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Depreciation on the JL

5K views 14 replies 14 participants last post by  3jeepschris 
#1 ·
Fox News Website has a piece on the 5 year estimated depreciation of new vehicles. Some of the data by Ramsey Solutions was quoted. Here are the 7 listed (I rounded the "cash price" to the neared $100).

1. BMW X5 Cash Price $70,600 Depreciation 56.2%
2. Hyundai Sante FE CP $33,400 Depreciation 52.3%
3. Lexus RX350 CP $51,700 Depreciaton 50.4%
4. Subaru Forrester CP $27,700 Depreciation 47.2%
5. Toyota Camry CP $24,700 Depreciation 45.6%
6. Ford F150 CP $30,900 Depreciation 41.4%
7. Jeep Wrangler CP $37,500 Depreciation 31.2%

https://www.foxbusiness.com/personal-finance/popular-cars-depreciate

The 5 year depreciation of a Jeep Wrangler should not come as a surprise to those who have ever looked at the used Jeep Wrangler prices. If anything, the Cash Price seems low for most of the vehicles, but it may be the out the door price before TTL of the base model, which in the case of the Wranger would be a Sport 2DR with no significant options.
 
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#2 ·
Not sure I can believe those percentage drops. 6 months ago I was going to trade in my JL Sport S for a fully loaded Sahara and at the time I only had 5000 miles and the best I could get on trade in for my jeep was 28,000. Original price I paid was 39,000. So after just 6 months it depreciated 30% so I highly doubt it that after 5 years it will remain the same
 
#3 ·
I'm not sure which numbers the article is using. Trading at a dealership, your price will vary. I recently traded a vehicle and was offered 40% to 65% between 2 different dealers since they are in the market to low ball offers and make as much profit as possible. I would assume (right or wrong) the values in the article are related to market values similar to what your insurance company would show if the vehicle was totaled.
 
#7 ·
things that dont count!

you don't ever get back taxes,
you don't ever get back dealer fees,
you don't get back registration/title fees,
you don't get back interest fee's.
If you feel you paid 50k, you really have to go back and look at the ACTUAL vehicle cost, this is the number before fee's, taxes etc.
Mine was $38,529 out the door, there was no dealer fee's, the tax was $500 and the title work was $189. So I paid $37,840.
Carvana's offer on my vehicle, online based on the info I supplied, 1200 miles, no defects etc was $37.585.00, I'm feeling they are fools.
Has an 06 Wrangler X, drove it 600 miles, it sat without use so I sold it 7 months later to Carmax (best offer I could get) for $17,500.
That same vehicle is selling for $16,500 now 13 years later with 100k miles.
I'm a car guy, I rarely will buy a new car due to the massive depreciation, BUT, history shows that a Jeep will alway bring more money that almost any car on the road.
A few things that may not count for the majority; I don't finance, if I dont have the cash then I can't afford it, probably why there is now Lambo in my stall.
I do not pay dealer fee's, should they wish to earn my business they wil discount the price by the amount of the fee's, if that makes them happy.
I don't pay retail, on rare occasion I will pay invoice, but normally I pay fleet invoice pricing less holdback.
Been in this game my whole life, I have learned that there are lots of cash strapped dealers who are ready to make a deal, if you paid all those fee's and feel that is what you paid, you are really confused how it really works.
 
#8 ·
you don't ever get back taxes,
you don't ever get back dealer fees,
you don't get back registration/title fees,
you don't get back interest fee's.
If you feel you paid 50k, you really have to go back and look at the ACTUAL vehicle cost, this is the number before fee's, taxes etc.
Mine was $38,529 out the door, there was no dealer fee's, the tax was $500 and the title work was $189. So I paid $37,840.
Carvana's offer on my vehicle, online based on the info I supplied, 1200 miles, no defects etc was $37.585.00, I'm feeling they are fools.
Has an 06 Wrangler X, drove it 600 miles, it sat without use so I sold it 7 months later to Carmax (best offer I could get) for $17,500.
That same vehicle is selling for $16,500 now 13 years later with 100k miles.
I'm a car guy, I rarely will buy a new car due to the massive depreciation, BUT, history shows that a Jeep will alway bring more money that almost any car on the road.
A few things that may not count for the majority; I don't finance, if I dont have the cash then I can't afford it, probably why there is now Lambo in my stall.
I do not pay dealer fee's, should they wish to earn my business they wil discount the price by the amount of the fee's, if that makes them happy.
I don't pay retail, on rare occasion I will pay invoice, but normally I pay fleet invoice pricing less holdback.
Been in this game my whole life, I have learned that there are lots of cash strapped dealers who are ready to make a deal, if you paid all those fee's and feel that is what you paid, you are really confused how it really works.
Welcome to the Forum.
 
#10 ·
I just traded my '15 2dr Sahara I purchased in 14 for 34K and got 24K on trade I thought that was pretty darn good for a vehicle I owned for 5 years granted. the mileage was very low but that's 30% depreciation
 
#11 ·
That's very good, actually. You were at $166 per month in depreciation. Nice work! I usually try to be right around $150-$200 in total depreciation month-over-month, from the moment I buy my Wranglers, to the moment I sell them, not including tax. I also do not finance my Wranglers (pay cash), so that I can keep my monthly depreciation cost at that $150-$200 per month range. I'm comfortable driving a $50k Rubicon for only $150 per month :)
 
#12 ·
For those who trade in a vehicle within the first year of ownership, no matter what the reason, you are going to take a bath.

A one year old vehicle is always going to be a drag on the used car market. Why would I pay $40,000 for a one year old vehicle when I can get a brand new one with 18 miles on the odometer for $42,000. That was an actual decision I had when I bought my 2015 Sahara. They had a 2014 Sahara with 8,000 miles on it sitting next to the 2015 I actually bought.

Note that the Fox news article was for 5 year old vehicles, not 1 year old ones. In a strange quirk of fate, that 2015 Sahara is back on my dealers lot. It had just under 20K miles when I traded it in on the Chief (without the Chief I would still be driving it). They had it on their lot at the time for $35K (I got $32K TI) and they sold it several months later. Now it's back and has 27K miles on it and they are asking $33K for it.

I was looking on the site for a used JL to look at the tail lights in another thread. I saw that Anvil Sahara and thought it looked like my old one, checked the VIN and yep, it was. But, I think the JL prices have been good for JKs on the used market.
 
#13 ·
I just read, for the first time, Wrangler's depreciation based on model. They claimed that while a Sport retains 90%, a Rubicon retains only 80%. My interpretation of this, is that general public has a feeling of the basic value of a used Wrangler, and that feeling isn't based on the original MSRP ("sticker price"). In other words, you (and I) might place a higher value on transfer case type, axle type, gears, and so on, when we go to buy a new Wrangler, many used Wrangler buyers don't. So, the basic Sport seller makes out better.
 
#14 ·
Not to be rude , BUT are you purchasing a vehicle you REALLY want to own , or are you making an INVESTMENT ? LoL , Jeeps will ALWAYS have a market no matter how TRASHED they are, ie., potential "rock crawlers" ! Investments are listed either on line or in print under " stocks and bonds" . Automobiles should not be consider a great INVESTMENT ! Believe me after 67 years of life , the highest return on a vehicle I've owned was one that had the LEAST investment potential. Just saying, buy what YOU like and DRIVE IT !!!!
 
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