Used Car Price Bubble - Jeep Impacts

[CT_LFC]

Just did a Vroom and am down to $43.3K.....i did cross 30K miles the other day so that plays a role but that is $10K less than the highest offer i have ever gotten.

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[wrc777]

I don't know if the price will really go down much. We are into year 3 of significantly reduced production. Millions of vehicles were never built and never will be. That will impact the used car market in the long and short term unless people drive less and wear out cars at a slower rate. The other thing is inflation has not really hit new car prices yet. It will over the next year as OEMs get hit with supplier price increases. They are resisting for now but once suppliers start going belly up and the OEMs suddenly cannot get parts watch out.

 

[wolf]

Several sources which track used car pricing are predicting the used car price bubble to burst in 2022. Given the extreme run up, used car prices are predicted to fall 30% by year end. Given the run up, this takes us back to a more normal market for used cars. Do you think Jeep will fall in line with the rest of the used car market in this price bubble?

Bull shit, the people with the money are riding Harley’s. Follow the dollar. Society dies when one evolution passes on. Then something else comes along. You will be amazed at what is coming, but you will be on the out. Have a great day.

 

[Blanco802]

Many are forecasting used car values to reach their highest levels this quarter and start to moderate lower after that. There are a few factors that will impact prices.

Prices to increase or stay within current upper range:
1) Continued supply disruptions and or transit constraints impacting people's ability to purchase new vehicles (production across the industry is down between 4-6mm vehicles/yr)

2) Increases in MSRP on new vehicles or market adjustments on new vehicles. The consumer is still healthy with higher than usual savings rates so as long as they keep buying, this can keep used car market elevated.

3) Tax rebates. Folks can start filing later this month. If we see families receive a decent tax return, they may elect to spend it on a vehicle

Prices to normalize and decrease modestly:

1) Inventory levels start to rebound

2) Interest rates start moving higher on the back of the federal reserve hiking interest rates

3) Equity market and housing correction. While not many people are calling for a correction, if we see prices dip, this may delay some families from buying vehicles, impacting the demand aspect of the car market, which has been strong up to this point.

My personal opinion is that people like to facinate about bubbles. In a normal environment used car prices are supposed to decrease so if we see that trend take place this year, that is OK. If we think prices will fall the 30 percent this year, I don't think that will happen. I've priced my 2021 Wrangler using Vroom and KBB instant cash over the last two weeks and both have been above MSRP. So it's possible that regional market demand is playing a role in used car values.

 

[dmc3csc]

My wife and I just sold her 2021 Crosstrek with 14,000 miles to CarMax for $32k. We bought it October 2020 for 26k out the door. We knew we were going to upgrade her to an Outback eventually, but we just couldn't pass on it right now. The market is just insane right now.

 

[Overland Utah]

These are crazy times in the car market, everyone who is involved will tell you that they haven't ever seen anything like it before. I predict that the market will remain the same until dealers have inventory again and in tern, manufactures offer rebates. Add in inflation, and the values could very well never go back down and instead, the MSRP of new vehicles could increase.

We are in a market where used vehicles less than a year or two old are selling for above its original MSRP, and SUV's, Trucks and Wranglers seem to be at the top of that list. It would be foolish for the manufacture to not use that as a sign to increase their prices.

For 2022 Jeep did not have any price hikes, however I just ordered a 392 and it came in 3k higher than Jeep's website. We have also seen price hikes in the TRX and trucks.

 

[JABCAT]

For 2022 Jeep did not have any price hikes, however I just ordered a 392 and it came in 3k higher than Jeep's website. We have also seen price hikes in the TRX and trucks.

Base MSRP on the Sahara Altitude increased about $700 from 2021, however, the 8.4” Nav with alpine audio & proximity door locking became standard equipment. That made my ‘22 order a good bit less than what I had spec’d out on a ‘21.

 

[SouthernJL]

Right! I wonder who takes that offer.

A $60,000 Jeep over 36 months is a $1,700 monthly payment...!

I'd agree with you that 0% for 36 mths isn't beneficial for those that are starting from scratch with no huge downpayment or trade in to offset a huge chunk of new vehicle price.

But a great deal of folks DO have equity to bring that loan balance down. I was able to take advantage of the 0% back in April. Received 30k in trade on my 2014 JKU. Added 7k to that and financed the remaining balance of a JLUR I factory ordered.

Payments are only $387 a month for 3 years.

 

[Traveller128]

Right! I wonder who takes that offer.

A $60,000 Jeep over 36 months is a $1,700 monthly payment...!

I'd agree with you that 0% for 36 mths isn't beneficial for those that are starting from scratch with no huge downpayment or trade in to offset a huge chunk of new vehicle price.

But a great deal of folks DO have equity to bring that loan balance down. I was able to take advantage of the 0% back in April. Received 30k in trade on my 2014 JKU. Added 7k to that and financed the remaining balance of a JLUR I factory ordered.

Payments are only $387 a month for 3 years.

This is what we're planning on doing when the new car arrives. Large equity in current vehicle, plus extra cash down. Should be able to get a payment in the $450/mo range for 3 years.

 

[Sparty]

Right! I wonder who takes that offer.

A $60,000 Jeep over 36 months is a $1,700 monthly payment...!

Me

And yes - we usually pay cash for everything. However, with no debt and house paid, why not take advantage and use their money for 3 years?

 

[LarryB]

The whole thing is based on the lack of supply combined with many consumers having more money (so, increased demand). I think both of those things do change … chip production will come up and people will use more services/travel with extra dollars. Either one of those things will bring prices back in line.

One important thing to remember is that most auto manufacturers have been focusing on the most profitable trims and have not made as many of the lower end ones. Locally here, I would not have had a problem buying a fully loaded 2 door Rubicon at any point, but good luck finding a base Sport. Keep that in mind … the demand for some models did not change but the availability did. So, the used markets for those vehicles that had their production halted may hold on longer than the luxury models.

Finally, Wranglers have always held their value … that won’t change.

 

[clickclickboom]

For 2022 Jeep did not have any price hikes, however I just ordered a 392 and it came in 3k higher than Jeep's website. We have also seen price hikes in the TRX and trucks.

The pricing guide pdf for January shows $400 less than December's guide and the Jeep website number. Where do you numbers show different?

 

[Overland Utah]

Base MSRP on the Sahara Altitude increased about $700 from 2021, however, the 8.4” Nav with alpine audio & proximity door locking became standard equipment. That made my ‘22 order a good bit less than what I had spec’d out on a ‘21.

Today we saw the base price of a 4xe increase by about 1500! I haven't had a chance to review other vehicles yet.

The pricing guide pdf for January shows $400 less than December's guide and the Jeep website number. Where do you numbers show different?

On my POC I have a base MSRP of 77,095 for the 392. I believe a few days ago it was 74,800, and the orders that I have submitted for customers have also increased by that amount.

 

[JABCAT]

Today we saw the base price of a 4xe increase by about 1500! I haven't had a chance to review other vehicles yet.



On my POC I have a base MSRP of 77,095 for the 392. I believe a few days ago it was 74,800, and the orders that I have submitted for customers have also increased by that amount.

Looking at these POCs, it’s interesting that black is $100 more on one than the other. Gorilla glass is more, advanced safety group is more, trailer tow group is more, cold weather group is more. Yikes.

 

[clickclickboom]

I threw the GG on because it was only 195. From the reviews its getting it is surely is not worth 495.

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