The local dealers are happy to take my affiliate pricing order, but not anxious to do much else since they're selling Overlands at close to sticker. In 3 months of constantly looking at local inventory, I bet there were maybe a total of 20 Overlands on the 4 local lots, and the dealers were quoting me crazy long wait times (14-18 weeks was popular).

Back to allocation, I'd love to know what type of calendar they're on. Talk of quarterly allocations scare me since March 1 is still Q1. Hopefully it's a monthly allocation issue.

mjw930 02-16-2011 06:18 PM

Re: Orders and Allocation
 
Sorry, my company has messed with the calendar and our Q1 is Oct - Dec. HP's is Nov - Jan...... I'm sure it's either a monthly issue or he's talking about when the restrictions will be lifted.

Another thing to know, restrictions can be regional so it's possible a Mid-Atlantic dealer cannot order something a dealer in Chicago can. It's not completely cut and dry, sometimes you have to take the dealer on their word assuming you are actually talking to the GM or Inventory Manager and not a sales puke.

swampass2 02-18-2011 07:42 AM

Re: Orders and Allocation
 
So my last question is when will the order actually be sent to Chrysler? Now or March 1? Does the order system prevent the dealer from even placing an order when they're out of allocation? I'd like to walk out of the dealership with an order # and order sheet.

swampass2 02-22-2011 10:46 AM

Re: Orders and Allocation
 
Update: Placed my order on Friday 2/18. Order sent to Chrysler on Saturday 2/19, and as of today is in BG status. From what I can gather, this means that the order will be scheduled when the dealer's allocation opens up. The order sheet shows two line-items on restriction:

WKJS74 GRAND CHEROKEE OVERLAND 4x4
25P Customer preferred package 25P

My question is are these restrictions due to dealer allocation, or are they due to some other factor (e.g. a general production hold on 4x4 and/or Overland and/or the Hemi)? In general what do restrictions mean in the context of dealer allocation? The dealer did indicate that their allocation should open up no March 1, so hopefully I'll see a status change shortly after that.

JTS97Z28 02-22-2011 10:53 AM

Re: Orders and Allocation
 
Humm im not sure what BG status I know when I placed my order it was in C status right when they put my order into the computer while I was there which meant tentative scheduling, then it went to D status 7 days later with a VIN.

Cherodude 02-22-2011 01:59 PM

Re: Orders and Allocation
 
Quote:

Originally Posted by JTS97Z28 (Post 361586)
Humm im not sure what BG status I know when I placed my order it was in C status right when they put my order into the computer while I was there which meant tentative scheduling, then it went to D status 7 days later with a VIN.

For BG status codes, scan down about 3/4 of the way down this page at WK2Jeeps:

http://wk2jeeps.com/wk2_vin.htm#TRACK

Candy Girl 02-22-2011 04:40 PM

Re: Orders and Allocation
 
I have a question. When did all of this allocation stuff start? I must say I have not bought a Jeep in 15 years, so this is all new to me.

mjw930 02-22-2011 08:44 PM

Re: Orders and Allocation
 
Quote:

Originally Posted by Candy Girl (Post 361803)
I have a question. When did all of this allocation stuff start? I must say I have not bought a Jeep in 15 years, so this is all new to me.

Allocation has been around for decades. My dad told me years ago about how he had to place his order for a '64 GTO with one of the larger dealers in Detroit because the local dealer by our house (Plymouth) had sold all their allocation of GTO's in the first week of availability.

Most people don't know or hear about it because the dealers want to make the sale. They will bargain with their rep or another dealer if they need to. It's only been since the Internet that dealers have had to deal with a more informed customer who could shop every dealer within 200 miles in an evening on the computer. You also don't hear about it unless you are looking for one of the hot models which hasn't been a problem for Detroit for a while ;)


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