Depreciation on loaded '18 JLUR - sale/trade-in experiences

[greenegger]

Has anyone else played around on KBB etc...? My near $57k JLUR is getting quoted at $37k with just 5000 miles on the clock. Considering these things are meant to depreciate around 27% over FIVE YEARS (https://www.iseecars.com/cars-low-high-depreciation-2018-study) it is curious that I'm seeing 35% drop in under a year.

Any ideas as to why this could be the case? A 2017 JK was quoted as only a few grand less. Wondering if the data just isn't there yet to support reliable figures. I'd like to trade mine in, but no way I'd contemplate eating that amount.

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[mwilk012]

KBB is next to useless on a wrangler.

 

[nerubi]

There have been a couple of newspaper/magazine articles about the drop in Wrangler resale value over the last year. FCA has a new strategy to increase fleet sales of Wranglers. Some dealers are complaining that fleet sales drops the value when selling your Wrangler. A couple of dealers said that first year models of a vehicle will sell lower because of perceived quality issues that usually appear during first year.
Although you would think that with the big increase in base and option costs on Wranglers over the last 3 years it would push more people to buying used.
Also could be that KBB is secretly owned by Consumer Reports.

 

[KDR83]

KBB isn't accurate, go find a 2018 Rubicon for sale for $37k

 

[wrangster]

Maybe you paid too much?

 

[Kent5]

Hopefully you weren't foolish enough to pay MSRP.

Calculate the depreciation from the typical selling price of invoice or even lower on your JLUR (probably $50k is about what a real selling price is for a $56k MSRP JLUR these days), and then get back to us.

Think about it -- if I can get a BRAND NEW 2019 JLUR for $50k -- just how much do you think I'll pay for a 1-year-old USED JLUR with the same equipment? Hint: it's going to be significantly lower than $50k. And if you're trading in to a dealer, he has to make money on it too. $37k sounds low, but not THAT low. I would have guessed $40k trade in (actual cash value, not "trade in" funny value), and dealer puts it on the lot for $44K

PRO TIP: 1st year depreciation, with RARE exceptions, is always the biggest drop. Trading in a 1-year-old vehicle is a loser move, and is only acceptable if you are loaded and/or the money doesn't matter.

 

[b12606]

While getting our JLU Sport S serviced my wife took a JLUR for a test drive. Our previous sales guy ran the numbers and their trade in offer was about the same as KBB good condition. Not willing to take a 7 grand hit (bought for 38, offered 31) since we like our Sport S. I would rather spend the 7 grand (or less) modding the Sport.

 

[se7en]

Traded my January build, $54K MSRP Rubicon with 5K on the odo for only $8K under. That would be $6K less than I paid, however. Bought a September build Rubicon with the newly released Sky One Touch roof. I knew going in that I would take a hit as the biggest depreciation hit is the first year.

Your deal sounds way too low!

 

[The Acme Company]

With 14 transactions through Manheim in January the average wholesale price for a 4 door JLU is 38,400.

I suspect that FCA pushing retail past $50 for a loaded new Rubicon has kept many people looking for a used model to stay with the JK’s. Since the Jk continued production into 18, the stigma of being an older model has not yet hit the market. I would expect another year or two before the rate of depreciation slows for the JL.

 

[TXRubicon]

The problem with dealers giving heavy discounts on Wranglers like they are on the JL (look around and everyone is claiming 10-12% off sticker), is that it drives resale of the entire model line way, way down. Can't sell a used vehicle too close to what a new one is being sold for. It's going to take a couple of years for the real resale to shake itself out but first year depreciation is always the worst.

 

[mwilk012]

Traded my January build, $54K MSRP Rubicon with 5K on the odo for only $8K under. That would be $6K less than I paid, however. Bought a September build Rubicon with the newly released Sky One Touch roof. I knew going in that I would take a hit as the biggest depreciation hit is the first year.

Your deal sounds way too low!

That sounds a lot more reasonable. Maybe OP has been smoking in his Jeep or beating the hell out of it.

 

[JoeBelt]

I had a fully optioned 17 JKU Sahara purchased at 1% below invoice (47K). Last month on trade it was worth 25.5K which was about the KBB value. It lost 22K in depreciation.

 

[Litfuse]

I have sold three Wranglers after owning them for less than a year. A 2016 JKU, a 2012 JK and a 2003 TJ. I loss $1,500 on the 16 after owning it for only six months. I made nearly $4,000 on my 2012 after owning it a year (I only put 33s on it) and broke even with my TJ after a year. I am currently trying to sell my JLR. From the offers I have received, they are not holding their value like previous wrangler models. With a higher price tag, deep discounts and now higher quanties going into the lease program, the values are no longer holding. Read a report today that a new JL is expected to hold 63% of its value after three years of ownership. In the past, the JK would hold better than 75% after five years. I will probably hold on to my wrangler, pay it off in a year or two and get something else once paid off.

 

[nerubi]

Has anyone else played around on KBB etc...? My near $57k JLUR is getting quoted at $37k with just 5000 miles on the clock. Considering these things are meant to depreciate around 27% over FIVE YEARS (https://www.iseecars.com/cars-low-high-depreciation-2018-study) it is curious that I'm seeing 35% drop in under a year.

Any ideas as to why this could be the case? A 2017 JK was quoted as only a few grand less. Wondering if the data just isn't there yet to support reliable figures. I'd like to trade mine in, but no way I'd contemplate eating that amount.

Are you talking dealer trade-in value, private party sale or cash sale? Are you in rural NY or near NYC? I ran my 2012 JLUS in KBB and had a range of $25,500 and $28,000 without adding any of my mods (paid $32,000 for it new). I ran it with Long Island zip and the numbers were $24,000 to $26,500.

 

[nerubi]

I have sold three Wranglers after owning them for less than a year. A 2016 JKU, a 2012 JK and a 2003 TJ. I loss $1,500 on the 16 after owning it for only six months. I made nearly $4,000 on my 2012 after owning it a year (I only put 33s on it) and broke even with my TJ after a year. I am currently trying to sell my JLR. From the offers I have received, they are not holding their value like previous wrangler models. With a higher price tag, deep discounts and now higher quanties going into the lease program, the values are no longer holding. Read a report today that a new JL is expected to hold 63% of its value after three years of ownership. In the past, the JK would hold better than 75% after five years. I will probably hold on to my wrangler, pay it off in a year or two and get something else once paid off.

How can you even make it your own in one year? I used to sell my new vehicles when the first oil change came due (who wants to sit around waiting for an oil change when you can buy a new one just as quickly?). But with my Wranglers I have modded them and kept them because they are uniquely mine. Even when buying a new Wrangler.

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