Jeep Values - Massive Decline

[Windshieldfarmer]

Yep. We also leased an iX last year Actually, end of 2023. BMW was offering an almost $10k lease incentive at the time.

Yep…$10,000 lease incentive plus $9,500 discount. One heck of a deal for an awesome EV.

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[Carnut12]

All of these qualifications can be avoided by leasing. Leases are considered commercial transactions for purposes of the tax credit… Income vehicle pricing limitations don’t apply. Just check out leasing specials by BMW for instance. Many others are doing the same…I think Tesla also does this. I leased a BMW IX50 last year…and the tax credit was very much part of the transaction on a $95,000 vehicle.

Yes unfortunately I didn’t realize this until I bought my teslas, for those of us that don’t qualify for the tax credit this is a loophole currently.

 

[ArmyRN]

I ordered mine Dec 22 and got it I think Mar 23. Ordered it exactly how I wanted it (JLU Willys XR 2.0T). $60,000 out the door. Got it because I'm a Jeep guy, I liked the new ones, and I figured they weren't going to get any cheaper down the road. It is my daily driver. I keep vehicles for a long time, and plan on keeping this one as long as I can.

Folks have been complaining Jeep prices are too high. So if they start lowering the prices that would be a good thing, right? Maybe more people will buy Jeeps?

 

[Zandcwhite]

What if it's not the Wrangler's value taking a record hit... it's the dollar? Record inflation means nothing is worth what it was 4 years ago. Industry standard depreciation for vehicles historically is 8-12%/year. We are finally seeing that in Wranglers due mostly to record inflation and interest rates near double digits and everyone's freaking out? Welcome to reality not the covington shortage driving resale values ridiculously high. Hell in 2021 you could have sold a 2-3 year old JL with 30k+ miles on it for what you paid... who thought that was reality or would last?

 

[Carnut12]

What if it's not the Wrangler's value taking a record hit... it's the dollar? Record inflation means nothing is worth what it was 4 years ago. Industry standard depreciation for vehicles historically is 8-12%/year. We are finally seeing that in Wranglers due mostly to record inflation and interest rates near double digits and everyone's freaking out? Welcome to reality not the covington shortage driving resale values ridiculously high. Hell in 2021 you could have sold a 2-3 year old JL with 30k+ miles on it for what you paid... who thought that was reality or would last?

That is absolutely a factor. But Stellantis raised prices like crazy during Covid so their problem is compounded. A Grand Cherokee is the price of a BMW X5. Sorry Stellantis isn’t close to the fit and finish as well as luxury reputation of BMW. Bottom line IMO they, as well as many of their dealers, got greedy. Took advantage of their consumers because of low supply. Now it’s backfiring big time and honestly I love seeing it backfire, well deserved lesson learned.

 

[jmill012]

What if it's not the Wrangler's value taking a record hit... it's the dollar? Record inflation means nothing is worth what it was 4 years ago. Industry standard depreciation for vehicles historically is 8-12%/year. We are finally seeing that in Wranglers due mostly to record inflation and interest rates near double digits and everyone's freaking out? Welcome to reality not the covington shortage driving resale values ridiculously high. Hell in 2021 you could have sold a 2-3 year old JL with 30k+ miles on it for what you paid... who thought that was reality or would last?

You contradicted yourself because, inflation makes the cost of goods and services increase not decrease.

Maybe what you were trying to say was inflation with stagnation in the job market as it relates to salaries is causing buyers to think twice about buying high priced vehicles. While this could be true it won’t solve the problem that inflation has caused on the cost of goods and services.

 

[Zandcwhite]

That is absolutely a factor. But Stellantis raised prices like crazy during Covid so their problem is compounded. A Grand Cherokee is the price of a BMW X5. Sorry Stellantis isn’t close to the fit and finish as well as luxury reputation of BMW. Bottom line IMO they, as well as many of their dealers, got greedy. Took advantage of their consumers because of low supply. Now it’s backfiring big time and honestly I love seeing it backfire, well deserved lesson learned.

They are all in the same boat. I think people on this forum have a skewed sense of reality as most have been paying attention to Jeep prices both new and resale but few looked that closely at other manufacturers during the same time frame. Bronco saw huge price increases (and ridiculous dealer mark ups), stupidly high resale, an even bigger decline in sales than Jeep, and resale value in the toilet over the same span. They all have. BMW resale values have always been atrocious so I guess you could argue they haven't been as affected? This is no different Thabo looking at the 08 housing crash and pretending it was only a salie mae/Freddy mack problem. The entire industry price gouged when supply was short, especially the outdoor focused brands as that was the only thing some governments were allowing people to do. And now they are all back to reality.

 

[mudpup]

Yes we all overpaid by a large amount at the time but wanted what we wanted

Those with a MT got to invest in an aftermarket clutch as a bonus.

 

[Zandcwhite]

You contradicted yourself because, inflation makes the cost of goods and services increase not decrease.

Maybe what you were trying to say was inflation with stagnation in the job market as it relates to salaries is causing buyers to think twice about buying high priced vehicles. While this could be true it won’t solve the problem that inflation has caused on the cost of goods and services.

The inflation helped drive the new prices through the roof. The used market was then set up for the massive crash we've seen by the high interest rates and massive overstock caused by it and people's reduced discretionary budgets due to the record inflation. That drove all manufacturers to offer deep discounts, crashing the used market instantly. When I bought my new JT mojave in late 2023 the msrp was $65k and I got it for $50k. At the same time the Ford dealer by my house had a used one with the same options and 30k miles and they were asking $52k. Only a fool is paying more than new prices for used vehicles.

 

[jmill012]

The inflation helped drive the new prices through the roof. The used market was then set up for the massive crash we've seen by the high interest rates and massive overstock caused by it and people's reduced discretionary budgets due to the record inflation. That drove all manufacturers to offer deep discounts, crashing the used market instantly. When I bought my new JT mojave in late 2023 the msrp was $65k and I got it for $50k. At the same time the Ford dealer by my house had a used one with the same options and 30k miles and they were asking $52k. Only a fool is paying more than new prices for used vehicles.

Agree

 

[Spartan99]

Meanwhile the beater cars have doubled in value. I have a thing for old economy cars and cheap little Hondas and Toyotas are twice what they were a few years ago.

 

[Zandcwhite]

Meanwhile the beater cars have doubled in value. I have a thing for old economy cars and cheap little Hondas and Toyotas are twice what they were a few years ago.

The econobox manufacturers like kia/Hyundai are the only ones not seeing a huge drop in new sales either. It's almost like when the economy isn't doing well and interest rates are high everybody wants to drive small, fuel efficient vehicles...or that's all they can afford?

 

[The Last Cowboy]

There's more demand for beaters, because new car prices are still so high.

The problem of where the country is financially isn't as simple as inflation and interest rates. Before the inflation got out of control, there was the problem of low interest rates. Since the rates were so low, people could buy a new vehicle over and over, investors were flipping houses left and right. Credit card charges didn't hurt as much. Every CC company was offering cards to anyone with a pulse, with the added enticement of balance transfers on the new card with 0% interest for 6 months to a year.

Raising interest rates to what were once considered reasonable in the mid 00s and before brought a burgeoning car and housing market from a boil to a simmer, and now to luke warm. In turn, investments were now earning like they haven't in decades. Check your 401/457/etc accounts and see how they've done.

In the mean time, car manufacturers were seeing an insane demand during the early days of Covid. Money was still cheap at first and people were buying up everything. They thought they were going to die soon, or actually believed the "new normal" BS. Many who got paid to stay home, and got stimulus checks checks, were spending like drunk sailors on shore leave. Just go back 3 years and look at posts on this site. The cash burn for mods and a new Jeep every 6 months was insane. Some guys were even doing crazy things like flipping leases for cash, leasing a new one every 3-4 months.

Since demand for new vehicles was so high, the short sighted executives at just about every car manufacturer raised prices, a lot. They also were staring down the barrel at EPA average fuel economy ratings that were unattainable without adding EVs to the fleet. We can argue whether that's good or not, or whether many forcing those numbers even wanted the US auto industry to survive. Anyway, those EV developments don't get going with out massive cash burn.

On top of that, the major manufacturers were, and still are, having to spend billions on carbon offset credits. No matter what your sociopolitical stand is, one thing is always the same. Every dime that a manufacturer gets levied against them as fines, fees, taxes, etc, gets rolled into the price of their product. The end consumer, you and I, pay all of that, every bit. The corporation doesn't reach into it's deep pockets and pay out of benevolence, or a sense of fairness.

There are far more things I could bring up, like the difference between the Euro and US economies, and the mindset off the people not only running those companies, but the people who live there.

Perhaps pulling out of the Paris Accord is a step in the right direction for bring US cash back into this country. It relieves some of the burden on heavy industry here and keeps a chunk of our tax dollars from going overseas to be distributed to who knows what.

Anyway, the reasons why cars, farm equipment, 18 wheelers, construction equipment, tires, appliances, building materials, hell, everything that gets transported by truck or train, is so expensive is not as simple as greed and interest rates.

 

[ODDs]

Meanwhile the beater cars have doubled in value. I have a thing for old economy cars and cheap little Hondas and Toyotas are twice what they were a few years ago.

This is what I am finding also. I'm trying to find a cheap car for my daughter to start driving on, but all the economy cars are ridiculously priced. I refuse to pay $6k for 16 year old econobox that only cost $16k new.

I'm realizing I could get her a JK of the same year and mileage as the econoboxs, but with about a 25% higher price tag. At that point the JK starts to look like a good value as I think of it as a durable good, not a disposable item like the cheap cars.

 

[NWJeepr]

The econobox manufacturers like kia/Hyundai are the only ones not seeing a huge drop in new sales either. It's almost like when the economy isn't doing well and interest rates are high everybody wants to drive small, fuel efficient vehicles...or that's all they can afford?

You are so confused on the actual state of the economy. It's you who is misled because it's actually doing well. And that's why interest rates are high right now, interest rates act as a braking mechanism for a hot economy.

You may not be doing well, but several of us have taken advantage of the good times and have more money in our pockets as a result.

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