JL resale values are insane!

[CodyDog]

So with all these stories about Vroom and Carvana offering equal or more than MSRP on used Wranglers, I'm wondering how much they are upcharging on their future sale of the vehicles. Then most here on the forum are claiming they are getting a discount off of new Wranglers from Jeep dealerships. So why would anyone want to buy a Wrangle from Vroom or Caravan? Are they financing the people with bad credit and charging high interest rates? How does this business model work?

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[JeepinPete]

Good question. Just put my '19 JLUR w/18,500 miles into their systems. $46,800 from Carvana, $52,500 from Vroom?!?!? I paid $46,800 all in for it in Jan. Crazy world...

Pete

 

[zrickety]

So with all these stories about Vroom and Carvana offering equal or more than MSRP on used Wranglers, I'm wondering how much they are upcharging on their future sale of the vehicles. Then most here on the forum are claiming they are getting a discount off of new Wranglers from Jeep dealerships. So why would anyone want to buy a Wrangle from Vroom or Caravan? Are they financing the people with bad credit and charging high interest rates? How does this business model work?

That's exactly it. They make their fortunes on financing.

 

[TexDevilDawg]

Kelly Blue Book says my 2018 Sahara with every major option on it and only 6,200 miles is worth $45,000 to a dealer. I paid $38,000 four months before the pandemic hit.

I added about $3,500 in Katzkin leather seats and a Mopar lift.

I barely drive it. I am tempted to get the cash and run. Perhaps wait a few months for the market to cool off and see what else to get.

I still have the OE wheels and front bumper. I may swap the Quadratec wheels and steel bumper and sell them separately. I never got around to installing the winch.

Thoughts?

Like anything, it depends on the market. I have a 1993 GMC K1500 with 120K miles. Bought it 2 years ago from original owner with 115K miles for $6K and thought I might have paid too much. Was offered $10K cash for it over the weekend. You look at rust free OBS GM trucks (88-98) with less than 150K miles and many are going for over 10K, several posted for more than 20K.....and they are selling.

There was an article I read about a man who pre-ordered a C8 Vette for $70K and sold it right back to the dealer and mae over $20K. Dealer sold it for over 100K. If you could profit and rebuy, why not. End up with a newer vehicle, no miles and warranty.

 

[Soliex]

@CodyDog I was recently in the market, and what Vroom is offering for my 2018 Sport unlimited is roughly what local dealers were asking for a JLU with less options and more miles. I drove 2.5 hours for my JLU.

At least it isn't as bad as the housing market here in Michigan. Which I am also fighting for. 3bd 2ba 1500ish sqft houses with roughly 8000sqft lots are all going for +40k over asking. Have been looking since Mid December 2020. Viewed 40 houses and offered at least +20k on 5 of them and haven't got one yet... My Jeep purchase was actually to hold onto my sanity and have something to be happy about... strange times.

 

[viper88]

This has never happened before. The world is upside down. Cars have become a commodity instead of a depreciating asset. For now anyway. It won't last. I would sell anything you are not driving or need now.

 

[karynm8621]

Hold onto your hats because it's about to get much worse. Used market will be like the real estate market at this rate.

Helium is widely used in Semi across a lot of platforms.

https://finance.yahoo.com/news/google-amazon-netflix-scrambling-rare-230000182.html

 

[RoadiJeff]

Who drives a stock jeep for years with no mods? Man, I could not wait to change it.

We do.

 

[Luxy60]

Right now is the worst time to buy a new or used Jeep. Entering summer, extremely low inventories, chip/ component shortages, etc., etc. Used car values are through the roof, manufacturer incentives are basically non-existent and dealers are not discounting very much if at all on new JL's. Unless you really, really want a Jeep, you're better off waiting six months or a year.

 

[Rogue Toad]

We sold a 2014 Toyota FJ Cruiser, with 70,000 miles for $2k MORE than what we initially paid for it to Carvana.

If these prices aren't the sign of the apocalypse (where you'll need a good off-road vehicle to escape the zombies), I dunno what is.

 

[viper88]

We sold a 2014 Toyota FJ Cruiser, with 70,000 miles for $2k MORE than what we initially paid for it to Carvana.

If these prices aren't the sign of the apocalypse (where you'll need a good off-road vehicle to escape the zombies), I dunno what is.

FJ prices were pretty high and steady even before the chip shortage and covid. It might have been in the top 3 for residual values.

The company I sold me '19 Rubicon to is one of the fixed-price no haggle dealers. They have it listed for sale at just about the full original MSRP from 2 years ago!

 

[Rogue Toad]

Right now is the worst time to buy a new or used Jeep. Entering summer, extremely low inventories, chip/ component shortages, etc., etc. Used car values are through the roof, manufacturer incentives are basically non-existent and dealers are not discounting very much if at all on new JL's. Unless you really, really want a Jeep, you're better off waiting six months or a year.

I'd disagree on the part about dealers not negotiating. We ordered a new JLUR for 7% under invoice. Lots of people on here doing similar deals. That said, I had other dealers say they are not dealing at all, so you do have to look around a bit.

FJ prices were pretty high and steady even before the chip shortage and covid. It might have been in the top 3 for residual values.

Yeah, we had 3 in total over the years and the first two got what I'd consider excellent trade-in values. In fact, I think the FJ was #1 in residuals for many years (and likely still is since they don't make them any more.) But getting $2k more than what you paid new for a 7 year old vehicle with 70K miles was pretty nuts. I guess I got paid less than minimum wage to drive it, but still....

 

[viper88]

I'd disagree on the part about dealers not negotiating. We ordered a new JLUR for 7% under invoice. Lots of people on here doing similar deals. That said, I had other dealers say they are not dealing at all, so you do have to look around a bit.







Yeah, we had 3 in total over the years and the first two got what I'd consider excellent trade-in values. In fact, I think the FJ was #1 in residuals for many years (and likely still is since they don't make them any more.) But getting $2k more than what you paid new for a 7 year old vehicle with 70K miles was pretty nuts. I guess I got paid less than minimum wage to drive it, but still....

I always loved the FJ.

You are right. I found dealers who will discount 7% -8% under invoice depending on if you take financing. Actually about 6.25% -7.25% under if you take the DOC fee into consideration. I can live with that. Just need to be willing to travel sometimes. I am OK with that. Perfect excuse for a road trip!

I got paid to drive my Rubicon too. LOL! I got taxes and doc fee back. I netted almost $2K on my '19 JLR after 2 years and 21K miles.

 

[Luxy60]

I'd disagree on the part about dealers not negotiating. We ordered a new JLUR for 7% under invoice. Lots of people on here doing similar deals. That said, I had other dealers say they are not dealing at all, so you do have to look around a bit.

You won't get 7 - 8% under invoice on a JL that's on the lot, at least not within 100+ miles of where I live.

 

[LostSoul]

hmmm, will these rediculous prices hold?
If I buy a 2021 JLUR for 7% under invoice, drive it for the summer, then when 2022 Jeeps are on the lot, will i be able to sell it for close to MSRP?

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