Think the demand will go up?

[Whaler27]

I'm really wishing I'd pulled the trigger on a 4xe instead of the 2.0L that I went with, but I also think that used values aren't coming down anytime soon, and with the % off invoice that I paid for this thing, it's possible (maybe even probable) that I can unload it in ~2-3 years for nearly what I paid for it, at which point Jeep should have a fully electric Wrangler on the market.

In the meantime, I'm looking forward to summer - once school lets out, the daily reason for starting my vehicle (taking kids to school) disappears, so I can go a week or two at a time without ever starting it.

I dunno.

I’ve been buying Jeeps For almost 45 years. For 43 of those 45 years Jeeps, like almost all other vehicles, depreciated quickly after purchase — usually on the order of 15% in the first year IF the Jeep was bought right, driven little, not heavily modified, and not followed by an improved model or large factory incentives on new models. That’s a LOT of variables that can influence used value. When some of those variables were pushing the wrong direction, I‘ve seen depreciation closer to 25% or more in the first year.

Dealer margins vary depending on several variables, including the total number of units sold and the incentives being offered by the manufacturer, but they are nowhere near the per-unit profit margins maintained on the manufacturer’s side. That’s why the manufacturers are able to throw so much money at rebates, subsidized interest rates, and other incentives when sales sag.

We don’t see 0% financing and $2500 cash rebates these days because sales are booming and dealers can’t keep vehicles in stock, but they will return when vehicle sales soften, as they surely will.

What sorts of influences might slow new vehicle sales? Large increases in fuel costs, inflation, declining stock market adversely impacting retirement accounts, declining discretionary income due to inflation impact on home budgets, increasing tax rates needed to pay for government freebies, uncertainty about the employment market, and dramatically increasing interest rates (to name just a few).

When I bought my first home in 1990 an 800 beacon score could get you a 30 year fixed mortgage just under 10%. About that time good interest rates on car loans were over 7% for only 48 months. When that’s the standard, a factory offer of a 0% loan for 60 months is a significant incentive — and one that really hurts sales of used models, because it can make the new vehicle less expensive to own than a used one, particularly when the value of a new warranty is added in.

Nothing accelerates used vehicle depreciation like new versions of the same vehicle being offered with free financing and a $2500 cash rebate.

I don’t know how all the current craziness will play out, but inflation is difficult to slow once the train is fully fueled and running down the tracks. (Google “Carter administration inflation” and read what was done to kill inflation last time. Basically, it required shutting down the money supply… no more exorbitant government freebies, no cheap money, etc… it slows the economy, often painfully, and employment suffers.)

I expect to feel a long, uncomfortable financial pinch that’s proportionate to the artificial happiness balloon we’ve been riding the last couple years. That’s why I started pulling out of the stock market a couple months ago. Hybrid or internal combustion engine, I wouldn’t count on being able to sell my new vehicle for what I paid for it in a year or two.

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[rcadden]

I dunno.

I’ve been buying Jeeps For almost 45 years. For 43 of those 45 years Jeeps, like almost all other vehicles, depreciated quickly after purchase — usually on the order of 15% in the first year IF the Jeep was bought right, driven little, not heavily modified, and not followed by an improved model or large factory incentives on new models. That’s a LOT of variables that can influence used value. When some of those variables were pushing the wrong direction, I‘ve seen depreciation closer to 25% or more in the first year.

Dealer margins vary depending on several variables, including the total number of units sold and the incentives being offered by the manufacturer, but they are nowhere near the per-unit profit margins maintained on the manufacturer’s side. That’s why the manufacturers are able to throw so much money at rebates, subsidized interest rates, and other incentives when sales sag.

We don’t see 0% financing and $2500 cash rebates these days because sales are booming and dealers can’t keep vehicles in stock, but they will return when vehicle sales soften, as they surely will.

What sorts of influences might slow new vehicle sales? Large increases in fuel costs, inflation, declining stock market adversely impacting retirement accounts, declining discretionary income due to inflation impact on home budgets, increasing tax rates needed to pay for government freebies, uncertainty about the employment market, and dramatically increasing interest rates (to name just a few).

When I bought my first home in 1990 an 800 beacon score could get you a 30 year fixed mortgage just under 10%. About that time good interest rates on car loans were over 7% for only 48 months. When that’s the standard, a factory offer of a 0% loan for 60 months is a significant incentive — and one that really hurts sales of used models, because it can make the new vehicle less expensive to own than a used one, particularly when the value of a new warranty is added in.

Nothing accelerates used vehicle depreciation like new versions of the same vehicle being offered with free financing and a $2500 cash rebate.

I don’t know how all the current craziness will play out, but inflation is difficult to slow once the train is fully fueled and running down the tracks. (Google “Carter administration inflation” and read what was done to kill inflation last time. Basically, it required shutting down the money supply… no more exorbitant government freebies, no cheap money, etc… it slows the economy, often painfully, and employment suffers.)

I expect to feel a long, uncomfortable financial pinch that’s proportionate to the artificial happiness balloon we’ve been riding the last couple years. That’s why I started pulling out of the stock market a couple months ago. Hybrid or internal combustion engine, I wouldn’t count on being able to sell my new vehicle for what I paid for it in a year or two.

Probably all true, and it sounds like you have much more experience than I do.

I'm not counting on it by any measure - I love my Jeep and bought it with the intention of driving it to 200k miles, like I do all my vehicles. But if it works out that I can swap it ~evenly in a few years and go electric, I would.

If it works out great, but like you, I see the next 5+ years being pretty financially tight.

 

[JeepVT]

The diesel will be the collectors model with current fuel prices

 

[dougywarren]

The diesel will be the collectors model with current fuel prices

If the 3.0 proves decent reliability, diesel prices are reasonable, and one can be had without an over the top price increase, I would be in the market for one as well. I was originally going to order the diesel but was talked out of it and after seeing wait time and the current $5 diesel prices I’m not bummed with my decision currently

 

[Hiiker]

Check if you have Max Regen on that might be the "towing" feeling

Yes has been on the whole time. The dealer told me to leave it on and keep in hybrid mode.

 

[Hiiker]

If the 3.0 proves decent reliability, diesel prices are reasonable, and one can be had without an over the top price increase, I would be in the market for one as well. I was originally going to order the diesel but was talked out of it and after seeing wait time and the current $5 diesel prices I’m not bummed with my decision currently

My 4xE sounds like a diesel sometimes.

 

[BXFXJeep]

We might end up holding the bag on the 4xe

Yes has been on the whole time. The dealer told me to leave it on and keep in hybrid mode.

I had it on since I got the 4xe in November, about a week ago I stopped using it after watching the video below. Wrangler feels a lot quicker.

 

[dougywarren]

We might end up holding the bag on the 4xe


I had it on since I got the 4xe in November, about a week ago I stopped using it after watching the video below. Wrangler feels a lot quicker.

Wow that's incredible. Every time I see a video like this nerding out over the tech in this thing I get more and more excited for mine

 

[Grimmjpr]

Yes has been on the whole time. The dealer told me to leave it on and keep in hybrid mode.

Also, make sure its in 4 high auto. It limits power to the wheels when in 2 wd.

 

[BXFXJeep]

My 4xE sounds like a diesel sometimes.

I purposely fire up the cold ICE to create a racket when I am pulling into charging stations, some EV people yell, hey this is for EV parking only.

 

[LongDriver]

The current 4XE is a great lease candidate. It's a 1st gen PHEV model with a modest electric range. It costs me $0.08/mile on electric vs $0.20/gas and 70% of my driving are on electric. The next gen will have better range and hopefully Jeep will sort out the numerous growing pain issues.

If you order a 4XE with a 9% discount off MSRP and get the $7.500 tax incentive thru the leasing company, you're looking at driving a $58K MSRP PHEV Jeep for around $400/month on a 36/10 lease.

I lease my 4XE and would buy the next gen if it is all electric or if they extend the PHEV range to 75-100 miles.

I believe all these factors will make used first-gen 4XEs less desirable than subsequent models.

 

[Hiiker]

Also, make sure its in 4 high auto. It limits power to the wheels when in 2 wd.

Oh wow! What a big difference. I just tested it. I turned off the blue battery button, put in 4H auto, stayed in hybrid mode and what a big power difference. Thanks to you, I may like this 4xE after all

 

[Grimmjpr]

Oh wow! What a big difference. I just tested it. I turned off the blue battery button, put in 4H auto, stayed in hybrid mode and what a big power difference. Thanks to you, I may like this 4xE after all

Glad to be helpful now and then!

 

[Hiiker]

I think the 4xe might be a decent buy with the tax credit, but I'm skeptical it will hold value as well as an ICE Wrangler because of the potential for battery replacement being needed after a few years. That said, I don't know what warranty FCA offers on the main battery or its cost to replace, tho I've seen $12K+ thrown around.

I do know a local longtime Jeep salesperson that has driven Wranglers for years got one and refused to sell that model to customers due to the plethora of issues they had with it. They did it unload it on someone I guess cuz they don't have it anymore.

The 3 year rule of thumb still applies IMO, be it a 4xe or Bronco, buy on year 3 of a new model.

That said, I hope y'all have great luck with them. I looked really hard, but ultimately decided it wasn't for me. ?

It has 8yr/100k hybrid system warranty. Since they can apply the $7500 rebate upfront and I pay no PP TAX I went with a lease so I can walk away in 3 yrs and upgrade to a newer model. This is my first lease ever only because it is a hybrid. As the gas prices surge and the cost of SUVs go down, I may be able to get great deal later. Thanks for the 3yr tip.

 

[jmarrr]

Even if my hybrid battery is un-charged, I get something like 26+mpg. I was driving a loaner JLU Willys this week, and that thing gets 16mpg ...

Gas mileage isn't everything, but it sure is nice.

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