Depreciation

[JeepinJason33]

The article is old with old information on it. Trade in value really does not matter when you go to the dealer, they are going to give you less. There was a short time when the chip shortage caused used vehicles values to shoot through the roof. I was able to cash out on my 2020 SRT at CARMAX of all places. They gave me 10k more than Jeep would! Turned around and bought my TrackHawk from the Jeep dealership with the extra cash and was able to put enough down that the amount owed was the same as what I had left on the SRT loan. That time has come and gone.

As someone mentioned above, the inflated MSRP on the Wranglers will hurt their resale much more than the older wranglers as not much has changed between model years at this point. My 2021 JLUR was $55,495, that exact same build for a 2024 is $70,150 this morning. Other than the new larger screen and floating rear 44, there is nothing measurably different than my 21.

If you look at the older JK's for example, once they put the 3.6L in 2012, the value difference between the 2012 and 2017's now is mostly based on mileage and condition vs. model year. Many 2012's go for nearly the same as an equal 2017. I think we will see that with the JL's until the new engine comes out or they make a model change. Normally the model change is every 10 years so we may just see the mid-cycle engine change like they did with the JK. Keeping the JL name and current body.

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[Ratbert]

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

Some of us got "lucky" and had ours totaled during COVID. I got nearly $8k more for it than I paid a year and a half and 18k miles earlier.

 

[rmartino99]

We need a good pandemic and auto manufacturers strike to help values. I pity the poor people that bought used cars at inflated prices a couple of years ago.

 

[BXFXJeep]

Trying to sell 200k+ new Wranglers a year, with already over 2 million JK/JL floating around, of that 1 million being JLs.

That is a hard resell, for what is basically a gas guzzling niche vehicle. Then the rental fleets account for about 15K-20K of sales, which they end up dumping into the resale market after a couple of years when they are done with them.

Regardless of how much expensive creature comforts they pack in these things, they still ain't for the average car buyer.

Dropping under $20k for a used Wrangler I can see, asking $40k+ for a used Wrangler IDK how many takers you will find.

Oh yea.... don't forget the Bronco factor in the resale market.

 

[TheRaven]

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

Don't fall for the same trick every manufacturer pulls. They have no intention of selling the "starting price" trim. Depending on the brand, it ranges from difficult to impossible to even order a base model. So when optioned out models make up 90% of what sells, and optioned out models are overpriced, then the vehicle is overpriced.

As someone mentioned above, the inflated MSRP on the Wranglers will hurt their resale much more than the older wranglers as not much has changed between model years at this point. My 2021 JLUR was $55,495, that exact same build for a 2024 is $70,150 this morning. Other than the new larger screen and floating rear 44, there is nothing measurably different than my 21.

Same here - if I build the same build today, MSRP is $11k higher on mine.

 

[BXFXJeep]

Don't fall for the same trick every manufacturer pulls. They have no intention of selling the "starting price" trim. Depending on the brand, it ranges from difficult to impossible to even order a base model. So when optioned out models make up 90% of what sells, and optioned out models are overpriced, then the vehicle is overpriced.



Same here - if I build the same build today, MSRP is $11k higher on mine.

I think the consumer need to take responsibility for how they are spending their money, going for the easy route will usually come at a premium, think of it as a concierge sales experience.

The last 4 Wranglers I bought I spent months researching, and looking online, never once did I step into a dealership, and I usually end up buying "last year" model for a serious discount, yea, buying 2021 in 2021 is the "old" model.

All this done online, purchase and trade, show up drop off, and pick up, I refused to pay the advertised price.

I paid sticker for the TJ and YJ before that, I probably got a "deal" getting wheel locks for free, can't remember, regardless I was happy and pleased paying full sticker back then, or for deep discounts now.

Going to a dealership and wasting their time kicking tires, and asking what's the difference between a 2024 and a 2023, that might come at a premium cost. Frankly sales people cannot tell you anything about a vehicle, that you can't find online.

So walking into a dealership, and walking out with a brand new "over priced" vehicle, well that's on the person that's willing to do that, but they should not complain, they obviously had to see some value in what they were shelling out money for.

MSRP of the 2024 today vs my 2021, is $17K CAD, stuff that was standard in the 2021 is now paid options, like the leather seats, Alpine, plus now I think there are side airbags, not exactly sure, but I see no value in trading my 2021 for a 2024.

To be honest this might very well be my last Wrangler, since they are constantly packing them with more and more ? technology every year.

 

[TheRaven]

I think the consumer need to take responsibility for how they are spending their money, going for the easy route will usually come at a premium, think of it as a concierge sales experience.

I agree - but the consumer doesn't take responsibility, so here we are. The masses will buy what's on the lot even if it's way more expensive...so guys like us get stuck with the results of that.

 

[Heimkehr]

...my question is…how inflated is the MSRP from Stellantis?

My wife's Honda CR-V was purchased new for ~$7K less than what I paid for my new JLU. Her vehicle has considerably more standard fitments and refinement than does the Jeep. That said, my Wrangler has capabilities, and a [subjective] Fun Factor, that the Honda couldn't hope to duplicate. So, I'd suggest that numbers on paper don't tell the entire story.

Coincidentally, a 2024 JLU Sport that is configured identically to my '21 now requires an additional $7K above what I paid. ?

I've seen it mentioned on this site that for what we get, and don't get, as standard equipment on a Wrangler suggests that it's overpriced by an average of $10K. To answer the question quoted above, that's the number that I tend to agree with. Perceived "inflation" will of course vary according to individual trim level, with the 392's stratospheric MSRP requiring a separate analysis.

 

[BXFXJeep]

I've seen it mentioned on this site that for what we get, and don't get, as standard equipment on a Wrangler suggests that it's overpriced by an average of $10K. To answer the question quoted above, that's the number that I tend to agree with. Perceived "inflation" will of course vary according to individual trim level, with the 392's stratospheric MSRP requiring a separate analysis.

Personally the reason I'm willing to "over pay $10K" over the competition, is for the simple fact it does not have all of the standard equipment.

I'm just saying competition, there is no competition for the Wrangler, but it's commonly compared to other vehicles to show poor value for what you get.

But now as they start to pile on a lot of that ? equipment as standard, I'll be less willing to pay a premium for a Wrangler, and possibly keep what I have longer, or look elsewhere.

Right now what I have is perfect, I have no complaints other than the hideous ? big screen in the middle of the dash.

 

[[DELETED USER 82058]]

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

Most logical, factual data I’ve seen. Thank you. You must follow Car Dealership Guy on X.
I haven’t seen resale value tank like this since I traded my Diesel ZR2 several years ago.
I always buy with resale value in mind because why would you not? Right?!

 

[BXFXJeep]

-Using the tools available through CarEdge Data, our team analyzed new car inventory as it relates to automaker price hikes over the past five years. -


The data is misleading, for instance what was the the new car inventory MSRP for the Grand Wagoneer in 2018?

automakers are pumping out more expensive luxury trims.

For instance almost non of the Big 3 make any cheap cars like they had in 2018 to bring down their ATP, every thing now is luxury or pseudo luxury.

not to mention expensive electrics they are getting the government to shell out billions for.

 

[Brian Victor]

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**

My 2018 Rubicon 2-door had a MSRP of $47,480. I am selling it prior to taking delivery of my 2024 Saraha. The best retail offer I have had is $30,000 with only 29,000 miles and $5,000 worth of tires, wheels and mods. That represents a deprecation of 37% off of MSRP in 5 years. The depreciation off my total investment of $52,480 is 43%. My dealer trade-in amount is Manheim Auction's MMR wholesale number which is $27,800. When you add the 6% sales tax credit the trade-in value equals $29,468,

slightly less than street retail. So don't waste your time dealing the the tire kickers, just trade your used Wranglers in.

 

[TheNewGuy]

My 2018 Rubicon 2-door had a MSRP of $47,480. I am selling it prior to taking delivery of my 2024 Saraha. The best retail offer I have had is $30,000 with only 29,000 miles and $5,000 worth of tires, wheels and mods. That represents a deprecation of 37% off of MSRP in 5 years. The depreciation off my total investment of $52,480 is 43%. My dealer trade-in amount is Manheim Auction's MMR wholesale number which is $27,800. When you add the 6% sales tax credit the trade-in value equals $29,468,

slightly less than street retail. So don't waste your time dealing the the tire kickers, just trade your used Wranglers in.

You never get 100% value on mods and not every state has a sales tax. But if it works for your situation, that's all that matters

 

[Heimkehr]

You never get 100% value on mods

+1. One man's modifications are another's waste of money. If they provide 10 cents on the dollar when selling or trading, take it and don't look back.

 

[Stetson]

Between availability in the market (full lots)and interest rates and all the other factors pouring in, jeeps have depreciated more in the last year or two than I can remember in a while.

I bought a used Sahara last fall and I felt like I got a great deal. Right now there are other used jeeps that are comparable that are even less.

because of that factor, when trading or selling a Jeep, you are just going to get less for it. They sell for less and therefore are worth less. Just the way it is at the moment.

people who bought a Jeep 3 or 4 years ago and paid the dealer market adjustment is going to have a really rough time selling it unless they either really paid down the loan or had a large down payment.

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