Jeep Values - Massive Decline

[FWC]

Point is you were offered $36k, and at most your msrp was $47k and that's if you added every option including the $4k sot top. Loss of value doesn't include finance charges or title, that is ridiculous. What was the actual msrp (even then you over paid as everyone on this forum knows you can order at below invoice)? Do the math from the starting msrp vs what you were offered in the end. If I offer you $1 for your Jeep that doesn't mean that's its value any more than if you agree to pay $20k over msrp on some added dealer mark-up. If it was a conversation about what YOU would lose then sure throw in total cost of purchase and whatever low ball offer you choose to accept, but neither of those numbers represent the value of the vehicle or its depreciation.

Your point is not my reality. I paid what I paid, got offered way less, not my fault the market has changed much since August. End of discussion for me.

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[Whaler27]

First post and didn't expect it to be on this topic. I bought a '24 Sport S in August and have only added Rubicon rims, shocks and springs, . Anyway my dealer emailed me last week about sales prices on their inventory, up to 15k off a Wrangler and 20k off a Gladiator, so I looked at the list. A nicely loaded 2024 Rubicon caught my eye and I messaged my sales guy. Six months old, 7800 miles at the time and they offered me 32000 on a trade, are you serious? They did come up to 36k but still a 40% loss of value on a six month old vehicle. Mind you, they gave me more for trade in on my 5 year old Tundra with 55k on it. Dirty brown as I like to call it , a fun ride but did I mention the head unit display blinks out on occasion.

I’m surprised you’re surprised. There’s nothing new here.

When new models are being advertised at $15,000 to $20,000 below MSRP, the used market on those models. takes a pounding. That’s been true since the beginning of time. If new Tundras were being sold at $20,000 below Monroney your Tundra trade value would have been hurt too.

A not-so-savvy friend of mine reported getting almost KBB private party retail for his trade on a recent purchase. That was true, kinda… He got a $2,000 discount on a new vehicle that could have been bought for about $6,000 less than he paid without the trade. Obviously, the dealer moved some of the profit margin from the new vehicle to pad the apparent value of the trade. They do that all the time, as it makes people feel better about the trade, but there is zero chance the dealer actually took his trade in at KBB retail. Of course, when the new vehicle is already advertised at $20,000 below MSRP, there isn’t much margin left to move over to pad the apparent trade value.

 

[Zandcwhite]

Your point is not my reality. I paid what I paid, got offered way less, not my fault the market has changed much since August. End of discussion for me.

Out of curiosity, what was the msrp? I know we would all like to get full msrp on our trade ins while also getting $15k off on the new vehicle, but reality says that obviously can't work. If it did we would all just buy and trade in 3-4 times and end up with free vehicles. Considering the huge discounts I'm surprised the offer wasn't worse. You could likely find a brand new sport s for that price with current discounts.

 

[R3TRO]

2020 Willys 28K mi - w/safety 1, tech group, hard top, auto in perfect condition
[leased with negotiated price of $41K, buyout was $35K after 3yrs]

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[R3TRO]

Those Grenadiers sure are great looking vehicles. Two things keep me out of them for now: the fact that they didn't bother to replace the out of place oddly-designed BMW push-button shifter

Funny you mention this... the one thing my wife pointed out and could not get past! I said we could cover it with a sock!

 

[JamesWyatt]

Funny you mention this... the one thing my wife pointed out and could not get past! I said we could cover it with a sock!

Too funny. We have had a few BMWs over the years, and I hated when they switched to that shifter over the traditional style that physically moves to different slots. Thankfully they have that emergency feature that puts them into park automatically if you open a door. Without that, they are deeply unsafe as you really have to pay attention to whether you're in P or D. If that safety mechanism ever malfunctions, it's all too easy to think you're in P but the button press didn't "take". It also makes for lazy behavior since the driver can shut off the car while it's in D and the car automatically puts the transmission to P. Then I move over to the Jeep and keep accidentally turning it off while in D.

 

[Rad-Beach-88]

Your choice of replacement vehicles say that the wrangler isn't the right vehicle for you? Not saying you can't buy whatever you want, but if you're cross shopping Lexus rx550s you clearly aren't in need of off road capabilities. There absolutely are and should be on road compromises in a truly capable off road vehicle. If you don't need those, it's probably not the right vehicle?

Camping,kayaking and mountain biking all require pretty minimal amounts of off-road capability depending on one’s proximity to varying degrees of terrain. What I’ve found is the level of capability I need and a Wrangler with the Xtreme Recon package is about 30-50% more than I need from a use perspective. Both of the vehicles in our garage handle weekends and summer activities that require us to pull on to slick boat ramps, sketchy river drop offs for kayaks and light trails/fire roads for biking. Nothing really in need of locking diffs and 35” tires. All stuff a semi capable off-road suv can be capable of. But the Wrangler could remedy a lot of its common shortcomings with refinement and dialing in the platform for a multitude of use purposes through a sealed/ aka Safari-Esque Wrangler. Check the 3-row wrangler concept

 

[Zandcwhite]

Camping,kayaking and mountain biking all require pretty minimal amounts of off-road capability depending on one’s proximity to varying degrees of terrain. What I’ve found is the level of capability I need and a Wrangler with the Xtreme Recon package is about 30-50% more than I need from a use perspective. Both of the vehicles in our garage handle weekends and summer activities that require us to pull on to slick boat ramps, sketchy river drop offs for kayaks and light trails/fire roads for biking. Nothing really in need of locking diffs and 35” tires. All stuff a semi capable off-road suv can be capable of. But the Wrangler could remedy a lot of its common shortcomings with refinement and dialing in the platform for a multitude of use purposes through a sealed/ aka Safari-Esque Wrangler. Check the 3-row wrangler concept

If fire roads were the use case I'd opt for something wider inside. The rx will definitely fit that use and is obviously more comfortable. Without compromising off road ability by making a wider body and/or going to IFS I don't think you'll ever make a Wrangler as comfortable as those other vehicles.

 

[viper88]

I have owned 4 Wranglers. Wranglers have always had exceptional resale values until now. There has never been such huge depreciation on Wranglers until now.

I suspect Bronco sales/demand have had something to do with the soft Wrangler residuals. The Wrangler was really the only game in town until the Bronco. Something with removable doors, roof, and off-road capable.

Been a strange 4-5 years for sure. The pandemic was an abnormality as far as historical values of Wranglers. I bought a new ’19 JLR at a huge discount and drove it for 3 years and 41K miles. I sold that same ’19 JLR for just about what I paid for it, taxes included, all in. I bought a new ’22 JLR for $800 more than the ’19 I sold. I paid about $46K new for the ‘22JLR.

I checked trade-in values for my ’22 JLR with 42K miles. Offers of about $31K-$32K from Carvana and Carmax. That is low by historic Wrangler resale values but average compared to average car depreciation. Maybe even above average.

 

[Rubi392jp]

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?

Absolutely not. They have already reduced the MSRP of some models by about $4k. Why would Jeep do that when no one else in the industry is doing that. They are priced competitively with everyone else.

 

[Ratbert]

Absolutely not. They have already reduced the MSRP of some models by about $4k. Why would Jeep do that when no one else in the industry is doing that. They are priced competitively with everyone else.

Which models have had their MSRP reduced by ~$4k?

 

[BigRedRidinHood]

In my experience, it really does depend on the market you are buying/selling in. For example, when I was looking to take advantage of the 2024 glut of Wranglers on lots across America and the significant markdowns being offered due largely to factory incentives, I found that here in Texas no dealer was willing to get down to the pricing I ultimately found in Florida. Outside of that, Oklahoma and Georgia, among others, were better deals. Here in San Antonio, the demand must be so high that no one was willing to get anywhere near what I paid (including auto transport from FL), so I went out of state. Amazing to me, but that is what a free market does.

To put into context, the window sticker on my 2024 XR was $71,600. After all of the factory/dealer incentives/rebates, the price I paid was $17,050 below that. More than enough to offset the transportation cost of $1200 for a company that delivered it door-to-door with no issues and great communication.

I wanted to buy here in Texas, and was close with a dealer in Port Arthur, but no joy. I had a GREAT experience with the FL dealer I went with, and the communication with my salesman was just amazing. To the point that next time we're in FL I'm going to stop by to shake his hand. He was just great.

Just curious what dealer and salesperson did you buy from?

 

[Chuckster3]

I think this is all my fault, hadn’t purchased a new vehicle in 44 years, hit 67 an said I wanted a rubicon since 2003 so now or never. Dang guess should have waited longer. signed Charlie Brown

 

[ObiMatt87]

Just curious what dealer and salesperson did you buy from?

Ferman CDJR of New Port Richey, FL. Neil Giles was my salesman. Great guy, and superb communication by him and the entire staff of the dealership.

 

[The Last Cowboy]

I have owned 4 Wranglers. Wranglers have always had exceptional resale values until now. There has never been such huge depreciation on Wranglers until now.

I suspect Bronco sales/demand have had something to do with the soft Wrangler residuals. The Wrangler was really the only game in town until the Bronco. Something with removable doors, roof, and off-road capable.

Been a strange 4-5 years for sure. The pandemic was an abnormality as far as historical values of Wranglers. I bought a new ’19 JLR at a huge discount and drove it for 3 years and 41K miles. I sold that same ’19 JLR for just about what I paid for it, taxes included, all in. I bought a new ’22 JLR for $800 more than the ’19 I sold. I paid about $46K new for the ‘22JLR.

I checked trade-in values for my ’22 JLR with 42K miles. Offers of about $31K-$32K from Carvana and Carmax. That is low by historic Wrangler resale values but average compared to average car depreciation. Maybe even above average.

There was a huge depreciation for Wranglers, as well as all SUVs and full size trucks in 2008/2009 when gas prices skyrocketed at the start of The Great Recession.

If you don't need to sell right now, just ride it out. Things are cyclical. If you aren't trading, it's not a bad time to buy new. If you need to trade right now, keep in mind that your trade difference will be about the same as when your trade/resale value was high, but new selling prices were also high. It's all just a numbers game.

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