2019 JLU Sahara depreciated 42% in 10 months

[DaleBuch]

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?

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[oceanblue2019]

Rubicons hold value a bit better, and Sahara’s are typically the worse just due to numbers sold.

But you also paid way too much, that should have been a 48k Jeep new with discounts which would put you much closer to the estimates you are seeing.

 

[DaleBuch]

Rubicons hold value a bit better, and Sahara’s are typically the worse just due to numbers sold.

But you also paid way too much, that should have been a 48k Jeep new with discounts which would put you much closer to the estimates you are seeing.

I never said what I paid, I just listed the MSRP. Regardless, still a lot of depreciation. Looking for answers as to why.

 

[Instaurare]

I live in Arizona, high demand for Jeeps here. I have a 2.0 turbo, and am very happy with it, but I think my resale value would be highest with a 6 cyl manual.

 

[DaleBuch]

I live in Arizona, high demand for Jeeps here. I have a 2.0 turbo, and am very happy with it, but I think my resale value would be highest with a 6 cyl manual.

I see an overflow of used and new wrangles for sale here, which may explain something. Supply and demand.

 

[Paluss]

Depends on demand and location, I talked numbers with my dealer on a trade of my 2018 JLUR with 19K miles on a new JLUR diesel and was quoted $42K as trade and a discount on the diesel which stickers for $62k. My 2018 sticker was $54 and I paid $46 so I consider that good resale...

 

[SecondTJ]

I never said what I paid, I just listed the MSRP. Regardless, still a lot of depreciation. Looking for answers as to why.

Keep in mind that options depreciate hard. A base Sahara was $40k, so you’ve got about $16k in options.

$40k base holding 85% of its value is $6k depreciation

$16k options holding 50% of its value is $8k depreciation

So total there is $14,000

Now $56k MSRP should easily be had for for 10% off, which means a purchase price of $50k

$50k purchase minus $14k depreciation is your current $36k value

Wranglers that hold their value best are the ones with minimal options.

 

[DaleBuch]

Keep in mind that options depreciate hard. A base Sahara was $40k, so you’ve got about $16k in options.

$40k base holding 85% of its value is $6k depreciation

$16k options holding 50% of its value is $8k depreciation

So total there is $14,000

Now $56k MSRP should easily be had for for 10% off, which means a purchase price of $50k

$50k purchase minus $14k depreciation is your current $36k value

Wranglers that hold their value best are the ones with minimal options.

Thanks for this info. Never thought of it this way. Good points.

 

[Strommen95]

It’s really not surprising. The first year is always the hardest hit, few pay MSRP, a Sahara with 56k is bloated with options(kills resale value) and nothing you listed is a private offer(depreciation estimates are based on private sales). 36k sounds about right since your Jeep privately is approximately 40-42k after a year and 10xxx miles. From this point on you’ll see the value barely decline over the new few years.

 

[DaleBuch]

It’s really not surprising. The first year is always the hardest hit, few pay MSRP, a Sahara with 56k is bloated with options(kills resale value) and nothing you listed is a private offer(depreciation estimates are based on private sales). 36k sounds about right since your Jeep privately is approximately 40-42k.

Good points. thank you.

 

[DaleBuch]

Depends on demand and location, I talked numbers with my dealer on a trade of my 2018 JLUR with 19K miles on a new JLUR diesel and was quoted $42K as trade and a discount on the diesel which stickers for $62k. My 2018 sticker was $54 and I paid $46 so I consider that good resale...

That's good. Thanks

 

[Wabujitsu]

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?

Chances are you can negotiate the trade value higher than that, depending on the value (to the dealership) of the vehicle you are trading for. It’s a complicated dance.

When I began negotiations for my Jeep, they initially offered me $14K for my 2013 FJ Cruiser, 2WD, with 100,000 miles. In the course of negotiations I told them they could resell it at $23K easily, and that I would take nothing less than $20K. Ultimately, after lots of back-and-forth on ALL aspects of the negotiations, I got $19K for the trade-in - AND 21% off of MSRP. I was saying my goodbyes and was on the way out the door without making a deal, when they caved-in. That is the point in the negotiations when I have ALWAYS made the best deal on the last number of vehicles I have owned.

It is ESSENTIAL to keep in mind while negotiating, when you are trading in, that you are negotiating the value of your trade, and the cost of the vehicle you are trading for.

 

[DaleBuch]

Chances are you can negotiate the trade value higher than that, depending on the value (to the dealership) of the vehicle you are trading for. It’s a complicated dance.

When I began negotiations for my Jeep, they initially offered me $14K for my 2013 FJ Cruiser, 2WD, with 100,000 miles. In the course of negotiations I told them they could resell it at $23K easily, and that I would take nothing less than $20K. Ultimately, after lots of back-and-forth on ALL aspects of the negotiations, I got $19K for the trade-in - AND 21% off of MSRP. I was saying my goodbyes and was on the way out the door without making a deal, when they caved-in. That is the point in the negotiations when I have ALWAYS made the best deal on the last number of vehicles I have owned.

It is ESSENTIAL to keep in mind while negotiating, when you are trading in, that you are negotiating the value of your trade, and the cost of the vehicle you are trading for.

I Hear you. Problem is, there are 500+ used wranglers for sale within 25 mile radius and no dealer needs more sitting on their lot. I tried the negotiations and they all say the same thing, which is that they will try to match Carmax, but none will go over $36k because wranglers like this are only selling for $38-40k around here.

 

[DanW]

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?

That's because you are going to businesses whose business model is based on low-balling. Sell it yourself and you'll see a big difference.

 

[chacomaya]

Interesting piece related to the glut of JL's for sale: https://www.caranddriver.com/news/a30307895/fca-dealers-inventories-dodge-chrysler-ram/

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