[jeepers]

Jeeps are a lot of things, but they usually are not called durable or reliable, and those are the things that I would assume factor most prominently into a vehicle's projected resale value. That's why I'm surprised that the Jeep Wrangler earned the top spot for its segment (Compact SUV/crossover) in Kelley Blue Book's 2016 Best Resale Value awards. It's especially impressive when you consider how competitive that segment is right now.

I may be surprised, but I'm not complaining.

See the full list of winners here --> Subaru, Lexus Named Best Brands for Projected Resale Value for 2016

 

[gladiator]

Also not surprised, this is typically the case. I remember seeing Cherokee's from the 90's holding value well after 10-15 years. And that trend still continues today.

 

[HighRider]

It's because there aren't a lot of second hand Jeep Wranglers circulating and when there are, they are scooped up because it's so popular. That's why Jeep has a higher resale value than normal. Not surprised Jeep made it onto the list.

 

[jeepers]

But why would the new Wrangler have such high residual value? I imagine the way things are going with Jeep nowadays that they will be selling even more Wranglers than usual.

 

[gladiator]

It's because there aren't a lot of second hand Jeep Wranglers circulating and when there are, they are scooped up because it's so popular. That's why Jeep has a higher resale value than normal. Not surprised Jeep made it onto the list.

Good point and that contributes into higher pricing which sets a trend with where future wranglers that get sold as used have to be priced in line with that.

 

[Jeepernator]

This may not hold true for that much longer. Hear Jeep was selling a lot of car to fleet buyers like car rental companies. If they sell a lot of them to fleet buyers, will the larger number of wranglers in circulation not drop the resale value?

 

[HighRider]

I assume fleet companies are going to keep the Jeeps until they run it into the ground so the used Jeep market shouldn't be flooded but this is just a guess. Maybe someone who know the used jeep market better will be able to shine some light on this.

 

[gladiator]

This may not hold true for that much longer. Hear Jeep was selling a lot of car to fleet buyers like car rental companies. If they sell a lot of them to fleet buyers, will the larger number of wranglers in circulation not drop the resale value?

It's also going to depend on what models, your location, etc. Fortunately things like that take a while to have an impact on market value of these. Could be very small but consistent decline in market value

 

[Gina]

That's years down the road and good news for use Jeep Wrangler buyers. Lower prices for a used one means more funds to go towards mods and accessories.

 

[jeepers]

Do you guys take into account resale value when looking at purchasing a new vehicle? It's not something I have ever been that concerned with.

 

[gladiator]

Do you guys take into account resale value when looking at purchasing a new vehicle? It's not something I have ever been that concerned with.

That is something to factor in but it's shouldn't be a top priority for the average ownership term. No matter what you always lose when buying something that only depreciates in value. Meanwhile banks call it an asset :laugh:

Rather focus on how well it will serve me during that ownership term.

 

[Jeepernator]

Resale value is only useful if it's a collector's edition that's going to rise in price over time. Everything other car is dependent on how much I like it. Jeep reasale value doesn't really concern me.

 

[gladiator]

No it's not, not even close. Resale value is useful for those looking to reduce the risk associated with buying a car, cars are always depreciating in price and some people want to ensure they're getting the most for their money. It's why some buy used to avoid the big drop in price once the vehicle rolls off the dealer floor.

 

[HighRider]

I don't really take into account the resale value of a car when purchasing it but it will be something you research on if you want to be a used one.

 

[gladiator]

I don't really take into account the resale value of a car when purchasing it but it will be something you research on if you want to be a used one.

It varies from person to person. If you're a short term owner it doesn't matter that much, long term... it can, but over all these are always depreciating in value, it can only depreciate so much. Rather focus on what gives me the best value.

 

[jeepers]

I focus on how I'll enjoy owning the vehicle not what I'll get when I sell it. To each their own though.

 

[gladiator]

That's what most people on this forum should be focused on anyways, it is a WRANGLER forum, not Hyundai Santa Fe forum

 

[max]

Residual values

Residual values are a key factor in lease costs and loan risk assessment.

High SUV/truck sales and used residual values at present are demand driven due to:

1. low gas prices

2. low interest rates

3. huge growth in aggregate auto loans

Aggregate auto loans now total $1Trillion. A third of that is subprime and loan periods have been extended to up to 84 months ... on depreciating assets! What could possibly go wrong?

There is an element of pent up demand from postponed purchases during the 2008-2012 period but most of the high SUV/truck invoice and used prices are due to those three unsustainable factors.

The experience of the last few years is unlikely to be a valid indication of future used SUV/truck values.

 

[gladiator]

Scary situation and then there's the whole student loan thing which last I checked was also into the trillion dollar mark. patiently waiting for the bubble to burst.