Depreciation

[jellis4148]

Good news. My Jeep is almost paid off, and I don't plan on ever trading or selling it. So I don't care what the depreciation is. She will be worth $400 as scrap when I finally decide to get rid of it.

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[J.Ferreira]

I just read a 3 month old article stating the average vehicle depreciates 11% when driven off the lot, followed by 20% year 1 then 15% year 2. However the Wrangler was listed as only depreciating an average of 20.8% over 5 years. So my question is…how inflated is the MSRP from Stellantis? My 22 2-Door Rubicon in perfect condition with less than 1700 miles shows trade in between $41-43k. The math doesn’t add up. I understand location, demand, etc. plays into the actual trade in value. **This is for discussion purposes only and to gain insight on actual value vs MSRP**

While I absolutely agree that Jeeps are overpriced right now, I don't think it's a matter of "how inflated is the MSRP" so much as, used car prices are just starting to drop again.

The more used car prices start to drop, and the more Stellantis keeps bumping up the price year over year, the larger that disparity is going to become.

 

[AlgUSF]

Good news. My Jeep is almost paid off, and I don't plan on ever trading or selling it. So I don't care what the depreciation is. She will be worth $400 as scrap when I finally decide to get rid of it.

Yeah, my plan is to keep my Jeep until its next trip is the salvage yard. I have a 2002 Civic with 277K on the clock that I bought new and I like my Jeep way more than I do my Civic so my hope is to keep it for 20 years as well. But then it IS A JEEP, may not last 20 years.

 

[Diesel1776]

Actual Value vs MSRP …

is totally up to you. The “actual value” is whatever you find it’s worth to yourself, individually. I was lucky enough to get my Jeep at-cost; but I would've happily paid a few thousand over manufacturing price in the interest of fair trade for the company to turn a profit.

I know it isn't the purpose of this thread - but anyone who buys and worries about resale value is doing themselves a major disservice. I know a guy with a 2021 High Altitude EcoDiesel and he practically never drives it (about 8k on the odometer).

 

[jellis4148]

Actual Value vs MSRP …

is totally up to you. The “actual value” is whatever you find it’s worth to yourself, individually. I was lucky enough to get my Jeep at-cost; but I would've happily paid a few thousand over manufacturing price in the interest of fair trade for the company to turn a profit.

I know it isn't the purpose of this thread - but anyone who buys and worries about resale value is doing themselves a major disservice. I know a guy with a 2021 High Altitude EcoDiesel and he practically never drives it (about 8k on the odometer).

No matter what you do your Jeep is going to depreciate. Go out, enjoy it, and stop worrying about its value. If more people kept there cars longer they wouldn’t be in the predicament that most are in. I get customers all the time that are $10,000-$15,000 upside down cause they trade so often. Most of them have a nice vehicle, but they buy off of emotions instead of logic. Of course people like that is how I’ve made my money for the last 25 years selling cars.

 

[Jeep Wick]

I just read a 3 month old article stating the average vehicle depreciates 11% when driven off the lot, followed by 20% year 1 then 15% year 2. However the Wrangler was listed as only depreciating an average of 20.8% over 5 years. So my question is…how inflated is the MSRP from Stellantis? My 22 2-Door Rubicon in perfect condition with less than 1700 miles shows trade in between $41-43k. The math doesn’t add up. I understand location, demand, etc. plays into the actual trade in value. **This is for discussion purposes only and to gain insight on actual value vs MSRP**

A 3 month old article written before that based on skewed data from the last 5 years. I could have sold my 2020 JLR this time last year for $36k. Now it's the low $20's. Yes they hold their value more than most but the numbers are always changing. As far as MSRP being inflated, that's across the board. Wranglers are just more desirable despite their faults.

 

[Bandit59]

I just read a 3 month old article stating the average vehicle depreciates 11% when driven off the lot, followed by 20% year 1 then 15% year 2. However the Wrangler was listed as only depreciating an average of 20.8% over 5 years. So my question is…how inflated is the MSRP from Stellantis? My 22 2-Door Rubicon in perfect condition with less than 1700 miles shows trade in between $41-43k. The math doesn’t add up. I understand location, demand, etc. plays into the actual trade in value. **This is for discussion purposes only and to gain insight on actual value vs MSRP**

It’s all in what you want. Back a couple of yeas ago used car prices were really high. But now the market has reset. You can get rebates now that you could not get a year ago. So the way I look at it. If you want a Jeep. Get the best deal at the dealership. Then enjoy it. Don’t worry about trade value 5 yrs down the road

 

[BobW]

Good news. My Jeep is almost paid off, and I don't plan on ever trading or selling it. So I don't care what the depreciation is. She will be worth $400 as scrap when I finally decide to get rid of it.

I sold my 280Kmi broken-engine '93 Cherokee to a friend for $300. He nicely restored it--it's on a second (third?) life!

 

[TheRaven]

RIght now JL's are being hampered by their inflated MSRPs. If you look at their trade in values vs what MSRPs were in early 2021 the numbers make sense. But with MSRPs 15-20% too high now, depreciation is bad.

The easiest way to identify overpriced vehicles has always been to look at depreciation.

 

[sentience]

Completely self inflicted problem by Jeep/FCA/Stellantis. Highest price inflation in MSRP over last five years. (Data by CarEdge)

 

[new to JL's]

I have never considered resale value once when purchasing a vehicle. I buy it for me, not the next owner.

That's great, as long as your vehicle doesn't get totaled during your ownership and only get paid market/depreciated value...

 

[BXFXJeep]

It also will vary greatly depending on vehicle options. A base 6 spd 2 door Rubicon will depreciate substantially less than a loaded 4cyl Auto. It’s all about the comparable vehicles for sale at the time. You want to be the cheapest house in the neighborhood, not the mansion in the trailer park.

2 door Rubicons can vary by nearly $30,000 from the most basic manual to the fully loaded auto model. Every single option you ad is killing you when you go to resale.

There is resale value, and value you.

What is the use skipping on options if those options will make the Wrangler more enjoyable, that's why they are called options.

I personally don't care about resale value, I just make sure I'm getting instant value for what I'm paying for, some resale down the road is nice, but not a factor.

As for trade in value, there is a tax offset in that transaction so it may seem like you are getting dinged by the dealer, but you have to factor in the offset, then there is the convenience.

I've sold many vehicles privately, now I don't have time for losers showing up and not picking.

 

[BXFXJeep]

That's great, as long as your vehicle doesn't get totaled during your ownership and only get paid market/depreciated value...

Probably should be using the city bus if that's a factor in the purchasing decision.

 

[BXFXJeep]

RIght now JL's are being hampered by their inflated MSRPs. If you look at their trade in values vs what MSRPs were in early 2021 the numbers make sense. But with MSRPs 15-20% too high now, depreciation is bad.

The easiest way to identify overpriced vehicles has always been to look at depreciation.

The Wrangler is only really "over priced" on the option rich models, and you always lose money on options.

 

[new to JL's]

Probably should be using the city bus if that's a factor in the purchasing decision.

It's your money, do whatever you want with it

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