Sponsored

Question About Jeep Value (before I take delivery today)

Spearmin

Well-Known Member
First Name
Eric
Joined
Jul 23, 2019
Threads
132
Messages
1,240
Reaction score
1,282
Location
NY
Vehicle(s)
JLU
So I'm picking up my new Nacho today. Bare in mind I already own a Punkin JLU, which I have now given to my girlfriend. Anyway, I have heard so much about the Jeep Wrangler holding so much of its vale blah blah blah. This morning I'm having few last minute butterflies about this commitment I'm about to make. So lets say 4 months from now I loose my job, or I just don't want the Jeep any more (not going to happen) I could theoretically sell it back to a dealership or privately, and walk away not owing anything to the bank? Am I dreaming here, or are my assumptions about right?
Sponsored

 

jludave

Well-Known Member
First Name
Dave
Joined
Feb 13, 2020
Threads
13
Messages
3,486
Reaction score
3,492
Location
The Isle of Long
Vehicle(s)
2020 Wrangler Unlimited Sport Altitude
Occupation
IT Manager
Vehicle Showcase
1
Clubs
 
I could theoretically sell it back to a dealership or privately, and walk away not owing anything to the bank? Am I dreaming here, or are my assumptions about right?
Others may disagree with me here, but as soon as you sign your paperwork and turn the key on your new Wrangler, it will depreciate in value. There's no way around that. However, Wranglers do hold their value well enough that you'd incur minimal loss if you were to sell it a few months down the road.
 

conFUcius

Well-Known Member
First Name
Stephen
Joined
Jul 10, 2020
Threads
30
Messages
902
Reaction score
1,349
Location
North Carolina
Vehicle(s)
2020 Sting-Gray JLU Rubicon 3.6 V6
Occupation
Medical Affairs
Doubt you’d walk away without owing anything unless you put a sizable down payment to offset initial depreciation. Jeeps hold their value better than other options out there but at the end of the day, vehicles are depreciating assets.
 

TheRaven

Well-Known Member
First Name
Kevin
Joined
Oct 22, 2020
Threads
5
Messages
1,449
Reaction score
1,933
Location
Reading, Pennsylvania
Vehicle(s)
2021 JLU 80th
Occupation
Electrical, Mechanical, and Aerospace Engineering.
So I'm picking up my new Nacho today. Bare in mind I already own a Punkin JLU, which I have now given to my girlfriend. Anyway, I have heard so much about the Jeep Wrangler holding so much of its vale blah blah blah. This morning I'm having few last minute butterflies about this commitment I'm about to make. So lets say 4 months from now I loose my job, or I just don't want the Jeep any more (not going to happen) I could theoretically sell it back to a dealership or privately, and walk away not owing anything to the bank? Am I dreaming here, or are my assumptions about right?
There is pretty much no way you are going to get out of ANY vehicle (even a Wrangler) for free after four months. Thats just too quick. I would say you are good at about a year with the Wrangler. Remember that even though we see used Wranglers selling for nearly as much as new (and in some cases a bit more), when you buy one you are paying quite a bit more than the price you negotiated - lets say your price was $40k...there are taxes and fees and then interest. So even if you pay all taxes and fees up front there's still $3-5k in interest tacked on. That has to be paid down before you can break even. Now interest is compounded with time so you don't have to pay ALL of that, but still, for most vehicles you can't break even until at least 2 years usually 3. With the Wrangler i'd say about a year. One positive note though - you are not going to find a better choice for that particular concern. The Wrangler is about the safest vehicle there is when it comes to buyer's remorse.
 

Quick

Well-Known Member
Joined
Dec 23, 2018
Threads
21
Messages
256
Reaction score
300
Location
CT, USA
Vehicle(s)
2022 392
As a datapoint: I had a 2019 JLUR that I sold about 4 months after owning it for ~6k less than I paid - excluding taxes. So, no, you definitely won't make it out without a loss.

That said, I bought a 2021 JLUR diesel a few weeks ago because it's awesome. Appreciate it for what it is (a Wrangler utility vehicle and not a good driving, quiet, composed luxury vehicle) and it's a great time. But it's also not my only car so I can jump in something nicer when I get tired of the JL

Life's short. Have fun.
 

Sponsored

Warped

Well-Known Member
First Name
Tim
Joined
Jul 14, 2020
Threads
4
Messages
1,523
Reaction score
11,003
Location
Frederick, MD
Vehicle(s)
BMW GSA, Harley RG, GC Summit Reserve, JT Mojave
Build Thread
Link
Occupation
Work? What's that?
Really depends upon how much of a down payment you have and your credit rating for a good interest rate. I put nothing down on my 2019 F-150 as I got a 0% interest loan. I put about 50% down on my 2020 JLUR and am pretty sure I could sell it for more than I owe on it. The F-150 is a losing proposition even with 0% interest as I still owe a lot more than it's worth after only 16 months. Which is fine with me as I will keep it well after it is paid off to pull a travel trailer
 

CT_LFC

Well-Known Member
First Name
Ed
Joined
Apr 22, 2019
Threads
24
Messages
773
Reaction score
1,214
Location
SC
Vehicle(s)
Volvo XC90 / JLUR
Wranglers hold their value very well compared to many others, but they still depreciate. You simply won't be able to sell it for the same amount you paid for it (+ sales tax) 4 months earlier.

I cannot think of any car you can buy new and not have some level of depreciation instantly. When i think of cars that hold or gain value over time it's with older niche cars with an strong enthusiast following.
 

Wrongful Suspicion

Well-Known Member
First Name
Cory
Joined
Oct 8, 2020
Threads
6
Messages
71
Reaction score
84
Location
Alberta, Canada
Vehicle(s)
2021 Sarge Green Jeep Wrangler Sahara Unlimited
I suffer from pretty bad general anxiety, so I’m always waiting for the other shoe to drop. If I lost my job tomorrow, who knows what I would do.

My point is, you can’t let what if’s and maybes hold you back in life. You can live for now, while still keeping an eye on the future. Get the Jeep, what’s the worst that will happen.
 

ScoobyBlue

Well-Known Member
First Name
Joe
Joined
Nov 24, 2020
Threads
0
Messages
266
Reaction score
517
Location
Lancaster County PA
Vehicle(s)
Formerly 16JK Willys, now 21JL Rubicon
I bought my ‘16 JK Willys and financed $29,800 in November 2015, had about $5000 down, interest rate in the upper 2s. I’ve got payments until this November. It wasn’t until the late spring/early summer of 2019 I was breaking even with KBB and what was owed on the loan. Even though nothing happened I was glad I had gap insurance.

And this year it’s worth more than it was then.
 

Sponsored

MrMischief

Well-Known Member
Joined
Apr 25, 2019
Threads
43
Messages
633
Reaction score
1,865
Location
Colorado
Vehicle(s)
JL Rubicon
It used to be the case that Wrangler held their value very well / among the best. I believe 4 door rubicons were something like 30% after five years. In the market around Colorado I had always found that to be true. However, with the Bronco giving Jeep some competition this may change. Past performance does not predict future results kind of thing.

A buddy of mine bought a JL 4 door sport last year. He sold it to a dealer about 6 months later. He's one of those who is constantly buying and selling cars. I trust that he did a good job negotiating both sides of if, but the Jeep was the first time he lost money on a car in a long time. For comparison he sold it to make room for a Tesla Model 3 that he kept for about another 6 months. He traded the Tesla and got $5k more than he bought it for. So based on his experience and how I think the market will react to the Bronco, I would say that no... in 4 months time you will likely owe more than the Jeep is worth unless you come at the deal with a sizable down or trade.

EDIT: Wanted to add that I'd say right now is probably not a good time to buy a Wrangler. If you want it and you're going to keep it long term sure why not. But I suspect when the Bronco hits the market we'll finally start seeing incentives on the Wrangler. If you can hold off for 6 to 9 months, I think it'd be smart to do so. Even if it's just to get behind the wheel of the Bronco before you buy the Jeep.
 

entropy

Well-Known Member
Joined
Sep 19, 2018
Threads
83
Messages
4,318
Reaction score
7,442
Location
Foothills of the San Gabriels
Vehicle(s)
Jeep Wrangler Sport S JL 2-D
Build Thread
Link
Occupation
Professional dancer/male stripper
A financial advisor might tell you: either you are overthinking this or are buying too much car. In the first case just let it be and enjoy life. If you are buying a vehicle taking car payments high enough that could give you financial trouble, you are buying more than you should. Buy a car you could pay off immediately or in one year, put the money in investments accounts if you get a loan with below 3% interest or buy the car outright otherwise.

If you are worried about owning the bank 1~5k, or even 10k. Jeep is too much for you. Avoid carrying debt you would not be able to pay if you lose your job.

Of course this is your choice. From another perspective, enjoy your life your way. If the worst happens you will figure it out. I doubt a Jeep wrangler would be so much of a problem in case you got into financial trouble. You would sell it privately and probably just lose 1~5k in depreciation, pay the bank and continue with your life.
 

starrs

Well-Known Member
First Name
Galen
Joined
Mar 25, 2020
Threads
9
Messages
329
Reaction score
407
Location
Indiana
Vehicle(s)
Ford Ranger
Occupation
Registered Nurse
The minute you drive it off the lot you have taken a loss. Taxes, title, doc fee, all of that at a minimum you are losing. These new JLs with the corrosion issues popping up all the time don’t seem as desirable as jeeps past. Buy it if you plan to keep it.
 

blessidsoul12

Well-Known Member
First Name
Jordan
Joined
May 27, 2018
Threads
37
Messages
1,138
Reaction score
2,534
Location
Walla Walla, WA
Vehicle(s)
2018 billet silver JLUR, 2019 chevy suburban
Yeah it sounds like you might not want to own TWO $50k vehicles if you have the concerns you are expressing.

That being said- My 3/23/18 build JLUR has good equity already and I am still paying on it. I don't think there are a lot of vehicles that would have numbers like my JL has at this same financing point...
 

CT_LFC

Well-Known Member
First Name
Ed
Joined
Apr 22, 2019
Threads
24
Messages
773
Reaction score
1,214
Location
SC
Vehicle(s)
Volvo XC90 / JLUR
Yeah it sounds like you might not want to own TWO $50k vehicles if you have the concerns you are expressing.

That being said- My 3/23/18 build JLUR has good equity already and I am still paying on it. I don't think there are a lot of vehicles that would have numbers like my JL has at this same financing point...
Because of the lower depreciation curve on the Wranglers it is easy to have equity in it after not a very long time.

I bought mine in early Jun 2019 at $46K (MSRP was $53K) and basically financed 100% of it. Currently own $35K on it and a quick search on autotrader for '19 JLUR's within 50 miles from me yielded 4 results with the lowest asking price at $47.5K and highest at $49K.

No idea what they will eventually sell for, but it's good to know worse comes to worse i can get rid of it and still have equity in it.
Sponsored

 
 



Top