Jeep Values - Massive Decline

[jmill012]

I've owned several Wranglers in my lifetime and this is the first time I've seen such a huge decline in the residual/trade value of a Jeep. I tend to get a new car every 1-2 years and usually the Wrangler is one of the best vehicles to own when it comes to holding their value. My current '24 fully loaded Rubicon X ($78.5K MSRP) currently has lost 40%+ in one year. I know Jeep has had huge decline in sales and they are discounting new models heavily but, question is, could the rumors be true that a huge price reduction is on the way which is impacting current trade values?

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[ItsMeItsMeSamT]

I am hoping so. Since the Wrangler would be an extra vehicle (not trading in anything) I plan to wait and see if msrps due indeed drop 30-35% as many are claiming.

 

[Steel City]

In August 24 I bought a 2024 Gladiator Mojave X. Stickered for $70,000, I paid $58,000. Yesterday I thought about trading for a new Ram 1500. Dealer grudgingly said the most he would give me on trade is $40,000 and let me walk out the door when I said no. Gladiator has 3000 miles on it lol!

 

[NWJeepr]

No, trade values have been in the dumps since 2023. There's been a glut of new inventory with cash on the hood, a ton of off-lease Jeeps being dumped into the used market.

Now is not the time to unload a lightly used Jeep unless you want to experience the kind of depreciation that has typically plagued luxury brands.

If MSRP's drop precipitously in the near future, it will tank used values even worse unless there's a huge spike in demand. That would also require interest rates to retreat to historic lows.

 

[grimmjeeper]

They won't lower prices. They'll push incentives with rebates and financing to get the out-the-door money lower. On the back end they'll reduce production to get the supply glut cleared out. Then roll back incentives.

 

[jmill012]

They won't lower prices. They'll push incentives with rebates and financing to get the out-the-door money lower. On the back end they'll reduce production to get the supply glut cleared out. Then roll back incentives.

That is my hope... Wasn't planning on trading until spring/summer when there is more demand for a Wrangler but got a few estimates to get an idea on the trade value. It was shocking to say the least.

 

[hoch]

It’s not surprising considering the fact that you bought high at MSRP (assuming?) and selling at the downswing of the market.
Maybe hold off for a while, since it doesn’t sound like you’re in a time constraint.

 

[jmill012]

It’s not surprising considering the fact that you bought high at MSRP (assuming?) and selling at the downswing of the market.
Maybe hold off for a while, since it doesn’t sound like you’re in a time constraint.

I bought at a good price, below invoice. At the time there were no incentives ($2,500 now). You can get my Jeep as a '25 for $10k or so off MSRP, so let's say $68,500. So a low mile used would typically be 10% below that or $61.5K for ease of conversation. $3k profit to the dealer, so trade should be around $58k-$59k. Dealers are coming in around $50k-$52k right now. Something more is scaring them off. I think, hunch, discounts/incentives may get better in next few months before they go away.

 

[LuvHydro]

Perfect timing, I was just about to create a thread on this very topic.

I'm letting my '22 Unlimited Sport S go this spring for a new pickup I plan to keep a long time.

As always, I hopped out to Carvana for a baseline wholesale offer and sat here in disbelief. Then to KBB to be presented with a similar shockingly low figure.

I was like WTF???? Every iSeeCars report and others have always claimed Wranglers were at the very top for resale. They are quoting 21% depreciation over 5 years, yet mine is 3 model years old and they are claiming a 48% decrease in value.

Obviously I'm not selling it for that, so I guess I'll be keeping it and listing it for what it's really worth (in my eyes).

 

[Jared1956]

Fully loaded is the problem. I sold a 23 Sport a couple of months ago for $500 less than I paid for it after 20 months and 5700 miles. It was a base Jeep I paid $32k for ordered new. When selling real estate or cars it’s all about the comps. You want the cheapest house in a nice neighborhood, not a mansion in a trailer park.

Jeep inflated their prices by adding options, not increasing the base prices. So adjusted for inflation, a base Sport is actually a pretty good deal. However, add model upgrades and options on top of that and you go from 30k to 60k on the exact same vehicle.

I’ve owned 62 vehicles in my life and I’m not wealthy. I build relationships with dealers, order below invoice, wait for the best incentives, and choose base models in whatever I choose. So base Sport or base Rubicon so I’ll be the cheapest guy on the block.

 

[gdeyarmond]

I bought at a good price, below invoice. At the time there were no incentives ($2,500 now). You can get my Jeep as a '25 for $10k or so off MSRP, so let's say $68,500. So a low mile used would typically be 10% below that or $61.5K for ease of conversation. $3k profit to the dealer, so trade should be around $58k-$59k. Dealers are coming in around $50k-$52k right now. Something more is scaring them off. I think, hunch, discounts/incentives may get better in next few months before they go away.

They probably don't want to sit on the inventory in their used lot, when they can't even move their new product. Plus, interest rates are always worse on used vehicles, if the buyer is financing. Also, I certainly wouldn't take "only" a 10% discount for a used vehicle, at that point I would buy new, and the same is probably said for other shoppers who can afford 50k+ vehicles

 

[jmill012]

They probably don't want to sit on the inventory in their used lot, when they can't even move their new product. Plus, interest rates are always worse on used vehicles, if the buyer is financing. Also, I certainly wouldn't take "only" a 10% discount for a used vehicle, at that point I would buy new, and the same is probably said for other shoppers who can afford 50k+ vehicles

understand however if you search online, low $70s msrp are selling for $58k-$60k. Carmax recent sale data shows similar. So even if mine listed for and sold at a similar price something is going on in the market that is causing dealers to be hesitant on taking Wranglers on trade and in turn are offering crazy low trade in prices. My guess as I said is those on the inside see even darker days ahead for Jeep and thus are pricing that into todays values.

 

[AndySpill]

This is an apolitical thought. I am not expressing support, condemnation, or anything in between for proposed tariffs by the new administration that may raise what we pay for vehicles produced, at least in part in Canada or Mexico.

I leave my thoughts on this off the forum.

But what I will say is that if these tariffs are implemented and raise the prices of such vehicles then the same people in need of vehicles may be chasing a smaller affordable inventory across all manufacturers, and well, supply and demand being as apolitical as a pretty sunset, I am curious to see if that raises the cost of vehicles across the board.

 

[Heimkehr]

I've owned several Wranglers in my lifetime and this is the first time I've seen such a huge decline in the residual/trade value of a Jeep. I tend to get a new car every 1-2 years and usually the Wrangler is one of the best vehicles to own when it comes to holding their value.

My current '24 fully loaded Rubicon X ($78.5K MSRP) currently has lost 40%+ in one year.

For the sake of context, is that decline proportionate across trims?

The market might take a dimmer view of the value proposition of an $80K Wrangler than it would a pleasantly equipped Sport S with an original MSRP that was on this side of reality.

Consider how the low $70s Jeeps are now selling new for barely $60K, just as subsequently mentioned.

 

[jmill012]

For the sake of context, is that decline proportionate across trims?

The market might take a dimmer view of the value proposition of an $80K Wrangler than it would a pleasantly equipped Sport S with an original MSRP that was on this side of reality.

Consider how the low $70s Jeeps are now selling new for barely $60K, just as subsequently mentioned.

it is bad across all trims as others have mentioned in this thread.

completely understand higher trims tend to take a bigger hit… with that said never to the amount they are today.

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