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

[WXman]

This is the reason I leased my JL.

Residual is guaranteed at 71% after 48 months. I will likely be able to buy/trade with positive equity and I'm never out of warranty so it's easy to budget. I just enjoy my JL every day and never worry about anything. Life is short.

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[Kent5]

Very insightful. So, you're currently with Porsche? I've heard that when purchasing a 911 the base stripper models hold their resale value the best since the options don't hold value very well. As in you can easily put 30K worth of options on a base 110K Carrera, but at the time of resale what you spent on those options will have mostly evaporated. I'm wondering if the same holds true here where someone with a stripped JLU they picked up for 28K MSRP can resell a year later within a few grand of what they paid vs someone who put 25K in options on that 28K vehicle?

With a few notable exceptions, this is mostly true with any car -- the older a car gets, the less worth the options will add to the value.

Major optional items, such as a hard top (Wrangler), air conditioning, automatic transmission in non-sportscar models, still command a good premium in the used market, but smaller options are pretty much zeroed out after about 5-7 years of a car's age.

Keep in mind we're talking about generalities here. A particular buyer may find a particular option very valuable, even on an older used vehicle, and thus willing to pay more, but in general, the option value fades at a substantially faster rate than the vehicle value overall.

 

[Chemy350]

Very insightful. So, you're currently with Porsche? I've heard that when purchasing a 911 the base stripper models hold their resale value the best since the options don't hold value very well. As in you can easily put 30K worth of options on a base 110K Carrera, but at the time of resale what you spent on those options will have mostly evaporated. I'm wondering if the same holds true here where someone with a stripped JLU they picked up for 28K MSRP can resell a year later within a few grand of what they paid vs someone who put 25K in options on that 28K vehicle?

Thank you. I am currently with Porsche. I have been at the same dealership since 2009 in Atlanta.

In regards to your question on the options and resale, you are spot on. In Porsche, if you wanted to buy a 911 the most cost-effective way possible, is to order a 911 with zero options. Same with most brands.. Jeep is a bit different if I was looking to maximize the resale and minimize losses on resale, I would order a base sport with A/C, power etc. The Major options you would want, the small items add little to no value resale.

Here are a couple pictures from my office

 

[Jeepmarkjl]

Brought a 18 JLU Sahara. Put 800 miles on it. Decided I wanted Rubicon instead. Traded it in for almost 90% of purchase. Got Ok deal on Rubi, plus sold back the Rubi soft top to dealer (didn't want it) at a premium (dealer could mark it up even further since Soft tops were scarce.) In end, I had a bit of an extra cash out lay, not crazy and no regrets. Unlike the stupid giant stainless steel bbq (not Weber) I bought - I'm stupid - still regret that purchase.

 

[BWWJL]

This is the reason I leased my JL.

Residual is guaranteed at 71% after 48 months. I will likely be able to buy/trade with positive equity and I'm never out of warranty so it's easy to budget. I just enjoy my JL every day and never worry about anything. Life is short.

The days of 71% RV were short lived for 2018. Not sure about 2019 as I bought an a 2018. I don’t see a way you will have positive equity, but I hope I’m wrong.

 

[greenegger]

Thanks for all the responses, and apologies for the delay.

I ordered mine way early when 5% under invoice was considered the best deal out there, so the 56ish sticker was more like 49k. Initial quote was sight un-seen and based on what they saw online. Actually went to a few dealerships today and was quoted $42-$43k. Around here (Westchester, NY) there aren't the great deals on the Wranglers, and I believe most people aren't getting massive discounts. Ultimately I think I'd do much better than the $42k selling privately, so I might look at that. There is a tax saving on trading, but that is worth around $2-3k, so selling privately for more than $45k puts me ahead. Jeep is completely clean, never smoked in and the bodywork is flawless.

 

[greenegger]

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.

Totally agree with this, I ended up telling the dealers I saw today that I would either sell privately or just hold on to it, as I'm sure the price they could offer in a year wouldn't be much below what they are offering now.

 

[greenegger]

I have a loaded JLUR stickered for 54k on the nose, was out te door with everything but taxes at 47400. Top private party, which I've gotten a few times, but not in the first year, is 45900. A loss of 1500. Top trade in is 41900, 5500 lower. Not that bad for a year later. That price works out to a first year depreciation of 11.6%. I'm good with that since I didn't buy the lifetime warranty to sell it anyway. JMHO, too many people yelling fire way too early. A lot of vehicles are all over the map in the first year of ownership. I had a silverado in 15 that dropped almost 15k in the first 6 months when one of chevy's truck month 20% or 11k off sales hit. It was back up a few months later. The only people who should be worried about this now are the ones who have already decided they're selling theirs because they have to or because they can afford the loss and want to, with less than a year in.

hope this is right!

 

[GreyFox]

Thank you. I am currently with Porsche. I have been at the same dealership since 2009 in Atlanta.

In regards to your question on the options and resale, you are spot on. In Porsche, if you wanted to buy a 911 the most cost-effective way possible, is to order a 911 with zero options. Same with most brands.. Jeep is a bit different if I was looking to maximize the resale and minimize losses on resale, I would order a base sport with A/C, power etc. The Major options you would want, the small items add little to no value resale.

Here are a couple pictures from my office

I didn't need all the fluffy options so I ordered a base Sport S, 2 door, soft top, auto 3.6 and I upgraded the wheels. I'm loving it every day. And right now, I think I'd like to be in Atlanta. Only 18 degrees ATM. Brrrr

 

[Wanderingwheelz]

Thank you. I am currently with Porsche. I have been at the same dealership since 2009 in Atlanta.

In regards to your question on the options and resale, you are spot on. In Porsche, if you wanted to buy a 911 the most cost-effective way possible, is to order a 911 with zero options. Same with most brands.. Jeep is a bit different if I was looking to maximize the resale and minimize losses on resale, I would order a base sport with A/C, power etc. The Major options you would want, the small items add little to no value resale.

Here are a couple pictures from my office

I’ve owned 3 Porsche sports cars and I’d never buy a no-option “stripper” Porsche. You’d need to order it, anyway, since no dealers are going to order one that way. Why? Because they’re hard to sell that way. They’re luxury cars and without options they’re not all that luxurious. the stereo sounds meh, the seats are okay, the wheels are boring..

Now a Wrangler, on the other hand, is exactly the opposite of a luxury vehicle. It’s the first and still truest utility vehicle. So buying a “stripper” Wrangler actually makes the most sense for a lot of us. If my wet dog wants to ride along, awesome! Bird craps on the hood? Oh well. It’ll rain eventually.

 

[brain]

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

That's well said, and clear thinking.

 

[brain]

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.

Our local dealer is apparently one of the top Wrangler distributors in the Southeast. They are pretty good guys. But, sales-is-sales. They always promote the resale value of Wranglers out the door, but get amnesia when it comes to trade-in valuations. Then I see my traded-in Wrangler on the lot for quite a bit more than I gave it to them for. It's my own fault for playing into it all. However, it's added perspective for this string. Fortunately, I REALLY like my current 2DR JL Rubicon. The only thing that might turn my head is a rare billet silver 2DR.

 

[GGolds]

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.

It's way to soon to get numbers on a brand new model. They aren't accurate until at least 2 years later. First, there really isn't any way to get a used number yet because far to many can be had new. Why buy used with 5K if new is going to be around the same price. The demand now for used just isn't going to be there. Give it a couple of years and you'll start seeing those good old top dollar numbers you are used to seeing for Jeep trades. Dealers want the current 18's off the lots, not slightly used ones. Just adds to their already high supply of Wranglers they over purchased not realizing there would be so many special orders on them. I ordered mine. My dealer said that he has a lot full of Sport models. People want more options and packages for the high price of Wranglers. When he gets a Sahara or Rubicon they fly. More people are ordering them then ever before. Why are you trading it in at 5K already?. Just wondering. Give it a little more time and you'll start seeing numbers go up not down with newer models prices going up as yours ages. Good chance in a year or two that 37K will still be hovering around the same figure as it is now. Used prices aren't going to list correctly this soon.

 

[Threxx]

When comparing JK to JL depreciation, don't forget that the JL has even more 'froo froo' options than the JK, and those sorts of options are the ones that take the biggest hit in depreciation (in any vehicle).

For us it really doesn't matter. We bought the lifetime warranty. When my twins turn 16 the JL will be 10 years old... would be an awesome first car for a 16 year old.

 

[Skeethree]

Traded my 16 JK Sahara for my 2018 JLUR. The Sahara only dropped $3800 (just over 10%) over the two+ years I had it. Keep in mind that a vehicle with lots of options is going to lose a higher percentage of cost than a more basic version of the same model, some options are almost worthless at trade in.

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