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2019 JLU Sahara depreciated 42% in 10 months

Gellie

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Yes a little high...who cares literally a few bucks difference not going to make or break me.

Putting money down is a GOOD idea. Either way your going to lose money on a new vehicle.

I'd rather loose it up front and be in a good financial position than loose it on the back end and be in a poor financial situation
(i.e. high monthly obligation/upside down on a loan).
To each his own. My philosophy is that when we are in a low interest rate environment(like for the last 10yrs) I'l rather stay as liquid as possible to take advantage of investment opportunities that may arise. If I can borrow at 2.99%, I can easily beat that on my investments.
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Strommen95

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MSRP is absolutely not meaningless.. A vehicle with an MSRP of 50k is more likely to sell at 42k than a vehicle with an MSRP of 45k would. People will always look at trim level followed by MSRP(vehicle options) to figure out a realistic price for either a new or used vehicle. MSRP does not make up the literal value of a vehicle but it allows you know a realistic selling price(like 5% off invoice on a JL which is approximately 10% off MSRP.) In a market where the manufacturer can't produce enough vehicles to meet demand a buyer will be paying MSRP or close to.
 

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MSRP is meaningless. Basic economics dictate value. What's your car worth? exactly what someone is willing to pay for it, not a penny more.


For me, on average my invested money earns 8%/year, so as long as I'm borrowing for less than 8% it's good for me to put down as close to zero as possible. You can argue about inflation, so then say my 8% becomes 5% in real dollar terms, that's still better than the 4% I pay when I borrow.
......but a vehicle is not an investment
 

KnG818

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To each his own. My philosophy is that when we are in a low interest rate environment(like for the last 10yrs) I'l rather stay as liquid as possible to take advantage of investment opportunities that may arise. If I can borrow at 2.99%, I can easily beat that on my investments.
Your literally talking about such small dollar amounts...not worth the energy
 

ctJLnewbie

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......but a vehicle is not an investment
Anything that is money into my account or out of my account is an investment choice. Some investments appreciate, some depreciate, some investments like my house in Connecticut suck. 15 years and I've still lost 15%. Just because it loses money doesn't make it not an investment.
 

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KnG818

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Anything that is money into my account or out of my account is an investment choice. Some investments appreciate, some depreciate, some investments like my house in Connecticut suck. 15 years and I've still lost 15%. Just because it loses money doesn't make it not an investment.
You suck w finances if you think your vehicle is any kind of positive investment
 

guarnibl

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I am new here, trying to understand why my 2019 fully loaded Sahara that had an MSRP of $56k is now only getting appraised for $30-36k. This vehicle has only 11k miles, flawless condition, practically every option, including ADC, Sky one touch, leather, etc.

I got a purchase offer from Carmax for $36k, purchase offers from many online sites $32-34k, trade in to several local dealers in South Florida for $30k. I can't even trade it in because the lease buyout is so high, I am buried in too much negative equity.

I thought Wranglers hold their value. Any idea what's going on here?
Yes, Jeep over priced them, gave too many options to check, and built too many. The JK held it's value really well because there weren't many options. Options lose 80% of their value the day it rolls off the lot. Also, there was pent up demand for a four door. Less people are getting rid of their JKs now.

My '19 $60k Rubi is $39k on trade 9 months later. I leased, but agreed price was $52k. My lease buy out is pretty good actually because of that -- would be about $4-6k depending on dealer if I wanted out, only 9 months into it. Will get only better from here. I almost got rid of my wife's JK 18 months in and I actually would have nearly made money on it. JL is NOT holding value as well.

I called this in early 2018 and it was why I decided to lease. No one believed me, but here we are. As others have suggested, demand is lower for Sahara.
 

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aldo98229

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Yes, Jeep over priced them, gave too many options to check, and built too many. The JK held it's value really well because there weren't many options. Options lose 80% of their value the day it rolls off the lot. Also, there was pent up demand for a four door. Less people are getting rid of their JKs now.

My '19 $60k Rubi is $39k on trade 9 months later. I leased, but agreed price was $52k. My lease buy out is pretty good actually -- would be about $4-6k depending on dealer if I wanted out, only 9 months into it. Will get only better from here.

I called this in early 2018 and it was why I decided to lease. No one believed me, but here we are.
Indeed. Whether knowingly or not, FCA has made production and pricing decisions as if Wrangler were immune from market forces. As it is becoming increasingly obvious, it isn’t.

I doubt FCA is planning to align production with demand any time soon, to allow Wrangler prices and resale values to stabilize. FCA has shown time after time that it cares only for stockholders; dealers and customers be damned.
 

guarnibl

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Have to laugh at people saying that you'll lose the least when you buy a lower end vehicle with no options. Gee that's a great ride isn't it, congrats on saving a few grand. If resale value is your prime concern when buying a nicely optioned Jeep you can't afford it.
ok.
 

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I am new here, trying to understand why my 2019 fully loaded Sahara that had an MSRP of $56k is now only getting appraised for $30-36k. This vehicle has only 11k miles, flawless condition, practically every option, including ADC, Sky one touch, leather, etc.

I got a purchase offer from Carmax for $36k, purchase offers from many online sites $32-34k, trade in to several local dealers in South Florida for $30k. I can't even trade it in because the lease buyout is so high, I am buried in too much negative equity.

I thought Wranglers hold their value. Any idea what's going on here?
Yeah as others noted - very heavily optioned units unfortunately suffer the most depreciation in the first year. The dealers offer such low trade-in values so they have room to make additional profit off another used vehicle on the lot. But normally you can get quite a bit more through a private sale.

We specifically targeted a very low mileage Rubicon trade-in and found ours at a FCA dealer willing to unload it for a song. Since then nothing close has been available on the market. Plenty of Sahara’s and Sport’s but virtually no more Rubicon’s.
 
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Rolling Ragu

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I only skimmed the conversation, but didn't see anyone mention the emotional stress aspect of putting little down. In that respect, I would have stressed over a $50k car loan regardless of my financial position. I made a deal with myself long ago for big ticket items. If I can't or won't put 50% down, then I'm not buying. It's sort of a middle ground. Could my money serve me better played differently? probably. But I want to have zero stress over my toys, and this strategy does that for me. I don't notice the payment and could sell throughout the life of the vehicle and come out well ahead.

I always thought I'd be a completely cash guy, but the expense of my toys grew faster than my income! Hahaha.
 

guarnibl

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I only skimmed the conversation, but didn't see anyone mention the emotional stress aspect of putting little down. In that respect, I would have stressed over a $50k car loan regardless of my financial position. I made a deal with myself long ago for big ticket items. If I can't or won't put 50% down, then I'm not buying. It's sort of a middle ground. Could my money serve me better played differently? probably. But I want to have zero stress over my toys, and this strategy does that for me. I don't notice the payment and could sell throughout the life of the vehicle and come out well ahead.

I always thought I'd be a completely cash guy, but the expense of my toys grew faster than my income! Hahaha.
Yeah, not having anxiety has value to me too. If it causes anxiety, you shouldn't be buying.
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