Depreciation

[[DELETED USER 82058]]

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**

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[Steel City]

Values on all used cars are falling off a cliff

 

[Ratbert]

Values on all used cars are following off a cliff

Following? Did you mean falling?

 

[Eyeball]

Following? Did you mean falling?

Following one another off a cliff seems about right.

 

[AlgUSF]

It was funny two years ago where folks were saying that selling a vehicle used for more than you paid for it was the "new normal".

EDIT: That was back when Carvana stonk was trading at $360/share, now it is $42 a share.

 

[Bulletbill]

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**

Maybe 20% of the invoice price in the year that you bought it?

 

[Tncdrew]

I think the real question is why you only have LESS that 1700 miles on a '22?!

Get out there and enjoy that thing!! ? ?

 

[NWJeepr]

I think Wranglers are taking a beating on the used market. MSRP seems like it's been inflated by about $15k.

 

[Shellbird01]

Keep the old ones, depreciation doesn’t matter with them.

 

[Mike_Hawk]

To be fair the trade in value is what the dealership is willing to give you for it who would then turn around and flip it for a 5-10k up charge, a third party sale would net you closer to the chart values

 

[JLfromCA]

Gas only wranglers will retain better value. Dealerships flooded with 4XE’s and many people still craving ice vehicles. People generally don’t like to buy outdated electronics with expensive batteries.

 

[THAW]

A lot of "drive off the lot" depreciation is due to the fact one can typically purchase well below MSRP. The discount can fluctuate wildly by make, model, and time.

Average sale price would be a better baseline.

 

[Jared1956]

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.

 

[Eyeball]

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

 

[TheNewGuy]

A lot of this depends on how you bought it too. If you got it under invoice then you'll take a smaller hit than if you paid MSRP.
If you paid over MSRP. Good luck.

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